GST Revision 2025: 2 Growth Stocks To Benefit From GST Reforms

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“GST revision 2025 may cut rates to 18%, boosting demand. See how 2 companies Maruti Suzuki and JK Cement could benefit from lower tax slabs and stronger growth.”

GST Revision 2025: Impact on Maruti Suzuki & JK Cement

The government’s proposed GST reform could reshape industries by reducing multiple tax slabs into three brackets: 5%, 18% and 40% (luxury/sin goods). This simplification may directly influence consumer affordability, demand, and corporate growth. Two companies likely to benefit from these changes are Maruti Suzuki India and JK Cement.

GST Cut Impact on Consumers

Lower GST on essential and mass-market categories means cheaper products and services, improved affordability, and rising demand. For sectors like automobiles and cement, the multiplier effect of reduced taxes could accelerate sales volumes, profitability, and market expansion.

Maruti Suzuki India: Driving Growth with Lower GST

Currently, passenger vehicles are taxed at 28% GST. If revised to 18%, car prices may fall by 8%, boosting sales by 5–10%.

• Market Leadership: With ~40% share in India’s passenger vehicle market, Maruti Suzuki is well positioned.
• Product Portfolio: Hatchbacks, SUVs, MPVs, vans, and a strong 35% CNG mix in FY25.
• Financials:
  • 20% sales CAGR in 3 years.
  • 72% profit CAGR over the same period.
  • Q1 FY26 revenue at ₹38,865 Cr (+7.9%), but operating profit fell 9.5% due to higher costs.
• Growth Outlook:
  • Exports set to grow 20% in FY26.
  • Strong SUV pipeline with EV focus (targeting 4 BEVs by FY31).
  • ₹10,000 Cr capex planned for FY26.

While expenses and margin pressure remain challenges, the GST cut on cars could be a game-changer for boosting affordability and volumes.

JK Cement: Building Strength with Lower GST

Cement, previously taxed at 28%, may now fall under 18% GST, reducing prices by 7–8%.

• Business Segments:
  • Grey Cement (81% revenue, FY26 Q1).
  • White Cement (19% revenue, second largest in India).
  • Paints (expansion stage, ₹86 Cr Q1 FY26).
• Financials:
  • 15% sales CAGR (5 years).
  • Q1 FY26 revenue ₹3,353 Cr (+19.5%).
  • Operating profit margin expanded to 20.5%.
  • Net profit jumped 75% to ₹324 Cr.
• Growth Drivers:
  • Capacity expansion to 32 MTPA by FY26.
  • Focus on cost efficiency & green power mix (target 75% by 2030).
  • Aggressive capex of ₹2,000 Cr in FY26.

Despite risks like seasonal demand weakness and competitive pricing pressure, GST cuts could improve affordabilityand sustain volume growth.

Final Words

The GST revision is a big sentiment boost for consumer-facing and infrastructure-driven sectors. Maruti Suzuki could see accelerated car sales from affordability gains, while JK Cement stands to benefit from lower tax incidence and cost efficiencies.

However, the real impact depends on how quickly the proposed GST structure gets implemented and how demand responds across sectors.

👉 Which company do you think will benefit the most from this GST change—Maruti Suzuki or JK Cement? Share your thoughts in the comments.

Disclaimer: This article is for educational purposes only and should not be considered financial advice. Please consult your financial advisor before making investment decisions.

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