Gabriel India (505714) Q1 25/26 earnings summary

Executive summary

• Announced and executed a transformative composite scheme of arrangement to integrate group entities, diversify beyond suspension products, and reduce concentration risk, aiming to become an innovation-driven mobility solutions provider.

• Identified four entities for acquisition, completed Marelli Motherson Auto Suspension plant acquisition, and entered a JV with Jinhap (Korea) for automotive fasteners, with Gabriel holding a 51% stake.

• Strategic focus on technology, sustainability, and product diversification, including new ventures in sunroofs, fasteners, and solar dampers.

• 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 13.9% YoY to Rs. 9,846 Mn; consolidated revenue up to Rs. 10,731.53 Mn.

• Standalone EBITDA grew 16.1% YoY to Rs. 906 Mn, margin at 9.2%; consolidated EBITDA at Rs. 1,080 Mn, margin at 9.9%.

• PAT for Q1 FY26 reached Rs. 616.37 Mn consolidated, up from Rs. 571.09 Mn YoY; PAT margin at 5.6%.

• Sunroof segment revenue was Rs. 1,140 Mn with 14.4% EBITDA margin.

• Net cash position at Rs. 3,057 Mn as of June 2025; capex of Rs. 746 Mn in Q1FY26 focused on growth initiatives.

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.

• Fastener JV targets Rs. 1,800-2,000 Mn revenue by 2030 with double-digit EBITDA.

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

• Solar damper manufacturing to commence from Q1FY27; strong order pipeline in solar and railways segments.