Synopsis:
Jay Bharat Maruti Limited (JBML), a key auto ancillary supplier, has delivered a remarkable 65 percent return over the last six months, riding the growth of Maruti Suzuki India Limited (MSIL). Its strategic partnership with MSIL, diversified product portfolio, and steady order flow have reinforced investor confidence despite past market challenges.
This auto ancillary sector has been witnessing strong growth, primarily led by India’s largest passenger vehicle manufacturer, Maruti Suzuki India Limited. Among suppliers, this company has stood out with a robust performance, delivering 65 percent returns over the last six months.
The stock’s recent movement reflects investor optimism, underpinned by the company’s critical role as a supplier of sheet metal components, rear axle assemblies, and fuel necks to MSIL.
About the Company
Jay Bharat Maruti Limited, incorporated in 1987, is a public limited company formed as a joint venture between the Arya family of the JBM Group and Maruti Suzuki India Limited (MSIL). The company manufactures sheet metal-based body-in-white (BIW) components, rear axle assemblies, fuel neck components and assemblies, and also designs dies, moulds, automotive machines, and equipment.
JBML operates seven manufacturing facilities, three in Gurgaon (Haryana), two in Gujarat, and one each in Manesar (Haryana) and Kharkhoda (Sonipat). Its plants are equipped with imported and indigenous press lines, robotic welding lines, plating, and painting facilities.
Over the years, JBML has expanded its capabilities to include exhaust systems, torsion beams, and fuel filler necks, in addition to sheet metal components. The company currently has a market capitalization of Rs. 1,182 crore, with its shares trading at Rs. 109 and delivering a 65 percent return over the past six months.
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Strategic Partnership with MSIL
According to a report from ICRA, JBML is one of the key suppliers of sheet metal components to Maruti Suzuki India Limited, the market leader in the domestic passenger vehicle segment. MSIL holds a 29.3 percent equity stake in JBML, providing revenue visibility and facilitating technical collaborations with Japanese suppliers for model-specific component development. While JBML faces high client concentration risk, its strategic importance to MSIL mitigates business risks and strengthens its growth prospects.
ICRA notes that the established relationship between JBML and MSIL, combined with MSIL’s leadership in the PV market, ensures steady revenue visibility. The company’s entire revenue comes from the domestic PV market, making its earnings sensitive to market fluctuations.
Despite the pandemic-induced slowdown in FY2020 and FY2021, JBML’s revenues recovered strongly in FY2022 (approx. 39 percent YoY growth) and FY2023 (13 percent YoY growth). Revenues were flattish in FY2024 and FY2025 due to steady MSIL volumes.
Financial Performance Snapshot
Quarter-on-Quarter (QOQ) Performance: JBML reported a decline in sales from Rs. 611 crore to Rs. 557 crore, down 8.9 percent, while operating profit increased from Rs. 58 crore to Rs. 66 crore, a growth of 13.8 percent. PBT rose from Rs. 30 crore to Rs. 36 crore, up 20 percent, and net profit improved from Rs. 21 crore to Rs. 23 crore, marking a 9.5 percent increase.
Year-on-Year (YOY) Performance: Compared to the same quarter last year, sales rose from Rs. 533 crore to Rs. 557 crore, an increase of 4.5 percent. Operating profit more than doubled from Rs. 38 crore to Rs. 66 crore, up 73.7 percent, while PBT surged from Rs. 8 crore to Rs. 36 crore, a 350 percent jump. Net profit increased significantly from Rs. 5 crore to Rs. 23 crore, a remarkable 360 percent rise.
Strengths and Growth Drivers
According to ICRA, JBML’s strengths lie in its strong market position as a supplier of sheet metal components to MSIL across multiple key models. The company has been allocated plots in the MSIL vendor park in Kharkhoda, Haryana, and SMG, Gujarat, ensuring continued revenue visibility.
Its diversified product portfolio, including BIW components, rear axle assemblies, mufflers, and fuel neck assemblies, allows it to capture a significant share of the component value supplied to OEMs.
The joint venture with MSIL not only aids technical collaborations but also mitigates business risks and opens avenues for new business. Additionally, the company is eligible for incentives totalling approximately Rs. 280 crore from the Gujarat Government for the capex of its plant being set up in the state. JBML has already booked incentives of Rs. 78 crore over the past two quarters.
Operational and Financial Outlook
According to the report, JBML’s operating profitability has been under pressure due to commodity price fluctuations and pre-operative expenses for new plants, with operating margins at 7.2 percent in FY2025.
These are expected to improve gradually through cost-control measures, operating leverage benefits, and receipt of government incentives. The company has undertaken significant debt-funded capex in recent years, creating sizable medium-term repayment obligations. While healthy cash accruals are anticipated to stabilize the credit profile, any slowdown in offtake may cause temporary cash flow mismatches.
Conclusion
JBML’s strategic partnership with MSIL, diversified product portfolio, and steady operational execution have enabled it to deliver exceptional shareholder returns of 65 percent over six months. While exposure to the domestic PV market and debt obligations remain key considerations, the company’s growth trajectory and strong market position make it a compelling player in the auto ancillary sector.
Written By Manan Gangwar
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