Credit Rating Information Services of India (Crisil) estimated that India's automobile sector is expected to report revenue growth of 22-24 per cent year-on-year in the first quarter of FY27 and to be among the largest contributors to corporate revenue growth in the quarter. The agency estimated overall corporate revenue to have grown 11-11.5 per cent year-on-year in the quarter ended 30 June 2026, the fastest pace in two years despite supply chain disruptions and higher input costs from the West Asia conflict. This compared with growth of 9.6 per cent in the preceding quarter. Crisil said the expansion was supported by a Goods and Services Tax rate reduction of eight to 13 per cent that stimulated volume-led demand, healthy passenger vehicle retail sales, two-wheeler volumes and commercial vehicle sales, along with rising exports and selective price increases. Passenger vehicle retail sales rose 25 per cent year-on-year and commercial vehicle sales grew 15 per cent, while automobile exports were estimated to have increased 19-21 per cent, aided by demand from Japan and Africa. The agency noted that growth was driven by demand for automobiles and white goods but that earnings came under pressure as the full effect of the West Asia conflict began to appear during the quarter. It observed that inventory buffers had cushioned the immediate impact of higher input costs in the fourth quarter of the previous fiscal. Selective price rises by manufacturers helped to moderate margin compression. Apart from automobiles and white goods, Crisil said the power sector was supported by peak electricity demand and telecom services benefited from premiumisation and improved data monetisation. The agency added that, given current demand momentum and export tailwinds, the automobile industry should remain a principal driver of corporate revenue growth in the near term. Market participants will watch input cost trajectories and geopolitical developments for their impact on earnings.