Nuvama projects strong Q2 auto revenue despite margin pressures

Nuvama Institutional Equities expects aggregate revenue for its auto coverage, excluding Tata Motors PV, to grow 27% year-on-year in the September quarter.

Domestic passenger vehicle volumes surged nearly 30% year-on-year, and commercial vehicle volumes rose approximately 28%, driven by robust industry demand and price hikes.

Aggregate EBITDA growth is forecast to trail at 10% due to cost inflation from higher commodity prices, wage inflation, and freight rates.