JTEKTINDIANSEQ4 FY 2025May 20, 2026

Jtekt India Limited

9,086words
55turns
6analyst exchanges
5executives
Management on call
Yosuke Fujiwara
WHOLE-TIME DIRECTOR – JTEKT INDIA LIMITED
Rajiv Chanana
DIRECTOR – JTEKT INDIA LIMITED
A. Dhanunjaya Rao
TECHNICAL ADVISOR –
Ashish Singh
DIVISIONAL HEAD, STRATEGIC
Vikas Goel
CHIEF FINANCIAL OFFICER – JTEKT INDIA LIMITED
Key numbers — 40 extracted
5.54 million
ing this call and the organizers. For the FY '25-'26, Passenger Vehicle segment achieved sales of 5.54 million units compared to 5.07 million units sold in FY '24-'25, thereby achieving annual growth of 9%. T
5.07 million
For the FY '25-'26, Passenger Vehicle segment achieved sales of 5.54 million units compared to 5.07 million units sold in FY '24-'25, thereby achieving annual growth of 9%. This was an unexpected achieveme
9%
llion units compared to 5.07 million units sold in FY '24-'25, thereby achieving annual growth of 9%. This was an unexpected achievement, particularly considering the fact that during the first half
1.6%
that during the first half of the year, the passenger vehicle segment registered a growth of only 1.6% in September '25. The Indian government announced a major indirect taxation reform, which lowered
28%
The Indian government announced a major indirect taxation reform, which lowered the GST rate from 28% to 18% for smaller vehicles and from 50% to 40% for larger ones. This change improved vehicle aff
18%
ian government announced a major indirect taxation reform, which lowered the GST rate from 28% to 18% for smaller vehicles and from 50% to 40% for larger ones. This change improved vehicle affordabil
50%
ndirect taxation reform, which lowered the GST rate from 28% to 18% for smaller vehicles and from 50% to 40% for larger ones. This change improved vehicle affordability, particularly for the small-si
40%
taxation reform, which lowered the GST rate from 28% to 18% for smaller vehicles and from 50% to 40% for larger ones. This change improved vehicle affordability, particularly for the small-sized seg
16.7%
d segment in the second half of FY '25, '26, the passenger vehicle segment registered a growth of 16.7%, which was quite significant. Now I'd like to discuss with you the company's financial results.
11%
company's financial results. During the financial year '25- '26, JTEKT achieved a sales growth of 11% compared to passenger vehicle market growth of 9%. The growth in sales at JTEKT was supported by
17%
ents to Maruti Suzuki. Okay. Further, our sales to Mahindra & Mahindra and Tata also increased by 17%. With the improvement of sales, the EBITDA margin for the second half to a level of 8.48% compare
8.48%
reased by 17%. With the improvement of sales, the EBITDA margin for the second half to a level of 8.48% compared to 7.71% achieved last year. Despite this improvement, we are short by 0.1% as the full
Guidance — 20 items
Rajiv Chanana
qa
“We expect this should improve in future.”
Rajiv Chanana
qa
“So we expect that the Honda sales in the future years will improve.”
Rajiv Chanana
qa
“We are waiting for the launch of another vehicle, which is an SUV EV by Honda, which will be launched from their Tapukara plant during maybe around December '26.”
Rajiv Chanana
qa
“Now these factors, both the factors which I've just mentioned, are looks, in my opinion, are temporary, and we should not be getting hit by the same kind of a drastic product mix change next year or we will not get any forex hit, even though it was an income getting added into income, but we will not have this kind of an accounting issue in future.”
Rajiv Chanana
qa
“So futuristic little bit, we expect some improvements in business situations.”
Rajiv Chanana
qa
“And further, these exports will be at a lower tariff and thus will help improve profits as well.”
Rajiv Chanana
qa
“Second, we expect sale of new models of Maruti Suzuki, where Jimny has started supplying during '25, '26 will increase.”
Rajiv Chanana
qa
“Maruti Suzuki is expected to launch another MPV, which is EV from Gujarat plant expected in October '26, and we expect that this will help us to increase our revenue and improve margins.”
Rajiv Chanana
qa
“And this -- I'm happy to announce that we will be starting dispatch from this month.”
Rajiv Chanana
qa
“And this volume will continue to grow up to maybe 5 lakh units, we expect this will grow.”
Risks & concerns — 8 flagged
So, you are aware that 2025, '26, it started with a weak note.
— Rajiv Chanana
And this was due to improvement in our business condition, which impacted us very badly in the previous financial year, which I'm talking about '24-'25, where the margin fell very, very -- in a very high manner about 1.4% was decline in our margins when we compare last year, '24- '25 vis-a-vis the previous year.
— Rajiv Chanana
The first reason was change in the product mix due to major decline in sales to Honda, which was about 33%, sale to Renault Nissan for the export models, which was about 16% and a small decline in Toyota also by about 4%.
— Rajiv Chanana
And therefore, there was a net negative impact of 0.18%.
— Rajiv Chanana
Coming to -- this was an impact of 0.1%.
— Rajiv Chanana
Let's -- it's difficult to pinpoint 12 months or 18 months.
— Aman Vora
The next challenge will be that moving to other customers, once we are able to establish ourselves with Maruti Suzuki and Toyota, the next challenge will be to move to other customers and establish our product with them.
— Rajiv Chanana
And we have a brand-new Chennai line ready and people are emotional and people are very, very ready to take this challenge.
— Rajiv Chanana
Q&A — 6 exchanges
Q
Yes, hi. Thank you for the opportunity, sir. My first question is regarding the gross margins. So if we see the gross margins from last 2 years, they have been continuously declining from 29% to 27% now. Can you just highlight what are the key factors behind this? And how should we see the gross margin from here on? That is my first question.
Rajiv Chanana
Sure, Tushar. Thank you for arranging this conference call and asking the question on margins. Yes, we are equally concerned about that. So let me take a little time to explain the change point, which has happened over the last 2 years. I will not be restricting myself to the current year. I will try to correlate it with a year before that also. So, you are aware that 2025, '26, it started with a weak note. We saw passenger vehicle market growth just 1.6% in the first half. Now this is lower-than-expected sales and EBITDA margin for the first half of '25-'26 declined to 6.3% compared to 7.6%,
Q
Hi. First of all, many congratulations on a strong fourth quarter performance. I actually just wanted to get some understanding from you on our revenue trajectory. So in the previous quarter, you had explained that by F27, we would look to add about INR1,000 crores to top line because of these -- all the new capacities that we have commissioned in the last 6 to 9 months. So given -- so could you just update us on that? Where are we on that guidance? And also, given all the initiatives around the new capacities from all our clients, the opportunity of export to the promoter group as well as the
Rajiv Chanana
So let me explain you where are we now. Future, I will leave it for you to decide. So I will explain you where we are. So let me start with '25-'26, that just completed financial year. So JTEKT India, as Fujiwara San in his opening remarks mentioned that we touched a growth level of 11% compared to the passenger vehicle market segment growth of 9%. So, we performed better than the market. So now out of this 9%, when we look at the overall passenger vehicle market growth of '25-'26, the share of Maruti Suzuki and Toyota was 5%. So, when we say that the passenger market vehicle grew by 9%, Marut
Q
I have 2 questions for you. One on -- again, following up from what the previous participant was saying. If on the driveline side, you could give us some more color on what other products are in the near-term launch pipeline? Secondly, how are margins or when you say pick the turnover, how does that differ? And as to the INR750 crores of capex that you've done, I understand that your previous assets were well depreciated. So, I just want to understand what sort of FATR you can look forward to going from here when you make new investments as well?
Rajiv Chanana
Okay. Good. So, I think on the driveline product, which was your first question, I think we have already explained our CVJ strategy. Our aspiration to touch market share of 15%. And maybe long term, will include our further increasing this capacity from Gujarat location. So currently, at our existing Dharuhera location, we already have 2 production lines with a capacity of around 7.54 lakh units, which translates to about INR250 crores kind of volumes of value -- sales value. And we will be up about 90% capacity utilized when we will be -- we'll get the third EV model of Maruti Suzuki, which w
Q
Hello. Sir I hope I am audible?
Rajiv Chanana
Just one minute. We are almost completed the time. So we'll take it as a last question if you kindly permit. Sir, just wanted to understand that, sir, how much would be the total sales estimated total sales potential once the entire capacities are utilized. And just a follow-up back on that question, like how much is the business that you are expecting from the Maruti EV Gujarat, which is going to get released? So that's the first question? My second question was that the CWIP of INR400 crores. So where would that be used for like how many lines for CVJ and MSG? Those are the two questions and
Q
Okay. Again, I would like to thank everyone for joining this call. I hope we have been able to respond to your questions adequately. We are very positive about growth in the automotive sector and would continue with our effort to expand to meet industry requirements. Thank you very much. Stay safe, stay healthy and thank you once again for joining us.
Management
Q
Thank you, everyone. Thank you so much.
Management
Speaking time
Rajiv Chanana
23
Tushar
8
Moderator
7
Aman Vora
6
Kevin Gandhi
5
Manan Poladia
4
Yosuke Fujiwara
2
Opening remarks
Rajiv Chanana
Good afternoon, ladies and gentlemen. Let me introduce the team here from JTEKT India site. We have with us Mr. Yosuke Fujiwara San, he is the Whole-Time Director. We have Mr. Dhanunjaya Rao. He is a Technical Advisor and part of the MD office. Mr. Ashish Singh is Divisional Head, Strategic Division; is responsible for Sales and Marketing as well. Vikas Goel, Chief Financial Officer of the company; and I'm Rajiv Chanana, Whole-Time Director. I will hand over the call to Mr. Fujiwara San for the opening remarks. Thank you.
Yosuke Fujiwara
Good afternoon, everyone, and welcome to the JTEKT India Limited Annual Earnings Call. My name is Yosuke Fujiwara, Whole-Time Director of JTEKT India Limited. I would like to thank all participants for joining this call and the organizers. For the FY '25-'26, Passenger Vehicle segment achieved sales of 5.54 million units compared to 5.07 million units sold in FY '24-'25, thereby achieving annual growth of 9%. This was an unexpected achievement, particularly considering the fact that during the first half of the year, the passenger vehicle segment registered a growth of only 1.6% in September '25. The Indian government announced a major indirect taxation reform, which lowered the GST rate from 28% to 18% for smaller vehicles and from 50% to 40% for larger ones. This change improved vehicle affordability, particularly for the small-sized segment in the second half of FY '25, '26, the passenger vehicle segment registered a growth of 16.7%, which was quite significant. Now I'd like to disc
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