JMA - Jullundur Motor
📢 Recent Corporate Announcements
Jullundur Motor Agency (JMA) has provided a clarification to the National Stock Exchange regarding the signing of its un-audited financial results for the quarter ended December 31, 2025. The company explained that it currently does not have a Managing Director or Whole-time Director on its Board. Consequently, the Board authorized Non-executive Director Smt. Shuchi Arora to sign the results via resolutions passed on February 12, 2026. This procedural step was taken to comply with ICAI Code of Ethics as the Board Chairperson is a practicing Chartered Accountant.
- NSE sought clarification regarding the signing of financial results for the quarter and nine months ended Dec 31, 2025.
- Company confirmed the absence of a Managing Director or Whole-time Director on its current Board of Directors.
- Board Resolution Nos. 1 and 2, dated Feb 12, 2026, specifically authorized Smt. Shuchi Arora to authenticate the results.
- Chairperson CA Subhash Chander Vasudeva abstained from signing to adhere to ICAI Code of Ethics for practicing Chartered Accountants.
- The company had previously disclosed this authorization in the notes to the financial results submitted to the exchange.
Jullundur Motor Agency (Delhi) Limited has submitted its monthly report regarding the re-lodgement of transfer requests for physical shares for December 2025. This filing is a mandatory compliance requirement under the SEBI circular dated July 02, 2025. The report was prepared by the company's Registrar and Share Transfer Agent, MAS Services Limited. This is a standard administrative procedure and does not impact the company's financial health or operational performance.
- Compliance with SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97.
- Report covers re-lodgement requests for physical shares received during December 2025.
- Report prepared by Registrar and Share Transfer Agent, MAS Services Limited, dated January 05, 2026.
- Official disclosure submitted to the National Stock Exchange (NSE) on January 12, 2026.
Jullundur Motor Agency (Delhi) Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Mas Services Limited, confirms that all share dematerialization requests received between October 1, 2025, and December 31, 2025, were processed within the mandatory 15-day timeframe. This filing ensures the company is adhering to standard procedural requirements for share processing and record-keeping. Such filings are routine for listed entities and indicate smooth administrative operations regarding shareholder services.
- Compliance certificate covers the period from October 1, 2025, to December 31, 2025.
- All dematerialization requests were processed or rejected within the mandatory 15-day window.
- Physical share certificates were mutilated and cancelled following verification by the RTA, Mas Services Limited.
- The register of members was updated to reflect the Depository as the registered owner within the required 15-day limit.
Jullundur Motor Agency (Delhi) Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI (Prohibition of Insider Trading) Regulations. This closure is ahead of the declaration of the Unaudited Financial Results for the third quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their relatives until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure begins on Thursday, January 1, 2026
- Closure pertains to the financial results for the quarter and nine months ending December 31, 2025
- Trading restriction ends 48 hours after the official announcement of financial results
- Designated persons and their relatives are prohibited from dealing in equity shares during this period
Financial Performance
Revenue Growth by Segment
The Company registered a total turnover of INR 43,177.73 lakhs in FY 2024-2025, representing a modest growth rate of 2.18% YoY. Its material subsidiary, JMA Marketing Limited, contributed a turnover of INR 12,394.06 Lakhs, driven by new supply rights for key products in the Western region.
Geographic Revenue Split
While specific regional percentages are not provided, the company is aggressively targeting Tier-II and Tier-III cities to cover previously untapped areas. The subsidiary has a significant presence in the Western region of India.
Profitability Margins
Profit before tax (PBT) stood at INR 2,741.86 lakhs, a decrease of 0.80% compared to INR 2,763.98 lakhs in the previous year. Net profit for the material subsidiary was INR 673.45 Lakhs. The drop in profitability is attributed to increased competition and higher working capital requirements.
EBITDA Margin
Not explicitly disclosed, but the Return on Equity (ROE) dropped from 11.11% to 9.93% due to low growth in profit and pressure on gross margins from enhanced competition in the aftermarket.
Capital Expenditure
Historical and planned CAPEX is focused on opening new outlets and sales units in potential tier-II & tier-III towns to expand the distribution footprint, though specific INR Cr values for future spend are not disclosed.
Credit Rating & Borrowing
JMA is a debt-free company. However, the management noted that high borrowing interest rates in the market (impacting the distribution chain) led to lower inventory levels at dealer premises, which the company expects to reverse as rates decrease.
Operational Drivers
Raw Materials
Auto spare parts and components (distribution model). Raw material pricing for manufacturers was stable in FY 2024-2025, resulting in minimal revenue increases from price hikes.
Capacity Expansion
The company operates as a distributor rather than a manufacturer; expansion is measured by the addition of new product lines and the opening of new sales outlets in uncovered Tier-II and Tier-III locations.
Raw Material Costs
Raw material prices were stable in FY 2024-2025; however, the company noted that gross profit was under pressure due to aggressive competition from Original Equipment Manufacturers (OEMs) in the secondary market.
Manufacturing Efficiency
As a distribution-led business, efficiency is driven by the ERP system and the widening replacement window for aftermarket spares due to improved technology and part quality.
Logistics & Distribution
Distribution is handled through a network of outlets; transport is cited as an integral cost, with the company advocating for a reduction in the 28% GST rate to provide relief to the industry.
Strategic Growth
Expected Growth Rate
2.18%
Growth Strategy
Growth will be achieved by adding more products and lines to the existing product mix and focusing on geographic expansion into Tier-II and Tier-III cities. The company is also leveraging its material subsidiary, JMA Marketing Limited, which recently bagged supply rights for key products in the Western region.
Products & Services
Distribution of auto spare parts and auto components in the secondary/aftermarket.
Brand Portfolio
Jullundur Motor Agency (Delhi) Limited, JMA Marketing Limited.
New Products/Services
The company is in the process of adding more products/lines to its product mix to cater to uncovered areas, though specific revenue contribution percentages for new launches are not disclosed.
Market Expansion
Targeting expansion in Tier-II and Tier-III cities and towns across India to reach uncovered territories.
Strategic Alliances
The company operates through its material subsidiary, JMA Marketing Limited (100% or majority ownership implied by 'material subsidiary' status).
External Factors
Industry Trends
The secondary market for auto components is seeing increased competition from OEMs and new entrants. While better infrastructure reduces part wear, the overall market is evolving with technology improvements that extend part life.
Competitive Landscape
Facing aggressive competition from OEMs and new entrants expanding their product lines in the aftermarket segment.
Competitive Moat
The company possesses a 98-year legacy (76 years as a limited company) and a deep-rooted distribution network. Its moat is built on long-term relationships with suppliers and customers, though this is being challenged by OEM direct-to-market strategies.
Macro Economic Sensitivity
Highly sensitive to interest rates; high borrowing costs for dealers lead to lower inventory holding, while expected rate cuts are projected to boost inventory levels and company sales.
Consumer Behavior
Dealers are exhibiting cautious behavior by holding lower inventory levels due to high interest rates, though demand remains linked to the overall transport activity in the country.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act, 2013 and SEBI (LODR) Regulations. The company is not required to have a Risk Management Committee as it does not fall within the top 1000 listed companies by market capitalization.
Environmental Compliance
The company spent INR 57.93 lakhs on CSR initiatives in FY 2024-2025, exceeding the statutory requirement of INR 57.90 lakhs (2% of average net profit of INR 2,895.12 lakhs).
Taxation Policy Impact
Most automobile vehicles and spare parts attract the highest GST rate of 28%, which the company identifies as a major hurdle for industry growth.
Legal Contingencies
The company reported that there were no investor complaints unresolved or pending as of March 31, 2025. Specific values for other pending court cases were not disclosed.
Risk Analysis
Key Uncertainties
The primary uncertainty is the aggressive posture of OEMs in the secondary market which could lead to a loss of market share for independent distributors. Gross profit margins are expected to remain under pressure.
Geographic Concentration Risk
The company is currently concentrated in existing regions but is actively diversifying into Tier-II and Tier-III towns to mitigate regional stagnation.
Third Party Dependencies
Dependency on auto component manufacturers for supply; the subsidiary recently secured supply rights for a key product in the Western region, indicating high dependency on specific product mandates.
Technology Obsolescence Risk
Continuous improvement in the quality and technology of parts is widening the replacement window, which acts as a risk to the frequency of replacement part sales.
Credit & Counterparty Risk
The company monitors credit through its ERP system; working capital has increased across the distribution chain, indicating potential liquidity pressure on counterparties.