Auto shares in fast lane; Eicher, Lumax, Pricol rally up to 7%; here's why

Auto companies share price today

 

Shares of automobiles including auto ancillary and tyre companies were in demand, soaring up to 7 per cent on the BSE in Wednesday’s intra-day trade on the back of strong earnings and healthy business outlook.

 

Eicher Motors, Banco Products (India), Lumax Auto Technologies, Pricol, Lumax Industries, Shriram Pistons & Rings, Samvardhana Motherson International, Rolex Rings and Sansera Engineering rallied in the range of 5 per cent to 8 per cent in intra-day trade.

 

TVS Motor Company, Mahindra & Mahindra, Ashok Leyland, Tata Motors Passenger Vehicles, JK Tyre, Craftsman Automation and MRF gained between 1 per cent and 3 per cent.

 

Meanwhile, Ashok Leyland, Force Motors, Tata Motors, Lumax Auto Technology, Lumax Industries, Sansera Engineering and Craftsman Automation also hit their respective all-time highs. 

 

At 10:51 AM; the BSE Auto index was the top gainer among sectoral indices, up 2 per cent, as compared to 0.07 per cent rise in the BSE Sensex. The auto index hit an intra-day high of 63,852.45. It had touched an all-time high of 64,584.14 on January 5, 2026.

 

In the past six months, BSE Auto index has outperformed the market by surging 20 per cent, as against 4.6 per cent rise in the BSE Sensex. 

 

What’s driving auto related stocks on Wednesday?

 

Shares of Eicher Motors surged 7 per cent to hit a new high of ₹7,803 in intra-day trade after the company’s Q3FY26 standalone earnings before interest, taxes, depreciation and amortisation (EBITDA) margin came in at 26.6 per cent, 160bps higher than analyst’s estimates.

 

Analysts at Choice Institutional Equities upgraded its rating on Eicher Motors to ‘ADD‘ from REDUCE’ considering sustained broad-based growth across Royal Enfield (RE) and VECV, supported by capacity expansion, improving operating leverage and a strong product pipeline. The brokerage firm believes growth momentum would remain intact while heading into Q4FY26E, led by strong demand in sub-350cc motorcycles and sustained recovery in commercial vehicles.

 

Marketing/brand building efforts and regular product interventions have been driving the outperformance for RE in the domestic market. Retail growth in most international markets also remains healthy. Eicher Motors reiterated its focus on driving absolute profit growth; thus, higher marketing spends/aggressive pricing strategy to drive growth could continue, according to analysts at ICICI Securities. 

 

Share price of Lumax Industries hit a new high of ₹6,588, soaring 7 per cent in intra-day trade. In the past two weeks, the stock price of the auto parts company has zoomed 28 per cent after the company reported a robust quarterly performance, with revenue growing by 18.7 per cent to ₹1,053 crore, marking its highest-ever quarterly revenue. Profitability improved with EBITDA standing at ₹112 crore, a growth of 57.2 per cent on a year-on-year basis with strong margins of 10.6 per cent.

 

The management said the industry environment remains supportive, aided by recent GST rate cuts and income tax relief measures, which are improving consumer sentiment and driving volume growth. Looking ahead, the management remains confident in the company’s growth outlook, supported by a strong order pipeline, favorable industry conditions, and continued focus on technology, premium products, and operational discipline.

Kotak Institutional Equities view on Auto sector

 

In January 2026, the auto sector continued to report a robust set of wholesale volumes, with all the segments reporting a strong set of numbers. All auto segments’ wholesale volumes grew in strong double digits, driven by GST cuts and improved consumer sentiment, analysts at Kotak Institutional Equities said.

 

Retail trends remained strong across most segments, suggesting sustained momentum after the festive season. The export segment continued to witness strong traction across the CV, tractor and 2W segments. Most OEMs reported numbers ahead of the brokerage firm’s expectations, it said.  ========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.