The Indian electric vehicle (EV) market is going strong.
Sales of EVs hit USD 5.22 billion in 2024 and are expected to cross USD 18.319 billion by 2029 at a CAGR of 28.52%. Approximately 1.94 million units of EVs were sold in the calendar year 2024, showcasing a year-on-year growth of 26.5%. In the first seven months of the calendar year 2025, 90,639 electric passenger vehicles were sold, out of which Tata Motors, with 34,700 units, leads the market. Mahindra & Mahindra, ranked third behind JSW MG Motor India, sold 15,556 units.
Tata Motors is eyeing to regain 50% of the EV market through its recent launch of the Harrier EV and the upcoming Avinya. On the other hand, Mahindra, which has already made car enthusiasts go gaga with its BE 6 and XEV 9E, is teasing four upcoming launches on its new Freedom platform.
But from the investor’s point of view, are they the only winners when it comes to the EV transition? If you think yes, you are missing out on the EV ancillary stocks that provide essential parts, components, or services needed for EV production and operation. Here we profile 3 auto ancillary companies that stand out. This is by no means an exhaustive list, but enough to get you thinking of alternate ways to play the EV opportunity.
Three EV Stocks to Keep an Eye On
UNO Minda Limited (NSE: UNOMINDA)
With over 67 years in the auto ancillary industry, UNO Minda Ltd., formerly known as Minda Industries Ltd., designs and produces 28 different automotive components for commercial vehicles, passenger cars, and two- and three-wheelers across both electric and internal combustion engine (ICE) vehicles. Its EV portfolio product lineup includes wall-mounted charging units, traction motors, DC-DC converters, motor controllers, RCD cable, and a few more.
The company operates through 75 manufacturing facilities located in India, Mexico, Spain, Indonesia, Germany, and Vietnam. Talking about its key customers, you will find major names like Ashok Leyland, Tata Motors, Mahindra & Mahindra, Maruti Suzuki India, and Eicher Motors.
To expand its business, the company, through its subsidiary UnoMinda EV Systems, has recently acquired intellectual property rights, e-drive business assets, and the R&D team from Friwo Vietnam Company Limited. The objective of this deal is to strengthen its presence in the Southeast Asian market.
In the coming months, UNO Minda will be establishing an aluminium die-casting plant worth ₹210 crores in Maharashtra. The casting components developed here will help in the development of high-performance yet lightweight electric two-wheelers and four-wheelers.
The approval to set up a two-wheeler alloy wheel plant facility in Bawal, Haryana, and the board’s nod to establish a greenfield plant for EV powertrain components such as inverters, motors, combined charging units, and e-axles reflect the company’s commitment to the EV transition.
While the company is yet to declare its Q1 earnings for FY26, the March quarter of FY25 saw a 2.5% year-on-year (YoY) growth in net profit to ₹289 crore (excluding the impact of exceptional items in 1QFY25). Although the revenue on a YoY basis surged by 19.4% to ₹4,528 crore, the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin contracted by 90 basis points to 11.6%.
UNO Minda Limited 5-Year Financial Performance
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales (₹ in crores) | 6,374 | 8,313 | 11,236 | 14,031 | 16,775 |
| Operating Profit (₹ in crores) | 725 | 885 | 1,242 | 1,585 | 1,874 |
| Net Profit (₹ in crores) | 248 | 413 | 700 | 925 | 1,021 |
| EPS (₹) | 3.80 | 6.23 | 11.41 | 15.25 | 16.42 |
UNO Minda, despite short-term profit pressure, offers strong long-term potential. In fact, considering the sustained growth visibility beyond FY27, Nomura maintains a ‘Buy’ rating on it with a raised target of ₹1,242.
HEG Limited (NSE: HEG)
With a focus on graphite and carbon products, HEG Ltd., an LNJ Bhilwara Group company, has been in business for over 30 years. Its business is categorised into three divisions: Graphite Electrodes, Power Division, and Specialty. Graphite electrodes bring around 80% of the company’s revenue. Through its speciality segment, the company caters to industries, such as metallurgy, refractory solutions, chemical, cement, glass, iron and steel, and power.
Talking about HEG’s contribution to EV transition, the company, through its wholly owned subsidiary, The Advanced Carbons Company (TACC), has set up a graphite anode manufacturing facility in Sirsoda village, Dewas, Madhya Pradesh. The plant is built on over 100 acres of land and has a 20 GWh cell manufacturing capacity of 20,000 MT PA. Through this facility, the company will be producing synthetic graphite anodes, which are a key component of lithium-ion batteries and account for 10–15% of cell cost.
Considering the shift towards EVs, the company plans to double its capacity over the next five to seven years with further investment. Not only that, the company is also exploring carbon derivatives like graphene and carbon nanotubes for future green energy applications.
HEG’s TACC has also signed an MoU with Sri Lankan-based Ceylon Graphene Technologies (CGT), which is renowned for its expertise in premium vein graphite, noted for its purity and material science. Following this collaboration, TACC will manufacture graphene and its derivatives. For those who are not aware, graphene is used in energy storage, construction materials, coatings, electronics, and composites.
The growth of HEG is also under the spotlight, with China dominating the electrode industry with 90% of the global market share and implementing strict export regulations on vital commodities. According to the Chinese government, any shipment, especially to the US, will be rigorously reviewed for its intended use. This move will ultimately benefit Indian companies like HEG, despite the ongoing tariff war with the US.
Moving to the financials, a few days ago, HEG declared its Q1 results for FY26. The company posted a profit after tax of ₹105.0 crores, which is a 356.5% surge compared to the same quarter of the previous financial year. On a YoY basis, total expenses also fell by 3.9%.
HEG 5-Year Financial Performance
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales (₹ in crores) | 1,254 | 2,201 | 2,463 | 2,393 | 2,160 |
| Operating Profit (₹ in crores) | (51) | 530 | 619 | 382 | 255 |
| Net Profit (₹ in crores) | (18) | 431 | 532 | 312 | 115 |
| EPS (₹) | (0.93) | 22.33 | 27.59 | 16.15 | 5.96 |
The fluctuation in performance in FY25 was due to the lower average selling price of graphite electrodes, caused by subdued global demand and high input costs.
Servotech Renewable Power System (NSE: SERVOTECH)
Servotech Renewable Power System is a leading name in EV charging and solar solutions. In the AC charger segment, it offers chargers with capacities of 3.3kW, 7.2kW Type-2, 14kW Hybrid, and several other models. In the DC segment, some of its offerings include charging stations of 15kW and 20kW, a CCS-2 single gun charging station of 30kW, and a CCS-2 dual gun charging station of 60kW.
The company’s customer list includes some major names such as Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), and Hindustan Petroleum Corporation Limited (HPCL). Almost a year ago, Servotech received an order for 1,800 DC EV chargers from BPCL, while an order for 1,500 DC fast EV chargers was placed by HPCL and original equipment manufacturers (OEMs). IOCL also placed an order for 1,400 DC fast EV chargers.
Servotech’s product portfolio also includes LEDs, power backup solutions, UVC devices, and oxygen concentrators.
Contributing to the EV transition, Servotech has recently joined hands with Watt & Well, a French-based company specialising in designing and manufacturing high-performance applications in e-mobility and energy phases. In the initial years of collaboration, both companies will focus on developing a 30kW power module for the Indian EV charging market. Later, the company will also focus on the viability and production process of bidirectional power modules suited for Vehicle-to-Grid (V2G) applications.
Besides EV, in the solar segment, the company has bagged end-to-end 4.1 MW rooftop solar orders from the Waltair Division of the East Coast Railway. As per the contract, Servotech is required to design, manufacture, supply, install, and test the rooftop solar panels. It has also signed a pact with the Chamber of Indian Micro, Small, & Medium Enterprises (CIMSME) to install 1 lakh rooftop solar systems to support the PM Surya Ghar Muft Bijli Yojana.
Talking about the revenue mix, the EV DC charger contributes around 41.2%, the AC charger around 24.2%, solar brings in 25.2% of the revenue, and the rest is shared between the installation segment and other products in its portfolio. Out of these figures, only 9.7% of the revenue comes from the global market.
The company has recently declared its Q1 results for FY26. It reported a total revenue of ₹136.75 crores, reflecting a 17.97% growth on a year-on-year basis.
Servotech Renewable Power System 5-Year Financial Performance
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales (₹ in crores) | 87 | 144 | 278 | 353 | 674 |
| Operating Profit (₹ in crores) | 5 | 9 | 19 | 21 | 56 |
| Net Profit (₹ in crores) | 1 | 4 | 11 | 12 | 33 |
| EPS (₹) | 0.05 | 0.22 | 0.52 | 0.54 | 1.46 |
Servotech Renewable Power System is set to benefit from India’s green transition due to its leadership in EV charging and clean energy, partnership with PSUs, and patent filings.
Conclusion
Given the advancements in technology and car manufacturers launching new EVs every few months, don’t be surprised if you see changes in the names of the top three car makers throughout the transition period and beyond. Take Tata, for example, which once dominated the EV car segment with a 70% – 80% market share but has seen a steep decline after facing fierce competition from Mahindra & Mahindra and MG Motors.
The sustainable long-term value possibly lies with the companies that supply key components to the EV manufacturer. From UNO Minda’s advanced components and global reach, to HEG’s graphite anodes for lithium-ion batteries, and Servotech’s dominance in EV charging, these ancillary players are silently becoming the backbone of India’s EV revolution. It will be interesting to see how these companies navigate the high growth future, and also deal with the intense competition it is bound to attract.
Disclaimer
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Rishabh Sinha is a seasoned financial content creator with over 10 years of experience in BFSI domain. His portfolio spans over 20 of India’s most trusted financial brands. Rishabh brings depth, structure, and a reader-first approach to every piece he crafts.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.