JTEKT India shares declined 8% to ₹130.61 on Thursday, August 13, following the company's quarterly results announcement. According to reports from CNBC TV18, the stock hit an intraday low of ₹128.13 during trading, while it was down 4.2% at ₹133.58 at 2:40 pm. The stock has fallen 7.6% in the past month and is down 5.9% this year so far.
The company reported a 42.5% decline in net profit to ₹6.22 crore in Q1 FY27 compared with ₹10.82 crore in the corresponding quarter ended June 30, 2025, as reported by CNBC TV18. Despite the profit decline, revenue rose 26.9% to ₹717.98 crore from ₹566.02 crore in the year-ago quarter. EBITDA increased 23.8% to ₹38.19 crore from ₹30.86 crore a year earlier, though EBITDA margin contracted to 5.3% from 5.5% in the previous year period. The latest data shows revenue grew 26.8% year-on-year to ₹717.98 crore with EBITDA margin contracting to 5.32% from 5.45% in the prior year's first quarter.
The divergence between revenue growth and net profit decline was primarily driven by rising operational costs. Employee benefit expenses increased to ₹80.93 crore from ₹66.91 crore, representing a 21% rise that outpaced revenue growth. Depreciation and amortization expenses rose to ₹28.31 crore from ₹20.99 crore, an increase of nearly 35%. Finance costs also increased to ₹5.20 crore from ₹4.20 crore, reflecting the company's expansion activities. These structural cost increases compressed margins despite healthy sales volumes.
According to CNBC TV18, JTEKT India operates in the manufacturing, assembling, trading and sale of automotive components sector. The company's diversified operations span across the automotive component manufacturing value chain, positioning it as a key player in India's automotive aftermarket and replacement parts segment.
The market reaction reflects investor concerns over the profit decline despite strong revenue growth, as reported by CNBC TV18. The 42.5% profit decline overshadowed the positive aspects of 26.9% revenue growth and 23.8% EBITDA increase, leading to the significant stock price movement during trading hours. The 42% net profit decline indicates that while sales volumes improved, cost structures did not scale proportionately, pressuring the bottom line despite robust top-line performance.
