JAMNAAUTO - Jamna Auto Inds.

📊 NSE: JAMNAAUTO 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 8:34

💰 Financial Performance

Revenue Growth by Segment

Net Sales for Q2 FY26 reached INR 531 Cr, growing 3.5% YoY from INR 513 Cr. H1 FY26 Net Sales were INR 1,104 Cr, up 3% YoY from INR 1,069 Cr. The Parabolic Spring segment's contribution to overall revenue increased significantly from ~20% in FY21 to 38.50% in H1 FY25, reflecting a shift toward higher value-added products.

Geographic Revenue Split

The company derives approximately 76% of its revenue from existing domestic OEM markets and 24% from new markets, which include the aftermarket segment and exports. Exports currently represent a small fraction (~1% in FY23), while the aftermarket segment contributes ~19-23% of total sales.

Profitability Margins

Profitability remains stable with an EBITDA margin of 13.6% in Q2 FY26 (INR 72 Cr) compared to 13.1% in Q2 FY25. PBT margin for Q2 FY26 was 10.6% (INR 56 Cr), and PAT margin stood at 7.5% (INR 40 Cr). H1 FY26 EBITDA margin was 13.6% (INR 150 Cr).

EBITDA Margin

EBITDA margin was 13.6% in Q2 FY26, showing a YoY improvement from 13.1% in Q2 FY25. Core profitability is supported by economies of scale and a competitive cost structure as India's largest spring manufacturer.

Capital Expenditure

The company has planned capital expenditure of INR 250-300 Cr to be incurred over the next 2 years for the completion of the Adityapur and Indore plants, funded entirely through internal accruals.

Credit Rating & Borrowing

ICRA reaffirmed the long-term rating at [ICRA]AA- and revised the outlook to Positive from Stable in April 2025. CARE assigned a rating of CARE AA-; Stable in February 2025. The company maintains nil long-term debt, resulting in minimal borrowing costs.

⚙️ Operational Drivers

Raw Materials

Spring Steel (implied by leaf and parabolic spring production) represents the primary raw material cost, though the specific percentage of total cost is not disclosed.

Import Sources

Not disclosed in available documents; however, manufacturing is concentrated in 11 Indian locations including Haryana, Tamil Nadu, and Madhya Pradesh.

Capacity Expansion

Current consolidated annual manufacturing capacity is 3,00,000 MT. A new spring manufacturing facility at Adityapur was successfully commissioned in October 2025.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; the company manages these through strategic plant locations near OEMs to reduce logistics and procurement overheads.

Manufacturing Efficiency

Manufacturing efficiency is driven by economies of scale as the largest domestic producer and cost advantages from plants located near key customers like Tata Motors and Ashok Leyland.

Logistics & Distribution

Logistics costs are optimized by the strategic location of 11 manufacturing units near OEM plants, ensuring faster delivery and lower transportation expenses.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

Growth is driven by the 'Lakshya 50XT' vision, aiming for 50% revenue from new products and new markets. This includes scaling up parabolic springs (38.5% of H1 FY25 revenue), lift axles, and air suspensions, alongside the commissioning of the Adityapur plant in Oct 2025 and expanding the aftermarket distribution network.

Products & Services

Conventional Leaf Springs, Parabolic Leaf Springs, Z-Springs, Hybrid Leaf Spring Assemblies, Bus and Trailer Air Suspensions, Lift Axles, and Stabilizer Bars.

Brand Portfolio

Jamna Auto, JAI Springs.

New Products/Services

New products including lift axles, trailer suspensions, and allied parts contributed 7% of revenues in 9M FY25, with a target to increase this under the Lakshya 50XT vision.

Market Expansion

Targeting 24% revenue share from new markets (aftermarket and exports) by strengthening the distribution network to mitigate OEM cyclicality.

Market Share & Ranking

India's largest CV spring manufacturer and one of the major producers globally.

Strategic Alliances

The company reported no associates or joint ventures (Nil) as of May 2025.

🌍 External Factors

Industry Trends

The industry is shifting from conventional leaf springs to parabolic springs and air suspensions. M&HCV production grew 1% and LCV production grew 9% in Q2 FY26 vs Q1 FY26, indicating a stable but evolving demand environment.

Competitive Landscape

Key competitors include other auto component manufacturers, but JAIL maintains the highest capacity and widest geographical reach in the leaf spring segment.

Competitive Moat

Moat is built on cost leadership through 300,000 MT capacity, 11 strategic plant locations near OEMs, and long-standing relationships with major players like TML and ALL. These advantages are sustainable due to high entry barriers in OEM supply chains.

Macro Economic Sensitivity

Highly sensitive to GDP growth and infrastructure spending, which drive M&HCV demand. A slowdown in industrial activity typically leads to a sharp moderation in OEM volumes.

Consumer Behavior

OEMs are increasingly replacing conventional leaf springs with parabolic springs for better performance and weight reduction.

Geopolitical Risks

Low risk due to primary focus on the domestic Indian market; however, global supply chain disruptions could impact raw material availability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to automotive manufacturing standards and pollution norms; the company maintains a Business Responsibility and Sustainability Report (BRSR).

Environmental Compliance

Direct exposure to climate-transition risk is low as products are powertrain agnostic (used in ICE and EV), but the company is linked to the emission compliance of its OEM customers.

Taxation Policy Impact

The effective tax rate is approximately 30% based on subsidiary financials (INR 222 Cr tax on INR 725 Cr PBT).

Legal Contingencies

Not disclosed in available documents; secretarial audit reports indicate general compliance with statutory provisions.

⚠️ Risk Analysis

Key Uncertainties

Product concentration risk is high with 90-95% of revenue from leaf springs. Segment concentration is also high with heavy reliance on the M&HCV segment.