JBM Auto soars 10% on heavy volume; here's why the stock is buzzing

According to reports, Bain Capital is in discussions to invest up to $300 million for a significant minority stake in JBM Auto's electric vehicle business (EVBuses).

JBM Auto share price movement

 

The share price of JBM Auto rallied 10 per cent to ₹685 on the BSE in Friday’s intra-day deals on heavy volume amid reports of Bain Capital planning to invest up to ₹2,850 crore for a minority stake in the company’s electric vehicle business (EVBuses).

 

At 09:55 AM, JBM Auto quoted 8 per cent higher at ₹672, compared to a 0.07 per cent rise in the BSE Sensex. The average trading volume at the counter jumped over 15-fold, with a combined 6.2 million equity shares changing hands on the NSE and BSE. The stock hit a 52-week high of ₹790 on September 23, 2025.

 

 

What’s driving JBM Auto stock price?

 

According to reports, Bain Capital is in discussions to invest up to ₹2,850 crore (~$300 million) for a significant minority stake in JBM Auto’s electric vehicle business (EVBuses), with the possibility of a joint control structure. While the transaction is yet to be finalized, the potential investment is significant given JBM’s rapidly scaling electric bus franchise. Listed JBM Auto holds 85 per cent stake in its E-Buses mobility arm (JBM Electric Vehicles Private Limited).

 

The BSE sought clarification from JBM Auto on August 21, 2026, regarding news that appeared in the Economic Times: "Bain Capital looks to drive into JBM Auto's EV business with $300 mn bet". The reply is awaited

 

Meanwhile, ICICI Securities in a note said that the brokerage firm sees the development as structurally positive for JBM Auto, as interest from a marquee global PE investor provides external validation to JBM’s EV strategy and, importantly, could establish a standalone valuation benchmark for its EV business. From a financial perspective, EV revenue in Q1FY27 stood at ₹460 crore i.e., 32 per cent of consolidated revenue, while for FY26 EV revenue stood at ₹2,300 crore, constituting 38 per cent of consolidated revenue. It is EBIT positive with close to 10 per cent earnings before interest and tax (EBIT) margins.

 

As per the company’s press release and credit rating report, it commands 25 per cent market share in E-mobility domestically and has a pending order book of 7,000-7,500 buses to be delivered over the next 2-3 years. It has an installed capacity to manufacture 20,000 EV buses. The investment could materially strengthen JBM’s balance sheet and funding capability as it scales the EV buses business given the capital-intensive nature of electric mobility (GCC contracts).

 

Key monitorables, however, will be deal structure, ICICI Securities said, adding it awaits further details of the transaction. This is sentimentally positive for the stock.  CHECK Stock Market LIVE Updates 

JBM Auto – Crisil Ratings rationale

 

Over the medium term, JBM Auto’s revenue is expected to grow at a strong 14–16 per cent supported by order book of 7,000-7,500 e-buses and industry tailwinds from increasing electrification of public transportation, PM e-Bus initiatives, PM e-Drive opportunities, and continued government focus on accelerating electric vehicle (EV) adoption. The segment's revenue contribution is expected to increase to 40–45 per cent over the medium term, thereby enhancing revenue diversification.

 

Operating profitability was healthy at 12 per cent in fiscal 2026 and is expected to improve over the medium-term driven by increasing contribution from the bus segment, which has higher profitability than the company's traditional components manufacturing business. Meanwhile, the core businesses are likely to generate stable profitability, Crisil Rating said in its rationale.

 

Crisil Ratings reaffirmed its ‘Crisil A/Stable/Crisil A1’ ratings on JBM Auto's bank facilities on August 5, 2026.

 

Operating profitability is expected to improve by 50–60 basis points (bps) over the medium-term. The rise in operating margin was driven by higher contribution from the bus manufacturing business, which is projected to account for over 40 per cent of revenue in the next 1–2 years, compared with 36 per cent in fiscal 2026. Profitability is likely to benefit from improved operating leverage owing to the ramp-up of capacity at the e-bus plant. Further support is expected from a favourable product mix, with the share of non-gross cost contract buses rising from 12 per cent in fiscal 2026 to over 25 per cent over the medium term. Meanwhile, profitability in the core tooling and components businesses is expected to remain stable and healthy, the rating agency said.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.