Key facts
- Listed auto ancillary companies saw an 11% CAGR in revenue from FY16-26.
- Total sectoral revenues grew to approximately Rs 5 lakh crore.
- Exports have more than tripled over the last decade.
- Net debt-to-EBITDA improved significantly, reaching 0.18 times in FY26.
- Profit after tax is projected to grow at a 21% CAGR from FY26-28.
- The body and glass segment is expected to achieve a 30% PAT CAGR.
The revenue of listed auto ancillary companies grew at a compound annual growth rate (CAGR) of 11 percent from FY16 to FY26, according to a report by Equirus Securities. Sectoral revenues nearly tripled to about Rs 5 lakh crore during this period.
Exports have more than tripled over the past decade and have become a key contributor to industry growth, alongside rising vehicle content and premiumization trends. The sector entered FY27 with its strongest balance sheet position in a decade, with net debt-to-EBITDA improving to 0.18 times in FY26 from 0.49 times in FY22, supported by stronger cash flows, lower leverage, and better working capital management.
The report, titled "Ten Years of Growth, Three Lessons and Where to Look Next," analyzed 52 listed auto ancillary companies. It forecasts that these companies will deliver a CAGR of 21 percent in profit after tax (PAT) during FY26-28. Among specific segments, body and glass was identified as a particularly attractive opportunity, with an estimated 30 percent PAT CAGR over the period. Diversification was highlighted as a crucial driver for long-term growth.