Tracking Indian Automobile Volumes and Modelling OEM Financials: Evidence from an Equity Research Internship

Author

Raman Purohit, Dr. Mahesh Pol


Abstract

 This paper comes out of the two months (23 May to 23 July 2026) I spent as an Equity Research Intern at RK Advisory, an independent equity research practice based in Pune. My work had two sides. One was tracking monthly vehicle volumes for the Indian automobile industry. The other was building integrated three-statement financial models for five listed manufacturers: Maruti Suzuki, Mahindra & Mahindra, Hero MotoCorp, Eicher Motors and Hyundai Motor India. The paper asks how fast the industry is really growing, how the five companies compared on growth and profitability in FY26, and what the models imply for FY27 to FY30. Industry volumes grew 22% year-on-year to 2.17 million units in June 2026, and exports (+39%) grew faster than domestic sales (+17%). In FY26, Mahindra & Mahindra (+24.6%) and Eicher Motors (+23.0%) recorded the fastest revenue growth, Eicher had the highest EBITDA margin (25.6%), and Hyundai Motor India was the weakest, with revenue up only 2.0% and profit after tax down 3.1%. The models imply revenue growth of roughly 15% to 21% a year over FY26 to FY30E. These projections rest on my own assumptions and not on company guidance, so the paper also points out where they look stretched. A DCF valuation was built during the internship but is not part of this paper, so no investment recommendation is made.



Keywords

Equity research; Indian automobile industry; Financial modelling; Ratio analysis; Automobile OEMs; On the job training



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References


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