JTEKTINDIA - JTEKT India

📊 NSE: JTEKTINDIA 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 8:42

💰 Financial Performance

Revenue Growth by Segment

The company achieved a sales growth of 4% in H1 FY26, reaching INR 1,205.1 Cr compared to INR 1,158.2 Cr in H1 FY25. This growth outperformed the Passenger Vehicle (PV) market growth of 1.6% during the same period. Q2 FY26 revenue grew 5.6% YoY to INR 639.1 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company primarily caters to the domestic Indian Passenger Vehicle industry with some exposure to overseas supply through its driveline division.

Profitability Margins

Profitability was impacted by higher fixed costs; PAT margin for H1 FY26 stood at 2.4% (INR 28.4 Cr) compared to 3.0% (INR 34.3 Cr) in H1 FY25, representing a 17% decline in absolute profit.

EBITDA Margin

EBITDA margin for H1 FY26 was 6.3% (INR 76.2 Cr), down from 7.5% (INR 86.8 Cr) in H1 FY25. However, Q2 FY26 showed sequential improvement to 7.2% from 5.3% in Q1 FY26.

Capital Expenditure

Planned capital expenditure of INR 300-350 Cr for FY26. The company has a long-term capex plan of INR 700-750 Cr over FY26-FY28 focused on capacity expansion and backward integration.

Credit Rating & Borrowing

ICRA reaffirmed healthy ratings supported by low leverage. Total Debt/OPBDIT stood at 0.8x in FY25. The company enjoys financial flexibility through its parent JTEKT Corporation, accessing unsecured loans from Japanese banks at competitive interest rates.

⚙️ Operational Drivers

Raw Materials

Material costs represent the largest expense at 72.7% of total revenue (INR 875.9 Cr in H1 FY26). Specific components include forging parts like JF outer and JPL used in Constant Velocity Joints (CVJ).

Import Sources

Not disclosed in available documents, though the company receives technical support from JTEKT Corporation in Japan.

Key Suppliers

Not disclosed in available documents; however, the company currently sources critical forging parts from external vendors and is moving toward in-house production.

Capacity Expansion

Expanding capacity for CVJ and steering systems. Planned backward integration for forging parts to maintain competitiveness and secure quality for both domestic and overseas markets.

Raw Material Costs

Raw material costs increased 5% YoY to INR 875.9 Cr in H1 FY26. The company is implementing backward integration in forging to mitigate cost pressures and improve margins.

Manufacturing Efficiency

Lower capacity utilization for new production lines under trial impacted margins by 0.1%. Amalgamation of JFIN is expected to rationalize overheads and optimize resources.

Logistics & Distribution

Selling costs decreased by 11% YoY to INR 19.2 Cr in H1 FY26, suggesting improved distribution efficiency.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be driven by new business from Maruti Suzuki (e-Vitara and Victoris models contributing INR 26 Cr in H1), expansion of the driveline division through CVJ products, and backward integration into forging to improve cost competitiveness.

Products & Services

Steering systems (CEPS, HPS, MSG) and driveline products (axle assemblies, case differentials, propellant shafts, and Constant Velocity Joints).

Brand Portfolio

JTEKT

New Products/Services

Drive Shaft (CVJ) and components for Maruti Suzuki's e-Vitara and Victoris models, which contributed INR 26 Cr to H1 FY26 revenue.

Market Expansion

Focusing on increasing market share in CVJs and expanding the driveline division to diversify the product portfolio beyond steering systems.

Market Share & Ranking

Leading position in the steering system segment in India for manual steering gears (MSG) and electronic power steering (EPS).

Strategic Alliances

Strong parentage with JTEKT Corporation (Japan) holding a 69.55% stake, providing marketing, technical, and financial support.

🌍 External Factors

Industry Trends

The PV industry is seeing a shift toward new models and EVs (like Maruti e-Vitara). JTEKT is positioning itself by introducing CVJs and supplying to new EV platforms.

Competitive Landscape

Intense competition in the steering system space and high dependence on select OEMs.

Competitive Moat

Durable moat derived from strong technological support from JTEKT Japan, a leading global manufacturer, and a robust share of business (SoB) with major Indian OEMs.