Auto & Ancillaries

The Indian auto sector is demonstrating robust growth, led by record sales and exports from Maruti Suzuki, alongside strong quarterly performance from Atul Auto and Force Motors. Maruti Suzuki reported record annual sales of 2.42 million vehicles and exports of 447,774 units in FY26, alongside a ₹140 dividend and significant capacity expansion plans. Meanwhile, Atul Auto saw a 45% revenue increase in Q1 FY27, while Force Motors reported a 14% profit increase. However, Escorts Kubota cautioned about margin pressures due to commodity cost inflation stemming from geopolitical tensions, highlighting a potential risk for the sector. Investors should monitor both growth momentum and the impact of inflationary pressures on profitability as the industry expands.