Two-wheeler volume growth likely to drive profit for auto sector in Q1

OEMs may post 9-10% revenue growth for June quarter

During the first quarter of the financial year (FY25), retail growth lagged wholesales, and analysts see original equipment makers (OEMs) posting 10 per cent volume growth, led mainly by two-wheelers.

Around 9-10 per cent revenue growth is estimated, with 14-17 per cent growth in earnings before interest, taxes, depreciation and amortisation (Ebitda). Profit after tax growth is expected in the range of 18 per cent during Q1.

Motilal Oswal analysts noted that automobile OEMs overall are expected to post a 10 per cent year-on-year (Y-o-Y) growth.

Two wheelers are set to grow by 11 per cent, followed by passenger vehicles