JBM Auto margin slips 1.43 pp QoQ as profit quality stays mixed
Revenue grew +15.04% YoY, but a +26.01% rise in interest expense and a higher tax rate limited net-profit growth.
Filed 30 Jul 2026, 15:23 IST · JBM Auto Ltd (JBMA)
Key takeaways
- Revenue grew +15.04% YoY, but net profit rose only +13.37% as interest costs increased +26.01%.
- QoQ revenue fell -22.13% and operating margin narrowed 1.43 percentage points as expenses declined less than sales.
- Other income contributed 39.24% of pre-tax profit, while the tax rate rose 3.95 percentage points QoQ.
Price around the results
YoY growth held, but the quarter reset sequentially
JBM Auto reported consolidated results with revenue up +15.04% YoY and operating profit up +17.13%, as expenses grew slightly slower than sales. The sequential comparison was weaker: revenue contracted -22.13% and net profit fell -47.20% from Q4FY26. That reflects a reset from the previous quarter's higher operating scale rather than a YoY deterioration.
Higher interest and tax diluted operating gains
The YoY cost mix was favourable enough to lift operating margin by 0.20 percentage points, but the sequential margin fell 1.43 percentage points because expenses declined less than revenue. Interest expense rose +26.01% YoY, absorbing part of the operating-profit improvement despite falling -23.42% QoQ. Other income accounted for 39.24% of pre-tax profit, while the tax rate increased 3.49 percentage points YoY and 3.95 percentage points QoQ, making reported net profit less representative of operating performance.
Margin remains below the reported peer median
Operating margin has been uneven across the past five quarters, moving from 11.13% to 11.40%, 10.73%, 12.76% and now 11.33%; the latest decline therefore follows a sharp Q4FY26 improvement rather than a third straight fall. Among 45 Consumer Discretionary peers that had reported, JBM Auto's 11.33% margin was 3.54 percentage points below the 14.87% sector median.
Current reaction is not yet available
There is no current market reaction to assess. Historically, the stock moved down after six of eight recent results and up after two, with a median absolute move of 2.71%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,442 cr | ₹1,852 cr | -22.13% | +15.04% |
| Other income | ₹24 cr | ₹23 cr | +2.53% | +13.28% |
| Expenses | ₹1,279 cr | ₹1,616 cr | -20.85% | +14.78% |
| Operating profit | ₹163 cr | ₹236 cr | -30.86% | +17.13% |
| Operating margin (%) | 11.33% | 12.76% | — | — |
| Interest | ₹83 cr | ₹108 cr | -23.42% | +26.01% |
| Depreciation | ₹44 cr | ₹43 cr | +1.97% | +0.16% |
| Profit before tax | ₹60 cr | ₹108 cr | -44.37% | +18.73% |
| Tax | ₹16 cr | ₹24 cr | -34.52% | +36.92% |
| Net profit | ₹44 cr | ₹84 cr | -47.20% | +13.37% |
| EPS (₹) | ₹1.78 | ₹3.14 | -43.31% | +14.10% |
Operating margin of 11.33% compares with a Consumer Discretionary sector median of 14.87% across 45 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 11.33% without expenses again growing faster than revenue.
- Whether interest expense growth moderates from +26.01% YoY.
- Whether other income remains close to 39.24% of pre-tax profit and the tax rate moves below 26.26%.