New Delhi, Aug. 20 -- Automobile companies posted muted revenue and operating profit growth in Q1 FY26, with margins under pressure. However, OEMs remain optimistic, citing long-term growth drivers such as India's expanding road network, policy support for supply chains, the vehicle scrappage policy, lower interest costs, and continued infrastructure capex.

Axis Securities is selective in its outlook. Its top conviction ideas include Hero MotoCorp and Bajaj Auto in two-wheelers, Ashok Leyland in commercial vehicles, and Mahindra & Mahindra (M&M) in passenger vehicles and tractors, supported by its strong SUV portfolio and tractor leadership. The brokerage also suggests a 'Buy on Dips' strategy for TVS Motor Company and Maruti Suzuki Indi...