Auto stocks rally on strong July sales, positive Q1 earnings
What's the story
Shares of major automakers in India witnessed a major spike today, after strong July sales and positive Q1 earnings. The Nifty Auto index has jumped over 1.5%, making it the top sectoral gainer today. The rally comes after a period of decline triggered by trade issues affecting the auto stocks.
Market leader
Hero MotoCorp shares jump after robust July sales
Hero MotoCorp led the market surge with a 3.4% jump in its share price to ₹4,458 per share. The company reported selling 4.5 lakh units in July, a whopping 21% increase from last year. Motorcycle sales rose by almost 18% to four lakh units while scooter sales jumped over 64% to 49,140 units during this period.
Corporate performance
TVS Motor Company reports 35% rise in net profit
TVS Motor Company's shares also rose by over 3%, trading at ₹2,954 per share. The company reported a 35% year-on-year rise in net profit to ₹779 crore for Q1 FY26. Its operating EBITDA also rose by 32% to ₹1,263 crore during this period. Tube Investments of India saw its shares jump by 3% to trade at ₹2,898 per share despite a 12% on-year fall in net profit for Q1 FY26.
Market response
Eicher Motors, Ashok Leyland shares gain over 2% each
Eicher Motors and Ashok Leyland's shares both gained over 2% each. The two companies reported a 31% and 4% YoY rise in monthly sales for July, respectively. Other companies such as Bosch, Bharat Forge, and Samvardhana Motherson saw their shares gain nearly 2%, while Mahindra & Mahindra's shares rose by 1.4%.
Stock performance
Bajaj Auto, Exide India
Bajaj Auto and Exide India's shares both witnessed a rise of over 1% each. Bajaj Auto's total sales in July grew by only 3% YoY to 3.66 lakh units, while domestic sales fell by 13% YoY to 1.83 lakh units during the month under review. Tata Motors' domestic sales fell by 6% YoY to 65,953 units in July while commercial vehicle sales grew 7% YoY during this period.