Automobiles – Jan-Mar’26 Earnings Preview – Shifting to top gear amid supply chain risks
Published on 09 Apr 2026
Q4FY26 saw double-digit wholesale volume growth as sentiments remained positive post GST 2.0 rationalization, earlier festivities, wedding season, easier financing, growth in overall economy, and improved rural sentiments driven by good rainfall. Retail demand remained intact even as most OEMs hiked prices, usually done every new CY, with indication of taking further hikes if RM and fuel prices remain inflated. Improved scale and mix, new model launches/ facelifts, and sustained exports with INR depreciation further helped topline. The impact of geopolitical tensions was very limited for the quarter, although uncertainty looms from supply chain constraints and higher costs in case of prolonged crisis that can also lead to production cuts and margin drop (more so in Q1FY27 due to hedging contracts) if the OEMs absorb the costs partially. Top picks amongst our coverage are M&M, TVS and HMCL.
