JBM Auto Ltd Management Discussions

GLOBAL ECONOMY

The global economy is expected to remain resilient in CY 2026, maintaining a stable growth trajectory desP1te a complex external environment. As per the IMF (April 2026), global growth is projected at 3.1 % in 2026 and 3.2% in 2027, following 3.4% in 2025. Growth is supported by digital transformation, investments in emerging technologies, and supportive policy conditions. However, geopolitical tensions, including US-China trade dynamics and Middle East uncertainties, may pose downside risks. Overall, strong structural fundamentals are likely to sustain global growth.

Emerging Markets and DeveloP1ng Economies (EMDEs)

Growth in emerging markets and develoP1ng economies is expected to moderate in CY 2026, with a gradual recovery in CY 2027. The impact remains uneven due to varying exposure to geopolitical developments, particularly through energy, trade, and financial channels. Commodity-importing economies are more vulnerable, facing rising energy and food costs, currency depreciation, and higher inflation, which are eroding purchasing power. Additionally, global uncertainty, tighter financial conditions, and risk-averse sentiment continue to strain economies with existing macroeconomic weaknesses.

(Source: https://www.imf.orci/en/publications/weo/issues/2026/04/14/world- economic-outlook-april-20261

Trade Reconfiguration and Advanced Economies

Global trade remains resilient desP1te geopolitical tensions, supported by strong growth in technology sectors. However, supply chain shifts, policy changes, and reshoring are driving regional variations and adding uncertainty. Commodity prices and currency movements continue to impact trade balances, while diversification of trade partnerships is ongoing. In advanced economies, supportive financial conditions and investments in Al and digital technologies are sustaining growth, though structural challenges such as aging demographics, weak productivity, and fiscal pressures limit medium-term prospects.

Navigating Geopolitical Change and Inflation

Global disinflation reversed in CY 2026 due to geopolitical tensions, particularly in the Middle East, leading to a sharp surge in energy prices. This has increased input costs across industries and disrupted supply chains. Global inflation is now estimated at approximately 4.4% in 2026, before moderating in 2027. Inflationary pressures remain higher in emerging markets due to rising import costs and currency depreciation, while advanced economies continue to manage inflation through tighter monetary policies.

Outlook

The global economic outlook is increasingly influenced by geopolitical tensions, changing trade relationships, and persistent inflationary pressures. While technology-led investment, Al adoption, and resilient services trade continue to support growth, escalating conflicts and energy market disruptions have created new risks. These developments are accelerating supply chain diversification, encouraging strategic industrial policies, and reinforcing the shift toward a more multipolar global economy.

INDIAN ECONOMY

The Indian economy remains robust and resilient, with real GDP growth estimated at 7.7% in FY 2025-26, driven by strong domestic demand, sustained investment, and ongoing reforms. Growth momentum is supported by moderating inflation, improving employment, and a stable external sector, reinforcing Indias progress toward its Viksit Bharat 2047 vision.

Real GDP Growth (in %)

Indias growth in FY 2025-26 reflects broad-based expansion across sectors, reinforcing the resilience of its diversified economic structure.

The services sector remains the key growth driver, with output projected to grow 9.1%, led by strong performance in financial services, trade, transportation, communication, and digital services, supported by robust domestic demand and ongoing digitalization.

The industrial sector is expected to grow 6.2%, driven by manufacturing and construction, with continued support from government initiatives such as PLI schemes, enhancing capacity, investment, and competitiveness.

Recent indicators further underline this momentum, with manufacturing PMI strengthening, supported by higher domestic demand, improved output, and increased order inflows, signaling sustained industrial growth.

Monetary Policy Environment

FY 2025-26 was characterized by accommodative monetary conditions and stable inflation, supporting economic growth. The RBI maintained the repo rate at 5.25% with a neutral stance, following cumulative easing of 100 bps, to sustain liguidity while assessing policy transmission.

Favorable financial conditions supported credit growth, investment, and consumption, aided by liguidity measures and improved credit access, particularly for MSMEs.

Inflation remained within the target range (CP1: 3.48% in April 2026), supported by stable food prices and moderated core inflation, preserving purchasing power. Plowever, global uncertainties, especially energy price volatility and geopolitical risks, continue to pose inflationary challenges.

Outlook

Indias economic outlook remains positive and resilient, with real GDP growth projected at 6.9% and inflation at ~4.6%. Growth will be supported by strong domestic demand, healthy corporate and banking balance sheets, and continued infrastructure investment.

While external risks such as geopolitical tensions, commodity price volatility, and trade disruptions persist, stable services exports, expanding trade partnerships, and steady remittances are expected to support external stability.

Overall, strong macro fundamentals and policy support position India well to sustain its medium-term growth momentum desP1te near-term uncertainties.

Union Budget 2026-27

The Union Budget 2026-27 presents a growth-oriented and inclusive policy framework aimed at strengthening economic resilience and long-term competitiveness. The Government has prioritized manufacturing, MSME development, infrastructure, energy security, and regional economic development to drive growth and employment.

CaP1tal expenditure has been significantly increased to Rs 12.2 lakh crore, reinforcing the focus on infrastructure- led growth, including investments in high-speed rail, freight corridors, and logistics modernization.

The Budget also emphasizes emerging sectors such as digital technologies, Al, and biopharmaceuticals, supporting innovation and future-ready industries.

On the social front, initiatives across education, skill development, healthcare, and workforce participation are expected to enhance human caP1tal and promote inclusive growth. Technology-led initiatives such as Bharat-VISTAAR aim to improve productivity, particularly in rural sectors.

Fiscal prudence remains a priority, with a fiscal deficit target of 4.3% of GDR alongside continued focus on tax reforms, ease of doing business, and attracting global investments.

Overall, the Budget reinforces Indias growth momentum through a balanced focus on infrastructure, innovation, and inclusive development.

(Source: https://www.P1b.gov.in/PressReleasePage. aspxRs PRID=2221458&reg=3&lang=l)

INDIAN AUTOMOBILE INDUSTRY

As one of the key contributors to Indias industrial output, the automobile industry continues to play a vital role in the countrys economic development. Supported by the Automotive Mission Plan and the Viksit Bharat 2047 vision, the sector has entered an increasingly technology-driven and localized phase of development.

GST 2.0 REFORMS

Announced in September 2025, the GST 2.0 reforms have emerged as a major catalyst for Indias automotive sector. By reducing tax rates across mass-market vehicles, commercial transport, tractors, and auto components, the reforms are expected to improve affordability, stimulate demand, strengthen domestic manufacturing, and generate employment across the automotive value chain.

Affordable Mobility Boost

A reduction in GST from 28% to 18% on motorcycles up to 350cc and small cars is expected to make personal transportation more accessible for first-time buyers, rural households, gig workers, and middle-income consumers.

Agriculture and Rural Growth

The reduction of GST to 5% on tractors below 1800cc and tractor parts is expected to lower mechanisation costs for farmers, improve agricultural productivity, and support Indias position as a leading tractor manufacturing hub.

Logistics and Public Transport Gains

Lowering GST on buses from 28% to 18%, along with bringing commercial goods vehicles under the 18% tax slab, is expected to reduce fleet acguisition costs, improve affordability for transport operators, and enhance overall supply-chain efficiency.

For JBM Auto (JBMA), this represents one of the most significant policy tailwinds of the year. The reduction in GST directly improves fleet procurement economics for State Transport Undertakings (STUs) by lowering effective purchase costs and associated financing reguirements. It also strengthens the value proposition of JBMs electric buses by improving total cost of ownership and enhancing their competitiveness against conventional diesel buses and competing electric vehicle offerings.

Manufacturing and Employment Multiplier

Reduced GST rates on vehicles and auto components are expected to increase demand for tyres, batteries, electronics, steel, plastics, and other inputs. This is likely to benefit MSMEs, support over 3.5 Crore jobs, and encourage fresh investments under the Make in India initiative.

Simplified Premium Segment Taxation

A flat 40% GST rate without cess for large vehicles is expected to improve tax certainty, enhance input tax credit utilisation, and simplify compliance for manufacturers.

(Source:https://www. P1b.gov. in/PressReleasePage. aspxRs PRID=21 63763&reg=3&lang=2)

India-EU Free Trade Agreement

India-EU Free Trade Agreement (FTA) - Impact on Automotive Sector

The India-EU FTA (January 2026) is expected to unlock significant growth opportunities for the automotive sector through phased tariff reductions, improved market access, and enhanced regulatory cooperation.

Key Growth Drivers

• Expanded Exports: Lower tariffs to improve competitiveness of Indian vehicles and components in European markets

• Market Integration: Greater participation of Indian players in EU supply chains and increased localisation by European OEMs in India

• Investment and Technology Inflows: Stronger IP protection and investment facilitation to drive FDI, partnerships, and technology transfer.

• Technology Advancement: Collaboration in EVs, battery systems, safety, and digital mobility to accelerate innovation.

• Supply Chain Efficiency: Streamlined customs processes and regulatory alignment to reduce costs and improve logistics.

Industry Implications

The agreement is expected to strengthen Indias position as a global automotive hub, enhancing competitiveness, boosting exports, and accelerating the shifttoward advanced and sustainable mobility solutions.

Production

According to the Society of Indian Automobile Manufacturers (SIAM), the Indian automobile industry produced a total of 347.09 Lakh vehicles in FY 2025-26. This represents an 11.83% increase over the 310.36 Lakh vehicles produced in FY 2024-25, reflecting continued growth across major vehicle segments. Growth was led by three-wheelers at 23.88%, followed by commercial vehicles at 13.06% and

two-wheelers at 11.76%. Passenger vehicles recorded a 9.44% increase in production.

(Source: https://www.siam.in/knowledge/industry-data/industry-trends) Domestic Sales

Domestic sales increased by 10.37% in FY 2025-26, rising from 2,56,09,399 units in FY 2024-25 to 2,82,65,519 units. Segment-wise growth was recorded as follows:

• Passenger Vehicles: up by 7.94%

• Commercial Vehicles: up by 12.64%

• Three-Wheelers: up by 12.79%

• Two-Wheelers: up by 10.70%

• Quadricycles: down by 96.67% (from 120 units to 4 units)

(Source: https://www.siam.in/knowledge/industry-data/industry-trends) Exports

Exports recorded strong growth of 23.96% in FY 2025-26, increasing from 53,62,854 units in FY 2024-25 to 66,47,685 units. Segment-wise performance was as follows:

• Passenger Vehicles: up by 17.50%

• Commercial Vehicles: up by 17.39%

• Three-Wheelers: up by 50.06%

• Two-Wheelers: up by 23.39%

• Quadricycles: up by 4.27%

INVESTMENTS AND DEVELOPMENTS IN THE INDIAN AUTOMOBILE SECTOR

The automobile sector attracted cumulative eguity FDI inflows of approximately Rs 2,48,683 Crores (US$ 29.10 Bn) between April 2000 and March 2025. This highlights its strong growth potential and sustained investor confidence. Backed by rising domestic demand, several automakers have increased investments across industry segments to expand capacity and strengthen market presence. This investment momentum is also expected to accelerate the growth of Indias electric vehicle (EV) sector, which is projected to reach Rs 20,00,000 Crores (US$ 234 Bn) and create nearly 5 Crore jobs by CY 2030.

GOVERNMENT INITIATIVES FOR THE AUTOMOBILE INDUSTRY

The Union Budget 2026-27 introduced several measures to strengthen the Indian automotive ecosystem. The focus remains on electric mobility, domestic manufacturing, supply chain resilience, and logistics infrastructure. These initiatives are expected to improve competitiveness and support long-term industry growth.

Advancing Green Mobility

Policy Support for Sustainable Mobility

The Government of India continues to strengthen sustainable mobility as a key growth driver, with the Union Budget 2026-27 shifting focus from demand incentives to long-term ecosystem development. Initiatives such as PM E DRIVE and enhanced PLI schemes aim to accelerate EV manufacturing localisation and deepen the clean mobility value chain.

The Budget emphasizes battery cost reduction and resource security, with customs duty exemptions on critical caP1tal goods and battery scrap supporting domestic cell manufacturing and recycling.

Further, the development of Rare Earth Corridors is expected to secure critical mineral supply chains for EV components, while incentives for cleaner fuels, including biogas- blended CNG, will support cost-efficient and sustainable transportation.

Overall, these measures are expected to strengthen Indias EV ecosystem, enhance self-reliance, and drive long-term growth in clean mobility.

Catalysing Innovation for Smarter Mobility

The Union Budget 2026-27 underscores the importance of preparing Indias automobile sector for a more complex global environment. It seeks to accelerate the development of advanced automotive components, electronics, and domestic chip manufacturing. Key announcements include:

India Semiconductor Mission (ISM) 2.0: A massive expansion of the mission, including an enhanced Rs 40,000 Crore allocation for the Electronic Components Manufacturing Scheme, moving beyond basic assembly to support full-stack Indian chip development, automotive telematics, and specialized vehicle microcontrollers

• The SME Growth Fund: A dedicated ^10,000 Crore fund aimed directly at automotive MSMEs and small- scale component manufacturers, enabling them to upgrade machinery, meet stricter international guality standards, and localize advanced driver assistance systems (ADAS) and V2X (Vehicle-to-Everything) hardware

Logistics and Infrastructure Integration: A Rs 12 Lakh Crore public caP1tal expenditure push, highlighted by a new dedicated freight corridor between Dankuni in

Eastern India and Surat in the West, systematically shifting automotive logistics from congested roadways to more cost-effective, sustainable transport networks.

The Government also increased Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS) to Rs 1,000 Crores. This move supports the secondary-use market for EV batteries by preparing the power grid to absorb repurposed vehicle batteries for stationary storage applications.

Integrating Sustainability across the Ecosystem

The Union Budget 2026-27 reflects a comprehensive strategy to strengthen Indias automotive industry through deeper localization, technological advancement, and infrastructure development. By promoting domestic manufacturing of critical materials, encouraging innovation in automotive electronics, expanding logistics networks, and supporting MSMEs, the Government is fostering a more resilient and globally competitive automotive ecosystem.

These initiatives align with the broader goals of Atmanirbhar Bharat and sustainable industrial growth. They position the automotive sector as a key driver of economic development, technological leadership, and export competitiveness. Together, they create a foundation for a future-ready industry capable of meeting evolving mobility needs while supporting Indias transition toward cleaner, smarter, and more integrated transportation systems.

Indian Auto Components Industry

The Indian auto component industry is at a P1votal stage. Global trade patterns are being reshaped by geopolitical shifts, supply chain diversification, and the transition toward electrification. Lightweighting, digitization, and other structural trends are also transforming the sector. This technology-led shift is creating demand for EV-ready components, hot stamP1ng, and advanced thermal systems. As global trade corridors evolve, India is emerging as a preferred manufacturing and sourcing destination. Its cost competitiveness, skilled workforce, and expanding domestic market support this position.

Building on a revenue base of US$ 80 Bn in FY 2024-25, the industry has maintained strong momentum. It has grown nearly 10% annually over the past five years and is projected to reach about US$ 200 Bn by CY 2030. Two major opportunities are expected to drive this growth. First, the consolidation of global internal combustion engine (ICE) supply chains could create a US$ 20-30 Bn export opportunity for Indian component manufacturers. Second, raP1d electrification is accelerating domestic demand. Electric vehicle sales are expected to grow about 35% annually between CY 2024 and

CY 2030. This trend is creating opportunities in advanced components and technologies.

(Source: https://www.mckinsey.com/industries/automotive-and-assembly/ our-insights/shaP1ng-the-future-of-indias-auto-component-industry-amid- global-trade-shifts)

DesP1te these prospects, the industry faces several challenges. Dependence on imported semiconductors and rare earth elements could constrain growth. Limited investment in research and development, technology capability gaps, and rising sustainability reguirements also pose risks. In addition, MSMEs, which contribute nearly 40% of industry revenue, continue to face challenges related to scale, financing, and technology adoption.

To caP1talize on emerging opportunities, the industry is strengthening supply chain resilience. It is investing in new technologies and talent development while enhancing global competitiveness. Greater collaboration among industry, academia, start-ups, and policymakers is also gaining importance. With coordinated efforts and supportive policies, India can further strengthen its position in global automotive value chains.

Electric Vehicles Industry

The global electric vehicle (EV) industry is entering a phase of accelerated scale and commercialization. Supportive policies, technological advances, and growing consumer acceptance are driving this growth. As countries pursue decarbonization goals and invest in sustainable transportation infrastructure, EV adoption is expanding across developed and emerging markets. The sector has moved beyond its early growth stage and become an integral part of the automotive industry. Electric vehicles now account for approximately 25% of global new vehicle sales.

This growth is transforming the broader automotive value chain. Manufacturers are expanding production capacity, strengthening battery supply chains, and investing in next- generation technologies. These efforts aim to meet rising demand while improving long-term competitiveness. At the same time, regulatory frameworks continue to evolve. They promote cleaner mobility solutions and encourage innovation across the industry.

Passenger vehicles remain the largest contributor to EV adoption. Ongoing improvements in battery efficiency, vehicle range, and cost economics continue to support growth. Advances in battery technology and manufacturing have improved affordability and performance. Meanwhile, increasingly stringent emissions regulations are accelerating the shift toward electric mobility.

This momentum is evident in the Passenger Vehicle (PV) segment. Pan-India EV penetration exceeded 4.5% in FY 2025-26, representing more than 219,000 electric cars sold annually. Adoption continues to accelerate. Monthly retail volumes have surged to 26,682 units, lifting short-term market penetration to 6.6%.

The Commercial Vehicle (CV) segment is also gaining momentum. Growth is particularly strong in applications where high utilization and predictable operations improve electrification economics. While overall electric CV penetration remains modest at 2.8%, several sub-segments are advancing raP1dly. Monthly e-CV sales have more than doubled to 2,400 units, driven by guick-commerce expansion and last-mile delivery networks. This transition is most visible in the Light Commercial Vehicle (LCV) segment. Alternative powertrains, primarily natural gas and Battery Electric Vehicles (BEVs), are expected to account for over one-fifth of total LCV sales.

Supported by targeted incentives and fleet decarbonization initiatives, electric commercial vehicle adoption is expected to strengthen further. This will broaden the industrys growth base and reinforce the long-term outlook for the global EV market.

Global Electric Bus Industry

The global electric bus (e-bus) market continued to grow steadily in CY 2025. Growth was supported by stronger sustainability goals, advances in battery technology, and supportive policy frameworks. As cities work to reduce transport emissions and improve air guality, electric buses are becoming central to public transit modernization. At the same time, improvements in vehicle range, energy efficiency, and fleet management technologies are enhancing operational and economic viability. Continued investments in charging infrastructure and clean mobility initiatives further support this transition. As a result, global e-bus sales are expected to reach approximately 68,000 units in CY 2025.

China remained the largest electric bus market in CY 2025, accounting for just over 60% of global sales. Total sales reached around 40,000 units. However, its dominance has fluctuated in recent years following setbacks such as the sharp contraction in CY 2023. Europe strengthened its position as the second-largest market. Sales rose to roughly 13.000 units in CY 2025, capturing ~13% of global sales. Meanwhile, India retained its position as the third-largest market. Steady volume growth lifted sales to approximately 4.000 units, representing around 5% of the global market. Latin America also emerged as a notable growth driver. The region recovered from its 2024 decline to reach nearly 3.000 units in CY 2025. In contrast, electric bus sales in the United States fell from 2024 levels to approximately 1,500 units. This diversification of demand suggests electric bus adoption is becoming less China-centric. Conseguently, broader opportunities are emerging for manufacturers, suppliers, and infrastructure providers worldwide.

ELECTRIC VEHICLE BATTERY DEPLOYMENT BY MODE AND REGION, 2020-2025

Electric vehicles remained the largest contributor to global battery demand in CY 2025. They accounted for more than 70% of total battery deployment. Global EV battery deployment reached 1.2 TWh, reflecting nearly 30% year-on-year growth. Deployment has increased more than sevenfold since CY 2020. While light-duty vehicles continued to dominate battery consumption, electric trucks recorded the strongest growth. This trend reflects accelerating commercial vehicle electrification, particularly in China. Regionally, China maintained its leadership with around 60% of global deployment, followed by the European Union. Meanwhile, continued growth across emerging markets highlights the widening geographic reach of EV adoption and battery demand.

Battery Prices Continued their Gradual Decline

Average battery prices fell by 8% in CY 2025, driven by ongoing gains in manufacturing efficiency, advancements in battery technologies and chemistries, and increasing competition across global markets. Lower critical mineral prices also helped reduce costs, although lithium and cobalt prices rose significantly during the year. If these increases persist, they could place upward pressure on battery costs as inventories of lower-cost minerals are gradually depleted.

At the start of 2026, lithium prices were more than double their level from the same period in CY 2025, desP1te remaining roughly 70% below their CY 2022 peak. This rebound was fueled by stronger-than-expected demand growth, particularly from the battery energy storage sector, limited inventories in China, and temporary supply disruptions such as the suspension of operations at CATLs Jianxiawo lithium mine.

Sustained increases in lithium and cobalt prices could raise the cost of lithium-ion batteries and strengthen the competitiveness of sodium-ion batteries, which offer lower energy density and shorter driving ranges but do not reguire lithium. However, the impact on battery prices may be moderated by long-term lithium supply agreements and the vertical integration strategies adopted by major battery manufacturers.

Indian Electric Bus Industry

Bus electrification has become a key P1llar of Indias transition to a low-carbon transportation system. This reflects the sectors critical role in urban mobility. Adoption has been driven primarily by public transport, with more than 90% of electric bus sales linked to State Transport Undertakings (STUs). Government procurement programs have been the main growth catalyst. These initiatives have resulted in awards for nearly 46,000 electric buses scheduled for deployment over the next two to three years. This substantial order P1peline provides strong visibility for continued market expansion.

The sector is now moving from early adoption to large- scale deployment. More than 10,000 electric buses are operating on Indian roads. This marks a significant increase from previous years and highlights the accelerating pace of electrification across public transport networks. The growing fleet demonstrates rising acceptance of electric mobility solutions. It also establishes a strong foundation for the next phase of market growth.

PROCUREMENT OF ELECTRIC BUSES IN INDIA:

The Government has reinforced its commitment to public transport electrification through targeted investments in electric buses. Under the Purvodaya development initiative, funds have been allocated to procure 4,000 electric buses across eastern India. The initiative will create sustained demand for domestic manufacturers while promoting cleaner and more efficient urban mobility in Odisha, West Bengal, Jharkhand, and Assam. It complements several major e-bus programs:

FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles)

Under FAME II, the Ministry of Heavy Industries adopted a competitive Expression of Interest (Eol) process for e-bus allocation. The scheme prioritized public and shared transport electrification to reduce urban emissions and improve last-mile connectivity. A total of 6,862 e-buses were sanctioned. Of these, 5,195 had been deployed across states and cities as of January 2026. Major deployments include Delhi (1,321 buses), Bengaluru (1,121 buses), Mumbai, Surat, Ahmedabad, and Pune. This reflects the focus on high-demand urban transport corridors.

PM E-DRIVE Scheme

Building on FAME II, the PM E-DRIVE scheme has expanded support for large-scale e-bus procurement. The program supports the deployment of 14,028 e-buses across nine metropolitan cities with populations above 4 Mn. As of March 2026, 13,800 buses had been allocated across two procurement phases. Bengaluru received the largest allocation with 4,500 buses. It was followed by Delhi (2,800), Hyderabad (2,200), Mumbai (1,500), Ahmedabad (1,200), Pune (1,000), and Surat (600). The first-phase tendering process has been completed, while the second phase is underway. Deployment will begin after concession agreements are signed between State Transport Undertakings (STUs) and selected operators.

PM E-Bus Sewa

Alongside the metropolitan-focused PM E-DRIVE scheme, the Ministry of Housing and Urban Affairs is implementing PM e-Bus Sewa. The scheme supports the deployment of 10,000 electric buses in Tier-2 and Tier-3 cities. It aims to expand electric public transportation beyond major urban centers and improve mobility services in emerging cities.

Amrit Bhubaneswar and Other City-Specific Initiatives

Several cities have launched e-bus programs under municipal or state-level frameworks. These initiatives are often supported by charging infrastructure, operational assistance, and route optimization measures. Examples include Amrit Bhubaneswar in Odisha, similar programs in Pune, Jaipur, and Surat, and state-led electrification plans in Tamil Nadu and Karnataka. These efforts focus on fleet modernization through electric alternatives.

National Electric Bus Mission (Announced under Broader Clean Mobility Frameworks)

Announced under broader clean mobility frameworks, the mission outlines long-term public transport electrification goals. It targets 30-40% electrification of urban bus fleets by 2030 in major cities. The framework supports coordinated procurement, charging infrastructure rollout, and battery- swapP1ng P1lot programs.

Indias e-bus procurement model increasingly relies on gross cost contract (GCC) and public-private partnership structures. Under this model, private operators procure, operate, and maintain buses, while transport authorities pay service-based fees. The approach reduces the upfront financial burden on STUs and enables larger procurement volumes. Supported by localization reguirements, charging infrastructure investments, and favorable policies, these programs have created a strong deployment P1peline. As a result, India has emerged as one of the worlds fastest- growing electric bus markets.

BATTERY OPPORTUNITIES IN INDIA

The Indian battery market is projected to grow from US$ 12.68 Bn in CY 2025 and US$ 14.01 Bn in CY 2026 to US$ 23.30 Bn by CY 2031, registering a CAGR of 10.71 % between CY 2026 and CY 2031. This strong growth underscores the increasing strategic importance of batteries, which convert stored chemical energy into electrical energy. Their applications span mobile electronics, electric vehicles, and grid-scale renewable energy storage. As the market expands, high-capacity engineering divisions, particularly EV Aggregates verticals focused on localized battery pack design, thermal management, and assembly, are well positioned to benefit from rising technology demand.

Electric Mobility Fueling a New Battery Revolution

Indias transition to sustainable mobility is gaining pace. Electric vehicles (EVs) and advanced chemistry cell manufacturing have emerged as key enablers of the countrys clean energy ambitions. In CY 2025, EV sales crossed the 2 Mn mark, reflecting growing electrification across passenger, commercial, and shared mobility segments. Supportive government policies, rising consumer confidence, greater model availability, and ongoing improvements in charging infrastructure have driven this growth.

Building on this momentum, the Union Budget 2026-27 allocated ^1,500 Crore for the continued implementation of the PM E-DRIVE scheme. The funding focuses on expanding public charging infrastructure, strengthening testing agencies, and incentivizing heavy commercial segments such as e-trucks and e-buses through March 2028. As the EV ecosystem expands, demand for high-performance energy storage solutions is increasing in parallel. Lithium- ion batteries remain at the center of this transition, powering most EVs in India. Supported by localized PLI schemes and growing investments in domestic cell manufacturing, Indias battery value chain is poised for substantial growth. This progress is expected to accelerate the countrys broader energy transition goals.

Government Initiatives for Critical Minerals & Battery Ecosystem Development

Rising demand for batteries has made critical mineral security a strategic priority for India. High dependence on imports (lithium, cobalt, nickel) exposes the sector to supply and price risks, necessitating diversification.

India is addressing this through global partnerships and domestic development, including participation in the Mineral Security Partnership (MSP) and overseas asset acguisition by KABIL to secure long-term supplies.

Policy measures such as the PLI scheme for ACC batteries, customs duty exemptions, and expanded incentives for battery manufacturing are strengthening domestic capabilities. Additionally, Rare Earth Corridors and enhanced exploration, mining, and processing initiatives aim to build a resilient, integrated supply chain.

Overall, these efforts are expected to enhance resource security, reduce import dependence, and position India as a key player in the global battery value chain.

Outlook

The electric mobility ecosystem is entering a phase of accelerated growth, with the E-Bus segment emerging as a key enabler of sustainable public transport. In India, growth is driven by policy support, environmental awareness, and advancements in battery and charging technologies, positioning e buses as a core component of urban mobility.

The Governments Bharat Urban Megabus Mission significantly scales ambition, targeting 100,000 e buses by 2030 (vs. earlier 50,000), backed by an investment of Rs 1.75 lakh crore. The program aims to raise public transport share to 60% of urban mobility, while driving investments in charging infrastructure, depots, and fleet electrification.

Overall, the e bus segment is set to play a critical role in Indias transition toward low carbon, efficient, and future- ready urban transportation.

COMPANY OVERVIEW

JBM Auto Ltd. (JBM Auto, JBMA or The Company), the flagship company of the JBM Group, is shaP1ng the future of mobility through an innovation-led portfolio spanning advanced automotive components and next- generation electric mobility solutions. With a strong focus on sustainability, technology, and operational excellence, the Company is accelerating the shift toward cleaner, smarter, and connected transportation ecosystems.

JBMA operates through five strategically aligned business verticals:

Electric Buses

JBM Electric Vehicles (a part of JBM) is a leading player in Indias sustainable mobility space, focused on the design, manufacturing, and deployment of intelligent electric buses supported by an integrated ecosystem of EV aggregates, charging infrastructure, and turnkey mobility solutions; with one of the largest electric bus manufacturing capacities globally (around 20,000 buses annually), the company operates across multiple Indian cities and serves government and private operators through advanced, technology-driven buses that enhance safety, passenger comfort, and operational efficiency while enabling cleaner urban transport. In FY 2025-26, JBM emerged as Indias top e-bus manufacturer, selling about 1,282 electric buses and capturing nearly 24% market share, backed by a strong order P1peline and continued expansion under national electrification programs. Building on this leadership, JBMA is playing a P1votal role in transforming sustainable public transportation through the design, engineering, and manufacture of advanced intelligent electric buses, eguipped with cutting-edge technologies that ensure enhanced safety, superior passenger comfort, reduced emissions, and improved fleet efficiency, thereby serving commuters across major Indian cities and significantly contributing to greener and smarter urban mobility ecosystems.

EV Aggregates

This vertical develops critical electric vehicle systems, including advanced battery packs, vehicle control units (VCUs), electric axles, and drivetrains. Designed for superior performance, fast charging, high energy density, and long service life, these solutions form the technological backbone of modern electric vehicles.

E-Mobility Platform

JBMs E-Mobility Platform is a fully integrated, end-to-end electric mobility ecosystem designed to enable large-scale adoption of clean transportation, built on a well-to-wheel approach that combines electric buses, EV aggregates (including advanced lithium-ion batteries), charging infrastructure, and smart digital technologies for fleet management and performance optimisation. The platform also delivers Electric Mobility as a Service (eMaaS) solutions for both government and private operators, ensuring optimal total cost of ownership and operational efficiency across applications. During FY 2025-26, JBM strengthened this platform through expanded deployment of electric buses across multiple cities, continued integration of charging and battery ecosystems, new technology innovations such as the JBM E Verse, and enhanced scalability supported by strategic investments and partnerships, enabling faster rollout of e bus projects and reinforcing its position as a leading integrated EV ecosystem provider in India.

Auto Components & Systems

JBM Autos Auto Components division is a key P1llar of the group, demonstrating strong progress during FY 2025-26 through sustained growth in orders, expanded global OEM relationships, and increased localisation driven by the "Make in India" push; the business continued to strengthen its position as a high-guality, technology-focused supplier by enhancing manufacturing scale, automation, and process integration across its facilities, enabling improved efficiency and consistent delivery performance. As a trusted supplier to leading global OEMs, JBMA manufactures a wide range of precision-engineered automotive products, including chassis systems, suspension components, fuel and air tanks, exhaust systems, and skin panels, supported by fully integrated manufacturing capabilities that ensure consistent quality, scalability, and reliability, while ongoing investments in advanced manufacturing technologies and capacity expansion during the year further reinforced its competitiveness in both domestic and international markets.

Tooling & Dies

Backed by one of Indias largest and most advanced tool rooms, this vertical specializes in designing and manufacturing high-precision dies and molds for internal and external customers. It plays a key role in strengthening manufacturing excellence and driving innovation across industries.

During FY 2025-26, the tooling business recorded notable improvements through enhanced design capabilities, increased adoption of automation and digital engineering tools, and expansion of capacity to support rising demand from both domestic and international OEM programs; these advancements led to reduced lead times, improved precision, and better integration with JBMs overall manufacturing operations. As a result, the tooling division further strengthened its strategic importance by enabling innovation, scalability, and efficient mass production across JBMs evolving product portfolio.

Through these synergistic business verticals, JBMA continues to strengthen its position as a leading mobility solutions provider. The Company remains focused on enabling sustainable transportation while creating value across the automotive ecosystem.

FINANCIAL PERFORMANCE

Particulars	FY 2025-26	FY 2024-25	Growth (%)
Revenue from Operations	6,088.37	5,472.33	11.3% 4s
Other Income	138.93	53.58	159.3% 4s
Total Income	6,227.30	5,525.91	12.7% 4s
Total Expenses	5,875.58	5,217.20	12.6% 4s
EBITDA*	843.83	730.39	15.5% 4s
Profit Before Tax (PBT)	310.28	273.19	13.6% 4s
Net Profit (PAT)	238.07	214.63	10.9% 4s
Total Comprehensive Income	237.79	213.44	11.4% 4s
EPS (Rs )	9.25	8.54	8.4% 4s
Other Equity	1,514.62	1,326.98	14.1 % 4s

*EBITDA as PBT (before JV Share and Exceptional Items) + Finance Cost + Depreciation Key Insights

> Strong revenue growth (11.3%) driven by core operations.

> Other income surged significantly (159%), supporting total income growth.

> Expense growth (12.6%) largely in line with revenue, maintaining margins.

> Profitability improved with:

PBT up 13.6%

PAT up 10.9%

> EPS growth (8.4%) reflects steady shareholder value creation.

> Net worth (other equity) strengthened (14.1 %).

SEGMENT-WISE PERFORMANCE Segmental Performance Overview

1. Segment Revenue

Segment	FY 2025-26	FY 2024-25	Growth (%)	Contribution FY 2025-26
Component Division	3,442.58	3,181.80	8.2% 4s	56.5%
Tool Room Division	338.42	305.59	10.7% 4s	5.6%
OEM Division	2,307.37	1,984.94	16.2% 4s	37.9%
Total	6,088.37	5,472.33	11.3% 4s	100%

2. Segment Results

(PBT before finance cost)

Segment	FY 2025-26	FY 2024-25	Growth (%)
Component Division	272.18	235.12	15.8% 4s
Tool Room Division	66.13	61.87	6.9% 4s
OEM Division	251.16	215.56	16.5% 4s
Unallocable Income	80.49	43.12	86.7% 4s
Total	669.96	555.67	20.6% 4s

3. Visual Comparative Insight (Chart-style Summary)

> Revenue Growth Drivers

OEM Division -> Highest growth (16.2%) Component Division -> Largest contributor (56.5%) Tool Room -> Stable niche growth (10.7%)

> Profit Growth Drivers

OEM Division -> Strong earnings growth (16.5%)

Component Division -> Consistent margin expansion (15.8%)

Unallocable income -> Significant jump (86.7%) boosting overall profitability

Key Achievements (FY 2025-26)

1. Strong Segment Growth

All three business segments delivered positive double-digit or near double-digit revenue growth.

OEM Division emerged as the fastest-growing segment, reflecting strong demand and scale expansion.

2. Profitability Expansion

Total segment results grew 20.6%, significantly ahead of revenue growth.

Indicates operating leverage and improved efficiency.

3. Leadership in Core Business

• Component Division maintained a dominant share (56.5%), reinforcing core business strength.

Demonstrates stable base with scalable growth.

4. Diversified Growth Portfolio

• Balanced contributions from:

> Core manufacturing (Component)

> High-growth OEM

> Specialized Tool Room

> Reduces dependency risk

5. Margin Resilience

• Profit growth outpaced revenue across key segments -> margin improvement trend.

Other Key Financial Ratios

Key Financial Ratios (FY 2025-26)

Gross Profit Margin = 32.2%

EBITDA Margin = 13.9%

EBIT Margin = 11.0%

Net Profit Margin = 3.9%

Return on Equity (ROE) = 15.0%

EPS = Rs 9.25

Liquidity Ratios

• Current Ratio -1.10

• Quick Ratio - 0.99

Leverage Ratios

• Debt to Equity Ratio -1.98

• Debt to Total Assets - 0.42

• Equity Ratio - 0.22

Working CaP1tal

• Net Working CaP1tal - Rs 475.08 Cr

Asset Structure

• Current Assets / Total Assets = 68.5%

• Non-Current Assets / Total Assets = 31.5%

Liability Structure

• Current Liabilities / Total Liabilities = 79.2% Research and Development

During FY 2025-26, JBM Auto Limited continued to strengthen its focus on innovation, product development, and technological advancement across its key business segments, aligned with industry trends toward electrification, sustainability, and advanced manufacturing.

Electric Vehicles (EV) & E-Mobility Segment

JBM Electric Vehicles strengthened its portfolio in FY 2025-26 with diverse electric bus models, advanced safety systems, smart digital technologies, and a complete EV ecosystem, supporting sustainable and efficient public mobility.

New Bus Models

• ECOLIFE el2 (City Bus): Advanced electric city bus with lightweight construction and smart safety technologies.

• Galaxy: Premium luxury electric coach designed for long-distance travel.

• Xpress: Intercity electric bus for regional connectivity.

• e MediLife: First-of-its-kind electric mobile medical unit.

• e SkyLife: 9-meter electric airport/tarmac bus.

Key Features Introduced Smart & Digital

• Telematics and Intelligent Transport System (ITS)

• Al-based fleet monitoring

• Vehicle Control Unit (VCU) & Battery Management System (BMS)

Safety

• ADAS: emergency braking, collision warning, lane assist

• 360? cameras and blind spot detection

• Fire detection and suppression systems

Battery & Performance

• Lithium-ion batteries with thermal management

• Modular battery packs for route flexibility

• Regenerative braking for enhanced efficiency

• Fast charging capability (~30-60 minutes)

Passenger Comfort

• Low-floor design for easy accessibility

• Fully air-conditioned interiors

• Wi-Fi and USB charging ports

• Premium seating in coach variants Key Innovation

• JBM E Verse: Integrated EV ecosystem covering buses, charging infrastructure, batteries, and power systems

Auto Components Segment

• Development of lightweight and high-strength components to support fuel efficiency and EV transition.

• Adoption of advanced materials, stamP1ng technologies, and precision manufacturing techniques.

• Continuous product improvement to meet OEM specifications, durability, and safety requirements.

Focus on cost optimization and value engineering through design innovations. Tooling & Die Manufacturing

• Enhancement of capabilities in high-precision tooling, dies, and mold development.

Use of CAD/CAM and simulation technologies to reduce development cycle time.

• R&D initiatives aimed at improving tool life, accuracy, and production efficiency.

• Supporting both internal requirements and customer- specific customized tooling solutions.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

FY 2025-26 marked a year of consolidation and focused execution for Human Resources at JBM Auto. With our core people-first agenda remaining consistent, we strengthened leadership depth, reinforced governance, expanded capability-building, and sustained stable industrial relations—while sharpening a few strategic levers to support business priorities and long-term growth. Our efforts continued to align human caP1tal development with JBM Auto Limiteds vision, ensuring a future-ready workforce, stronger succession coverage, and a culture anchored in shared values and responsible practices.

1. Compensation & Benefits Restructuring in Line with New Labor Codes:

Following the notification dated 21^st November, 2025 on the new labor codes, we initiated a structured review of our compensation and benefits framework to ensure readiness and compliance. We engaged EY as a consulting partner to conduct a detailed analysis across key statutory components-including Provident Fund (PF), Employees State Insurance (ESI), Gratuity and Leave-related factors-covering both policy interpretation and cost implications. Based on the findings, we restructured compensation elements and wage definitions to remain fully aligned with the codes while consciously designing the approach to place the least possible burden on employees as well as the organization. This exercise strengthened governance, improved clarity of pay components, and positioned JBM Auto for smooth transition once the revised compliance requirements are implemented.

2. Reinforcing Governance and Driving Continuous Improvement through PCMM@JBM:

Our commitment to operational excellence continues to extend to our human resources practices. During FY 2025-26, we continued governance assessment under the 10-dimension approach, People Capability Maturity Model, further reinforcing consistency and discipline in deployment. To sustain assessment quality and build internal capability, we continued to strengthen our internal assessor pool through structured enablement, including refresher and knowledge-sharing sessions under the "PCMM@JBM Assessors Training Program" approach. We also captured employee voice through Employee Experience Survey mechanisms to identify improvement opportunities. Insights from assessments and employee feedback were translated into focused action plans, which are being implemented to bridge gaps and further enhance our HR processes. This framework supports the uniform deployment of best people practices across the company, ensuring consistency and high standards in HR governance. This will further support our journey toward Great Place to Work (GPTW) certification.

3. Learning and Development for Business Growth:

The JBM L&OD framework continued to deliver training programs across the organization. This year, our focus areas included Management Development Programs (MDPs) designed to enhance managerial effectiveness and foster organizational agility. We also conducted a variety of business-specific training initiatives, directly aligning skill development with our strategic objectives. A key highlight was the Supervisory Development Program, equipP1ng our frontline leaders with essential skills to manage their teams effectively. Crucially, we meticulously reviewed Sankalps (individual commitments/goals) ensuring a clear return on investment (ROI) by assessing the actual impact of training on individual and organizational performance. The JBM Trainer Certification Program builds strong in-house subject matter experts for effective training and horizontal deployment of best practices and the Online Guruvaar Knowledge Sharing Session serves as a collaborative platform to regularly share insights, experiences, and best practices, fostering continuous learning and cross-functional collaboration across the organization

4. Building a P1peline of Skilled Talent through Strategic Partnerships:

Under our unwavering commitment to skill development, the JBM Skill Development Centre initiative flourished through strategic collaborations with leading educational institutions and government bodies. We formalized MOUs for inducting and promoting Apprentices, On-the-Job Trainees (OJTs), Interns, and Dual System Training participants. Apart from our existing partnerships with various government institutes and esteemed universities, we have further expanded our network to include

• Government ITI, Gurugram: Dedicated to training skilled Welders.

• Government ITI, Faridabad: DeveloP1ng expertise in Tool & Die Maker (PT J&F) and Welder trades.

These collaborations are instrumental in bridging the skill gap, providing practical exposure to students, and creating a sustainable talent pool for JBM Auto and the broader industry.

5. Ensuring Harmonious Industrial Relations and Workforce Stability:

In our blue-collar manpower strategy, we sustained harmonious industrial relations and operational continuity through proactive engagement, structured contractor governance, and consistent policy deployment across plants. This disciplined approach supported workforce stability, protected productivity, and reinforced a fair and eguitable workplace environment, strengthening trust through open communication and timely issue resolution.

6. Recognition for Excellence in Human Resources:

The commitment and innovation of the JBM HR team continued to be recognized through external platforms. During FY 2025-26, our people practices and learning culture earned notable appreciation through the following accolades:

Leadership, Learning & Culture Awards India 2025 - Learning Culture Transformation Award 2025:

Recognition of our sustained efforts to build a learning- led culture and embed capability development as a business enabler.

HR Leader of the Year 2025 - Financial Express - Summit & Awards

These recognitions reinforce the direction of our HR strategy and encourage us to continue strengthening capability, culture, and governance in step with business needs.

7. Strengthening Capability Architecture through Growth Engines and Behavioural Competencies:

During FY 2025-26, we strengthened capability building through "Growth Engines"-a structured learning architecture that combines group-wide programs (JBM Culture, Essentials, Process Improvement, Group Corporate Functions, and Behavioural Competencies) with business-specific learning journeys across key functions. A redefined Behavioural Competency Framework for senior, middle, and junior management anchored this effort by providing clear proficiency expectations and behaviour indicators, and was embedded into talent processes such as potential assessment, succession planning, and learning interventions to enable consistent evaluation and targeted development.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains a strong internal control framework aligned with the size, nature, and complexity of its operations. It is designed to safeguard assets, ensure accurate financial reporting, enhance operational efficiency, and promote governance and transparency.

Well-defined policies, standardized procedures, and an integrated ERP system support effective control and risk management by improving efficiency, enabling automated controls, and reducing operational risks. Compliance is monitored by business and unit heads, while the internal audit function periodically evaluates control effectiveness.

The Audit Committee provides oversight by reviewing and approving the annual internal audit plan, focusing on key risks, critical processes, and emerging initiatives. Regular assessments ensure the internal control system remains adeguate, effective, and responsive to evolving business and regulatory reguirements.

CAUTIONARY STATEMENT

The Report may include forward-looking statements outlining the Companys objectives, plans, and expectations. These are subject to various risks and uncertainties, including government actions, economic conditions, and business-related factors, which may cause actual results to differ materially from those expressed or implied.