Indias automobile industry recorded its highest- ever annual sales across all major vehicle categories in FY 2025- 26, supported by GST 2.0 reforms, multiple repo rate cuts and revised income tax slabs, which improved affordability and consumer sentiment. The year also marked the first industrywide sales record since FY19, highlighting the sectors strong recovery from the pandemic- led demand slowdown.
The strong growth is strategically significant for Indias manufacturing economy as rising vehicle demand is expected to accelerate investments across auto components, EV systems, dealership networks, financing ecosystems and rural mobility markets. SIAM highlighted that the year closed on a high note despite a modest start, with positive sentiment driven by lower borrowing costs and tax relief measures. The momentum also reinforces Indias position as one of the worlds fastest- growing automobile markets, while supporting downstream growth in steel, tyres, batteries, electronics and logistics services.
The industry manufactured a total of 3,47,08,984 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and Quadricycles in April 2025 to March 2026, as against 3,10,36,333 units in April 2024 to March 2025 with an increase of 11.8% 11.8%
The sale of Passenger Vehicles has been 46,43,439 units in April- March 2026, compared to 43,01,848 units in April- March 2025, increased by 7.9% 7.9%
The overall sale of Commercial Vehicles has been 10,79,871 units in April- March 2026 compared to 9,58,514 units in April- March 2025, increased by 12.6% 12.6%
The sales of Three- wheelers has been 8,36,231 units in April- March 2026 compared to 7,41,420 units in April- March 2025, increased by 12.8% 12.8%
The Two- wheeler sale has been 2,17,05,974 units in April- March 2026, compared to 1,96,07,332 units in April- March 2025, increased by 10.7% 10.7%
The overall exports have been 66,47,685 units in April- March 2026 compared to 53,62,884 units in April- March 2025, increased by 24% 24%
Passenger Vehicles exports increased by 17.5% 17.5% Commercial Vehicles, Three Wheelers and Two Wheelers increased by 17.4% 17.4% 50.1% 50.1% and 23.4% 23.4% respectively in April- March 2026 over the same period last year.
The table below gives the year to date sales volumes of the Companys major OEMs:
| OEM | Growth Rates | FY26 | FY25 | YoY |
| Hero MotoCorp | Lacs (Vol.) | 64.69 | 58.99 | 9.7% |
| TVS Motors | Lacs (Vol.) | 56.70 | 46.09 | 23.0% |
| Honda Motorcycles | Lacs (Vol.) | 63.72 | 58.32 | 9.3% |
| Bajaj Auto | Lacs (Vol.) | 43.17 | 39.82 | 8.4% |
| Royal Enfield | Lacs (Vol.) | 12.39 | 10.10 | 22.7% |
| Honda Cars | Lacs (Vol.) | 0.88 | 1.26 | (29.9%) |
| Tata Motors-CVs | Lacs (Vol.) | 4.28 | 3.77 | 13.6% |
The performance of the Company for the year ended 31 March 2026 is as per the summary given below:
Total Income: At Consolidated level, the Total Income for the year ended 31 March 2026 at Rs. 4,927.44 Crs as against Rs. 3,901.04 Crs in year ended 31 March 2025, thereby representing a growth of 26% 26%
The individual Companys Total Income (including Other Income), net of Inter-Unit, stood as below:
| Company Name | FY26 (Rs. In Crs) | FY25 (Rs. In Crs) | Act Gr Vs LY % |
| STL | 3,120.66 | 2,936.28 | 6.28% |
| STB (WOS) including its subsidiaries | 471.85 | 454.72 | 3.77% |
| STPL (WOS) | 615.96 | 18.99 | 3,143.60% |
| SEPL (WOS) | 842.81 | 397.20 | 112.19% |
| SASPL (WOS) | 138.47 | 97.10 | 42.61% |
| SACPL (WOS) | 82.42 | 81.62 | 0.98% |
| SAESPL (WOS) | 20.82 | 3.12 | 567.31% |
| Inter Companies elimination/adjustments | (365.55) | (87.99) | |
| Total | 4,927.44 | 3,901.04 | 26.31% |
2026 as compared to Rs. 964.76 Crs in the previous fiscal year, constituting 36.67% 36.67% and 24.73% 24.73% of the Total Income, respectively.
The individual Companys performance stands as below:
| Company Name | FY26 (Rs. In Crs) | FY25 (Rs. In Crs) | Act Gr Vs LY % |
| STL | 345.01 | 300.45 | 14.83% |
| STB (WOS) including its subsidiaries | 41.09 | 43.03 | (4.51%) |
| STPL (WOS) | 40.42 | 5.11 | 691.00% |
| SEPL (WOS) | 67.46 | 30.10 | 124.12% |
| SASPL (WOS) | 14.11 | 6.62 | 113.14% |
| SACPL (WOS) | 22.51 | 28.23 | (20.26%) |
| SAESPL (WOS) | (5.77) | (5.62) | (2.67%) |
| Inter Companies elimination/adjustments | (11.85) | (8.13) | |
| Total EBITDA | 512.98 | 399.79 | 28.31% |
The total contribution of the subsidiaries in the Consolidated EBITDA increases to Rs. 167.97 Crs for the year ended March 2026 from Rs. 99.34 Crs for the year ended March 2025 thereby contributing 32.74% 32.74% to the total Consolidated EBITDA as against 24.85% 24.85% in the same period the last year.
At Consolidated level, the manufacturing cost as a Percentage to Net Revenue from Operations stood at 82.53% 82.53% in the FY26 as compared to 81.16% 81.16% in the FY25.
At Standalone level, the manufacturing cost as a Percentage to Net Revenue from Operations stood at 83.91% 83.91% in the FY26 as compared to 82.97% 82.97% in the FY25.
At Consolidated level, Personnel, Selling, Admin & General Cost are lower at 8.45% 8.45% in the FY26 as compared to 8.97% 8.97% in the FY25.
At Standalone level, Personnel, Selling, Admin & General Cost are lower at 7.26% 7.26% in the FY26 as compared to 7.52% 7.52% in the FY25.
Foreign exchange loss arising out of trade operations amounted to Rs. 0.98 Cr. in the year FY26 as compared to gain of Rs. 0.08 Cr. in the previous year.
At Consolidated level, the Finance Costs increased to Rs. 68.77 Crs (1.42% of Net Revenue) for FY26 versus Rs. 56.61 Crs (1.46% of Net Revenue) in the FY25.
At Standalone basis, the Finance Costs increased to Rs. 21.37 Crs (0.70% of Net Revenue) for the FY26 versus Rs. 20.49 Crs (0.70% of Net Revenue) in the FY25. The interest cost on working capital loans and bill- discounting charges stood at Rs. 10.07 Crs for the FY26 as compared to Rs. 8.57 Crs in the FY25.
The average working capital borrowing at Standalone level decreased by Rs. 73.80 Crs (from Rs. 163.80 Crs in March 25 to Rs. 90.00 Crs in March 26.
At Consolidated level, the Term Loans as at the 31 March 2026 stood at Rs. 384.66 Crs versus Rs. 391.27 Crs as at 31 March 2025. Outstanding working capital loans at the Consolidated level stood at Rs. 563.49 Crs as against Rs. 429.96 Crs as at the 31 March 2025.
Outstanding Term Loans on Standalone basis, stood at Rs. 53.44 Crs as at the 31 March 2026 vs Rs. 90.94 Crs. as at the 31 March 2025.
Outstanding working capital loans on Standalone basis have been Rs. 90.00 Crs as at 31 March 2026 versus Rs. 163.80 Crs as at the 31 March 2025.
At Consolidated level, the Receivables as at the 31 March 2026 stood at Rs. 823.06 Crs versus Rs. 557.30 Crs as at the 31 March 2025.
The Receivables for the Company on Standalone basis, stood at Rs. 527.06 Crs as at the 31 March 2026 as against Rs. 467.99 Crs as at 31 March 2025.
At Consolidated level, the inventories as at the 31 March 2026 stood at Rs. 559.84 Crs versus Rs. 409.49 Crs as at the 31 March 2025.
The inventories for the Company on Standalone basis as at the 31 March 2026 stood at Rs. 179.12 Crs as against Rs. 217.85 Crs as at the 31 March 2025.
At Consolidated level, the Current Liabilities & Provisions as at the 31 March 2026 stood at Rs. 951.76 Crs versus Rs. 672.82 Crs as at the 31 March 2025.
The current liabilities & provisions for the Company on Standalone basis, stood at Rs. 415.08 Crs as at 31 March 2026 as against Rs. 419.66 Crs as at 31 March 2025. This includes Rs. 352.72 Crs trade payables as at 31 March 2026.
Investments:
The Total Investments made during the period in various subsidiaries aggregated Rs. 99.90 Crs.
| S. No. | Name of Subsidiary/ Joint Venture | Total Investment as at 31 st March, 2026 | Addition during the year |
| (Rs. In Crs) | (Rs. In Crs) | ||
| 1 | Sandhar Engineering Private Limited | 157.64 | 62.64* |
| 2 | Sandhar Auto Electric Solutions Private Limited | 34.96 | 14.12 |
| 3 | Sandhar Ascast Private Limited | 50.45 | 13.14 |
| 4 | Sandhar Technologies Barcelona S.L. | 30.29 | 10.00 |
| 5 | Sandhar Auto Castings Private Limited | 12.75 | - |
| 6 | Sandhar Automotive Systems Private Limited | 16.66 | - |
| 7 | Sandhar Amkin Industries Private Limited | 26.62 | - |
| 8 | Sandhar Han Sung Technologies Private Limited | 19.56 | - |
| 9 | Winnercom Sandhar Technologies Private Limited | 4.00 | - |
| 10 | Sandhar Han Shin Auto Technologies Private Limited | 2.75 | - |
| 11 | Sandhar Whetron Electronics Private Limited | 9.78 | - |
| Total | 365.46 | 99.90 |
* Includes Rs 27.75 Crs loan given to Sandhar Engineering which was converted into Equity.
Cash flow from Operations:
The Companys Cash Flow (Consolidated & Standalone level) as at 31 March 2026 stood as under: (Amount in Rs. Crs.)
| Particulars | Consolidated | Standalone | ||
| FY \u2019 26 | FY\u201925 | FY \u2019 26 | FY\u201925 | |
| Cash Flows from Operating Activities | ||||
| Profit before tax | 255.75 | 184.59 | 231.17 | 186.14 |
| Depreciation and amortization expense | 193.36 | 170.60 | 90.69 | 96.86 |
| Other adjustments | 11.98 | 38.54 | (39.50) | 3.63 |
| ore working capital changes bef Operatingprofit | 461.08 | 393.73 | 282.36 | 286.64 |
| Movements in working capital: | (199.15) | (95.99) | (313.96) | (81.80) |
| Cash generated from operations | 261.93 | 297.74 | (31.60) | 204.83 |
| Taxes Paid | 52.02 | 50.77 | 43.11 | 46.87 |
| Net cash inflow from operating activities ( A ) | 209.91 | 246.97 | (74.70) | 157.96 |
| Cash Flows from Investing Activities | ||||
| Capital Expenditure | (298.85) | (316.18) | (100.90) | (140.11) |
| Investments in subsidiaries | - | - | (72.15) | (36.00) |
| Transaction on account of business transfer | - | - | 292.68 | - |
| Change in investments | - | 9.18 | (3.89) | - |
| Other Receipts | 77.89 | 16.83 | 97.92 | 18.47 |
| Net cash used in investing activities ( B ) | (220.96) | (290.17) | 213.66 | (157.64) |
| Cash Flows from Financing Activities | ||||
| Borrowings/(Repayment) | 126.91 | 196.54 | (111.30) | 77.76 |
| Payment of lease liabilities | (15.85) | (26.33) | (7.87) | (10.97) |
| Dividend Paid | (21.07) | (19.56) | (21.07) | (19.56) |
| Interest paid | (62.01) | (49.90) | (14.44) | (17.23) |
| Net cash flow generated from / (used in) financing activities ( C ) | 27.99 | 100.75 | (154.68) | 29.99 |
| Foreign currency translation gain | (46.95) | (9.60) | - | - |
| Net increase/(decrease) in cash and cash equivalents (A+B+C) | 16.95 | 57.55 | (15.72) | 30.31 |
| Opening Cash Balance | 81.09 | 33.14 | 30.62 | 0.30 |
| Cash and equivalents at the end of the year | 51.09 | 81.09 | 14.89 | 30.62 |
Contingent Liabilities:
The Companys Contingent Liabilities as at the 31 March 2026 stood as under (all Fig. in Rs. Crs):
| Particulars | 31 March 2026 | 31 March 2025 |
| a. Claims against the Company not acknowledged as debts | ||
| - Service tax matters | 0.56 | 0.56 |
| - Goods and services tax | 15.65 | 7.76 |
| - Income tax matters | 0.54 | 0.83 |
| - Matters related to land | 1.21 | 0.80 |
| - Matters related to labour, employees/ex-employees | 0.39 | 0.55 |
| - Other matters related to accident claim, environmental compensation, and suppliers matters etc. | 6.52 | 7.62 |
| b. Guarantees given by the Company | 624.22 | 410.98 |
| Total (a + b) | 649.09 | 429.10 |
Looking ahead, domestic demand and macroeconomic fundamentals remain robust in FY 2026- 27, which should aid steady growth for the industry. However, uncertainties arising from the West Asia conflict need to be closely monitored, as it may have impacts on production, commodity prices, fuel prices, freight rates and the overall economy.
Rating agency ICRA expects the Indian automotive Industry to witness a normalization of wholesale volume growth in 2026- 27 following a period of elevated growth in the second half of 2025- 26, which was driven largely by post GST reform- led factors and favorable rural demand sentiments. Key emerging trends in the sector like premiumization and transition in powertrain mix reflect a structural shift in consumer preferences and technology adoption.
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