The revival of 4-wheeler and 2-wheeler sales in the festive season thanks to GST changes has also sparked strong investor interest in leading auto ancillary companies.
For instance, 2-wheeler sales grew 6.5% y-o-y to 1.28 million units in September 2025, and four-wheeler passenger vehicle sales grew 5.8% y-o-y to 2.99 lakh units, according to industry body, Federation of Automobile Dealers Associations (FADA). The growth reported in sales in 2-wheelers and 4-wheelers in September 2025 on a y-o-y basis was broadly better than the growth reported between April to August of the current fiscal.
And in October 2025, 2-wheeler sales surged 51.8 % y-o-y to 3.14 million, and four-wheeler passenger vehicle sales grew 11.4% to 5.57 lakh units, according to FADA.
It’s no surprise that several auto ancillary stocks are trading close to their 52-week highs – for instance, Endurance Technologies gained nearly 4.3% to Rs 2,728 on Wednesday, and not too far from its 52-week high of Rs 3,079 that was reached on 9 September 2025.
Gabriel India also gained 13.3% to Rs 1,116 and it had reached its 52-week high of Rs 1,386.5 on 8 October, 2025. Bosch was down 0.5% to Rs 36, 848.6 on Wednesday, and it reached its 52-week high of Rs 41, 894.3 on 10 September, 2025.
Q2 Earnings: Riding the GST Tailwind
Auto ancillaries supply diverse products to the 2-wheeler, 3-wheeler and 4-wheeler industry — for instance, Endurance Technologies is a manufacturer of aluminium die-casting, suspension, braking systems and transmission products to 2, 3 and 4-wheeler companies in India and overseas.
The company had expanded its product portfolio with the earlier acquisition of Pune-based Maxwell Energy Systems, which has expertise in battery management Systems (BMS), chargers, motor control units (MCU) and telematics control units (TCU), amongst other advanced electronics requirements in the EV segment.
Endurance Technologies’ consolidated revenue from operations grew 22.6% y-o-y to Rs 3,603.8 crore in the September 2025 quarter while its consolidated net profit rose 11.8 % y-o-y to Rs 227.3 crore in the quarter under review.
Meanwhile, Gabriel India, which makes products for the broader auto industry including rear shock absorbers, axle dampers etc, saw its consolidated revenue from operations grow 14.9 % y-o-y to Rs 1,180 crore in Q2FY26 while its consolidated net profit rose 9.7% y-o-y to Rs 69 crore in the quarter under review.
And Bosch is a leading player in the supply of technology and services to the auto industry along with consumer goods amongst other sectors. Its products for the auto sector include brakes, starters and wiper blades, amongst other products.
The company’s consolidated revenue from operations grew 9% y-o-y to Rs 4,794.8 crore in Q2FY26 while its consolidated net profit rose 3.5% y-o-y to Rs 554.1 crore.
Efficiency Check: Who Uses Capital Best?
Gabriel India has a Return on Equity (RoE) of 22.2%, according to Screener.in, while Endurance Technologies is at 14.6%. and Bosch is at 15.6%.
Valuations
Gabriel India trades at a consolidated P/E of 71.2 times, according to Screener.in, while Endurance Technologies trades at 44 times. Bosch trades at 47.8 times. The auto ancillary stocks surged post the GST rate cut announcements in mid August 2025. This is reflected in the elevated valuations of these companies. There was widespread anticipation of a surge in sales on account of the price reduction. While, this has played out in the numbers of most companies, it remains to be seen if the demand will hold for more time to come, or settle down at lower levels.
Meanwhile, even as confirmation is awaited, it would appear auto ancillary stocks have factored in the growth opportunities over the next few quarters.
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.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
Disclosure: The writer and his family do not hold the stocks discussed in this article.
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