Listed auto ancillary companies posted 11% CAGR revenue growth between FY16 and FY26.
Sector revenues rose to about ₹5 lakh crore, nearly three times the FY16 level.
Exports more than tripled over the decade and became a major growth driver.
The revenue of listed auto ancillary companies grew at a compound annual growth rate (CAGR) of 11% during FY16-26, according to a report by Equirus Securities.
Sectoral revenues during the period rose nearly three-fold to about ₹5 lakh crore during the period, according to the report.
It noted that exports have more than tripled over the past decade and have emerged as an important contributor to industry growth alongside rising vehicle content and premiumisation trends.
1 June 2026
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The sector entered FY27 with its strongest balance sheet position in a decade, it said, adding net debt-to-EBITDA improved to 0.18 times in FY26 from 0.49 times in FY22, aided 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", which was released recently, analyses the performance of 52 listed auto ancillary companies and outlines key themes expected to shape the sector's growth trajectory over FY27-30.
According to the report, 28 of the 52 companies under its coverage outperformed the sector's average revenue growth, while the performance varied widely across companies and segments despite the sector's overall growth.
The Equirus report also said these companies are expected to deliver a CAGR of 21% in profit after tax (PAT) during FY26-28.
Among segments, body and glass was identified as one of the most attractive opportunities, with an estimated 30% PAT CAGR over the period, it said.
The report identified diversification as one of the most important drivers of long-term growth.
