/** Title: JTEKT India ends FY26 with 11% sales growth as capacity ramp and exports become the next swing factors Slug: fy26-jtekt Cover image: Ultra-realistic corporate finance scene inside a modern boardroom: a large wall screen shows an upward revenue bar chart from 2,399 to 2,666 and a flat EBITDA margin line around 7.5%. Next to it, a clean dashboard shows product mix pie segments (CEPS largest, RPS M next) and a small export indicator. On a side screen, a capacity utilisation table highlights low utilisation figures for new lines (around 21%, 27%, 48%). Neutral lighting, no logos, no text labels. Short title: JTEKT India FY26 growth and margin snapshot */

JTEKT India ends FY26 with 11% sales growth as capacity ramp and exports become the next swing factors

JTEKT India closed FY 2025-26 with sales revenue of INR 2,665.6 crores, up 11% from INR 2,399.3 crores in FY 2024-25. The company said this exceeded passenger vehicle industry growth of 9%, helped by SOP of new models where it is supplying as a complete system supplier across MS Gear, CEPS, and CVJ.

Profitability moved in a narrower band. EBITDA rose 10% to INR 200.0 crores, but the EBITDA margin dipped slightly to 7.5% from 7.6%. PAT grew 4% to INR 76.5 crores and the PAT margin softened to 2.9% from 3.1%. Management described FY26 as a year where the second half improved meaningfully, even though the full-year margin ended marginally lower.

FY26 performance: growth outpaced the market, but full-year margin stayed flat

In the earnings call, management highlighted that passenger vehicle volumes improved sharply in the second half after an indirect tax reform reduced GST rates, which supported demand for small vehicles. The company said it benefited from higher demand in several Maruti Suzuki models where JTEKT supplies components.

On the quarterly snapshot, Q4 FY26 revenue rose to INR 780.3 crores from INR 649.2 crores in Q4 FY25. Q4 EBITDA margin expanded to 9.2% from 8.4%, indicating that the full-year margin softness was not a steady trend across all quarters.

What moved margins in FY26: mix, tariffs, testing costs and one-time items

The investor presentation included a detailed EBITDA bridge and the call expanded on the same themes. Management said fixed costs were controlled tightly, with employee and administration costs as a percentage of sales declining, even after booking one-time rights issue expenses.

The pressure came from variable cost factors. On product mix, the company highlighted lower sales to Honda and Renault Nissan export models, which it said typically carry better margins, while volumes increased in some Maruti Suzuki models where margins are relatively lower. The deck cited the mix impact as a key driver of margin loss in material cost.

The call also pointed to an accounting-related issue around forex gains on import payments. Management explained that forex gains on purchases are recorded as other income and cannot be netted against material costs as per accounting norms. This, in their view, made material cost appear higher in EBITDA.

Selling costs were influenced by two opposing forces. Warranty costs were lower because the previous year had higher costs linked to a recall issue. At the same time, the company incurred costs from a US tariff on export sales, which management described as a one-time impact, noting that the duty rate later reduced.

Manufacturing costs were affected by an increase in power tariffs during the year. The presentation specifically cited the tariff increase from Rs. 8.45 to Rs. 9.42 per unit as a margin headwind.

Product mix and capacity ramp: the operating lever for the next phase

The presentation shows JTEKT India is still primarily a driveline-led sales mix on a broad classification, with Driveline at 94.1% and Steering and Columns at 5.9% in FY26. Within the product revenue breakup for FY26, CEPS is the single largest component at 45.5%, followed by RPS M at 26.5%. CVJ at 4.9% is still small in revenue mix, but management repeatedly positioned it as a strategic growth area.

The investment and capacity table in the deck is important context for the company’s return ratios. Debt-equity increased to 0.28 in FY26 from 0.17 in FY25, while fixed asset turnover declined to 2.17 from 2.72. Management linked this to significant capex and a high CWIP base, stating CWIP is about INR 411 crores and is not yet operationalised.

Utilisation data suggests headroom in recently added lines. CVJ Line 2 (SOP Nov-25) is at 27% utilisation, MS Gear Line 6 (SOP Aug-25) at 21%, and CEPS Line 3 (SOP Jul-25) at 48%. A new MS Gear line in Chennai (SOP May-26) was marked as SOP awaited in the deck. Management stated utilisation should rise as the new models run for a full year and as further launches add volume.

On the call, management said it expects production capacities to be fully utilised within about 1.5 years, based on order visibility. It also suggested a way to think about revenue potential without issuing formal guidance: if the market grows by 10%, the company believes it can add around INR 400 crores from domestic growth plus INR 75 to 100 crores from exports, implying roughly INR 500 crores incremental revenue in a scenario.

Exports and Gujarat: two expansion tracks to watch

Exports remain a small portion of sales in the deck’s geographic split, but management treated them as a strategic lever. The EBITDA analysis slide highlighted improvement in export sales to the US, with export value rising from INR 55.1 crores to INR 66.4 crores. Management said it expects US exports to improve further with lower tariffs.

A second export development is Brazil. Management announced dispatches to Brazil start from May 2026 and indicated the program could scale over time. While volumes are still early stage, the commentary framed it as part of JTEKT Corporation Japan’s stated intent to strengthen Indian sites and position India as a global supply base.

On capex, the Gujarat plant is the largest ongoing project. Management said the overall capex commitment is about INR 250 crores, with about INR 130 crores already spent, including use of rights issue proceeds. It indicated FY27 capex should not be as high as the last two years, but Gujarat will require further spending over the next one to two years.

Takeaways

JTEKT India’s FY26 numbers show a business growing faster than the passenger vehicle market, but still in the middle of a major capacity build-out phase. The company’s own data shows underutilised lines across CVJ, MS Gear and CEPS, and management has tied the next leg of return improvement to ramping these assets.

For investors, the near-term story is less about headline growth and more about execution timing: SOP stability, utilisation ramp, and export scalability. The call repeatedly emphasized that several FY26 margin headwinds were temporary, and that the combination of lower tariff pressure, reduced testing costs as SOPs mature, and higher utilisation could improve profitability and return ratios as CWIP turns into productive capacity.