Auto ancillary firms' revenue grew 11% CAGR 2016-26: Report

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.