Gabriel India (505714) Q2 25/26 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q2 and H1 FY26, with double-digit year-over-year increases across key financial metrics.

• Entered and revised multiple joint ventures, including with SK Enmove for lubricants and Inalfa Roof Systems for sunroof systems, to diversify offerings and expand market reach.

• Strategic focus on transitioning from suspension-centric to diversified mobility solutions, with ongoing investments in technology, premium product segments, and sustainability.

• Multiple strategic initiatives, acquisitions, and business restructuring executed to enhance global presence and operational scale.

• Interim dividend of Rs. 1.90 per share declared for H1 FY26.

Financial highlights

• Standalone revenue for H1 FY26 grew 14.7% YoY to Rs. 20,506.32 million; Q2 FY26 revenue up 15.4% YoY to Rs. 10,661 million.

• Standalone EBITDA for H1 FY26 rose 17.8% YoY to Rs. 1,862 million, with margin at 9.1%; standalone PBT for H1 FY26 increased 11.4% YoY to Rs. 1,550 million.

• Consolidated revenue for H1 FY26 up 15.5% YoY to Rs. 22,786.84 million; consolidated EBITDA up 18.6% YoY to Rs. 2,246 million.

• Consolidated net profit after tax for H1 FY26 stood at Rs. 1,310 million, up from Rs. 1,205.09 million in H1 FY25.

• Earnings per share (consolidated, not annualized) for H1 FY26 was Rs. 9.12, up from Rs. 8.39 in H1 FY25.

Outlook and guidance

• Demand momentum expected to continue in H2 FY26, supported by festive season, stable macroeconomic conditions, and GST 2.0.

• Commercialization of new JVs expected to begin in FY27, with significant numbers from FY28.

• Targeting global top-5 position in shock absorber manufacturing and double-digit standalone margins in the next few years.

• Focus on exports, technology advancement, and domestic dominance to drive future growth.

• Manufacturing of solar dampers expected from Q1FY27.