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Informist, Tuesday, Aug. 25, 2026

 

By Pratyush Kumar

 

MUMBAI – The net profit of 15 automobile and ancillary companies that are part of the Nifty 200 index fell on-year in the June quarter, mainly due to a sharp decline in profit of Tata Motors Passenger Vehicles Ltd., continued increases in commodity prices, and companies' inability to fully pass on higher input costs. These 15 companies underperformed the Nifty 200 on both revenue and net profit growth in the June quarter.

 

The combined net profit of the 15 companies fell 7% on year and nearly 25% on quarter. The bottom-line performance was worse than analysts' expectation of a 3% on-year decline. This was the second-worst performance in the past 13 quarters, after net profit declined 30% in the December quarter. In the year-ago quarter, the combined net profit of these 15 companies grew 44% on year. The decline in the June quarter was in contrast to the 9% growth in net profit of Nifty 200 companies. The sales of these companies recorded strongest growth in the past four quarters after an on-year rise of 69% in Apr-Jun last year. These companies have been reporting a sales growth for the past 24 quarters.

 

In absolute numbers, the combined net profit of 15 automobile and auto component companies was INR 208.5 billion on revenues of INR 3.4 trillion in the June quarter. After adjusting for one-time cost and income, the group's net profit grew 1% on year in the June quarter. Sequentially, adjusted net profit fell more than 25%. The adjusted net profit growth was significantly lower than the 31% year-on-year growth recorded in the same quarter last year.

 

Samvardhana Motherson International Ltd. was the top contributor to the combined net profit of the 15 companies, while Tata Motors Passenger Vehicles Ltd. was the biggest drag on profit. The combined sales were boosted by higher contribution from TVS Motor Co. Ltd., while Hyundai Motor India Ltd. dragged down sales.

 

Of the 15 automobile and ancillary companies, 11 reported better net profit than the group. These companies are Bajaj Auto Ltd., Eicher Motors Ltd., Mahindra & Mahindra Ltd., Samvardhana Motherson International, Tata Motors Ltd., TVS Motor, Bharat Forge Ltd., Exide Industries Ltd., Hero MotoCorp Ltd., MRF Ltd., and Ashok Leyland Ltd.

 

The combined revenue from operations of the 15 automobile and ancillary companies grew more than 19% on year in the June quarter, above analysts' estimates. The combined revenue growth was much lower than the 69% growth recorded in the year-ago quarter but higher than the 17% increase in the previous quarter.

 

Revenue growth of the 15 companies was slightly lower than that of the Nifty 200 companies, whose revenue grew nearly 22% on year in the June quarter. Revenue growth of Bajaj Auto, Eicher Motors, Mahindra & Mahindra, Maruti Suzuki India Ltd., Bosch Ltd., Tata Motors, TVS Motor, and Hero MotoCorp exceeded the group's combined revenue growth. Eight companies exceeded analysts' expectations, three missed them, and four were in line.

 

PERFORMANCE

Gurgaon-based multinational carmaker Hyundai Motor India was the only company among the 15 automobile and ancillary companies to report a decline in net sales in the June quarter. The company's exports fell 20% on year to 38,708 units, hit by supply disruption caused by a fire at one of its suppliers' facilities. As a result, exports' contribution to revenue declined by nearly three percentage points to 24%. Exports are expected to rise from July on the back of higher backorders, and the company expects more orders from Italy, Mexico, and Central and South America, it told analysts in a post-earnings call with analysts.

 

Tata Motors PV's British subsidiary Jaguar Land Rover Automotive PLC performed poorly in the June quarter, dragging down the bottom-line and overshadowing the strong performance of its domestic business. Tata Motors PV reported consolidated net profit of INR 7.75 billion, down 80% on year. Its revenue grew 9% on year to INR 958 billion. JLR's earnings were hit by temporary supply constraints following a fire at a component supplier's unit, as well as the war in West Asia. JLR accounted for 80% of Tata Motors PV's revenue.

 

Auto ancillary company Samvardhana Motherson reported the strongest profit growth among the 15 companies, with net profit rising 70% on year to INR 10.32 billion. The company reported revenue from operations of INR 349.12 billion for the June quarter.

 

The two-wheeler makers Bajaj Auto, Hero MotoCorp, and TVS Motor reported sales growth between 35% and 37%. TVS Motor's net profit rose more than 51% on year to INR 11.74 billion, while net sales rose nearly 38% to INR 138.96 billion.  

 

Auto ancillary companies saw a sharp increase in sales in the June quarter, driven by continued demand following goods and service tax cuts and higher production by carmakers. Of the four auto ancillary companies that are constituents of the Nifty 200, two reported higher net profit in the June quarter, while two reported a year-on-year decline. However, all four companies reported a year-on-year rise in net sales between 10% and 22%.

 

MARGIN PRESSURE

The auto companies saw higher costs of commodities such as steel, rubber, and copper during the quarter, Motilal Oswal Financial Services Ltd. said in a report. Two-wheeler majors saw minimal impact on margins in the June quarter, but passenger vehicle makers were hit hardest as they were unable to fully pass on higher input costs to consumers, the brokerage added.

 

Five of the 15 automobile and ancillary companies are also part of Nifty 50. Their combined net profit fell 6% on year despite revenue growth of over 20%, whereas the benchmark's net profit rose 13% on revenue growth of nearly 20%.

 

The following table shows the performance of the 15 automobile and ancillary companies in the Nifty 200 index vis-a-vis the consensus estimate for each company as well as the consensus estimate for the sector and the Nifty 200:

 

Apr-Jun 2026-27 (Apr-Mar)	PAT growth (Actual)	PAT growth (Estimate)	Revenue growth (Actual)	Revenue growth (Estimate)
Nifty 200 (YoY)	8.60%	(-)6.02%	21.12%	18.67%
Automobile, auto ancillary companies (15 in all)	(-)7.25%	(-)3.01%	19.33%	17.38%

 

Company	PAT beat analysts' estimate for co	PAT growth %	PAT growth estimate %	PAT beat auto sector growth	PAT beat Nifty 200 growth	Revenue beat analysts' estimate for co	Revenue growth %	Revenue growth estimate %	Revenue beat auto sector growth	Revenue beat Nifty 200 growth
Ashok Leyland	YES	2.59	(-)0.21	YES	NO	NO	10.43%	11.73%	NO	NO
Bajaj Auto	YES	42.31	32.99	YES	YES	YES	37.02%	35.47%	YES	YES
Bharat Forge	NO	(-)5.06	14.66	YES	NO	MET	11.53%	11.57%	NO	NO
Bosch	NO	(-)37.1	3.74	NO	NO	YES	22%	14.71%	NO	NO
Eicher Motors	YES	21.35	14.51	YES	YES	YES	31.55%	26.20%	YES	YES
Exide Industries	YES	27.09	6.18	YES	YES	YES	17.63%	10.91%	NO	NO
Hero Motocorp	YES	29.21	11.27	YES	YES	YES	35.70%	30.18%	YES	YES
Hyundai Motor India	YES	(-)35.1	(-)37.8	NO	NO	YES	(-)0.48%	(-)1.06%	NO	NO
Mahindra and Mahindra	YES	6.82	4.23	YES	NO	MET	22.89%	22.25%	YES	YES
Maruti Suzuki India	YES	(-)10.8	(-)14.37	NO	NO	MET	35.92%	36.08%	YES	YES
MRF	NO	(-)2.04	6.54	YES	NO	NO	9.67%	14.32%	NO	NO
Samvardhana Motherson	YES	70.28	50.69	YES	YES	YES	16.65%	14.34%	NO	NO
Tata Motors PV	NO	(-)80.6	(-)51.11	NO	NO	YES	9.26%	5.47%	NO	NO
Tata Motors Ltd.	YES	8.29	(-)5.69	YES	NO	MET	23.26%	24.08%	YES	YES
TVS Motor Co.	YES	51.35	30.66	YES	YES	YES	37.84%	34.88%	YES	YES

 

End

 

Data compiled by Vinod Bhovad

Edited by Akul Nishant Akhoury

 

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