Concall AI

Gabriel India Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Gabriel India delivered a strong Q2 FY26 with robust revenue and EBITDA growth, driven by healthy demand across automotive segments. Strategic moves include a new JV with SK Enmove for lubricants and a revised, higher-stake JV with Inalfa Roof Systems. While the MMAS acquisition continues to impact margins and the sunroof business faces challenges with specific model underperformance and lost platforms, the company remains focused on market share gains, technology upgrades, and operational efficiency.

Highlights

Standalone operating revenue grew by 15.4% YoY to ₹1,066 crores, driven by higher volumes and strong sales performance across all segments.
Consolidated EBITDA grew by 18% YoY to ₹116 crores, with margins improving to 9.8%, supported by operational excellence initiatives.
New joint venture with SK Enmove Co., Ltd marks a strategic step into new product segments like e-fluids and thermal management fluids.
Revised Inalfa Roof Systems JV structure with Gabriel India holding a 65% stake, up from the earlier proposed 49%.
Secured 3 new platforms from Maruti for the passenger vehicle segment, with an aim to increase PC market share by 4-5% from next year.

Concerns

MMAS acquisition continues to put stress on overall margins, though management targets positive PBT by year-end.
Inalfa sunroof business is experiencing a flatter trajectory due to underperformance of Kia Syros and Alcazar models, leading to lower capacity utilization.
Lost the new Creta platform for sunroof business, which will come into production in 2027.
The ₹1,000 crore revenue target for the sunroof business by 2030 may see a 1-2 year delay.

Key financials

2 periods

Headline

Standalone Operating Revenue
₹1,066 Cr
YoY +15.4%
Standalone EBITDA
₹96 Cr
YoY +19%
Standalone EBITDA Margin
9%
Consolidated Revenue
₹1,180 Cr
YoY +15%
Consolidated EBITDA
₹116 Cr
YoY +18%
Consolidated EBITDA Margin
9.8%
Consolidated PBT
₹91 Cr
YoY +11%

H1

FY26 Consolidated Revenue
₹2,279 Cr
YoY +15.5%
FY26 Consolidated EBITDA
₹225 Cr
YoY +19%
FY26 Consolidated EBITDA Margin
9.9%
FY26 Consolidated PBT
₹172 Cr
YoY +9%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	1,027	1,017	1,073	1,234	1,180 +15%	1,179 +16%	1,381 +29%	1,426 +16%
Expenses	928	925	964	1,116	1,067	1,072	1,248	1,302
EBITDA	99	91	109	118	113 +14%	107 +18%	133 +22%	124 +5%
Margin	10%	9%	10%	10%	10%	9%	10%	9%
Other income	5	9	5	43	6	-6	53	47
Interest	2	3	3	5	3	3	8	6
Depreciation	19	19	24	31	25	25	31	32
Profit before tax	82	79	87	126	91 +11%	72 −9%	147 +69%	133 +6%
Tax rate	23%	23%	26%	16%	24%	24%	19%	19%
Net profit	63	60	64	105	69 +10%	55 −8%	119 +86%	108 +3%
EPS	4.38	4.18	4.48	7.33	4.81	3.81	8.23	7.47

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.

Segment breakdown

2, 3-wheeler segment
15% Revenue Growth
Passenger Vehicle segment
13% Revenue Growth
Commercial Vehicle Railway Division
35% Revenue Growth
Inalfa Gabriel Sunroof Systems Private Limited
₹114 Cr Revenues from operations16.5% EBITDA margins

Capital allocation

high confidence

Capex ₹180 Cr
- MMAS asset acquisition ₹108 Cr
- Upgradation of assets
The H1 capex had MMAS asset acquisition and that was disclosed also. So that was the major number. And I think we anticipate about Rs. 150-odd crores as we've been doing regularly. And in case of any -- there are some upgradation of assets. So maybe we might hit Rs. 180-odd crores of capex this year.
M&A SK Enmove Co., Ltd Joint venture · Announced

Expanding presence into newer product segments that complement core business and support sustainable mobility, transitioning from suspension-centric to diversified and innovation-driven mobility solution provider.
Gabriel India holds a 49% stake in the new joint venture.

The company entered into a joint venture with SK Enmove Co., Ltd, a leading Korean corporation to undertake the business of engineering, manufacturing and marketing of comprehensive range of automotive and industrial lubricants, including engine oils, e-fluids, shock absorber oils, greases and thermal management fluids. With Gabriel India holding a 49% stake in the new joint venture, this partnership marks a strategic step towards expanding our presence into newer product segments that complement our core business and support the evolving need of sustainable mobility.
M&A Inalfa Roof Systems Joint venture · Pending regulatory

Revised shareholding structure for the sunroof business after initial PN3 approval rejection.
Revised shareholding structure to 65% by Gabriel India and 35% by Inalfa, subject to fresh PN3 approval.

Additionally, I would like to share an update on the revised joint venture agreement between Gabriel India and Inalfa Roof Systems. The earlier proposal, which had a shareholding of 49% by Gabriel India Limited and 51% by Inalfa was subject to PN3 approval. However, the application for PN3 approval filed by Inalfa was rejected by the Ministry of Heavy Industries, Government of India in the year 2024. Following this, both parties have agreed to revise the proposed shareholding structure to 65% by Gabriel India and 35% by Inalfa, subject to fresh PN3 approval.
M&A MMAS Acquisition · Integrated

Acquisition impacting current quarter margins.
Margins there, as discussed earlier, have been under stress, but there's a clear plan to sort of breakeven and then take margins to a similar level as the overall Gabriel number.

So as I think we discussed even in the last call also, with the MMAS acquisition, I had mentioned earlier that even in this quarter, now we have realized a full quarter sale, coming from MMAS. But yes, the margins there, as discussed earlier, have been under stress, where we shared that we are looking at a positive PBT by the end of the year.

Guidance & targets

Business Volume

SK Enmove JV Business Business Volume · next 5 to 6 years · Medium confidence ₹500 crores

I think our aim is that Rs. 500 crores business in the next 5 to 6 years' time basically.

— Mahendra Goyal

Market Share

PC Market Share Market Share · starting from next year · Medium confidence 4-5% increase

So we can easily expect a 4% to 5% increase in the market share in the PC side also starting from the next year.

— Atul Jaggi
EV Segment Market Share Market Share · ongoing · High confidence >50%

But we are looking at the target is to continue to have more than 50% share in this particular segment.

— Atul Jaggi

Commercialization

JINHAP and SK Enmove JVs Commercialization · FY27-FY28 · Medium confidence start in FY27, reasonable numbers by FY28

FY '27 is when we are expecting. And obviously, something will start because for JINHAP, we need to set up a sort of a manufacturing location. So, we are expecting that to happen by somewhere, I think the second half of the next year. And post that, it will start... Yes so some see significant numbers would start flowing in by, say, start of '28 kind of a number, but something will say, start at the end of '27, but we can practically assume that in FY '28, I think we'll start seeing some reasonable numbers coming.

— Atul Jaggi

Capex

Full Year Capex Capex · FY26 · Medium confidence ₹150-180 crores

And I think we anticipate about Rs. 150-odd crores as we've been doing regularly. And in case of any -- there are some upgradation of assets. So maybe we might hit Rs. 180-odd crores of capex this year.

— Mohit Srivastava

Profitability

MMAS Positive PBT Profitability · by the end of the year · High confidence positive PBT

But yes, the margins there, as discussed earlier, have been under stress, where we shared that we are looking at a positive PBT by the end of the year.

— Atul Jaggi

Revenue

Sunroof Business Revenue Revenue · by 2030 (with 1-2 year delay) · Medium confidence ₹1,000 crores

Previously ₹1,000 crores by 2030 → ₹1,000 crores

I think looking at the current situation, I think we may not be able to achieve that number by 2030. While as I said, I think there are multiple RFQs in the pipeline under discussion. But I think a more realistic number is that -- the aspiration continues to be the same, but I think we may see a year or a two-year delay into achieving that number. We are reworking those numbers, but maybe the 2030 number of Rs. 1,000 crores may not happen in 2030. There can be a delay of one or two years.

— Atul Jaggi

Market context

Standalone Margin Margin · long-term · High confidence double-digit

See, again, as we always have said that the aspiration, the target has been to go to a double-digit margin. We continue the journey towards that, on and off, some challenges would come, maybe some time needed for the growth of the organization because with MMAS, obviously, we add some customers, we add capacities, we add a new product there.

— Atul Jaggi

What to watch in Q3 FY26

MMAS Profitability

by year-end

Current Under margin stress

Target Positive PBT

Why it matters

MMAS acquisition is currently impacting overall margins, and achieving positive PBT is crucial for consolidated profitability.

But yes, the margins there, as discussed earlier, have been under stress, where we shared that we are looking at a positive PBT by the end of the year.

Risks & concerns

Loss of new Creta platform for sunroof business
high

Gabriel India lost the new Creta platform for sunroof production starting in 2027, which will impact future revenue trajectory.

Management acknowledged
Margin pressure from MMAS acquisition
medium

MMAS acquisition is currently impacting overall margins, though a plan is in place to achieve positive PBT by year-end.

Management acknowledged
Underperformance of specific sunroof models
medium

Kia Syros and Alcazar models have not performed to desired levels, leading to lower capacity utilization in the sunroof business.

Management acknowledged
Delay in achieving sunroof revenue target
medium

The ₹1,000 crore revenue target for the sunroof business by 2030 may be delayed by 1-2 years due to current market conditions and platform losses.

Management acknowledged
Competitive intensity in EV segment
medium

While Gabriel has a strong EV market share, maintaining >50% share will be challenging due to increasing competition.

Management acknowledged
Power tariff pressure in Maharashtra
low

Changes in power tariffs, specifically in Maharashtra, can put pressure on variable costs, but are managed through the CORE 90 program.

Management acknowledged

Q&A highlights

4 direct, 1 evasive

SK Enmove Joint Venture details and outlook Direct

And from the business point of view, I think we made a business plan, and we expect this company to grow. It's a highly competitive market. It is a big market... I think our aim is that Rs. 500 crores business in the next 5 to 6 years' time basically.

Analyst sought clarity on the financial expectations and product scope of the new JV, which management quantified with a revenue target and clarified its OE and aftermarket focus.

Asked by Jay Kale

Impact of MMAS acquisition on overall margin profile Direct

So definitely, I think a little bit of impact in pulling down the overall margins is coming from there. But there's a clear plan which is available to sort of breakeven and then take the margins to a similar level as the overall Gabriel number.

Analyst questioned the plateauing margins despite revenue growth, and management directly attributed it to the MMAS acquisition's margin stress, outlining a plan for recovery.

Asked by Jay Kale

Sunroof business performance, capacity utilization, and new order wins Partial

In terms of the current capacity utilization, I think, as I said earlier, because the Kia Syros and the Alcazar have not sort of performed up to the desired level, while they are obviously Kia is now planning some updates... So currently, we are at a much lesser utilization... One challenge that we have is that the current Creta business, which is the main business there, we have not been able to win the new platform that will come into the production in 2027.

Analyst inquired about sunroof traction and capacity, revealing that specific models are underperforming, leading to lower utilization, and a significant loss of the new Creta platform for 2027 production, indicating future revenue challenges.

Asked by Amit Hiranandani

Revised revenue target for the sunroof business Direct

I think looking at the current situation, I think we may not be able to achieve that number by 2030... I think a more realistic number is that -- the aspiration continues to be the same, but I think we may see a year or a two-year delay into achieving that number.

Analyst probed on the previously stated ₹1,000 crore revenue target for sunroofs, and management acknowledged a potential 1-2 year delay due to current market conditions and platform losses.

Asked by Amit Hiranandani

Sustainability and growth drivers for the railway business Direct

The railway, yes, the growth has been quite good, but the you know the railway -- the top line is generally very small contributor there. So it basically depends upon the number of coaches that are planned to be added per year... we believe that I think this trend should continue. It may not be at that level.

Analyst questioned the high growth in railway business, and management clarified its small base, dependence on coach additions, and expected continued but moderated growth.

Asked by Shubham Sehgal

Export potential for Anchemco products Partial

Anchemco. So Anchemco, there is no sort of restriction on selling anything for exports... The only thing is like a product like the diesel exhaust fluid now the transportation because you know it is a water-based product. So it is a very competitive product. So, the transportation plays a very, very important role in that.

Analyst asked about Anchemco's export eligibility, and management confirmed no restrictions but highlighted logistical challenges for certain products like diesel exhaust fluid.

Asked by Shubham Sehgal

Reasons for OEMs switching suppliers (e.g., Creta platform loss) Evasive

It's very difficult to say because in a lot of these cases, sometimes the decisions happen more looking at the global businesses. Sometimes the decision happens at a very local level. So, it is not only -- sometimes it can be only competitiveness. Sometimes it is a combination of multiple other things there. So very, very difficult to pinpoint exactly what happens. But again, case-to-case basis, it may vary.

Analyst sought specific reasons for losing a key platform, but management gave a general, multi-factor response without pinpointing the exact cause, indicating a lack of transparency or a complex competitive landscape.

Asked by Suraj Chheda

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Detailed narrative

Q2 FY26 Financial Performance Overview

Gabriel India reported a strong Q2 FY26 with standalone operating revenue growing by 15.4% year-on-year to ₹1,066 crores. This was supported by higher volumes and robust sales across all segments. Standalone EBITDA increased by 19% YoY to ₹96 crores, with margins improving from 8.7% to 9%. On a consolidated basis, quarterly revenue reached ₹1,180 crores, a 15% YoY growth, while consolidated EBITDA stood at ₹116 crores, up 18% YoY, with margins of 9.8%. For H1 FY26, consolidated revenue was ₹2,279 crores, growing 15.5% YoY, and EBITDA was ₹225 crores, up 19% YoY, with margins at 9.9%.

Strategic Joint Ventures and Partnerships

The company entered a new joint venture with SK Enmove Co., Ltd, a Korean corporation, to engineer, manufacture, and market a comprehensive range of automotive and industrial lubricants, including e-fluids and thermal management fluids. Gabriel India holds a 49% stake in this JV, which is expected to generate ₹500 crores in business over the next 5-6 years. Additionally, the joint venture agreement with Inalfa Roof Systems for sunroofs was revised, with Gabriel India's shareholding increasing to 65% (from an earlier proposed 49%) and Inalfa's to 35%, following the rejection of the previous PN3 approval by the Ministry of Heavy Industries in 2024. This revised structure is subject to fresh regulatory approval.

Segmental Performance and Market Share Initiatives

In Q2 FY26, the 2, 3-wheeler segment grew by 15% YoY, passenger vehicles by 13%, and the commercial vehicle railway division by 35% YoY. The 2-wheeler segment saw 10% YoY growth in units, with exports up 25%. The passenger vehicle segment grew 2.4% YoY in units, with EV exports up 23%. Gabriel India has secured 3 new platforms from Maruti for the passenger vehicle segment and expects a 4-5% increase in PC market share from next year. In the EV 2-wheeler segment, the company aims to maintain over 50% market share, building on its first-mover advantage.

Sunroof Business Update and Challenges

Inalfa Gabriel Sunroof Systems Private Limited reported Q2 FY26 revenues of ₹114 crores with EBITDA margins of 16.5%. However, the sunroof business is experiencing a flatter trajectory due to the underperformance of Kia Syros and Alcazar models, leading to lower capacity utilization. A significant concern is the loss of the new Creta platform for sunroof production, which is slated for 2027. Consequently, the earlier target of achieving ₹1,000 crores in sunroof revenue by 2030 may now face a 1-2 year delay, and the company is actively working on new RFQs to fill the pipeline.

Technology, Innovation, and Operational Excellence

Gabriel India is focusing on transitioning from a suspension-centric company to a diversified, innovation-driven mobility solution provider. This includes a shift towards premiumization, with new product developments like inverted front forks and mono shocks, exemplified by a new Yamaha order. The company has a tech center in Europe, continuously investing in technology upgradation, filing patents, and working on multiple Proof of Concepts (POCs) for both 2-wheeler and passenger car segments. The CORE 90 program continues to be instrumental in managing costs and improving margins, helping to mitigate challenges like power tariff pressures.

This is an AI-generated summary of a publicly available earnings call transcript.

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