Jamna Auto Industries: Q4 FY26 — A Spring in the Step, Capex on the Horizon
General information and entertainment, not investment advice. The author is not a SEBI-registered adviser or research analyst. No recommendation, no promised returns. Markets carry risk including loss of capital. Figures may not be current. Consult a registered adviser before acting.
The company delivered its strongest-ever Q4 and full-year result. Net sales jumped 15% to ₹2,612 cr in FY26, while PAT grew 28% to ₹231 cr — profit growth that outpaced revenue by nearly double, a signal of operating leverage at work.
The market pays 19.5x the trailing EPS. The company’s peer band sits at 26–47x, meaning the multiple here is squarely in the cheap seats.
Yet there’s tension baked in: massive capex plans worth ₹180–200 cr per year ahead, chasing a goal of ₹5,000 cr revenue and 40% ROCE by the end of the decade. Execution risk is real.
The cash accruals machine is working — ₹510 cr in operating cash flow in FY26. But half of that goes into the capex shovel. A growth story, then, not a cash-cow harvest.
2. Introduction
Jamna Auto has dominated India’s commercial vehicle suspension market since 1965, when leaf springs were the only game. Over two decades, it has become the largest supplier to OEMs, with 62–65% market share in the domestic CV leaf spring world. Map Auto (a promoter vehicle) holds 33.84%, individual promoters another 16.33%, so 50% is locked in family hands.
The company operates 10 manufacturing plants, nearly all parked next to customer OEM hubs — Tata Motors, Ashok Leyland, VECV, Daimler, Mahindra, and others. This proximity is a moat: logistics cost is low, response time is fast, and switching becomes painful for customers.
Recent moves have signalled a strategic shift. The company commissioned a parabolic spring plant at Adityapur (Jharkhand) in October 2025, and in FY26 approved two massive new facilities at Indore for axles, rubber components, and integrated suspension systems. These aren’t tweaks — they’re a wholesale move toward higher-value products and away from the commodity leaf spring trap.
Exports are at 47 cr (1.8% of revenue); the aftermarket is at 23% of sales. Both are growth vectors the management has publicly named as paths to ₹5,000 cr by ~2030.
3. Business Model: WTF Do They Even Do?
Strip it bare: Jamna makes suspension springs for heavy trucks and buses. Leaf springs, parabolic springs, lift axles, air suspensions, stabilizer bars, and allied bits.
The revenue mix is roughly 78% OEM (Tata, Ashok Leyland, VECV, Mahindra, Bharat Benz, Force, Fuso, Volvo, Scania, SML Isuzu, UD, Isuzu) and 22% non-OEM (aftermarket retail, exports). The OEM side is concentrated — Tata and Ashok Leyland alone are 60% of sales in 9M FY26. The aftermarket sprawls: 20,000+ retailers, 25,000+ mechanics, 350+ distributors across India.
Product diversification is underway. Conventional leaf springs (the legacy business) now sit at 54% of revenue. Parabolic springs have climbed to 37%. New products — lift axles, drop axles, slipper suspensions, trailer suspensions — are at ~9%.
The model has shifted from “make springs, sell to OEMs” to “make complete suspension systems, sell to OEMs and aftermarket, export to global customers.” The Adityapur and Indore expansion supports this: in-house axle and rubber production means higher value per vehicle and better margins.
The geography is clever. Ten plants near customer plants means no freight penalty and faster turnaround. But it also means capex to expand each facility. The cash-burn math is not cheap.
4. Financials Overview
Figures are consolidated, in ₹ crore.
Basis: Quarterly (Latest Q = Q4 FY26)
Quarterly Results
Metric
Q4 FY26
Q3 FY26
YoY (Q4 FY25)
Revenue
840
668
638
EBITDA
138
105
85
PAT
87
58
50
EPS
2.18
1.46
1.26
Q4 saw a 26% QoQ jump in revenue and a 50% leap in PAT. The profit jump was sharper than the revenue jump — operating leverage in motion. EBITDA margin expanded to 16.5% in Q4 from 15.7% in Q3.
The YoY story is stronger: Q4 revenue up 32%, PAT up 74%, EPS up 73%. The company guided on the concall (May 29, 2026) that this was fueled by broad-based recovery in CV production (M&HCV +26% YoY in Q4, LCV +16% YoY), cost discipline, and aftermarket momentum.
Yearly Results
Metric
FY26
FY25
Revenue
2,612
2,270
EBITDA
394
307
PAT
231
180
EPS (annualised)
5.78
4.52
Full-year revenue grew 15% and PAT 28%. The OPM expanded from 13.5% to 15.1%. The leverage was real.
5. Market Expectations & Historical Multiples
This section describes how the market is currently
