JBM Auto Reports 6.2% Rise in Q2 Net Profit, Secures Major Indian Army Contract

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.34%	+2.47%	-0.78%	+2.28%	-17.77%	+1,281.39%

In a significant move towards sustainable transportation, the Indian Army has inked a ₹130.58 crore contract with JBM Auto for the procurement of electric buses and charging infrastructure. This development marks a crucial step in the Army's transition to cleaner mobility solutions.

Contract Details

Aspect	Details
Contract Value	₹130.58 crore
Date of Signing	October 17, 2025
Procurement Items	113 electric buses and 43 fast chargers
Classification	Buy (Indian–IDDM)

Significance of the Deal

This contract represents the Indian Army's first major induction of electric buses, aligning with the government's PM E-Drive programme for clean mobility. The procurement is classified under the Buy (Indian–IDDM) category, which stands for Indigenously Designed, Developed, and Manufactured, supporting the Aatmanirbhar Bharat (Self-Reliant India) vision.

Impact and Objectives

The introduction of these electric buses is expected to have multiple benefits:

Modernization: The buses aim to help modernize the transport fleet across the three services of the Indian Armed Forces.
Reduced Fossil Fuel Dependence: By transitioning to electric vehicles, the Army aims to decrease its reliance on fossil fuels.
Environmental Contribution: This move aligns with India's goal of achieving net-zero carbon emissions.

Broader Implications

This contract with JBM Auto demonstrates the Indian government's commitment to promoting indigenous manufacturing in the defense sector while simultaneously pushing for sustainable transportation solutions. It sets a precedent for other government departments and may encourage wider adoption of electric vehicles in public transportation and government fleets.

As the automotive industry continues to evolve towards electrification, contracts like these could provide a significant boost to domestic manufacturers of electric vehicles and related infrastructure, potentially accelerating India's transition to cleaner transportation technologies.