Auto stocks: Q4 results preview, target prices – Ather Energy, Maruti Suzuki, Sansera Engineering shares

HDFC Securities has maintained a constructive stance on select auto stocks ahead of Q4 FY26 results, while flagging near-term headwinds for the sector due to geopolitical uncertainties.

For Ather Energy Ltd, the domestic brokerage expects a strong operational performance driven by demand momentum and network expansion.

"Wholesale volumes to grow 73 per cent YoY (year-on-year) and 22 per cent QoQ (quarter-on-quarter), driven by dealership expansion and prebuying in March 2026 in anticipation of ending of demand subsidies for e2W (which was later extended by 4 months). Realisations to increase 1.5 per cent QoQ, supported by price hike taken in Jan 2026. EBITDA margin to improve 60bps (basis points) QoQ, on better operating leverage and continued focus to bring down costs via R&D, though to be negated by higher raw material costs via rising aluminum prices and impact of adverse forex on imported battery cells," it stated.

For Maruti Suzuki India Ltd, a slight improvement in pricing is expected, supported by a favourable product mix and exports.

"ASP (Average selling price) to rise 1.2 per cent QoQ, led by higher exports mix that was led by increasing share of SUVs and EVs, and lower discounts relative to Q3. EBITDA margin to contract 50bps QoQ due to higher raw material costs, production costs and freight costs."

On Sansera Engineering Ltd, HDFC Securities expects steady growth, particularly from its aerospace, defence and semiconductor (ADS) segment.

"Revenue growth to be led by the ADS division, continuing good growth in the domestic market and forex tailwinds. We expect margins to contract QoQ on higher raw material costs, production costs and freight costs, though to be partially negated by operating leverage."

Target prices

HDFC Securities has maintained 'Buy' ratings on all three stocks, with target prices of Rs 1,033 for Ather Energy, Rs 18,168 for Maruti Suzuki, and Rs 2,588 for Sansera Engineering.