Markets India

Shares of Sharda Motor, Fiem Industries, and Automotive Axles surged over 10% in intraday trading as strong quarterly earnings reports drove optimism. The gains contrasted with a broader market decline.

Auto Ancillary Shares Surge on Strong Q2 FY27 Earnings

Automotive Axles saw its shares jump 17%, hitting ₹1,915.50 on the BSE, while Sharda Motors Industries and Fiem Industries rose by 14% and 10%, respectively. The rally followed robust Q2 FY27 earnings reports that highlighted improved profitability in the auto ancillary sector despite a broader market decline of 0.7%. Automotive Axles reported total operating income of ₹663 crore, up 43.5% YoY, with EBITDA at ₹83 crore and PAT rising sharply to ₹60 crore. Sharda Motor Industries saw revenue from operations grow by 20% YoY to ₹1,211 crore, while Fiem Industries’ FY26 revenue increased by 31% to ₹936.87 crore.

The earnings growth and margin expansion signal improved operational efficiency in the sector, with analysts pointing to export opportunities as a key driver of future performance. Disrupted trade relations between the US, EU, and China have created openings for Indian manufacturers like Sharda Motor Industries and Fiem Industries, which are well-positioned to benefit from new emission norms in these markets.

Despite strong fundamentals, some investors caution that the stocks currently trade at 12x PE on a trailing basis. While this may limit further upward momentum without additional catalysts, the sector’s resilience is underscored by its ability to outperform during market downturns.

The Sensex declined 0.7% in Friday's session as broader indices like Nifty Bank, Auto, and Realty fell 1%. No specific future events or milestones are mentioned beyond the recent earnings reports.

Auto ancillary shares surged on strong Q2 FY27 results, reflecting improved sectoral performance. The sustainability of gains will depend on continued export growth and market sentiment.

Topics: Indian Markets, Financial News, Stock Market Analysis, Corporate Performance, Export Opportunities

#StockMarketIndia #AutoAncillariesGrowth #BSESharePriceSurge #EarningsReportFY27

Source: Business Standard