Market News
Indian Auto Sector Q4 FY26 Profits Beat Estimates; M&M, TVS Top Picks
Published 2026-06-04 · Bazaar Watch Research
- Indian auto OEMs (excluding Tata Motors PV) reported 22% year-on-year volume growth in Q4 FY26.
- Aggregate revenue grew 24.1% YoY, and EBITDA increased 26.1% YoY, with margins rising 30 bps to 15.7%.
- Strong volume growth across two-wheelers, PV, CV, and tractors, partly aided by Maharashtra subsidies, drove performance.
- Price hikes by OEMs and lower discounts helped offset commodity headwinds and boost overall profitability.
- Mahindra & Mahindra (M&M) and TVS Motor Company are highlighted as top picks by Kotak Institutional Equities.
- Tata Motors PV, especially its JLR luxury car subsidiary, faced headwinds due to weakening global demand.
- Consider researching M&M and TVS Motor as potential investments, given their analyst "top pick" status.
- Be aware that profitability trends for the auto sector are expected to worsen in the first half of FY27.