Q2 results preview: Robust volumes likely drove auto sector growth

But margins may have lost traction due to higher discounts, ad spends

The automobile sector is expected to post revenue growth in the range of 9–12 per cent in the second quarter of the 2025-26 financial year, driven by strong volumes following GST reforms and improved realisations, according to analysts.

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) growth is forecast at 10-11 per cent by most brokerages. Revenue growth would be underpinned by low-to-mid single-digit industry growth across two-wheelers, passenger vehicles (PVs), and commercial vehicles (CVs), complemented by double-digit gains in tractors.

 

Among segments, domestic tractor volumes rose 31 per cent year-on-year, CVs by 10 per cent and two-wheelers by 9