Rising input costs to squeeze auto margins despite festive demand: Kotak

India's auto sector faces margin pressure despite strong festive demand, says Kotak Institutional Equities. While revenues may rise ~29% YoY in Q2FY27, operating margins could fall ~200 bps due to higher steel, rubber, and crude costs. Tyre makers may see steeper 400-480 bps margin decline despite 16-26% revenue growth.