For the January-March quarter of 2025 (Q4FY25), JBM Auto reported a consolidated revenue of ₹1,646 crore, marking an 11% increase over the ₹1,486 crore recorded in the same period last year. Net profit also rose by 19% year-on-year (YoY) to ₹66 crore, compared to ₹56 crore in the corresponding quarter. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 14.7% to ₹197 crore, up from ₹172 crore a year ago.
JBM Auto’s current market capitalisation stands at approximately ₹15,781.26 crore. The company’s shares have declined nearly 28% over the past year.
These are verbatim excerpts of the interview aired on CNBC-TV18.
Q: It’s a marginal deviation, but you had guided for ₹6,000 crore of revenue in FY25. You ended the year at ₹5,500 crores. What are you pencilling in now for FY26 with the kind of situations that you are facing on the ground right now?
A: We are gunning towards, again, ₹6,000 to ₹6,500 crore of revenue for FY26. As you will see, the EBITDA percentage has grown substantially, almost a percent from 2023-24 (FY24), to 13.3%, and we are seeing that today, the kind of market scenario for e-mobility is growing substantially. We have a very strong order book.
Just recently, our tie-up and alliance with Hitachi is also going to play a critical role in enhancing the analytics and performance of our EV products with their global technologies. I see that now, with the UK-India Free Trade Agreement (FTA), a lot of new market opportunities will also open up for Indian companies like us, who are very well poised with the whole EV ecosystem.
Q: You mentioned ₹6,000 to ₹6,500 crores for FY26, if I heard you correctly?
A: Yes.
Q: So, ₹6,000 crore is what you were projecting for 2024-25 (FY25), you made ₹5,500 crore. Now you are projecting ₹6,000 to ₹6,500 crore for FY26?
A: Correct.
Also Read: JBM Auto considers equity dilution in subsidiary, aims to cut debt
Q: Coming to the FTA bit—do you have any exposure to the UK market currently? And if not, then how do you see this as an opportunity for a company like yours in the UK market?
A: The UK market will be a very important market going forward. Until now, the import and tariff barriers were a big concern, but with the automotive sector being in the 99% of products which will be tariff-free, that will be a big game changer. And having a right-hand drive product from India, which we are already looking at for exporting to new markets, this would be an ideal market for us to enter.
Q: Do you currently have a presence in the UK?
A: No, we do not have any presence in the UK as of now.
Q: Are you planning to?
A: Now, definitely, we see that we would be looking to enhance our presence in the UK. We already have a presence in other parts of the world, like the Middle East, Africa, Asia-Pacific, and Europe, but not in the UK.
Q: How long will it take for you to establish a presence? Can you get some revenues in FY26? Because I am sure there is an entire procedure which goes behind this.
A: Yes, we would be looking to see how we can create business opportunities this year and realise them at the beginning of next year.
Q: Since we are on this subject, could you also share with us a breakup of your domestic-to-export ratio in FY25? What are you targeting for FY26, and what is your take on the overall export market in the geographies that you are present in, and how much do you plan on growing it this year?
A: In FY25, we were 95% plus domestic and close to 5% exports. Now this year, we are trying to see how we can double it up to close to 10% exports. Primarily in Europe, Asia-Pacific, the Middle East, and Africa.
Q: So, you are planning on doubling your export share to around 10% in FY26—is that what you are saying?
A: Correct.
Q: What about your launch pipeline? Any new launches that are in the works anytime soon?
A: This year, we are planning to launch four new products, and we will be talking about it soon in the coming months.
Q: For your platform, JBM Ecolife Mobility, which houses the gross contract or special purpose vehicle, you were looking to secure some more funding, is that correct?
A: Yes.
Also Read: Bajaj Auto expects export growth to return to 10-15% range in coming months
Q: So, where are we? Because you raised money in September of last year for the Ecolife platform, but you were scouting for some more money?
A: We have raised money from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) recently as well. So that has been concluded.
Q: That was in September of last year, right?
A: Also, in the month of March, we have closed a few more rounds with ADB and AIIB.
Q: And how much was that?
A: We are starting with about ₹200 crore, and we will be growing further as new projects come along.
Q: At the consolidated level, for JBM Auto Limited (JAL), the listed entity, how will this change the debt profile because now you need to infuse less money into the platform?
A: We are trying to see that the platform becomes self-sufficient. So, the platform becoming self-sufficient is very important, because then it can generate cash from its existing SPVs and new SPVs and fuel its growth for the future.
Q: Is the original equipment manufacturer (OEM) business, the segment performance, does that remain a cause of concern for you? How do you see that shaping up this year?
A: That is not a challenge because even last year, the OEM performance and profitability have increased multifold. And definitely this year, we would be looking at higher volumes, because in the first half of last year, due to elections and different changes in multiple states, things were a bit slower. So, now things are on the right track with a very strong policy framework and deployment plan. So, from the beginning of this year, things have been moving in the right direction.
Q: There was a lot of merger and acquisition (M&A) activity taking place in your field right now. Were you in the fray for SML Isuzu—just to hear it from you? And are there any inorganic growth plans in the pipeline for FY26? Are you looking at something?
A: As I said earlier, I would not like to comment on market speculation. So, we were not looking at SML. And, as something comes up, we are looking at an inorganic growth strategy.
Watch the interview in the accompanying video
Discover more from News Hub
Subscribe to get the latest posts sent to your email.
