5 Auto Ancillary Stocks With Operating Profit Margins of Up to 30% to Keep an Eye On

Synopsis: India’s auto ancillary sector is projected to reach $200 billion by FY30, with exports expected to touch $60 billion. Beneficiary stocks in the sector report margins as high as 29 percent and have witnessed YoY profit growth of up to 128 percent.

India’s auto ancillary sector, valued at around $74 billion in FY23, is projected to reach $200 billion by FY30, driven by strong domestic demand, exports, and electrification trends. Auto ancillary exports are expected to go from $20 billion to $60 billion annually by FY30, reflecting rising global competitiveness. Additionally, the recent India–EU trade agreement will eliminate duties on auto components over time, improving export access, boosting competitiveness, and accelerating growth for Indian component manufacturers.

Operating Profit Margin (OPM) measures the percentage of revenue left after covering operating expenses, reflecting a company’s core business efficiency. A higher OPM indicates better cost control, pricing power, and scalability. In capital-intensive manufacturing sectors like auto ancillaries, strong operating margins signal financial stability, resilience, and long-term profitability potential. Therefore, here are 5 stocks that have high operating profit margins-

SJS Enterprises Limited

SJS Enterprises Limited manufactures decorative aesthetic products for automotive and consumer appliance industries, including decals, logos, domes, overlays, and chrome-plated parts. It supplies leading OEMs globally and focuses on design, tooling, and manufacturing capabilities. The company operates facilities in India and serves both domestic and export markets with value-added solutions.

In the latest quarter SJS Enterprises Limited saw a YoY revenue growth of 36 percent, going from Rs 179 Cr in Q3FY25 to Rs 244 Cr in Q3FY26, while the QoQ went up by 1 percent from Rs 242 Cr in Q2FY26. The YoY Net Profits growth is at 61 percent, going from Rs 28 Cr in Q3FY25 to Rs 45 Cr in Q3FY26, while the QoQ growth stood at 5 percent from Rs 43 Cr in Q2FY26. SJS Enterprises Limited operating profit margin as of Q3FY26 is at 29 percent and over the period it has maintained it in the range of 23-30 percent.

Sona BLW Precision Forgings Limited

Sona BLW Precision Forgings Limited manufactures precision forged gears, differential assemblies, and motor components for automotive and electric vehicle applications. The company supplies global OEMs and benefits from strong electrification exposure. It operates advanced manufacturing facilities across India and internationally, delivering high-performance drivetrain solutions with engineering expertise and innovation focus.

In the latest quarter Sona BLW Precision Forgings Limited saw a YoY revenue growth of 38 percent, going from Rs 868 Cr in Q3FY25 to Rs 1,200 Cr in Q3FY26, while the QoQ went up by 5 percent from Rs 1,138 Cr in Q2FY26. The YoY Net Profits fell by 1 percent, going from Rs 151 Cr in Q3FY25 to Rs 150 Cr in Q3FY26, while the QoQ fell by 12 percent from Rs 170 Cr in Q2FY26. Sona BLW Precision Forgings Limited operating profit margin as of Q3FY26 is at 25 percent,  and over the period it has maintained it in the range of 24-30 percent.

Frontier Springs Limited

Frontier Springs Limited manufactures hot coiled compression springs, leaf springs, and forged components primarily for railway applications. The company supplies Indian Railways and global rolling stock manufacturers. It operates production facilities and focuses on high-quality engineering products, benefiting from railway modernization, export demand, and specialized metallurgical expertise in spring manufacturing.

In the latest quarter Frontier Springs Limited saw a YoY revenue growth of 40 percent, going from Rs 58 Cr in Q3FY25 to Rs 81 Cr in Q3FY26, while the QoQ went down by 2 percent from Rs 83 Cr in Q2FY26. The YoY Net Profits growth is at 56 percent, going from Rs 9 Cr in Q3FY25 to Rs 14 Cr in Q3FY26, while the QoQ fell by 13 percent from Rs 16 Cr in Q2FY26. Frontier Springs Limited operating profit margin as of Q3FY26 is at 25 percent, and over the period it has maintained it in the range of 16-27 percent.

RACL Geartech Limited

RACL Geartech Limited manufactures precision machined transmission gears, shafts, and assemblies for automotive and industrial applications. The company supplies leading two-wheeler, tractor, and global OEMs, with strong export presence. It emphasizes advanced machining, heat treatment, and quality systems, enabling reliable drivetrain performance and long-term partnerships with premium customers worldwide globally.

In the latest quarter RACL Geartech Limited saw a YoY revenue growth of 21 percent, going from Rs 113 Cr in Q3FY25 to Rs 137 Cr in Q3FY26, while the QoQ went up by 14 percent from Rs 120 Cr in Q2FY26. The YoY Net Profits growth is at 128 percent, going from Rs 7 Cr in Q3FY25 to Rs 16 Cr in Q3FY26, while the QoQ growth stood at 33 percent from Rs 12 Cr in Q2FY26.

RACL Geartech Limited operating profit margin as of Q3FY26 is at 23 percent, and over the period it has maintained it in the range of 18-25 percent.

Shriram Pistons & Rings Limited

Shriram Pistons & Rings Limited manufactures pistons, piston rings, engine valves, and related components for automotive engines. The company supplies major OEMs and aftermarket customers in India and globally. It focuses on technology, quality, and efficiency, supporting internal combustion and emerging mobility segments through engineering capabilities and diversified product portfolio.

In the latest quarter Shriram Pistons & Rings Limited saw a YoY revenue growth of 21 percent, going from Rs 848 Cr in Q3FY25 to Rs 1,023 Cr in Q3FY26, while the QoQ went up by 1 percent from Rs 1,016 Cr in Q2FY26. The YoY Net Profits growth is at 4 percent, going from Rs 121 Cr in Q3FY25 to Rs 126 Cr in Q3FY26, while the QoQ fell by 11 percent from Rs 142 Cr in Q2FY26. Shriram Pistons & Rings Limited operating profit margin as of Q3FY26 is at 20 percent, and over the period it has maintained it in the range of 18-21 percent.

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