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Festive demand and tax tweaks expected to support auto sector earnings
Auto companies are likely to benefit from festive demand and GST adjustments, supporting Q3 earnings recovery across key vehicle segments.
India’s auto sector is expected to report improved Q3 FY26 earnings as festive season demand, combined with selective GST relief, supports volume recovery. Analysts highlight two wheeler and passenger vehicle segments as key beneficiaries of stronger retail momentum. Margin expansion may also be aided by easing input costs and operating leverage. Market participants are watching management commentary for guidance on demand sustainability into the next fiscal year.