JBM Auto Reports Profit Growth, Secures Major Electric Bus Deal with Indian Army

JBM Auto Ltd reported its second-quarter financial results, posting a net profit of ₹52.6 crore, marking a 6.2% increase year-on-year. Revenue for the quarter grew by 6.5% to ₹1,368 crore. However, the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a 5.6% decrease to ₹155.3 crore, and its EBITDA margin narrowed to 11.3% from 12.9% in the corresponding period last year.

A significant development is JBM Auto's contract win from the Indian Army, valued at ₹130.58 crore, for the procurement of 113 electric buses and 43 fast chargers. This agreement, signed on October 17, 2025, signifies the Indian Army's first substantial deployment of electric buses, aligning with the government's PM E-Drive programme that champions clean and sustainable mobility. This strategic move aims to modernize the Army's transport fleet, reduce reliance on fossil fuels, and contribute to India's net-zero carbon emission goals. The procurement falls under the 'Buy (Indian – IDDM)' category, underscoring the Army's commitment to fostering indigenous defense production and the Aatmanirbhar Bharat initiative. The electric buses will be integrated across all three services, establishing a benchmark for green technology adoption in the defense sector.

Impact: This large order positions JBM Auto as a key supplier for electric mobility solutions within the Indian defense sector, potentially paving the way for future contracts and demonstrating its technological capabilities in the EV space. This news could positively influence investor perception and the company's stock performance. Impact rating: 7/10

Difficult terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric represents a company's operating performance, excluding certain expenses like interest, taxes, and depreciation. EBITDA margin: Calculated as EBITDA divided by revenue, this ratio indicates the profitability of a company's core operations per unit of sales. PM E-Drive programme: A government initiative in India aimed at promoting the adoption of electric vehicles and developing necessary infrastructure for sustainable transportation. Buy (Indian – IDDM): A procurement category for the Indian Ministry of Defence. It mandates that the purchased items must be designed, developed, and manufactured within India, encouraging indigenous capabilities. Aatmanirbhar Bharat: This Hindi phrase translates to "Self-reliant India." It is a national campaign promoting domestic production, self-sufficiency, and reducing import dependency across various economic sectors.