JBM Auto Ltd Management Discussions

1. GLOBAL ECONOMY

The global economy in calendar year (CY) 2025 continues to exhibit measured resilience amid a complex and evolving macroeconomic environment. According to the latest World Economic Outlook (WEO) published by the International Monetary Fund (IMF) in April 2025, the global GDP growth is projected to moderate to 2.8% in CY 2025, down from 3.3% in CY 2024. While this marks a deceleration from pre-pandemic norms, it reflects a phase of constrained expansion rather than outright contraction. The subdued growth outlook is shaped by a confluence of factors, including intensifying global trade frictions, policy uncertainty in major economies, and weakened consumer sentiment, particularly in advanced markets. Despite these headwinds, the global economy appears to be adjusting to long-term structural shifts with a degree of stability.

GDP Growth Projections (in %)

Emerging Markets and Developing Economies (EMDEs)

Growth in emerging and developing economies has slowed down, with notable deceleration observed across a wide range of countries, including Brazil, China, Mexico, South Africa, Argentina, Hungary, Colombia, and Turkiye. Elevated debt burdens and weakening currencies are fueling inflationary pressures and further narrowing the space for effective monetary intervention. At the same time, tighter global financial conditions and waning investor confidence are exacerbating macroeconomic vulnerabilities.

Tariff Surge Amidst Global Trade Tensions

I n the second quarter of CY 2025, the US, under the Trump Administration, introduced a series of aggressive protectionist measures aimed at overhauling its trade framework. These included the imposition of new tariffs on a wide range of imports such as

The situation escalated further on 5^th April, 2025, with the announcement of an across-the-board 10% tariff on most imports from nearly all countries, levied in addition to existing duties.

In retaliation, major trading partners, including China and the European Union responded with counter-tariffs targeting American exports. While the US implemented a temporary 90-day suspension on select reciprocal actions to facilitate negotiations, core sector-specific tariffs, particularly those affecting steel, aluminium, and the automotive industry, continue to remain firmly in effect with a 10% baseline tariff in place at all nonexempt merchandise entering the US market as of July 2025.

Trade tensions between the US and China have sharply intensified since early April 2025, as both nations levied punitive tariffs exceeding 100% on each others goods. The outlook remains highly uncertain, especially if the suspended countermeasures are reinstated in the coming months.

Geopolitical Tensions and Global Risk

Geopolitical tensions continue to reshape the global economic landscape, generating volatility across financial markets, trade flows, and supply chains. The ongoing Russia-Ukraine war and persistent instability in the Middle East have significantly disrupted key energy and agricultural supply routes, pushing up oil prices and triggering widespread inflationary pressures. These surges in oil prices have had a direct impact on the Indian automotive sector, especially the auto components industry, which remains heavily dependent on imported raw materials and energy sources. Higher crude oil prices drive up transportation and production costs, compressing margins for component manufacturers and increasing input costs across the automotive value chain. As a result, vehicle prices may rise, potentially weakening consumer demand and further constraining sectoral growth.

Compounding these challenges is the political uncertainty stemming from pivotal national elections and the growing influence of populist movements in several major economies, signs of broader public dissatisfaction and evolving socio-political trends. Simultaneously, accelerating digitalization and economic interconnectivity have expanded the surface area for cyber threats, introducing complex new risks.

Global Inflation Easing Amid Structural Shifts

According to the World Economic Outlook 2025, global inflation is on a sustained downward path - moderating from 6.8% in CY 2023 to 5.9% in CY 2024, and further projected to decline to 4.5% in CY 2025. This disinflationary trend is driven by easing food and energy prices, along with the continued influence of restrictive monetary policy stances, particularly in advanced economies.

Indian Economy Real GDP Growth Rate (in %)

Outlook

Amid ongoing global economic headwinds, the international economic landscape continues to evolve through targeted reforms and renewed multilateral engagement. Various policy developments, such as the European Unions Green Deal Industrial Plan and the US Inflation Reduction Act, underscore the increasing global focus on sustainability, clean energy adoption, and climate-aligned investment. Concurrently, frameworks like the G20s Common Framework for Debt Treatments are advancing efforts to streamline sovereign debt restructuring for vulnerable economies, thereby enhancing broader financial resilience.

(Source: https://www.imf.orn/en/Puhlications/WFO/

Issues/2025/04/22/world-economic-outlook-aDril-2025)

2. INDIAN ECONOMY

I ndias real GDP is expected to grow at a robust 6.5% in FY 2024-25, reflecting the underlying resilience and dynamism of the countrys economic framework. Despite facing headwinds from a volatile global backdrop, including sustained trade frictions and tariff shocks, India continues to remain firmly on track. Its ability to cushion external pressures and maintain economic momentum underscores the agility and foresight embedded in its policy architecture.

Indias Economic Stability

I ndias economic stability remains anchored in robust domestic consumption, with rural demand emerging as a critical stabilizer amid global volatility. A strong agricultural performance has reinvigorated rural spending, establishing a solid base for sustained economic expansion.

Sector-Wise Performance

Indias services sector remains a primary engine of growth, with a projected expansion of 7.2% in FY 2024-25. This momentum is likely to be driven by sustained activity in financial services, healthcare, hospitality, and public administration. A recovery in consumer confidence and a steady uptick in domestic tourism have further bolstered growth across services- related segments. While the IT industry faced global challenges, it still managed to deliver moderate growth, reinforcing its pivotal role in employment generation and national economic output.

I n contrast, the manufacturing sector moderated to a projected growth rate of 6.2% in FY 2024-25 from 9.5% in the previous year. Indias Manufacturing Purchasing Managers Index (PMI) rose to 58.4 in June 2025, the highest level recorded since April 2024. Notably, growth was led by the capital goods and consumer durables segments, driven by strong domestic capital formation and rising external demand. Together, these trends underscore the resilience, depth, and growing diversification of Indias manufacturing ecosystem.

(Source: https://Dib.aov.in/PressReleseDetailm.

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in%20FY%202022%2D23.

httns://www.nib. govin/PressReleaseiframePage.

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https://tradinaeconomics.com/india/manufacturina-pm_l)

Outlook

Indias economic trajectory remains firmly anchored to its long-term development blueprint - Viksit Bharat @2047 - which envisions transforming the country into a fully developed economy by the centenary of independence. At the core of this vision is the aspiration to become a US$ 30 Trillion economy by 2047, driven by inclusive growth, technological advancement, and infrastructure-led transformation. The projected GDP growth of 6.5% for both FY 2025-26 and FY 2026-27 signals ongoing macroeconomic stability and sustained policy coherence, supported by strong domestic demand, accelerated digitalization, and ongoing structural reforms.

(Source: https://www. ubs. com/global/en/investment-bank/ insiahts-and-data/2024/indias-outlook-2025-2026-storv.htm:)

India Signs Historic Trade Deal with the UK

On 24^th July, 2025, Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer officially signed the long-awaited India-UK Free Trade Agreement (FTA) in London. This landmark deal represents Indias first major trade pact in over a decade and the UKs fourth since departing the European Union in 2020.

The agreement is set to unlock significant economic benefits for both nations by enhancing trade in goods and services. In addition to improved market access, the FTA focuses on facilitating professional mobility, strengthening regulatory alignment, and encouraging cross-border investment. For India, the deal offers an opportunity to boost exports and drive growth in strategic sectors, while the UK gains a vital foothold in one of the worlds fastest-growing consumer economies.

Union Budget 2025-26

The Union Budget 2025-26 outlined nine strategic priorities aimed at fostering inclusive and sustainable economic growth. These include the modernization of agriculture and expanded support mechanisms for farmers, the revitalization of manufacturing to generate employment, and the promotion of smart, climate- resilient urban development. The Budget placed strong emphasis on securing Indias long-term energy security through resource diversification, while also advancing green growth by integrating sustainable practices across key sectors.

Youth empowerment was a key focus, with targeted efforts to strengthen education systems and skill development to build a future-ready workforce. Financial sector reforms have been advanced to promote deeper inclusion, improve access to credit, and ensure robust regulatory frameworks. Infrastructure expansion and increased investment have been positioned as critical growth drivers, supported by a stable and forwardlooking policy ecosystem. Lastly, the Budget prioritized streamlined and effective last-mile delivery of public services to ensure equitable reach and measurable outcomes.

(Source: https://www. india.gov.in/spotlight/union-

budget-2025-2026)

INDIAN AUTOMOBILE INDUSTRY

The Indian automobile industry has emerged as a pivotal pillar of the countrys industrial and economic landscape. Its modern transformation began in 1991, when the sector was de-licensed and opened to 100% FDI via the automatic route, a landmark policy shift that enabled the entry of major global automotive players and significantly accelerated the development of domestic manufacturing capabilities.

(Source: https://www.pih. gov. in/PressReleasePage.aspx?PRID=2121826)

The Government of India has played a crucial enabling role through initiatives such as Make in India, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), the PLI schemes, PM E-Drive Scheme and the PM E-Bus Sewa Schemes. These have catalysed investments, fostered localization, and incentivized innovation in electric mobility, battery manufacturing, and component ecosystems. Notably, under the PLI-Auto scheme, approved investments worth 25,938 Crores will boost advanced automotive technologies across the value chain.

(Source: httDs://www.Dib.aov.in/PressReleasePaae.asDx?PRID=2115609#:~:text=Union%20Cabinet%20aDDroved%20PLI%20 Scheme.framed%20with%20wide%20stakeholder%20consultations.)

A major recent development is the Indian governments approval of a 1,00,000 Crores Employment Linked Incentive (ELI) scheme, aimed at creating over 3.5 crore jobs over the next two years, with a strong emphasis on the manufacturing sector. This ambitious initiative is expected to significantly impact the broader economy, with notable benefits for the automobile industry:

Segment-wise Automobile Performance in India in FY 2024-25

Category	Production			Domestic Sales			Exports
	FY	FY	0/ %	FY	FY	0/ %	FY	FY	0/ %
	2024-25	2023-24	Change	2024-25	2023-24	Change	2024-25	2023-24	Change
Passenger Vehicles	50,61,164	49,01,840	3.25	43,01,848	42 18,750	1.97	7,70,364	6,72,105	14.59
Commercial Vehicles	10,32,645	10,67,504	(3.26)	9,56,671	9,68,770	(1.25)	80,986	65,818	23.00
Three-Wheelers	10,50,020	9,96,159	5.41	7,41,420	6,94,801	6.70	3,06,914	2,99,977	2.31
Two-Wheelers	2,38,83,857	2,14,68,527	11.25	1,96,07,332	1,79,74,365	9.08	41,98,403	34,58,416	21.47
Quadricycles	6,488	5,006	29.60	120	725	(83.45)	6,422	4,178	53.66
Total	3,10,34,174	2,84,39,036	9.12	2,56,07,391	2,38,57,411	7.34	53,63,089	45,00,494	19.12

Production

According to the Society of Indian Automobile Manufacturers (SIAM), the Indian automobile

industry produced a total of 310.34 Lakhs vehicles in FY 2024-25, comprising passenger vehicles,

commercial vehicles, three-wheelers, and two- wheelers. This marks a 9.12% increase over the 284.39 Lakhs units produced in FY 2023-24, reflecting strong year-on-year growth across segments.

(Source: https://www.siam.in/statistics.aspx?mpnid=8&pnidtrail=T5)

Domestic Sales

Domestic sales grew by 7.34% in FY 2024-25. Segment- wise growth was recorded as follows:

• Passenger Vehicles: up by 1.97%

• Commercial Vehicles: down by 1.25%

• Three-Wheelers: up by 6.70%

• Two-Wheelers: up by 9.08%

• Quadricycles: down by 83.45%

(Source :httDs://www.siam.in/statistics.asDx?mpaid=8&Daidtrail=15) Export Sales

Exports witnessed a strong recovery, growing by 19.12% in FY 2024-25. Segment-wise performance was:

• Passenger Vehicles: up by 14.59%

• Commercial Vehicles: up by 23.00%

• Three-Wheelers: up by 2.31%

• Two-Wheelers: up by 21.47%

• Quadricycles: up by 53.66%

(Source: https://www.siam.in/statistks.aspx?mpnid=8&pnidtrail=15)

Investments and Developments in the Indian Automobile Sector

To meet rising demand, numerous automakers have significantly ramped up investments across various segments of the industry. Between April 2000 and September 2024, the sector attracted cumulative FDI equity inflows of 3,22,015 Crores (US$ 36.21 Billion). With a projected total investment potential surpassing US$ 200 Billion, India is strategically positioning itself to emerge as the worlds largest electric vehicle (EV) market by 2030.

(Source: https://www.ipoplatform.com/main-hoard/know- your-sector/automobile

https://www.ihef.orn/industry/india-automohiles)

Government Initiatives for the Automobile Industry

Incentivizing Electric Mobility and Green Transportation

Over the past few Union Budgets, and especially in the FY 2025-26 Budget, the Government of India has intensified its commitment to green mobility as a cornerstone of sustainable industrial development. The FAME scheme, now in its third phase, continues to receive increased budgetary support aimed at accelerating the adoption of electric two-wheelers, three-wheelers, buses, and charging infrastructure.

In FY 2025-26, allocations under FAME have been complemented by targeted funding for batteryswapping systems, public charging stations, and R&D in advanced cell chemistries. This signals a strategic pivot from demand-side subsidies toward strengthening ecosystem readiness and advancing technology maturity. In parallel, lowered GST rates on EV components and reduced import duties on EV capital equipment are helping to improve the cost competitiveness of domestic manufacturing.

The Indian government is also expected to roll out a new policy framework for electric buses, building on recent successful tenders under the PM e-Bus Sewa scheme. This initiative not only supports the transition to cleaner urban transportation but also generates strong demand signals for domestic bus OEMs and EV component manufacturers, reinforcing the sectors long-term growth trajectory.

Fostering Innovation and Future Mobility

The Union Budget 2025-26 underscores the strategic importance of preparing Indias automobile sector for emerging mobility trends such as connected vehicles, shared mobility platforms, hydrogen fuel technologies, and autonomous driving systems. Budget announcements this year include:

• Establishment of Mobility Innovation Clusters (MICs) in partnership with IITs and NITs, aimed at advancing automotive R&D.

• Financial support for real-world validation centers to test ADAS, connected vehicle protocols, and V2X communication technologies.

• Public-private funding of hydrogen fuel vehicle pilots, aligned with the National Green Hydrogen Mission.

Furthermore, the Budget sets aside incentives for startups working on EV software, telematics, and fleet electrification analytics, recognizing the role of digital platforms in reshaping mobility economics.

A Holistic Push Towards Sustainability and Integration

The Union Budget 2025-26 reflects continuity in longterm reform strategy while sharpening the national focus on green mobility, advanced technologies, and global competitiveness. It recognizes the auto industry as a strategic growth engine in Indias broader aspiration to become a US$ 5 Trillion economy. By combining fiscal incentives, infrastructure investment, and innovation-enabling platforms, the Government is laying the foundation for an automotive ecosystem that is not only future-ready but globally significant. With strong policy momentum and sustained industry commitment, Indias automotive sector is poised to enter a transformative phase marked by sustainable, innovation-led growth.

4. INDIAN AUTO COMPONENTS INDUSTRY

The Indian auto components industry is undergoing a fundamental transformation, driven by rapid technological innovation, proactive policy support, and rising global demand. As the industry transitions toward future-ready technologies and deeper integration with global value chains, it is poised for long-term, sustainable growth, reinforcing Indias emergence as a vital player in the evolving global mobility ecosystem.

The growth outlook remains compelling. According to industry estimates, the Indian auto component market is projected to reach US$ 200 Billion by CY 2030, growing at a CAGR of 16% from CY 2024. Notably, exports are expected to be a primary growth engine, anticipated to rise at an annual rate of 30% to potentially touch US$ 100 Billion, surpassing domestic OEM consumption, which is projected at US$ 89 Billion by the end of the decade.

Indian Auto Component Market Size

Years	Market Size	As % of Indias
	(US$ Billion)	GDP
CY 2014	35	1.9
CY 2024	74	3.5
CY 2030 (P)*	200	-

*(P) Projected

(Source: https://www.acma.in/uoloads/oublication/64-annual session/ACMA Fostering self reliance Report v3 Print.pdf)

5. ELECTRIC VEHICLE INDUSTRY

The global EV industry continues to gain momentum, supported by policy mandates, advancing technology, and growing demand for sustainable mobility. As governments accelerate decarbonization efforts and invest in cleaner transportation infrastructure, EV adoption is expanding across both developed and emerging markets. The industry is transitioning from early-stage adoption to broader market integration, with supply chains, manufacturing ecosystems, and regulatory frameworks evolving in parallel.

Passenger vehicle uptake remains the primary engine of growth, driven by improvements in battery technology, reduced total cost of ownership, and increasingly stringent emission norms. At the same time, the commercial segment is also witnessing a gradual shift toward electrification, supported by favorable cost structures in high-utilization use cases and targeted policy interventions.

6. GLOBAL ELECTRIC BUS INDUSTRY

The global electric bus (e-bus) market continues to register steady expansion, driven by escalating environmental imperatives, rapid advances in battery and vehicle technologies, and more assertive policy mandates at both national and municipal levels.

Electric bus sales outside China grew by 5% in CY 2024 and have nearly tripled since CY 2020, with emerging growth hubs in Europe, Latin America, and parts of Africa and Southeast Asia. These trends underscore a broadening of the market landscape, supported by cost reductions, public-private financing models, and improved technology readiness.

With more governments establishing zero-emission fleet targets and expanding policy support, and as vehicle platforms continue to mature, electric buses are increasingly positioned to become the default mode of urban public transportation in the decades ahead. Their central role in advancing equitable, low-carbon mobility reinforces their significance within both advanced and emerging economies alike.

7. INDIAN ELECTRIC BUS INDUSTRY

I ndias electric bus (e-bus) sector has entered a phase of rapid and sustained growth, driven by progressive policy interventions, improving cost dynamics, and growing ecosystem maturity. The operational fleet has expanded from fewer than 3,000 e-buses in CY 2020 to over 11,500 units by CY 2024, marking a significant inflection point in the adoption of clean, electrified public transport across Indian cities.

For further details, please refer to the initial pages.

Procurement of Electric Buses in India

Indias electric bus (e-bus) procurement landscape continues to evolve in response to national

decarbonisation goals and the broader agenda of sustainable urban development. A major policy milestone was reached in 2024, when the Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, allocating 4,391 Crores for the procurement of 14,028 electric buses across nine major cities. This move builds on earlier frameworks such as FAME I (2015-2019) and FAME II (2019-2024), which supported the deployment of 425 and 7,120 e-buses respectively through public sector transport agencies.

(Source: https://theicct.orn/facilitatinn-electric-

bus-adoption-by-private-bus-operators-across- india-nov24/#:~:text=In%20a%20maior%20Dush%20 towards.million%20renistered%20buses%20in%20Indu .)

Battery Demand for Electric Vehicles by Mode and Region in the Stated Policies Scenario, CY 2024-2030

Global demand for EV batteries is projected to continue its strong growth trajectory, expected to surpass 3 TWh by CY 2030 under the Stated Policies Scenario (STEPS), up from approximately 1 TWh in CY 2024.

I n terms of regional shifts, the share of global battery demand from the European Union and other advanced economies, such as the United Kingdom, Canada, Japan, and South Korea, is expected to grow steadily. Conversely, the US is projected to see a decline in its share, falling from about 13% in CY 2024 to less than 10% by CY 2030. Despite these changes, China will remain the dominant player, though its share of global battery demand is anticipated to decrease from 60% in 2024 to just under 50% by CY 2030, reflecting growing diversification in global EV markets.

8. BATTERY OPPORTUNITIES IN INDIA

The India battery market, valued at US$ 10.45 Billion in CY 2025, is projected to reach US$ 20.24 Billion by CY 2031, at a CAGR of 11.48%. This robust growth trajectory underscores the rising strategic importance of batteries, electrochemical systems that convert stored chemical energy into electrical energy, in powering a broad spectrum of end uses, ranging from mobile electronics and electric vehicles to grid-scale renewable energy storage.

Electric Vehicle Adoption Accelerating Battery Demand

Indias electric mobility revolution is gaining pace, with EVs and battery manufacturing emerging as central pillars of the nations clean energy transition. In CY 2024, EV sales in India surpassed the 2 Million mark, registering a 40% year-on-year increase. This surge reflects the combined impact of strong policy support, growing consumer acceptance, and rapidly improving charging infrastructure. The FAME II scheme has been a pivotal enabler, channeling over 10,000 Crores in subsidies and supporting the deployment of more than 10,000 public charging stations nationwide. Propelled by these interventions, the lithium-ion battery market, which powers over 90% of EVs sold in India, is witnessing exponential expansion, positioning India as a key player in the global battery value chain.

Government Initiatives

Despite surging demand driven by electric vehicles, renewable energy storage, and consumer electronics,

Indias battery industry remains hampered by critical supply chain vulnerabilities. Central among these is its heavy reliance on imported raw materials - particularly lithium, cobalt, and nickel - which are sourced primarily from a limited set of countries, including China, Australia, and Chile. This dependence exposes India to significant strategic risks, including geopolitical disruptions, commodity price volatility, and trade bottlenecks. As a result, there is an urgent need for India to diversify and secure its access to critical minerals through a blend of international partnerships, diplomatic engagement, and domestic exploration efforts, essential for sustaining its clean energy transition.

To address these challenges, the Indian government has adopted a multi-pronged strategy. A major initiative is Indias participation in the Mineral Security Partnership (MSP), a multilateral alliance that includes the US, Australia, and Japan. The MSP promotes responsible mining investments worldwide, offering India access to more secure and diversified sources of critical minerals beyond its traditional supply lines.

In parallel, India has established Khanij Bidesh India Ltd. (KABIL) - a joint venture between NALCO, HCL, and MECL. KABIL is tasked with identifying and acquiring mineral assets overseas, with a focus on resource- rich regions in South America and Africa. By investing directly in foreign mining operations, India aims to secure long-term mineral supplies and reduce its exposure to global supply shocks.

Diplomatic efforts have also intensified, with India pursuing government-to-government (G2G) agreements with mineral-rich nations like Argentina, Bolivia, and Australia. These partnerships are supported by broader domestic policies to enhance mineral processing and refining capabilities, build local supply chains, and reduce reliance on imports.

On the domestic front, the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) is a fundamental policy. It aims to boost local battery production by attracting private investment, encouraging innovation, and lowering manufacturing costs. Complementary efforts include strengthening geological surveys, fast-tracking mining approvals, and streamlining environmental clearances to unlock domestic mineral reserves.

(Source: https://www.nlobenewswire.com/news-relea

se/2025/05/30/3090920/28124/en/India-Battery-Industry- research-2025-Market-Trends-Competition-Forecast- Qpportunities-2021-2031 -Shift-to-1 ithium-Ion-and- Advanced-Chemistries-Moves-Towards-Sustainability.htm)

9. OUTLOOK

The EV sector, particularly the e-bus segment, is witnessing strong momentum both globally and within India. This surge is propelled by a convergence of factors: growing environmental awareness, progressive Government policies, and rapid technological innovation. India has set an ambitious target of deploying 50,000 e-buses by CY 2030, positioning the segment as a critical pillar in the countrys sustainable urban mobility strategy.

(Source: https://www.businesswire.com/news/

home/20250403973020/en/India-E-Bus-Market-ReDort- 2025-2030-Competitive-Anaiysis-of-Ashok-l eyland- Eicher-JBM-Mahindra-Mahindra-Olectra-Greentech-Tata- Hvundai-PMI-Electro-Switch-Mobilitv-Automotive-and-VE--- ResearchAndMarkets.com)

10. COMPANY OVERVIEW

JBM Auto Ltd. (JBMA or The Company), a key enterprise within the JBM Group, is at the forefront of redefining mobility with a future-focused, fully integrated portfolio. From advanced auto components to cutting-edge electric mobility solutions, the Company is actively powering the shift toward cleaner, smarter, and more connected transportation. Its operations are driven through five agile and strategic business verticals:

Electric Buses

Pioneering zero-emission mobility, JBMA crafts intelligent electric buses that combine superior safety, seamless comfort, and high efficiency. Deployed across multiple Indian cities, these buses are transforming public transport into a sustainable experience.

EV Aggregates

At the heart of electric vehicle innovation, this vertical develops advanced battery packs, vehicle control units, electric axles, and drivetrains engineered for high energy density, rapid charging, and extended durability, driving performance from within.

E-Mobility Platform

JBMA offers a holistic electric mobility ecosystem that brings together EVs, charging infrastructure, fleet intelligence, and robust service support. This integrated approach ensures optimized total cost of ownership (TCO) and maximized operational uptime.

Auto Components & Systems

A trusted partner to global OEMs, JBMA delivers precision-engineered chassis systems, suspension parts, fuel and air tanks, exhaust systems, and skin panels - all produced through a fully integrated manufacturing setup for consistent quality and scale.

Tooling & Dies

Housing one of Indias largest and most advanced tool rooms, this vertical produces high-precision dies and molds for both in-house and external clients. It serves as a backbone of quality and innovation across diverse manufacturing sectors.

11. FINANCIAL PERFORMANCE

In FY 2024-25, the Company delivered strong growth despite facing macroeconomic headwinds and inflationary pressures. Key highlights of the consolidated financial performance are as follows:

• Net revenue from operations rose by 9.24%, reaching 5,472.33 Crores in FY 2024-25, compared to 5,009.35 Crores in FY 2023-24.

• The Component Division recorded revenues of 3,182.50 Crores in FY 2024-25, compared to 2,978.65 Crores in FY 2023-24.

• The Tool Room Division achieved a revenue growth of 5.47%, generating 305.59 Crores in FY 2024-25 compared to 289.73 Crores in FY 2023-24.

• The OEM Division posted significant growth, with revenues increasing by 14% to 1,984.94 Crores in FY 2024-25, compared to 1,741.21 Crores in FY 2023-24.

• EBITDA is up by 20.88% to 730.40 Crores in FY 2024-25, compared to 604.23 Crores in FY 2023-24.

• The Companys net worth grew by 1 5.67%, reaching 1,350.63 Crores as on 31^st March, 2025, compared to 1,167.67 Crores as on 31^st March, 2024.

• Book value per share increased by 15.67% to 57.11 in FY 2024-25, compared to 49.37 in FY 2023-24.

• Earnings per share (EPS) stood at 8.54 in FY 2024-25, compared to 7.56 in FY 2023-24.

Segment-wise Performance Component Division

• The Component Division reported revenues of 3,182.50 Crores in FY 2024-25, higher than 2,978.65 Crores in FY 2023-24.

• EBITDA for the year stood at 310.65 Crores compared to 265.52 Crores in FY 2023-24.

• EBIT for the year stood at 235.12 Crores compared to 193.50 Crores in FY 2023-24.

• The EBITDA margin improved to 9.76%, from 8.91% in FY 2023-24.

• EBIT margin improved to 7.39%, from 6.50% in FY 2023-24.

Tool Room Division

• The Tool Room Division achieved revenue growth of 5.47%, with revenues rising to 305.59 Crores in FY 2023-24 from 289.73 Crores in FY 2023-24.

OEM Division

• The OEM Division posted significant growth, with revenues increasing by 14% to 1,984.94 Crores in FY 2024-25, up from 1,741.21 Crores in FY 2023-24

• EBITDA increased significantly to 312.09 Crores, compared to 260.28 Crores in FY 2023-24.

• EBIT increased significantly to 215.56 Crores, compared to 163.28 Crores in FY 2023-24.

• The EBITDA margin improved to 15.72%, compared to 1 4.94%, reflecting improved operational efficiency and scale.

• The EBIT margin improved to 10.86%, compared to 9.38%, reflecting improved operational efficiency and scale.

Other Key Financial Ratios

For key financial ratios, please refer to Note 54 of the Standalone Financial Statements and Note 56 of the Consolidated Financial Statements.

12. RESEARCH & DEVELOPMENT

We are actively exploring a wide range of advanced materials and cutting-edge technologies with the primary objective of reducing both weight and cost, while maintaining or exceeding current performance standards. To support continuous improvement and enhance our design strategies, we undertake systematic benchmarking across a broad spectrum of products. This approach allows us to identify industry best practices, adopt market-leading features, and deliver optimized, high-performance solutions tailored to customer needs. These initiatives reflect our commitment to innovation, operational efficiency, and sustainable manufacturing practices.

During FY 2024-25, our OEM operations have worked closely with globally recognized Tier-1 suppliers and technology partners, including ZF, Mobileye, Masats, Shavo, JK, Hande, Ster, Actia, and FEV. These collaborations have facilitated significant knowledge transfer and enabled product customization to suit specific countries and applications.

Notable progress has been made in the area of Advanced Driver Assistance Systems (ADAS), achieving capabilities equivalent to Level 2 autonomy, laying the foundation for future autonomous driving. We have

also made strategic investments in artificial intelligence technologies, including:

• Global Operating Command Centres

• Digital Twins

• Remote Data Analytics

• Remote Diagnostics

Additionally, meeting the stringent regulatory standards of regions such as Europe, Singapore, and the Middle East remains a top priority. A key design focus is the lightweighting of buses to reduce energy consumption and improve Total Cost of Ownership (TCO).

Our next-generation buses will be equipped with a range of advanced technologies and features, including:

• Level 2 ADAS capabilities

• Electronic Stability Control (ESC)

• Advanced Emergency Braking System (AEBS)

• Wheel hub motors

• High-strength materials and lightweight

composites

• Passenger counting systems

• Automated ticketing machines

• Event data recorders

• Advanced charging protocols integrated with

payment gateways

Additionally, we are placing significant emphasis on the integration of the latest Lithium Iron Phosphate (LFP) battery technologies to further support safety, longevity, and operational efficiency.

13. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

At JBMA, our workforce is our greatest strength and a critical enabler of sustainable growth. FY 2024-25 was a landmark year for Human Resources, marked by strategic initiatives that advanced talent development, strengthened governance, and reinforced our commitment to a resilient, future-ready workforce.

Developing Future-Ready Leaders

Recognizing that leadership drives organizational excellence, we deepened our leadership development efforts this year. Through robust assessment centers targeting middle and senior management, we launched the Leadership Launchpad program, creating Individual Development Plans (IDPs) tailored to strengthen strategic thinking, leadership competencies, and business acumen. This initiative has been instrumental in building a strong succession pipeline, enhancing talent retention, and ensuring leadership continuity across the organization.

Institutionalizing Excellence with PCMM@JBM

We reinforced our people governance framework through the PCMM@JBM model, guided by a 10-pillar approach. Internal auditors were upskilled via a Train the Trainer program to ensure consistent, high-quality audits. An employee experience survey further enriched our understanding of workplace dynamics, guiding targeted action plans to close gaps and elevate HR standards across all locations.

High-Impact Learning for Business Outcomes

Our Learning & Organizational Development (L&OD) framework delivered business-aligned training initiatives, including Management and Organization Development Programs. The Supervisor Development Program equipped frontline leaders with essential team management skills. Notably, we evaluated training effectiveness through reviews of individual Sankalps (commitments), ensuring measurable returns on investment and linking learning outcomes directly to performance.

Strengthening the Talent Pipeline through Partnerships

To address skill gaps and ensure long-term talent availability, the JBM Skill Development Centre expanded its strategic collaborations. We formalized partnerships with premier institutions, including Assam Skill University, Don Bosco Technical Institute, and government ITIs in Gurugram and Faridabad. These alliances support apprentice programs, internships, and dual system training, fostering hands-on experience and creating a skilled, job-ready workforce.

Upholding Ethical Conduct and Policy Compliance

Aligned with our ESG and BRSR commitments, we undertook a comprehensive review and strengthening of key HR policies. These included the Anti-Corruption and Anti-Bribery Policy, Human Rights Policy, Equal Opportunity Policy, and POSH Policy, among others. Our updated grievance redressal mechanisms and Code of Conduct further reflect our dedication to a safe, inclusive, and ethical workplace.

Recognition for HR Excellence

Our progressive HR practices received notable recognition in FY 2024-25:

• CII National HR Circle Competition 2024

- Winner in Best HR Practices in L&D - People Development and Capability Building, acknowledging our commitment to continuous learning and development.

• WAW (Wellbeing at Workplaces) Awards 2024

- Honored for Spiritual Wellbeing, reflecting our holistic approach to employee wellness.

These accolades validate our efforts to build a dynamic, people-first culture and inspire us to keep driving HR innovation aligned with JBMAs long-term vision.

As of March 31, 2025, the Company had 1,759 employees on its payroll.

14. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a strong and comprehensive internal control system, tailored to the scale and complexity of its operations. This system is designed to protect assets, ensure accurate financial reporting, and support efficient business processes, thereby reinforcing governance and transparency. The Management has implemented well-defined policies, procedures, and an enterprise resource planning (ERP) system to streamline operations, enhance automated controls, and mitigate risks. Responsibility for policy compliance lies with unit heads, while the internal audit function conducts regular assessments to evaluate the effectiveness of controls. Furthermore, the Audit Committee reviews and approves the annual internal audit plan, focusing on key business risks, critical processes, and new initiatives to ensure the internal control framework remains effective, adequate, and responsive to the Companys evolving needs.

15. SKILL DEVELOPMENT

JBMAs Skill Development Centres (SDCs) play a pivotal role in nurturing a future-ready workforce, aligned with government-led skilling initiatives and the evolving demands of the manufacturing and allied services sectors. These centers have significantly contributed to enhancing operational excellence, supporting plant productivity, and preparing talent for emerging industry needs.

Targeted Skill Development for Industry Relevance

To ensure training is aligned with technological advancements and sectoral needs, JBM SDCs conduct comprehensive skill gap assessments. These evaluations inform the continuous update of training modules and curricula, enabling us to deliver cutting- edge, job-relevant skilling programs.

Quarterly Training Inductions for Sustainable Talent Supply

JBMA follows a structured approach to workforce development by conducting quarterly induction programs. These sessions maintain a robust pipeline of apprentices, ensuring consistent workforce availability, enhancing plant-level quality and productivity, and enabling agility during emergency workforce requirements.

Alignment with National Skilling Schemes

In support of national priorities, JBMA has successfully implemented flagship government schemes such as NAPS (National Apprenticeship Promotion Scheme) and NATS (National Apprenticeship Training Scheme). All training programs under these schemes are delivered in compliance with government standards and in close collaboration with relevant authorities, ensuring quality and certification.

Strategic Partnerships and MOUs for Skill Ecosystem Expansion

To expand its skill development outreach, JBMA has signed Memorandums of Understanding (MoUs) with leading institutions across India, including:

• Shri Vishwakarma Skill University, Haryana

• Jharkhand Government Tool Room, Ranchi

• Global Skills Park, Bhopal

• Assam Skill University, Guwahati

• Government ITIs in Faridabad and Gurugram

• Sector Skill Councils - Automotive & Capital Goods

• Don Bosco Technical Institute, Kolkata

These collaborations facilitate training in critical trades like Welding, Tool & Die Making, Electrician, and Fitter, bridging the skill gap and building a sustainable talent pool.

Driving E-Mobility Skilling through Center of Excellence

In the e-mobility segment, JBMA has established a Center of Excellence (CoE) focused on EV-specific training. In partnership with the Haryana Skill Development Mission, the CoE offers specialized

programs in Automotive Electrician and EV Assembly Operator, addressing the industrys shift toward electric mobility.

Additionally, JBMA supports Shri Vishwakarma Skill University as an Industry Partner, enabling practical, plant-based On-the-Job Training (OJT) for students enrolled in D.Voc., B.Voc., B.Tech, and M.Tech courses.

Impact and Recognition

• 3,200+ apprentices trained through structured apprenticeship programs.

• ~ 19,000 cumulative candidates trained through Apprenticeship and Dual System Training initiatives.

• Active participation in IndiaSkills and WorldSkills 2024, where JBMA SDC proudly represented India at WorldSkills Lyon, France, serving as a national expert delegate.

Through its Skill Development Centres, JBMA is not only creating a highly skilled, adaptive workforce but also reinforcing its commitment to national skilling agendas and industrial excellence.

16. CAUTIONARY STATEMENT

The Report may contain certain statements that the Company believes are, or maybe considered to be forward-looking statements that describe its objectives, plans or goals. All these forwardlooking statements are subject to certain risks and uncertainties, including but not limited to Government action, economic developments, risks inherent to the Companys growth strategy and other factors that could cause the actual results to differ materially from those contemplated by the relevant forward-looking statements.