But its operating margin, a key gauge of efficiency, eased to 11.5 percent during the quarter, tripping up its shares on fears pressure on margins will continue in the coming quarters.
Shares in Maruti, 54.2 percent owned by Japan's Suzuki Motor Corp, fell 3 percent to 515.45 rupees in a weak market.
The New Delhi-based firm said net profit for the fiscal second quarter to September 30 rose to 2.62 billion rupees ($58 million) from 1.84 billion rupees a year earlier. Net sales rose 16 percent to 30.26 billion rupees from 26.14 billion. That beat a median profit forecast of 2.43 billion rupees and was in line with a sales forecast of 30.36 billion rupees from 13 brokerages polled by Reuters.
"It is a good set of numbers, but operating margin has fallen, and there is also concern about the pace of growth in the passenger car segment overall," said Ramnath S., an analyst at SSKI Securities.
Maruti makes top-selling models such as the mini Maruti 800 and the Alto hatchback, and its cheap, fuel-efficient cars are often the first Indian families buy.
The Swift hatchback, launched in May, has helped boost Maruti's share of the fast-growing compact segment, where it competes with Hyundai's Getz and Fiat's Palio. Maruti is also preparing to launch diesel cars in 2007, an area where Tata Motors Ltd has a head start.
"We have improved our marketshare and the Swift is seeing strong sales," Managing Director Jagdish Khattar told a television news channel. "But our material cost has grown, particularly on the Swift and the Alto."
Full-year net profit for Maruti, which has more than half India's passenger vehicle market, is expected to rise 23 percent to 10.5 billion rupees, according to Reuters Estimates.
The Indian government, which owns 18.28 percent of Maruti, has said it would go ahead with a planned 8 percent stake sale in the year to March to raise 9-10 billion rupees.
Shares in Maruti, valued at $3.5 billion, gained 20 percent in July-September, in line with the benchmark index, but lagging a 25 percent rise in the sector index.
Maruti's vehicle sales rose 8 percent in July-September to 140,540 units from a year ago. Vehicle sales in July were hit by heavy rains in the western region, a major market.
The Swift is selling at 5,000 units a month, and Maruti also launched a new variant of the Alto, India's top-selling car, as it steers consumers toward its more premium brands.
Indians have been lining up to buy new cars as a buoyant economy boosts middle-class incomes and loans hover at their cheapest in nearly 30 years in Asia's third-biggest economy.
But vehicle makers have been faced with the high cost of raw materials such as steel, plastics, aluminium and rubber. They were also hit from April by new pollution standards and a value-added tax, which have nudged up prices.
Maruti said domestic market share grew to 55.5 percent, helped by Swift, and its cost of raw materials and components rose 1 percent in the quarter, - or much less than rivals faced, as it managed to keep costs under control.
Tata Motors, the third-biggest car maker and the leader in buses and trucks, on Tuesday reported a lower-than-expected 9.4 percent rise in net profit to 3.38 billion rupees.
Maruti raised prices on most models in April-June and again in October, and said another price revision may be imminent.
The company is well placed for growth in India, where only 8 in 1,000 people own a car, compared with 35 in Thailand and 450 in developed markets. But it is facing increasing competition.
Mahindra & Mahindr will begin making the Logan sedan from 2007 in a joint venture with France's Renault, while Tata Motors and Fiat are looking at a possible partnership for research, production and distribution.