Brokerages expect double-digit recovery for Indian automakers after five weak quarters

Brokerages project India’s automaker sector will see 10-17 % year-on-year revenue growth and ~15 % profit growth in Q2 FY26, ending five consecutive quarters of sluggish results. The recovery drivers include strength in two-wheeler and tractor segments, improved exports, lower shipping costs and tax cuts announced in September. However, passenger-vehicle sales remain soft, with expected 1.5 % decline and margin pressure due to new launches and higher costs. Autos may lead the next leg of India’s cyclical rebound.