Gabriel India (505714) Q3 24/25 earnings summary

Executive summary

• Acquired assets from Motherson Marelli Auto Suspension Parts, adding 3.2 million shock absorber and 1 million gas spring unit capacity, and entered a technology agreement with Marelli Suspension Systems Italy.

• Standalone Q3 FY25 revenue reached Rs. 9,241.77 million, up 13.6% year-on-year, with strong growth in two-wheeler and passenger vehicle segments.

• EBITDA margin for Q3 FY25 stood at 8.6%, with net profit after tax at Rs. 537.48 million.

• Sunroof business reported Rs. 920 million in revenue with 6.7% PAT margin, and capacity is set to double by end of 2025.

• Strong order pipeline in CNG, EV four-wheeler, and electric three-wheeler segments, with confirmed business under development.

Financial highlights

• Standalone Q3 FY25 operating revenue was Rs. 9,241.77 million, up 13.6% year-on-year.

• EBITDA margin for the quarter stood at 8.6%; net margin at 5.8%.

• Consolidated revenue from operations for Q3 FY25 was Rs. 10,165.72 million, with consolidated net profit after tax at Rs. 601.11 million.

• Dividend payout ratio at 16% for 9M FY25.

• Net cash position of Rs. 2,960 million as of Dec 2024; capex of Rs. 952 million in 9M FY25.

Outlook and guidance

• Sunroof business expected to reach Rs. 8,000-10,000 million in five years, with current year revenue target of Rs. 4,000 million on track.

• Double-digit standalone EBITDA margin target by FY26 remains, despite acquisition-related margin stress.

• Vision to be among the top 5 shock absorber manufacturers globally by 2025.

• Sustainability targets include carbon and water neutrality, and zero waste to landfill by 2025.

• Exports targeted to reach 10% of total revenue, with new opportunities from recent acquisition.