Auto sector Q1FY27 revenue to stay healthy, but margins likely to lag amid input cost inflation: Report
New Delhi, July 6 -- India's auto sector is expected to report a sharp rise in first-quarter FY27 revenue, driven by strong industry demand and pricing gains, but margin pressure from higher input costs following the West Asia conflict is likely to cap EBITDA growth at 10 per cent, says Nuvama Institutional Equities.
As per the report, while most OEMs and ancillaries are expected to post healthy double-digit growth supported by strong volumes and favourable currency movements, performance will be uneven across the auto sector.
Select two-wheelers and certain ancillaries are expected to outperform, whereas some passenger vehicle (PV) players and tyre-linked names may see margin pressure due to cost inflation and lower scale effects.
As ...
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