GABRIEL - Gabriel India

📊 NSE: GABRIEL 🏢 Auto Ancillaries 📅 Last Updated: 12/13/2025 22:13

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 15.5% YoY in H1 FY26 to INR 2,279 Cr. Standalone segment growth in Q2 FY26 was led by Commercial Vehicles/Railway at 35% YoY, 2/3-Wheelers at 15% YoY, and Passenger Vehicles at 13% YoY. The Sunroof business (IGSSPL) saw a significant ramp-up, contributing ~9% to total revenue in Q1 FY25 compared to 2% in FY24.

Geographic Revenue Split

Domestic market remains the primary driver with healthy demand, while exports remained subdued due to global macro-economic headwinds. The company maintains a presence in six continents through 12,000 retailers and 600 dealers, but specific regional percentage splits are not disclosed.

Profitability Margins

Gross margins expanded due to favorable channel mix and raw material moderation. Operating margins improved from 8.7% in FY24 to 9.6% in FY25. PAT margin stood at 5.25% in FY24 (INR 179 Cr) compared to 4.45% (INR 132 Cr) in FY23.

EBITDA Margin

Consolidated EBITDA margin reached 9.9% in H1 FY26 (INR 225 Cr), up from 9.8% in Q2 FY26 (INR 116 Cr). FY25 EBITDA was INR 324.21 Cr, a 10.6% increase YoY, driven by volume growth and the CORE 90 operational excellence program.

Capital Expenditure

Planned capex of INR 314 Cr over fiscals 2024 to 2025 to support capacity expansion and JV investments. The company also maintains unutilized fund-based limits of INR 150-170 Cr.

Credit Rating & Borrowing

Maintains a strong financial risk profile with a debt-free balance sheet at the standalone level. Interest coverage ratio was robust at 38.18 times in FY24. Borrowing is limited to working capital loans for the sunroof subsidiary.

⚙️ Operational Drivers

Raw Materials

Steel, aluminum, and rubber components (implied by ride-control products). Raw material costs are a significant portion of the cost structure, though specific percentage breakdowns per material are not disclosed.

Import Sources

Not specifically disclosed, though the company leverages global relationships of strategic partners for supply chain synergies.

Capacity Expansion

Sunroof business (IGSSPL) commercialized in Q4 FY24 and is ramping up to meet robust demand. The company is also expanding manufacturing capabilities through the Marelli Motherson Auto Space (MMAS) asset purchase.

Raw Material Costs

Raw material prices moderated in FY24 and FY25, contributing to a 90 bps improvement in operating margins. Procurement is optimized through the CORE 90 program to mitigate price volatility.

Manufacturing Efficiency

RoCE was healthy at over 25% in FY24, driven by higher capacity utilization and shifting trends toward premiumization and UVs.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Growth will be driven by the ramp-up of the sunroof business (targeting 16.5% margins), expansion into the lubricant aftermarket (targeting INR 500 Cr in 5-6 years), and the turnaround of the MMAS acquisition. The company is also focusing on premiumization in the 2-wheeler and PV segments and increasing EV manufacturer order inflows (EV mix was 4% in FY23).

Products & Services

Ride-control products (shock absorbers, struts, front forks), sunroof systems, solar dampers, gas springs, and automotive lubricants.

Brand Portfolio

Gabriel, Inalfa Gabriel Sunroof Systems.

New Products/Services

Sunroof systems (contributing 9% to revenue), lubricants (new business line), and advanced modular clean-tech solutions for EVs.

Market Expansion

Expansion of the sunroof business and strengthening the European engineering team (G.E.C.C.) to focus on global markets.

Market Share & Ranking

Market leader in ride control with 30% share in 2/3-Wheelers, 24% in Passenger Vehicles, and 88% in Commercial Vehicles.

Strategic Alliances

Joint Venture with Inalfa for sunroofs (Gabriel to increase stake to 65%) and Asset Purchase Agreement with Marelli Motherson Auto Space (MMAS).

🌍 External Factors

Industry Trends

Shift toward electrification (EVs), premiumization in urban geographies, and rising demand for sunroofs in passenger vehicles. The industry is evolving toward intelligent and sustainable mobility systems.

Competitive Landscape

Highly competitive ride-control and lubricant markets; faces pricing pressure from both peers and large OEMs.

Competitive Moat

Moat is built on 60+ years of engineering excellence, dominant market share (88% in CVs), and strong OEM relationships. Sustainability is supported by the high entry barriers of technical JVs (e.g., Inalfa).

Macro Economic Sensitivity

Sensitive to global GDP (lowered to 2.8%) which impacts export demand, and domestic automotive production cycles.

Consumer Behavior

Increasing consumer preference for Utility Vehicles (UVs) and premium features like sunroofs is shifting the product mix toward higher-margin segments.