JBM Auto Shareholders Approve Rs 1,450 Crore Related Party Transaction

JBM Auto Limited has successfully secured shareholder approval for its proposed Rs 1,450 crore related party transaction with subsidiary JBM Ecolife Mobility Private Limited. The postal ballot results, announced on December 12, 2025, showed overwhelming support from shareholders with the resolution passing by a significant majority.

Postal Ballot Results

The voting process concluded on December 10, 2025, with scrutinizer Dhananjay Shukla submitting his report confirming the resolution's passage. The detailed voting results demonstrate strong shareholder confidence in the proposed transaction:

Voting Category	Shares Held	Votes Polled	% Polled	Votes in Favour	% in Favour
Public Institutions	45,82,508	41,99,831	89.69%	38,90,816	92.64%
Public Non-Institutions	7,21,03,470	3,61,63,506	50.16%	3,58,93,506	99.26%
Total	4,03,67,272	4,00,54,322	47.06%	3,97,84,322	99.22%

A total of 435 members participated in the voting process, with seven members holding 425 votes choosing to abstain from the voting.

Scrutinizer Report Details

Mr. Dhananjay Shukla, Practicing Company Secretary and Managing Partner of M/s. Dhananjay Shukla & Associates, was appointed as the scrutinizer for the postal ballot process. The scrutinizer confirmed that the ordinary resolution for material related party transactions with JBM Ecolife Mobility Private Limited was passed with the requisite majority.

Process Details	Information
E-voting Period	November 11 to December 10, 2025
Cut-off Date	October 31, 2025
Total Shareholders on Record	1,89,399
Scrutinizer	Dhananjay Shukla (FCS No. 5886)

Transaction Overview

The approved transactions, valued at up to Rs 1,450 crores, involve various forms of financial support to JBM Ecolife Mobility Private Limited, including:

Undertakings
Sponsor support
Comfort letters
Indemnity
Other financial assistance

Subsidiary Focus

JBM Ecolife Mobility Private Limited, in which JBM Auto holds an 83% stake, operates in the electric vehicle ecosystem with focus on:

Electric bus operations
Supply, operation, and maintenance of electric buses
Related EV infrastructure development

Regulatory Compliance

The approval process followed SEBI regulations requiring shareholder consent for material related party transactions exceeding Rs 1,000 crores or 10% of annual consolidated turnover. The company complied with MCA circulars by sending the postal ballot notice only through e-mail to all members whose names appeared on the Register of Members as of the cut-off date.

Strategic Implications

This overwhelming approval reflects strong shareholder confidence in JBM Auto's strategy to support its subsidiary's expansion in the electric vehicle sector. The substantial financial backing positions JBM Ecolife Mobility to accelerate growth and strengthen its market position in India's evolving EV landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.31%	+6.29%	-1.48%	-5.29%	-23.99%	+1,007.25%

JBM Auto , a leading automotive component manufacturer, has released its financial results for the second quarter, showcasing a mixed performance with revenue growth but a decline in profitability margins.

Revenue Growth Amidst Margin Pressure

The company reported a consolidated net profit of ₹52.60 crore for Q2, marking a 6.2% increase from ₹49.50 crore in the same quarter last year. Revenue from operations saw a notable rise, climbing to ₹1,368.00 crore, up by 6.5% from ₹1,285.00 crore in the corresponding period of the previous year.

However, JBM Auto faced some headwinds in terms of profitability. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹155.30 crore, down 5.6% year-over-year. Consequently, the EBITDA margin contracted to 11.3% from 12.9% in the previous year, indicating increased cost pressures.

Financial Performance at a Glance

Here's a snapshot of JBM Auto's Q2 performance:

Metric	Q2 Current Year	Q2 Previous Year	YoY Change
Net Profit	₹52.60 crore	₹49.50 crore	+6.2%
Revenue	₹1,368.00 crore	₹1,285.00 crore	+6.5%
EBITDA	₹155.30 crore	₹164.50 crore	-5.6%
EBITDA Margin	11.3%	12.9%	-160 bps

Major Contract with Indian Army

In a significant development, JBM Auto secured a ₹130.58 crore contract with the Indian Army. The contract involves the procurement of 113 electric buses and 43 fast chargers, marking the Army's first major electric bus induction under the PM E-Drive programme. This procurement is classified as Buy (Indian–IDDM), supporting local manufacturing and aligning with the Aatmanirbhar Bharat vision.

Market Implications

The mixed results reflect JBM Auto's ability to drive sales growth in a challenging market environment. The increase in revenue suggests strong demand for the company's products, possibly driven by the ongoing recovery in the automotive sector. However, the contraction in EBITDA margin points to potential challenges in managing costs, which could be attributed to factors such as rising input prices or operational inefficiencies.

The new contract with the Indian Army represents a significant opportunity for JBM Auto to strengthen its position in the electric vehicle market and contribute to the nation's sustainable mobility goals. This development could potentially open doors for more such contracts in the future, boosting the company's long-term growth prospects.

Investors responded positively to the news, with JBM Auto shares closing at ₹681.55, up 0.66%.

As the automotive industry continues to evolve, with a growing focus on electric vehicles and sustainable mobility solutions, JBM Auto's ability to adapt and innovate will be key to its long-term success in the competitive automotive component manufacturing space.