JBM Auto profit rises despite flat pre-tax profit as tax rate falls
Revenue growth slightly outpaced expenses, but other income collapsed year on year and operating margin remained below the sector median.
Filed 26 Oct 2026, 14:44 IST · JBM Auto Ltd (JBMA)
Key takeaways
- Consolidated revenue grew 21.06% year on year, while expenses rose 20.86%, lifting operating margin by 0.14 percentage points to 11.54%.
- Net profit rose 11.01% year on year to Rs 61.30 cr despite broadly flat pre-tax profit, as the tax rate fell 8.41 percentage points to 17.36%.
- The stock fell 1.67% on the results day, a smaller decline than its 2.38% median move after the previous eight results.
Price around the results
Revenue growth outpaced costs marginally
This consolidated quarter saw revenue rise 21.06% year on year and 14.83% sequentially. Expenses grew slightly slower, at 20.86% year on year and 14.56% sequentially, so operating margin expanded by 0.14 percentage points year on year and 0.21 percentage points quarter on quarter. Other income contributed only 2.04% of pre-tax profit, so reported earnings were not materially dependent on it.
Lower tax rate supported net profit
Pre-tax profit was almost unchanged year on year, down 0.28%, even as operating profit rose 22.56%. Other income fell 95.45% year on year, while interest expense increased 3.73%, offsetting much of the operating improvement. Net profit still increased 11.01% because the tax rate declined 8.41 percentage points to 17.36%.
Margin recovered from Q3FY26 but trails peers
Operating margin has recovered from 10.73% in Q3FY26 to 11.54% this quarter, after reaching 12.76% in Q4FY26 and dipping to 11.33% in Q1FY27. It remains 0.88 percentage points below the 12.42% median among 50 Consumer Discretionary peers that have reported the quarter. The sequential improvement therefore marks a recovery from the recent low, not a return to the Q4FY26 level.
Market reaction was negative but within its usual range
The stock fell 1.67% on the results day, with a 1.26% opening gap down and volume at 4.02 times the reference level. Its move was weaker than the market by 2.35% on the session. Across the previous eight results, the stock rose three times and fell five times, with a median absolute move of 2.38%, making this decline ordinary in size for the stock.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,656 cr | ₹1,442 cr | +14.83% | +21.06% |
| Other income | ₹2 cr | ₹24 cr | -93.59% | -95.45% |
| Expenses | ₹1,465 cr | ₹1,279 cr | +14.56% | +20.86% |
| Operating profit | ₹191 cr | ₹163 cr | +16.96% | +22.56% |
| Operating margin (%) | 11.54% | 11.33% | — | — |
| Interest | ₹73 cr | ₹83 cr | -11.85% | +3.73% |
| Depreciation | ₹45 cr | ₹44 cr | +3.02% | +2.46% |
| Profit before tax | ₹74 cr | ₹60 cr | +23.59% | -0.28% |
| Tax | ₹13 cr | ₹16 cr | -18.27% | -32.81% |
| Net profit | ₹61 cr | ₹44 cr | +38.50% | +11.01% |
| EPS (₹) | ₹2.49 | ₹1.78 | +39.89% | +11.66% |
Operating margin of 11.54% compares with a Consumer Discretionary sector median of 12.42% across 50 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.67% | -2.35% |
Volume on the results session was 4.02× its 20-day average.
What to watch
- Whether operating margin holds above 11.54% after recovering from 10.73% in Q3FY26.
- Whether the tax rate remains near or below 17.36% rather than returning to 26.26% in Q1FY27.
- Whether interest expense stays below the Q1FY27 level of Rs 82.88 cr.