Automobiles – Oct-Dec’25 Earnings Preview – Reaping benefits from GST 2.0 but with cost pressure
Published on 08 Jan 2026
The euphoria after the GST 2.0 rate rationalization and improved rural sentiments kept the industry buoyed during and post-festivities as wholesale volumes grew strongly in Q3FY26 across all segments. Good Kharif harvest and improved Rabi sowing acreage helped increase rural cashflows. Benign inflation and reduced policy rates helped ease financing options. New model launches/ facelifts, improved realization and sustained exports growth with a weaker INR aided revenue growth for most of the OEMs. While raw material costs further inched up, the impact is expected to spill over more to upcoming quarters and only partially impact margins in Q3FY26. Top picks from our coverage are TVS, M&M and HMCL.
