New Delhi, July 8 -- The automobile sector is likely to post another quarter of strong revenue growth in Q1FY27, driven by robust demand across passenger vehicles, two-wheelers, commercial vehicles and tractors, along with an improved product mix. However, profitability is expected to remain under pressure due to rising commodity costs following the West Asia conflict, according to a Q1FY27 earnings preview report by Nuvama Institutional Equities.

The brokerage estimates aggregate revenue for its auto coverage universe (excluding Tata Motors' passenger vehicle business) to grow 22% year-on-year, while EBITDA is expected to rise only 10%, as higher raw material costs weigh on margins.

According to Nuvama, the domestic passenger vehicle (...