Are Auto and Infra Leaders Signalling Sustained Momentum for FY26?
About India’s Auto and Infrastructure Dynamics
India’s auto and infra sectors are reflecting a blend of cyclical recovery and strategic capital discipline. While auto OEMs like Ashok Leyland are riding on demand stability, infrastructure names such as Welspun Enterprises and Mukand are demonstrating margin resilience despite input volatility.
Investor interest remains high in diversified players with operating leverage and long-term execution visibility — a theme consistent across India’s economic expansion story.
Ashok Leyland – Q2 FY26 Results & Management Commentary 🚛
Ashok Leyland delivered its 11th straight quarter of double-digit EBITDA margin and record PAT, driven by cost control and operational efficiency. The management guided for continued growth momentum in H2FY26.
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Net Profit | ₹771 Cr | Flat |
| Revenue | ₹9,588 Cr | ↑ 9.3% |
| EBITDA Margin | 12.1% | ↑ 50 bps |
The company’s focus on digital transformation and product mix optimization is expected to maintain profitability, with Switch Mobility contributing through its 1,500-vehicle EV order book.
Welspun Enterprises – FY26 Outlook 🏗️
Welspun Enterprises reaffirmed its ₹4,000 Cr topline guidance with stable margins for FY26. The company is targeting a ₹10,000 Cr order book and expects Jal Jeevan Mission dues to be cleared soon.
- Topline Guidance: ₹4,000 Cr for FY26
- Margin Stability: Expected to sustain at current levels
- Order Book Target: ₹10,000+ Cr by FY26-end
Robust execution, strong financial discipline, and prudent bidding continue to support long-term visibility for the infra major.
Mukand Ltd – Softer Quarter but Balance Sheet Stable ⚙️
Mukand reported subdued results with revenue declining 8.1% YoY, primarily due to lower alloy steel volumes. EBITDA margin remained steady at around 6%.
- Revenue: ₹1,160 Cr (↓ 8.1% YoY)
- Net Profit: ₹9.8 Cr (↓ 61.1% YoY)
- EBITDA: ₹69.1 Cr (↓ 9.1% YoY)
While short-term pressures persist, Mukand continues to focus on cost optimization and specialty alloy exports.
Dolfin Rubbers – Growth with Margin Dip 🛞
Dolfin Rubbers reported moderate revenue growth of 18.4% YoY, supported by higher sales in replacement markets. However, margins declined due to input cost pressures.
- Revenue: ₹39.89 Cr (↑ 18.4% YoY)
- Net Profit: ₹1.07 Cr (↑ 2.9% YoY)
- EBITDA Margin: 4.53% vs 5.81% (↓ 1.28 pts)
The company remains focused on expanding capacity and maintaining lean inventory management practices to protect margins in H2.
Investor Takeaway
Auto and infra companies are showing resilience despite near-term margin pressures. FY26 is shaping up to be a year of steady growth, where cost control and execution excellence will differentiate outperformers.
Nifty and Bank Nifty Expert Gulshan Khera, CFP®, who is a SEBI Regd Investment Adviser.
For more market insight, explore Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
