JBM Auto is sharpening its focus on electric mobility, with its board renaming the OEM Division as the ‘EV Business’, signalling a strategic shift from a traditional auto components maker to an electric mobility platform.

The company’s FY26 results reflect both the gains and strains of that transition.

Consolidated revenue rose 4.1 per cent to ₹6,088 crore in FY26, from ₹5,849 crore in FY25. However, trade receivables more than doubled to ₹2,185 crore from ₹1,007 crore, while operating cash flow declined 59.4 per cent to ₹160 crore from ₹394 crore. Consolidated borrowings also increased 61.4 per cent to ₹2,070 crore from ₹1,282 crore.

The EV business has emerged as the company’s main growth engine. Revenue from the segment rose 16.2 per cent to ₹2,307 crore in FY26 from ₹1,985 crore in FY25, accounting for nearly 38 per cent of the group’s total sales. In the March quarter, the EV Business revenue increased 11.4 per cent to ₹831 crore from ₹746 crore a year earlier, while segment profit climbed 44.5 per cent to ₹106 crore from ₹73 crore.

JBM said it achieved record revenue and EBITDA across divisions during the year. Consolidated Q4 sales, including other operating income, rose 12.5 per cent to ₹1,852 crore from ₹1,646 crore in the year-ago quarter. Profit before tax increased 19.2 per cent to ₹107.9 crore from ₹90.5 crore, while EBITDA grew 24.8 per cent to ₹266.5 crore from ₹213.6 crore.

The sharp rise in receivables and debt, however, highlights the funding pressures associated with the company’s rapid expansion in the electric mobility business, even as it strengthens its position in India’s electric bus market.

The company also pointed to Prime Minister Narendra Modi’s flagging off of 200 JBM electric buses under the PM e-Bus Sewa Scheme and said it now commands 79 per cent of the electric tarmac bus market and more than 50 per cent share in intercity electric luxury coaches.

Growth Is Outpacing Cash Conversion

Yet this growth is proving highly capital-intensive. Operating cash flow fell 59.4 per cent to ₹160 crore in FY26 from ₹394 crore in FY25, as receivables — equivalent to roughly 36 per cent of total assets — surged amid delayed payments from state transport undertakings executing large electric bus contracts. Consolidated borrowings rose 61.4 per cent to ₹2,070 crore in FY26 from ₹1,282 crore in FY25, pushing finance costs up 28.8 per cent to ₹318 crore from ₹247 crore.

Building an Infrastructure-Style Business

Analysts increasingly view JBM as evolving from a components maker into an electric mobility infrastructure company. The EV business asset base expanded 36.2 per cent to ₹5,129 crore in FY26 from ₹3,765 crore in FY25 — more than 2.2 times the division’s annual revenue — while segment liabilities increased 56.1 per cent to ₹2,849 crore from ₹1,825 crore. Capital expenditure remained elevated at ₹713 crore in FY26, including ₹389 crore of capital work-in-progress, underscoring the scale of upfront investments required in buses, batteries and charging systems before cash flows are realised.

Headline Profit vs Shareholder Earnings

The March quarter also exposed a notable divergence between headline profit and shareholder earnings.

While JBM reported a 13.6 per cent increase in quarterly net profit to ₹74.98 crore in Q4 FY26 from ₹66 crore in Q4 FY25, profit attributable to owners of the company declined 24.2 per cent to ₹50 crore from ₹66 crore, after accounting for minority interest, ₹9.69 crore of exceptional items related to labour codes and operational disruptions.

The company has also seen a sharp increase in finance costs, including a one-time ₹28.98 crore provision by a wholly-owned subsidiary.

Analysts split on growth and balance-sheet quality

Market opinion is increasingly divided along growth-versus-quality lines. Motilal Oswal sees JBM’s integrated bus and components model as a structural moat. YES Securities points to margin upside from annual maintenance contracts and international opportunities in Europe. JM Financial highlights strong order visibility, while Emkay Global views the company as a key beneficiary of India’s public transport electrification.

At the same time, more cautious market observers such as MarketsMojo, Univest Research and Smart-Investing.in have raised concerns over leverage, interest costs and the pace of cash conversion.

“JBM is a major beneficiary of India’s electric bus transition, but cash flows now need to scale as quickly as revenue,” said a Mumbai-based auto analyst. “Collections and working capital are becoming just as important as market share.”

Fundraising and the FY27 Test

Nishant Arya, Vice-Chairman and Managing Director of JBM Auto, had earlier told businessline that the company’s order book stands at around 10,000 electric buses and could at least double over the next one to two years as JBM brings in leasing partners to support deployment and financing.

“Our order book stands at 10,000 buses and should at least double over the next one to two years,” Arya said.

JBM is also exploring a potential $500 million fundraise to support execution of this expanding order pipeline and strengthen its electric mobility platform. The company has already raised more than $250 million, including a $100 million investment in FY26.

Analysts say FY27 will be a crucial test of whether JBM can convert its market leadership into sustainable cash generation, or whether swelling receivables, ₹2,070 crore of debt and emerging obligations under the End-of-Life Vehicles Rules begin to expose the financial side effects of its rapid expansion.

Published on May 13, 2026