ICRA projected that these extra expenses will shrink operating margins by 50 to 100 basis points in FY2026. According to the brokerage, the overall auto components sector may experience a 36% decline in operating profits, with exporters potentially facing a sharper drop of 1015% in earnings.

Paras Defence and Space Technologies surged 7.8% after announcing a board meeting on April 30 to consider its first-ever stock split and dividend declaration alongside Q4 results. No further details were disclosed. The stock has rallied over 50% in the past year, with strong gains across six months, three months, and one month periods.

The Nifty Auto index was trading 0.57 per cent up at 22120.4.

Amid India-Pakistan tensions, the spotlight is on defence stocks, though market enthusiasm remains muted. Analysts suggest companies with strong financials and alignment with national defence objectives stand to benefit. While some stocks like Bharat Dynamics and Mazagon Dock Shipbuilders have performed well, valuations appear high, advising caution for new investors and suggesting a wait for better entry points.