JTEKT India Reports 4% Revenue Growth Amid Industry Challenges in H1 FY26

Jtekt India Limited, a leading manufacturer of steering systems for passenger vehicles, has reported a 4% revenue growth to Rs 12,051.00 million in the first half of FY26, outpacing the industry growth of 1.60%. The company's performance, however, was tempered by a decline in EBITDA margin from 7.60% to 6.30% during the same period.

Key Financial Highlights

Metric	H1 FY26	Change
Revenue	Rs 12,051.00 million	+4.00%
EBITDA Margin	6.30%	-1.30 percentage points

Growth Drivers and Challenges

JTEKT India's better-than-industry growth was attributed to:

Presence in better-performing vehicle models
Introduction of new Drive Shaft (CVJ) products

However, the company faced several challenges that impacted its profitability:

Factors Affecting EBITDA Margin

Factor	Impact	Reason
Employee Cost	-0.80%	Annual salary increments not fully absorbed due to lower-than-expected sales
Manufacturing Expenses	-0.40%	Increase in power tariff and higher power utilization for new production lines
Material Cost	-0.20%	Adverse product mix and higher new product development costs

Operational Highlights

JTEKT India continues to expand its production capacity, as evidenced by additional capital expenditure. The company expects to realize the benefits of these investments over time.

The company maintains a diverse product portfolio, including manual and power steering systems, steering columns, and driveline products. JTEKT India serves major vehicle manufacturers in India, such as Maruti Suzuki, Toyota, Tata Motors, Mahindra & Mahindra, and others.

Looking Ahead

While JTEKT India has demonstrated resilience in revenue growth, the company faces challenges in maintaining profitability. The management's focus on new product introduction and capacity expansion suggests a long-term growth strategy, although short-term pressures on margins persist.

Investors and analysts will be closely watching how JTEKT India navigates these challenges and capitalizes on its market position in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.84%	-2.43%	-1.50%	+11.23%	-6.51%	+92.89%

Jtekt India Limited , a leading automotive component manufacturer, has released its financial results for the second quarter and half-year ended September 30, 2025, along with an update on the utilization of funds from its recent rights issue.

Q2 Financial Highlights

The company reported the following results for the quarter ended September 30, 2025:

Particulars (INR in lakhs)	Q2 FY2026	Q2 FY2025	% Change
Revenue from Operations	63,910.52	60,530.75	+5.58%
Net Profit	1,822.77	1,948.26	-6.44%
EPS (Basic & Diluted)	0.68	0.75	-9.33%

Despite a modest increase in revenue, the company experienced a slight dip in net profit compared to the same quarter last year. The half-yearly results show:

Particulars (INR in lakhs)	H1 FY2026	H1 FY2025	% Change
Revenue from Operations	120,512.36	115,822.24	+4.05%
Net Profit	2,904.37	3,435.89	-15.47%
EPS (Basic & Diluted)	1.10	1.32	-16.67%

Rights Issue Fund Utilization

Jtekt India also submitted its monitoring agency report for the utilization of funds raised through a rights issue of equity shares worth Rs 249.89 crore. The report, prepared by Brickwork Ratings India Private Limited, indicates no deviation from the stated objectives. The funds are allocated as follows:

Purpose	Allocation (Rs Crore)	Utilized (Rs Crore)
Construction of production facility in Gujarat	113.51	22.70
Capital expenditure for Dharuhera facility	55.37	0.00
Repayment of borrowings	24.00	0.00
General corporate purposes	53.89	24.70
Issue expenses	3.12	2.44

The rights issue period was from August 4, 2025, to August 12, 2025. Unutilized proceeds have been deployed in fixed deposits with Axis Bank at interest rates ranging from 4.75% to 7.50%.

Management Changes

The company also announced several changes in its senior management:

Mr. Dinesh Goel, Head of Corporate Quality, has superannuated from the company.
Mr. Harmeet Singh Bedi has been appointed as Function Head – Corporate Quality.
Mr. Amit Kumar Sharma has been appointed as Function Head – Design & Development.

These appointments are effective from November 12, 2025.

Outlook

While Jtekt India has shown resilience in its revenue growth, the company faces challenges in maintaining profit margins. The ongoing utilization of rights issue funds for expansion and improvement of facilities may contribute to future growth. Investors and stakeholders will be watching closely to see how these investments translate into financial performance in the coming quarters.