Blitz Bureau
NEW DELHI: India’s listed auto ancillary sector has nearly tripled its revenues to about Rs 5 lakh crore over the past decade, an 11 per cent compound annual growth rate (CAGR) during FY16-26, a report said on June 11.
The report from Equirus Securities forecasted the sector to remain on a strong growth trajectory, with a 21 per cent profit CAGR during FY26-28, supported by rising vehicle content, premiumisation trends, export opportunities and growing adoption of electric vehicles.
Among various segments, Body & Glass emerged as one of the most attractive opportunities for the coming years, with the report estimating a 30 per cent profit CAGR over FY26-28.
Electricals & Lighting and Suspension & Chassis were also highlighted as preferred segments due to their exposure to long-term structural growth drivers.
The report noted that while the industry delivered strong overall growth over the last decade, performance varied considerably across segments.
Electricals & lighting emerged as the fastest-growing category with a 17 per cent revenue CAGR, while batteries lagged the broader industry with 8 per cent growth. Body & glass recorded a 12 per cent CAGR during the period.
The report found that 28 of the 52 companies under coverage outperformed the sector’s average revenue growth during FY16-26.
Companies that outperformed the industry average had diversification as their defining characteristic. Businesses that expanded through acquisitions, product additions, new customers and geographical expansion consistently generated stronger growth than peers dependent on a single growth lever.
