💰 Financial Performance

Revenue Growth by Segment

Total operating revenue grew by 2.22% YoY to INR 1,539.74 Cr in FY25. Export revenue increased by 8.26% to INR 840.36 Cr, while domestic revenue decreased by 5.92% to INR 672.05 Cr. Volume-wise, the Off-Highway segment grew 3.88% to 21.15 lakh pieces, and the Commercial Vehicle (CV) segment grew 4.10% to 32.00 lakh pieces.

Geographic Revenue Split

Exports contributed 54.58% (INR 840.36 Cr) of total revenue in FY25, up from 51.53% in FY24. Domestic sales accounted for 43.65% (INR 672.05 Cr). Key export markets include the USA, Europe, Asia Pacific (Japan, China), Mexico, Brazil, Sweden, Italy, and Spain.

Profitability Margins

Profit After Tax (PAT) margin stood at 6.96% in FY25, up from 6.64% in FY24. Operating Profit Margin (OPM) improved to 14.6% in Q1 FY26 from 13.3% in FY25, driven by raw material cost pass-through and cost rationalization initiatives. Profit Before Tax (PBT) increased by 6.99% to INR 144.27 Cr.

EBITDA Margin

EBITDA (PBIDT) was INR 213.22 Cr in FY25, representing a margin of 13.85%, compared to INR 199.72 Cr (13.26% margin) in FY24, reflecting a YoY increase of 6.76% in absolute EBITDA terms.

Capital Expenditure

Not disclosed in available documents; however, the company maintains a gross block supported by internal accruals and has an installed capacity of approximately 6 million pieces per annum as of March 2023.

Credit Rating & Borrowing

The company held ratings of CARE A+ (Stable) and CARE A1+, which were reaffirmed and subsequently withdrawn at the company's request in June 2024. Interest coverage ratio was healthy at 17.30x in FY24, though it moderated from 21.22x in FY23.

⚙️ Operational Drivers

Raw Materials

Steel is the primary raw material, with raw material costs constituting approximately 66% of gross sales in FY24. The company is highly susceptible to global steel price volatility.

Import Sources

Not specifically disclosed, though the company monitors global steel prices, suggesting international sourcing or pricing benchmarks.

Capacity Expansion

Current installed capacity is 6 million pieces per annum. The company focuses on manufacturing axle shafts and spindles ranging from 2 kg to 150 kg.

Raw Material Costs

Raw material costs were INR 1,017.48 Cr in FY25. The company employs a pass-through mechanism to mitigate the impact of steel price fluctuations, which has historically protected margins.

Manufacturing Efficiency

The company focuses on reducing wastage and emissions. Manufacturing facilities are located in Hoshiarpur, Punjab.

Logistics & Distribution

Not disclosed as a specific percentage; however, the company exports to diverse regions including the Americas and Europe, implying significant logistics coordination.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by the export of new components (which added INR 64.16 Cr to revenue in FY25) and deepening relationships with Tier-1 vendors in export markets. The company aims to maximize shareholder value by identifying new opportunities in the Off-Highway and CV segments globally.

Products & Services

Rear axle shafts, spindles, and drive shafts used in commercial vehicles, tractors, farm equipment, and earth-moving equipment.

Brand Portfolio

GNA Axles, GNA Group.

New Products/Services

Export of new components contributed significantly to the 8.26% growth in export sales during FY25.

Market Expansion

Targeting increased penetration in the US, Europe, and Asia Pacific markets. The company recently established GNA Axles Inc. in Michigan to support North American operations.

Market Share & Ranking

GNA is a leading manufacturer of rear axle shafts in India and a major global supplier, though specific percentage ranking is not provided.

Strategic Alliances

The company operates with subsidiaries GNA Axles Inc. (Michigan) and GNA Mobility Limited (Mehtiana).

🌍 External Factors

Industry Trends

The industry is shifting toward more stringent emission norms and lightweight components. GNA is positioning itself by manufacturing a wide range of spindles and shafts (up to 150kg) for diverse global OEMs.

Competitive Landscape

Operates in a highly competitive and cyclical auto ancillary industry against both domestic and international Tier-1 suppliers.

Competitive Moat

The moat is built on 50+ years of promoter experience, single-source supplier status for key OEMs, and high entry barriers due to the capital-intensive nature of forging and machining large axle components.

Macro Economic Sensitivity

Highly sensitive to global GDP growth and infrastructure spending, which dictate demand for commercial vehicles and construction equipment.

Consumer Behavior

Demand is driven by OEM production schedules rather than direct consumer behavior, making GNA dependent on the B2B commercial vehicle cycle.

Geopolitical Risks

Trade barriers or economic slowdowns in the US or Europe could significantly impact the 54.5% export revenue stream.

⚖️ Regulatory & Governance

Industry Regulations

Subject to automotive manufacturing standards and indirect impact from stringent emission control norms (BS-VI and global equivalents) applicable to its OEM customers.

Environmental Compliance

The company spent INR 1.63 Cr on CSR initiatives in FY23. It focuses on reducing emissions and wastage in manufacturing processes.

Taxation Policy Impact

Effective tax rate was approximately 25.75% in FY25, with a total tax expense of INR 37.15 Cr.

Legal Contingencies

The company was fined INR 99,120 (including GST) by stock exchanges in 2025 for non-compliance regarding the constitution of the Risk Management Committee and late submission of corporate governance reports.

⚠️ Risk Analysis

Key Uncertainties

Volatility in global steel prices (66% of cost) and potential cyclical downturns in the US and European trucking markets.

Geographic Concentration Risk

High geographic concentration in North America and Europe for exports, and Punjab, India for manufacturing.

Third Party Dependencies

High dependency on a few large OEMs; the top 10 customers drive 80% of revenue, creating significant counterparty risk.

Technology Obsolescence Risk

Risk is moderate as axle shafts are essential mechanical components, but shifts toward electric vehicles (EVs) may require redesigns of traditional drivetrain components.

Credit & Counterparty Risk

Receivables quality is considered high as customers are reputed global OEMs and established Tier-1 suppliers.