Jamna Auto Industries Ltd Management Discussions

Commercial Vehicle Industry Overview

Key Highlights from FY 2025–26

The Indian commercial vehicle (CV) industry delivered its strongest performance in seven years in FY 2025-26. According to SIAM, total CV production reached approximately 11.75 lakh units — year-on-year growth of approximately 13% over the ~10.39 lakh units recorded in FY 2024-25, and the highest CV output ever recorded in a single financial year. The performance was part of an industry-wide upturn in which all four vehicle segments — passenger vehicles, commercial vehicles, two-wheelers and three-wheelers — recorded growth.

Key demand drivers included the landmark GST 2.0 reforms introduced in September 2025, which improved affordability and consumer sentiment, and sustained government spending on infrastructure.

Companys Performance

The Company achieved consolidated revenue of Rs. 2,612 crore, EBITDA of Rs. 394 crore, and PBT of Rs. 320 crore in FY 2025-26, as against consolidated revenue of Rs. 2,270 crore, EBITDA of Rs. 307 crore, and PBT of Rs. 256 crore in the previous financial year. EBITDA margin improved meaningfully to 15.1% from 13.5% in FY 2024-25

Focused Aftermarket Strategy

As part of our market diversification strategy under Lakshya RISE 5000, JAI continued to intensify our focus on Aftermarket India and exports. In FY 2025–26, AMI revenues grew 14% year-on-year — our highest-ever aftermarket performance for the second consecutive year. New market revenues (AMI + Export) contributed approximately 22% of consolidated revenue in FY 2025–26, tracking toward the Lakshya target of 40% .

Key Highlights

Aftermarket India sales grew by 14% year-on-year — the highest-ever AMI revenue for the second consecutive year.

The share of Allied (non-spring) products in Aftermarket India expanded 8% in FY 2025–26, up from 6% in FY 2024–25 and 3% in FY 2023–24 — doubling each year.

New market revenues (AMI + Export) contributed 22% of consolidated revenue in FY 2025–26.

Long-Term Success Enablers

Sustained growth in the aftermarket requires continued strengthening of Supply Chain Management (SCM), a deepening channel network, and accelerating digitalization. The Company is actively investing in all three dimensions.

Supply Chain Management (SCM)

The Yamuna Nagar plant remains dedicated to aftermarket production.

The specialised small-batch manufacturing line at Yamuna Nagar ensures no customer order is lost irrespective of SKU or order size.

The Chennai plant is producing for the Southern region Aftermarket India, while other plants are also equipped to supply to Aftermarket and other markets, providing flexibility and geographic reach across the distribution network.

Strengthening the Network

Distributors, dealers, retailers, and mechanics are critical to our supply chain and demand generation.

The distributor base grew to 350+ retailers to 20,000+ , and mechanics to 25,000 providing the deepest CV suspension aftermarket network in India.

Our engagement initiatives with partners are aimed at further expanding customer reach and enhancing brand loyalty.

Service Network (From Manufacturing to Service)

To drive growth in the trailer suspension segment, JAI established a dedicated, nationwide after-sales service network. A separate Service Organisation became operational as an independent function headed by a Service Head with Service Managers managing zonal service operations and field Service Representatives across the country.

29 Authorised Service Centres have been identified and certified across India to stock JAI Trailer Suspension spares and ensure pan-India parts availability. In addition, approximately 20 Private Workshops with vehicle/trailer repair expertise have been formally attached as partners. Training Centre at Pipipakkam is providing both classroom and practical training to Service Centre personnel on JAI Trailer Suspension System and Axles; additional training centres are planned in coming years.

A digital Customer Care Management System has been developed to enable faster complaint resolution. The system integrates JAI Field Service, Sales, Fleet Operators, and Trailer Builders for end-to-end visibility on product performance and warranty, with a target to resolve all customer complaints within 24 hours.

Digitalization

Distributor Management System (DMS) — deepened across all distributor points, enabling real-time inventory visibility and seamless billing across the network.

ERP integration with the banking system — real-time payment posting operational across all locations; RAMCO ERP fully integrated across the entire business.

Mechanic loyalty programme — 25,000+ mechanics enrolled with structured incentive, training, and digital engagement framework.

Strengthening Export Markets

Building a substantial export business is a core growth pillar of the Lakshya RISE 5000 strategy, contributing to the Companys target of 40% revenue from New Markets (Aftermarket India + Exports). In parallel with domestic aftermarket growth, JAI continued to aggressively expand its international distributor network and deepen export engagements.

In FY 2025–26, export revenues grew to Rs. 53 crore. The Company exports to 17 countries, with the product range broadened to include parabolic springs and allied products alongside leaf springs.

The Hosur plant continues to be designated exclusively for export production, maintaining product quality and consistency for international markets.

Technology-Driven Growth

The increasing adoption of advanced commercial vehicles is accelerating demand for technology-based suspension components. JAI is well-positioned to capitalise on this shift with several structural competitive advantages:

Parabolic springs continue to be the key technology product, with OEMs accelerating the transition from conventional leaf springs. In the CV segment, parabolic springs now represent approximately 30% of total spring demand — and JAI holds a dominant approximately 85% market share in this category.

New parabolic spring capacity at Adityapur (Jharkhand) became operational in FY 2025–26 — directly serving the growing OEM demand.

A new parabolic spring manufacturing facility at Pithampur, Madhya Pradesh is under development and expected to be operational by March 2028.

Hybrid springs and BS VI-compliant springs provide a distinct technological edge, aligned with evolving industry regulations and OEM performance requirements.

Air suspension systems, lift axles, and allied products are gaining strong traction in the market.

Gulf Conflict — Risk Assessment and Companys Resilience

During FY 2025–26, the escalation of the Gulf conflict and disruption of the Strait of Hormuz created near-term headwinds for energy, steel, and maritime logistics costs. Through disciplined sourcing, and active supply chain co-ordination, the Company is managing its production and supply continuity without any material disruption to operations or customer commitments.

Strong OEM Relationships

Our partnerships with Indias commercial-vehicle OEMs remain the foundation of everything we build. As a preferred suspension partner to every major manufacturer in the country, we are steadily expanding beyond springs into products such as stabiliser bars, slipper suspensions and lift axles — deepening each relationship and raising our content per vehicle.

OEM New Business Development

FY 2025–26 continued the momentum of product and customer expansion, with JAI progressing its strategic journey from a component manufacturer to a provider of integrated suspension system solutions.

Launch of New Product

Product Slipper Suspension :- Launch Slipper Suspension & Started Supply to Ashok Leyland

Expansion of Customer Base for Existing Product

Product Stablizer Bar :- In addition of supplies to Tata Motors Limited Ltd; Now supply commenced to Mahindra & Mahindra Limited .

New Projects: Integrated Suspension System and Rubber

The suspension systems market is expected to grow significantly over the next five years. The axle accounts for approximately 60% of a trailer suspension systems total value. An integrated suspension system plant at Indore, including in-house axle manufacturing, will enhance value addition and position JAI as a complete trailer suspension system provider. Project execution is in progress.

JAI consumes rubber components — bushes, bolsters, and allied items —An in-house production capability for these components has been approved, strengthening value chain control and supporting both internal manufacturing needs and aftermarket supply. Project execution is in progress.

Product Range and Capacity Expansion

JAIs product portfolio includes a comprehensive range of offerings: leaf springs (conventional, parabolic, hybrid, Z-springs), lift axles, trailer suspensions (mechanical and air), slipper suspensions, air suspensions, stabilizer bars, U-bolts, and high-consumption allied products such as brake linings, clutches, water pumps, bearings, jack rods, and universal joint crosses. New products contributed approximately 47% of revenue in FY 2025–26.

Update on New Projects

Adityapur, Jharkhand:- Parabolic leaf spring plant commenced commercial production in FY 2025-26.

Indore, Madhya Pradesh:- U-bolt production and leaf spring manufacturing commenced in FY 2025-26.

Indore Madhya Pradesh:- Parabolic leaf spring project approved by the Board, project execution in progress

Indore Madhya Pradesh:- Integrated suspension system plant approved by the Board, project execution in progress.

Malanpur Madhya Pradesh:- Rubber components: approved by the Board, project execution in progress.

Credit Rating, Financial Strength, and Dividend

JAI maintains a strong credit profile at both standalone and consolidated levels, further reinforced by successive rating upgrades .

	CARE Ratings
Instrument / Facility	Rating	Rating Action
Long Term Bank Facilities	CARE AA; Stable	Reaffirmed
Long Term / Short Term Bank Facilities	CARE AA; Stable / CARE A1+	Assigned

 

		ICRA Limited
Instrument / Facility	Rating	Rating Action
Long-Term Fund-based Term Loan	[ICRA]AA (Stable)	Upgraded from [ICRA]AA- (Positive); outlook revised to Stable from Positive
Long-Term / Short-Term Fund / Non-Fund based WC	[ICRA]AA (Stable) / [ICRA]A1+	Long Term rating upgraded from [ICRA]AA- (Positive) and outlook revised to Stable from Positive and Short term reaffirmed
Commercial Paper	[ICRA]A1+	Reaffirmed

In FY 2025–26, the Company achieved a Return on Capital Employed (RoCE) of 36% (net of bill discounting). The Company has no long-term debt and continues to generate healthy free cash flows, with all capital expenditures funded through internal accruals without reliance on external debt.

Dividend

During FY 2025–26, the Company paid an interim dividend of Rs. 1.00 per equity share.

The Board of Directors has recommended a final dividend of Rs. 1.50 per equity share (Rs. 1 face value) for shareholders approval at the upcoming Annual General Meeting.

Total dividend payout for FY 2025–26 amounts to Rs. 2.50 per equity share — representing 43.3% of PAT, tracking toward the Lakshya RISE 5000 target of 50% dividend payout.

Key Financials

Following are the key financials of the Company at standalone and consolidated levels.

	Standalone		Consolidated
Particulars (Rs. Crore)	FY 2025–26	FY 2024–25	FY 2025–26	FY 2024–25
Revenue from Operations	2,538.52	2,211.85	2,611.58	2,270.14
EBITDA	411.97	332.83	405.40	307.46
PBT	335.59	284.33	319.74	255.75
PAT	249.24	211.13	230.98	180.32
Net Worth	1,227.94	1,055.91	1,147.08	993.17

Key Financial Ratios

	Standalone		Consolidated
Ratio	FY 2025–26	FY 2024–25	FY 2025–26	FY 2024–25
Debtors Turnover (days)	18.0	30.5	16.4	20.7
Inventory Turnover (days)	68.16	52.1	72.82	51.5
Interest Coverage (times)	27.4	70.2	25.3	57.1
Current Ratio (times)	1.1	1.3	1.3	1.4
Debt Equity Ratio (times)	0.01	0.10	0.01	0.10
EBITDA Margin (%)	16.23%	14.1%	15.52%	13.5%
PAT Margin (%)	9.8%	9.5%	8.8%	7.9%
Return on Net Worth (%)	20.3%	20.0%	20.1%	18.2%

ESG Initiatives

The Company continues to make meaningful progress on its ESG framework, governed by the CSR & ESG Committee. The 24 month ACMA Mobility Foundation sustainability programme with best practices is implemented across all other units.

Risk Management

Risk management is an inherent part of the Companys business, and management has a proactive approach to managing risks. As part of its long-term strategy, the Company is executing its five-year growth plan, Lakshya RISE 5000, which aims to drive sustainable growth while reducing exposure to business risks. A key focus of this plan is to diversify the Companys product portfolio and geographical markets to reduce dependence on the cyclical commercial vehicle (CV) segment.

The Company has established a risk management policy with a three-tier framework for the identification, assessment, control, minimisation, and mitigation of risks. This policy is governed by the Risk Management Committee and is available on the Companys website. The Risk Management Committee regularly reviews key risks and monitors the implementation of timely and effective mitigation measures

Robust IT Infrastructure & Cybersecurity

Following the ransomware incident in FY 2024–25 and its full recovery, JAI has significantly hardened its cybersecurity posture. PKF Algosmic continues as Cyber Controls Implementation Partner, actively elevating IT defences and system architecture. RAMCO ERP integration is now complete across all group locations.

Internal Controls

The Company has established a robust and comprehensive system of internal controls, policies, and procedures designed to ensure the accuracy, efficiency, and timeliness of accounting records and financial information, while also preventing and detecting fraud and errors.

In addition to engaging external auditors, the Company established its own Internal Audit Department last year.

To further enhance internal control procedures and compliance, we are strengthening the capabilities of our Ramco ERP system by implementing additional control features directly into system operations.

To provide independent assurance on the effectiveness of the Companys internal controls, we have appointed M/s Protiviti Risk & Business Consulting as our internal auditor. The internal auditors conduct concurrent audits and reviews to assess the adequacy and effectiveness of internal controls, verify compliance with laws and internal policies and examine transactions to detect and prevent fraud and errors. They also recommend corrective actions where necessary.

The internal auditors report directly to the Audit Committee of the Board, which is responsible for:

Approving the appointment of the internal auditor.

Reviewing and approving the annual internal audit plan.

Reviewing reports submitted by the internal auditors.

Evaluating the significance of audit findings.

Assessing the adequacy of management responses.

Monitoring the status of corrective actions taken.

Human Resources

We view our employees as a valuable resource and ensure that our HR practices are aligned with our goals. We have worked hard to create a team of professionals committed to achieving our goals. During the year, units held training sessions on various topics covering code of conduct, prohibition on insider trading, health & safety, skill development, wellbeing of employees and workers and POSH trainings. Through these trainings and organizational policies and practices, we focus on achieving our goals through personal growth and development. We also want to improve gender diversity in our workforce, so we hired more female workers on the shop floor. During the FY 25- 26 our relations with our employees and workforce remained cordial throughout the year.