New Delhi, Feb. 20 -- Revenue in the Indian auto component industry is expected to expand by 8-10 per cent in the upcoming financial year 2025-26, according to rating agency ICRA.

The rating in a note Thursday asserted the domestic auto component industry revenue will fall to 7-9 per cent in the current financial year 2024-25, against the highs of 14 per cent in 2023-24,

Operating margins are expected to remain range-bound and hover at 11-12 per cent in 2024-25 and 2025-26, supported by benefits from operating leverage, higher content per vehicle and value addition.

The disruption along the Red Sea route has resulted in a surge in ocean freight rates by 2-3 times in 2024 compared to 2023.

ICRA asserted that any further sharp and susta...