G G Automotive - G G Automotive

📊 BSE: 531399 🏢 Auto Components & Equipments 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Manufacturing of traction gears and pinions, which grew 19.95% YoY to INR 114.48 Cr in FY25. For the 9M FY26 period, revenue reached INR 95.27 Cr, an 18.2% increase over the INR 80.57 Cr reported in the corresponding 9M FY25 period.

Geographic Revenue Split

Not disclosed in percentage terms; however, the company maintains a dominant focus on the Indian market through its strategic partnership with Indian Railways.

Profitability Margins

Operating profit margin improved to 11.66% in FY25 from 8.96% in FY24. Net profit margin increased to 6.77% in FY25 from 4.64% in FY24. For the 9M FY26 period, the net profit margin further improved to 9.85%.

EBITDA Margin

EBITDA margin reached 19.7% for the 9M FY26 period, a significant improvement from 11.66% in FY25, driven by better fixed cost absorption and operational efficiency investments.

Capital Expenditure

No significant debt-funded capital expenditure is planned. Promoters infused INR 12.5 Cr as capital over the past two fiscals to strengthen the net worth and support growth.

Credit Rating & Borrowing

Ratings were upgraded in December 2025 to CRISIL BBB/Stable (Long Term) and CRISIL A3+ (Short Term). Bank limit utilization was moderate at approximately 45% on a total rated facility of INR 25 Cr.

⚙️ Operational Drivers

Raw Materials

Carbon steel, non-ferrous alloys, and ferrous alloys.

Capacity Expansion

Current installed capacity is not specified in units; however, the company has made operational efficiency investments over the last 1-2 years to improve scale.

Raw Material Costs

Raw materials account for 60-70% of operating revenue and total manufacturing costs, making profitability highly susceptible to price volatility in steel and alloys.

Manufacturing Efficiency

Operating margins improved to 19% in H1 FY26 due to better fixed cost absorption and efficiency investments.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be achieved through the execution of a robust order book of approximately INR 105 Cr over the next 12-18 months and diversification into high-growth segments including Metro, Oil & Gas, Wind Energy, and Earthmoving equipment.

Products & Services

Traction gears, pinions, forged components, and shafts for locomotives and industrial applications.

Brand Portfolio

G.G. Automotive Gears.

New Products/Services

Gears and pinions for Metro, Oil & Gas, Wind Energy, and Earthmoving equipment segments.

Market Expansion

Expansion into industrial segments beyond traditional railways to diversify the revenue profile.

Market Share & Ranking

Leading supplier of traction gears and shafts in the Indian Railways ecosystem.

Strategic Alliances

Maintains a 45-year strategic partnership with Indian Railways as a trusted manufacturer of locomotive gears.

🌍 External Factors

Industry Trends

The industry is maturing with a shift toward planetary gears, energy efficiency, and space reduction as key drivers.

Competitive Landscape

Operates in a tender-based environment with specific technical requirements for the Indian Railways ecosystem.

Competitive Moat

Durable advantage through a 45-year relationship with Indian Railways and specialized manufacturing expertise in locomotive traction gears, creating high entry barriers.

Macro Economic Sensitivity

Susceptible to economic cycles in target markets and global financial market volatility.

Consumer Behavior

Not applicable for this B2B/Government-focused business model.

Geopolitical Risks

Regulatory or political changes in target markets could affect operations and outlook.

⚖️ Regulatory & Governance

Industry Regulations

Governed by Indian Railways tender-based requirements and manufacturing standards including ISO 9001, IRIS 22163, and IATF 16949.

Environmental Compliance

Certified with ISO 14001 (Environmental Management) and ISO 45001 (Occupational Health and Safety).

Taxation Policy Impact

Effective tax rate for FY25 was approximately 20.8% (INR 2.24 Cr tax on INR 10.78 Cr PBT).

Legal Contingencies

The company has disclosed pending litigations in its financial statements, though specific case values in INR are not provided in the available documents.