11 Auto Stocks In Focus Ahead Of Q1 Results; Maruti Suzuki, TVS Motor, Minda Corp. Among Top Picks

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Axis Securities Report

Automobile companies are expected to report healthy YoY earnings growth in the June quarter, supported by strong demand momentum and double-digit volume growth across key vehicle segments according to Axis Securities. However, Ebitda is likely to decline sequentially due to higher raw material and commodity costs.

While margins should benefit from a richer product mix and operating leverage, these gains are expected to be partly offset by elevated input costs and potential disruptions in the supply of crude oil and natural gas amid geopolitical tensions in West Asia.

Consequently, margin visibility for Q1 FY27 remains constrained by supply chain uncertainties and input cost inflation.

Among OEMs, Maruti Suzuki, Eicher Motors, TVS Motor and Bajaj Auto are Axis Securities' preferred earnings plays. The brokerage also remains positive on Minda Corporation, Steel Strips Wheels and Sansera Engineering within the auto ancillary space. 

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