Gabriel India (505714) Q1 25/26 earnings summary

Executive summary

• Board approved a composite scheme of arrangement to transform into a diversified mobility solutions provider, including acquisitions and a new JV with Jinhap for fasteners, with a focus on technology, sustainability, and product diversification.

• Ongoing business restructuring aims to consolidate and diversify product offerings, reduce concentration risk, and enhance shareholder value.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved by the Board and reviewed by statutory auditors, with no material misstatements identified.

Financial highlights

• Standalone operating revenue for Q1 FY26 grew 14% YoY to INR 985 crores (Rs. 9,846 Mn); consolidated revenue up 16% YoY to INR 1,098 crores (Rs. 10,731.53 Mn).

• EBITDA increased 16% YoY to INR 91 crores standalone, and 19% YoY to INR 108 crores consolidated; consolidated EBITDA margin at 9.9%.

• PAT stood at INR 62 crores, up 8% YoY; consolidated net profit after tax for Q1 FY26 was Rs. 616.37 million.

• Sunroof segment (IGSS) reported INR 114 crores revenue with 14.4% EBITDA margin.

• Two- and three-wheeler segment grew 12% YoY, passenger vehicles 11%, and CV plus railway/aftermarket 29% YoY.

Outlook and guidance

• Cautious near-term outlook; recovery depends on rural demand, fuel prices, and economic conditions.

• Targeting top 5 global position in shock absorber manufacturing, with emphasis on exports, M&A, and technology advancement.

• Sunroof business expects 40-50% utilization of new capacity next year; long-term EBITDA margin expected to stabilize at 12-13%.

• Fastener JV targets INR 180-200 crores revenue by 2030, with double-digit EBITDA.

• Consolidation of group entities expected to add 20-25% to sales post-regulatory approval, likely in FY27.