Auto Components Suppliers End Fiscal Year 2026 on Record Highs Amid Global Turbulence

India's Auto Component Sector Posts Record Revenues and Double-Digit Growth

India's leading auto component, battery, and tyre manufacturers closed the fiscal year 2026 (FY26) on a strong note, with companies reporting record revenues, double-digit growth, and improved profitability in the March quarter. The sector's turnaround was driven by a sharp rebound in domestic demand, government-led stimulus measures, and a revival in vehicle production.

A review of earnings calls by Exide Industries, Bosch, Apollo Tyres, Bharat Forge, and Samvardhana Motherson International reveals that while geopolitical tensions in West Asia and commodity inflation weighed on costs, most companies witnessed their strongest quarters on record. Despite the challenges, the sector entered FY27 with healthy order books and expansion plans.

The March quarter marked a significant turnaround for the sector after disruptions seen earlier in FY26 following the GST 2.0 transition. Strong rural demand, higher vehicle production, infrastructure spending, and improved consumer sentiment drove growth across passenger vehicles, commercial vehicles, tractors, and two-wheelers.

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Key Highlights from the Sector

• Exide Industries reported its highest-ever quarterly revenue in Q4 FY26, with overall revenue growing 9.4 percent year-on-year.
• Bosch delivered a strong quarter, with revenue from operations rising 13.3 percent year-on-year to and EBITDA increasing 20.8 percent.
• Apollo Tyres posted one of its strongest performances in recent years, with consolidated revenue rising nearly 14 percent in Q4 and EBITDA margin improving to 14.6 percent.
• Bharat Forge reported sequential recovery in Q4, helped by stronger exports and domestic automotive demand.
• Samvardhana Motherson reported its highest-ever quarterly and annual revenues, with Q4 revenue growing 17 percent year-on-year and EBITDA jumping 42 percent.

Common Themes and Challenges

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• Geopolitical tensions in West Asia had a significant impact on the sector, with higher freight rates, rising energy prices, commodity inflation, and supply-chain uncertainties arising from the conflict.
• Companies largely managed to protect margins through pricing actions, operational efficiencies, and higher capacity utilization.
• Domestic demand remained resilient despite global uncertainty, with management teams noting that the sector is well-positioned for future growth.

Looking Ahead

• Management commentary suggests cautious optimism for FY27, with most companies expecting domestic demand to remain healthy, supported by infrastructure spending, rural recovery, and vehicle replacement demand.
• However, commodity inflation and geopolitical risks remain key variables that could influence margins in the coming quarters.