Bemco Hydraulics Inks 9-Year Lease Deal with Jubilent Motorworks for Mahindra Showroom

1 min read Updated on 13 Nov 2025, 07:47 PM

Reviewed by

Naman SharmaScanX News Team

Overview

Bemco Hydraulics has executed a 9-year lease agreement with Jubilent Motorworks for a Mahindra car showroom, starting at Rs. 10.50 lakh rent for the first six months with 5% annual escalation from the second year. The company reported Q2 consolidated revenue of Rs. 2,233.22 lakhs and net profit of Rs. 401.91 lakhs. Bemco also announced corporate actions including share capital increase, stock split, and bonus share issuance.

*this image is generated using AI for illustrative purposes only.

Bemco Hydraulics Limited , a manufacturer of hydraulic press machines and equipment, has announced a significant real estate development that may boost its revenue stream. The company has executed a 9-year lease agreement with Jubilent Motorworks Private Limited for a Mahindra car showroom.

Lease Agreement Details

The lease terms are structured as follows:

Initial rent: Rs. 10.50 lakh for the first six months
Subsequent rent: Rs. 11.00 lakh for the next six months
Annual escalation: 5% increase on the last paid lease rent, effective from the second year

Property Ownership and Operation

Bemco Hydraulics will own the automobile showroom building
Jubilent Motorworks will operate the Mahindra car showroom
The building is scheduled to be handed over to Jubilent Motorworks before March 31, 2025

This strategic move by Bemco Hydraulics suggests a diversification of its asset utilization, potentially creating a new revenue stream from real estate alongside its core hydraulics business.

Financial Performance

In addition to the lease agreement announcement, Bemco Hydraulics reported its financial results for the quarter and half-year ended September 30:

Financial Metric (Consolidated)	Q2 (in Rs. Lakhs)	H1 (in Rs. Lakhs)
Revenue from Operations	2,233.22	3,403.77
Net Profit	401.91	545.60
EPS (Basic & Diluted)	0.92	1.25

The company has shown robust performance, with a significant increase in revenue and profitability compared to the previous year.

Corporate Actions

Bemco Hydraulics has also undertaken several corporate actions:

Increased and reclassified its authorized share capital from Rs. 400 lakhs to Rs. 450 lakhs.
Sub-divided its equity shares from face value of Rs. 10 each to Rs. 1 each.
Issued bonus shares in the ratio of 1:1, effectively doubling the number of outstanding shares.

These actions aim to improve the stock's liquidity and make it more accessible to a broader range of investors.

The company's strategic lease agreement, coupled with its strong financial performance and shareholder-friendly corporate actions, indicates a proactive approach to growth and value creation. Investors and market watchers will likely keep a close eye on how these developments impact Bemco Hydraulics' long-term performance and market position.

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