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Maruti, Hero, TVS, Bajaj, Eicher seen posting strong growth: Auto sector Q2 preview

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Maruti, Hero, TVS, Bajaj, Eicher seen posting strong growth: Auto sector Q2 preview

Maruti, Hero, TVS, Bajaj, Eicher seen posting strong growth: Auto sector Q2 preview

Strong volumes, premiumisation, EV adoption and improved affordability are expected to drive growth, while higher commodity costs and supply-chain disruptions could weigh on margins, notes Axis Securities.

Heading into the quarterly results season, Axis Securities named TVS Motor Company, Bajaj Auto and Ashok Leyland among its top OEM earnings plays.

India's leading automakers are set to post steady top-line numbers in the second quarter of FY27, even as rising input costs test their operating margins. In its Q2FY27 earnings preview note, Axis Securities projected that original equipment manufacturers (OEMs) under its coverage will deliver roughly 28 per cent year-on-year (YoY) revenue growth and 12 per cent YoY profit after tax (PAT) growth. This momentum is backed by strong demand momentum, the ongoing premiumisation trend, rising EV adoption, and improving consumer affordability following GST 2.0. Advt

Top plays by Axis Heading into the quarterly results season, Axis Securities named TVS Motor Company , Bajaj Auto and Ashok Leyland among its top OEM earnings plays, alongside Mahindra & Mahindra (M&M) as a non-coverage pick. While double-digit volume growth across the two-wheeler and passenger vehicle segments continues to drive revenues, margins face near-term headwinds. Axis noted that profitability will likely remain constrained by elevated raw material and commodity costs, as well as supply chain disruptions amid geopolitical uncertainties. 7 per cent QoQ to ₹16,222 crore, up from ₹13,896 crore in Q1FY27 and ₹11,905 crore in Q2FY26.



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