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Gabriel India Limited — Q1 FY26 earnings call

Call held 1 Jul 2025

Management summary

Gabriel India announced a composite scheme of arrangement to realign its corporate structure, integrating four promoter-held entities (Anchemco, Dana Anand, Henkel Anand, Anand CY Myutec) to become a diversified technology-driven mobility solutions provider. This strategic move aims to unlock synergies, enhance competitive edge, and accelerate profitable growth, targeting a group revenue of INR50,000 crores by 2030 and an EPS accretion of INR7 per share for FY25. The scheme is subject to regulatory approvals and is expected to take 10-12 months for completion.

Highlights

  • Board approved a composite scheme of arrangement to unlock synergies and enhance competitive edge.

  • Ambitious group revenue target of INR50,000 crores by 2030, positioning Gabriel India as a growth vehicle.

  • Expected EPS accretion of INR7 per share for FY25, representing 40% on a current scale basis.

  • Consolidation of four entities (Anchemco, Dana Anand, Henkel Anand, Anand CY Myutec) diversifies product portfolio and strengthens market presence.

  • Post-merger promoter shareholding will be 63.5%, ensuring stable ownership.

Concerns

  • Scheme implementation is subject to regulatory approvals, with an estimated timeline of 10-12 months.

  • EV market is still maturing, with the passenger car segment being small and 2-wheeler growth stagnant for some time, coupled with rapidly changing technologies.

What they filed

Q1 FY27: revenue up 15.6%, net profit up 2.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,027 1,017 1,073 1,234 1,180 +15%1,179 +16%1,381 +29%1,426 +16%
EBITDA99 91 109 118 113 +14%107 +18%133 +22%124 +5%
Net profit63 60 64 105 69 +10%55 −8%119 +86%108 +3%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • M&A Anchemco India Merger · Announced

    To leverage Gabriel's OEM strength and aftermarket network, as Anchemco has significant scope for market share improvement.

    Expected to contribute to EPS accretion and profitable growth.

    Last but not the least, coming to Anchemco India. This was incorporated in 2010 as a business unit of ANAND Group. Last year sale was around INR330 crores. Again, a good healthy EBITDA margin of around 12%. Key customers being Tata Motors, Daimler, Mahindra. And the product portfolio for this entity is brake fluids, radiator coolants, diesel exhaust fluids, which is ad-blue and PU and PVC adhesives.
  • M&A Dana Anand Acquisition · Announced

    To diversify product portfolio, expand customer base, and leverage synergies.

    Expected to contribute to EPS accretion and profitable growth.

    I'll touch quickly briefly on the entities. So Slide 12. If you look at Dana Anand was established in 1993. The current size of the business is close to INR2,700 crores with a healthy improving EBITDA margin of 16%. In terms of the product portfolio, axles and drive shafts with supplies to all the key UVs and the commercial vehicle customers. The stake, as I already mentioned of AIPL is 25.1% current.
  • M&A Henkel Anand Acquisition · Announced

    To diversify product portfolio, expand customer base, and leverage synergies.

    Expected to contribute to EPS accretion and profitable growth, with a high return on investment and equity of about 60%.

    Coming to Henkel Anand, again, a joint venture with Henkel Germany a leading supplier of BIW and NVH product solutions to all the major OEMs in the country. Last year revenue was around INR900 crores, with again improving healthy EBITDA margin of 26%. Customer base, I have already touched on and in terms of the return on investment and equity, I think we are looking at a very high number of about 60% in this particular case.
  • M&A Anand CY Myutec Acquisition · Announced

    To diversify product portfolio, expand customer base, and leverage synergies, particularly in aluminum forging for light weighting.

    Expected to contribute to EPS accretion and profitable growth, with a ROCE of 22%.

    Coming to the third entity, which is Anand CY Myutec again, a joint venture with the CY Myutec of Korea, the AIPL stake is 76% here, last year revenue was a little more than INR200 crores with an EBITDA margin of 12%. And again, we are looking at a 22% ROCE.

Guidance & targets

Revenue

  • Group Revenue Revenue · by 2030 · High confidence INR50,000 crores
    With an ambitious group revenue target of INR50,000 crores by 2030, Gabriel India is poised to lead the charge

    — Mrs. Anjali Singh

Profitability

  • EPS Accretion Profitability · FY25 · High confidence INR7 per share
    Ultimately, the scheme is expected to accelerate profitable growth with improved margins, deliver a very good earnings per share accretion and generate higher returns on equity, creating substantial long-term value for our shareholders. With that, I now invite Mr. Mahendra Goyal and Mr. Atul Jaggi to provide an overview of the proposed scheme. Thank you very much. ... Sir, my second question is, sir, in your presentation, you mentioned that in FY '25, there would have been accretion of EPS by INR7 per share. So this is considering if all entities would have consolidated today. So on base business, INR7 would have been added. Is it correct, sir? Yes, yes.

    — Mrs. Anjali Singh / Mr. Atul Jaggi

  • EPS Accretion (percentage) Profitability · current scale basis · High confidence 40%
    This helps Gabriel scale up without any leverage or cash outlay, accretion of EPS has been already explained by the Chairperson. We are looking at a 40% on a current scale basis and the enhanced ability to raise the funds for future organic and inorganic growth.

    — Mr. Atul Jaggi

Shareholding

  • Promoter Shareholding Shareholding · post-merger · High confidence 63.5%
    So post the merger, the promoter shareholding becomes 63.5% and public become 36.5%.

    — Mr. Atul Jaggi

Market Share

  • Dana Anand, Henkel Anand, ACYM Market Share Market Share · current · Medium confidence 30-40%
    Very difficult because of product wise. We have big deals with multiple products actually. So that's the reason I'm saying that we are the market leader. You can assume, if there are 3 player, we are having 30% to 40% market share. So that's what the market leader point of view, basically.

    — Mr. Mahendra Goyal

What to watch in Q2 FY26

Progress on Scheme of Arrangement Approvals

Next quarter (as part of the 10-12 month process)
Current Board approved, awaiting regulatory approvals
Target Updates on NCLT, stock exchange, and shareholder approvals

Why it matters

Successful and timely completion of the scheme is fundamental to realizing the stated strategic benefits and financial targets.

This is obviously subject to the key approvals from the creditors, NCLT, stock exchanges, shareholders, majority of minority and the time lines that we are looking at is 10 to 12 months subject to the regulatory approvals.

Risks & concerns

  • Regulatory Approval and Timeline for Scheme Implementation

    medium

    The composite scheme of arrangement is subject to key approvals from creditors, NCLT, stock exchanges, and shareholders, with an estimated timeline of 10-12 months.

    Management acknowledged

  • EV Market Maturity and Technological Changes

    medium

    The EV market is still maturing, with the passenger car segment being small and 2-wheeler growth stagnant for some time, coupled with rapidly changing technologies requiring significant capital inflow.

    Management acknowledged

Q&A highlights

8 direct
Rationale for consolidating specific entities and future group strategy Direct
our group size is right now INR20,000 crores and the companies which we are consolidating those itself around INR4,000 crores. And we consider the Gabriel size today, Gabriel itself INR3,500 crores plus we have already a subsidiary company Inalfa. So that itself, when we put together the Gabriel, INR4,000 crores plus additional INR4,000 crores, we are transferring through this transaction. So that takes care of almost 40% value of the group actually, which is being consolidated at the Gabriel level.

Clarifies the scale of the consolidation relative to the existing group and Gabriel India, indicating a significant strategic shift.

Asked by Jay Kale

Growth trajectory and target of INR50,000 crores by FY30 Direct
Well, I think Chairperson made a comment and you have seen the investor presentation, which is already uploaded that there is a message very clear that our target is INR50,000 crores. And Gabriel is going to be our growth engine actually. So that is something our strategy and which should answer the questions which you have in mind.

Reaffirms Gabriel India's central role as the growth engine for the ambitious group revenue target.

Asked by Jay Kale

Promoter's perspective on group structure simplification and value unlock Direct
As a family, I think you can see with the change of guard and a far more aggressive outlook on the business now seeing where we are in India. We feel very strongly that we're in a great position to build value for the Gabriel shareholder and also to use Gabriel as our vehicle for growth going forward.

Provides insight into the strategic intent from the Chairperson, emphasizing value creation and Gabriel's role as a growth vehicle.

Asked by Mumuksh Mandlesha

Potential to increase holding in existing JVs post-merger Direct
So we cannot have an answer to this question because it is -- there is a JV partner and we have their holding. So it stays as it is, basically the way we have our agreements. And there's no change, which we are expecting anything in the current structure.

Clarifies that the current JV structures and shareholdings will remain unchanged, managing expectations about further consolidation of these specific entities.

Asked by Mumuksh Mandlesha

Market size opening up for Gabriel and synergies from consolidated entities Direct
I think there is a lot of space available. I think it is before entity to entity I think we have a lot of scope in Anchemco. We are not having too much of a market share. And that is the primary reason for bringing Anchemco into the Gabriel fold. So we can use the OEM strength of Gabriel, we can use the aftermarket network, which is very, very relevant for business of Anchemco.

Highlights specific areas of growth (Anchemco) and how Gabriel's existing strengths (OEM relationships, aftermarket) will be leveraged.

Asked by Aditya Khetan

Market share of the four entities being merged Direct
I think we are fairly covered like from the ACYM point of view, we are very well placed in the passenger car and the CV market. So this is something I would say, from a market point of view, we can say we are doing very, very good market share here. Aluminum forging, we have to build up market for that... Dana, we are fairly, I would say, one of the leaders in this. And similarly, in the other business, Henkel Anand, we are one of the leader in this.

Provides qualitative and some quantitative (30-40% for leaders) insights into the market position of the acquired entities, indicating strong positions in some segments and growth potential in others.

Asked by Jeetendra Khatri

Gabriel's strategy for EV product value chain and local vs. global focus Direct
So as you know, we have been talking about, obviously, the focus has been EV agnostic I would say, the agnostic product. And -- but again, there's nothing that is cast in stone... That does not mean that, let's say, like an example, Mr. Goyal said that aluminum forging, now while yes, a bigger play can be there on the light weighting side. But again, it is not only restricted to the EV. It is applicable everywhere... Yes, any opportunity that comes, whether in India or outside India, gets evaluated from multiple angles. If we see the value for all the stakeholders coming in, we are more than happy to even look at opportunities outside of India.

Clarifies Gabriel's flexible approach to EV (product agnostic, not solely EV-focused) and its openness to both domestic and international growth opportunities.

Asked by Viraj Kacharia

Change in product mix (2W, 4W, CV) post-merger Direct
So definitely, the -- especially the entities, which will get consolidated from the top line point of view. They would add to passenger cars and the commercial vehicle portfolio. And again, there would be places while they are very strong in both, there are opportunities on the 2-wheeler side. But yes, you will look at a little more balanced portfolio, I would say that.

Indicates a strategic shift towards a more balanced product portfolio, reducing reliance on 2-wheelers and strengthening presence in passenger cars and CVs.

Asked by Priya Ranjan

2 min read 6 chapters

Detailed narrative

Composite Scheme of Arrangement Overview

Gabriel India's Board has approved a composite scheme of arrangement to realign its corporate structure. This involves the merger of Anchemco into AIPL, followed by the demerger of Anchemco and investments in ACYM, Dana Anand, and Henkel Anand from AIPL into Gabriel India. Subsequently, Gabriel India will issue shares to AIPL's shareholders, with a swap ratio of 1,158 shares of Gabriel for 1,000 shares of AIPL. The process is expected to take 10-12 months, subject to regulatory approvals.

Strategic Rationale and Vision 2030

The scheme is a meaningful step towards Gabriel Group's strategic vision, aiming for a group revenue target of INR50,000 crores by 2030. Gabriel India is positioned as the vehicle for future growth, transforming from a single-product suspension manufacturer to a diversified technology-driven mobility solutions provider. This move aims to unlock synergies, enhance competitive edge, mitigate concentration risk, and expand the customer base, leveraging global partnerships and shared resources.

Acquired Entities and Their Contribution

The consolidation integrates four entities: Anchemco India (INR330 crores revenue, 12% EBITDA margin), Dana Anand (INR2,700 crores revenue, 16% EBITDA margin), Henkel Anand (INR900 crores revenue, 26% EBITDA margin), and Anand CY Myutec (INR200 crores revenue, 12% EBITDA margin). These entities collectively add approximately INR4,000 crores in revenue to Gabriel's current INR3,500 crores plus, representing about 40% of the group's value.

Financial Impact and Shareholding

The scheme is expected to accelerate profitable growth, improve margins, and deliver a significant earnings per share (EPS) accretion of INR7 per share for FY25, representing a 40% accretion on a current scale basis. Post-merger, the promoter shareholding in Gabriel India will be 63.5%, with public shareholding at 36.5%. The valuation for the transaction is based on an EV/EBITDA multiple of slightly less than 8x.

Market Share and Synergies

The consolidation aims to enhance Gabriel's market presence across various segments. Anchemco offers significant scope for market share improvement by leveraging Gabriel's OEM strength and aftermarket network. Entities like Dana Anand, Henkel Anand, and Anand CY Myutec are considered market leaders in their respective segments, with some having 30-40% market share. Synergies are expected from aluminum forging for light weighting, applicable across EV and ICE, and leveraging Gabriel's aftermarket network for Anchemco's products.

Future Growth and EV Strategy

Gabriel India's strategy is product-agnostic, not solely focused on EVs, given the nascent and rapidly evolving nature of the EV market. However, the company is open to exploring opportunities in the EV value chain, particularly in light weighting. The scheme will lead to a more balanced product portfolio, strengthening Gabriel's presence in passenger cars and commercial vehicles, while also seeking opportunities to grow its 2-wheeler business. The company remains open to both domestic and international growth opportunities, evaluating each for stakeholder value.

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