New Delhi, Jan. 7 -- India's automobile sector is set to deliver one of its strongest quarterly performances in years in Q3FY26, with robust demand growth coinciding with a sharp improvement in profitability across segments, according to a sector preview by Nuvama Institutional Equities.

Aggregate revenue for listed auto companies under coverage (excluding Tata Motors PV) is expected to rise about 22% year-on-year, while EBITDA is forecast to grow faster at 24%, signalling a rare phase where volumes, pricing and operating leverage are all working in tandem.

Analysts attribute the strong showing to improving affordability, supported by GST rate cuts, lower interest rates and adequate financing availability, alongside a healthy pipeline o...