Gabriel India

Gabriel India reported strong financial results for Q4 and the full fiscal year 2026. Consolidated operating revenue grew 13% Y-o-Y to INR 1,210 crores in Q4 FY26 and 15% Y-o-Y to INR 4,667 crores for the full year. Consolidated adjusted EBITDA for FY26 stood at INR 452 crores, maintaining a margin of 9.7%. Standalone operating revenue for Q4 FY26 increased by 19% Y-o-Y to INR 1,111 crores, with standalone EBITDA growing 16% Y-o-Y to INR 101 crores. The company recommended a total dividend of INR 5 per equity share for FY26, an increase from INR 4.7 in FY25.

The Indian automotive industry experienced a robust recovery and healthy demand momentum in Q4 FY26. Two-wheelers production grew 21% Y-o-Y in Q4 (12% for FY26), passenger vehicles saw an 11% Y-o-Y production growth (9% for FY26, with UVs growing 12%), and commercial vehicles increased 19.5% Y-o-Y (13% for FY26). This growth was supported by improved consumer sentiment, lower interest rates, and ongoing infrastructure development. The long-term outlook for the Indian automotive industry remains very positive, driven by policy reforms and rising consumer demand.

The composite scheme involving the amalgamation of Anchemco India Private Limited into Asia Investment Private Limited, followed by the demerger of the automotive undertaking into Gabriel India, became effective on May 22, 2026. This follows key shareholder and NCLT approvals. Management expects all remaining formalities for this restructuring to be completed by the end of June 2026. The company also reiterated its intention to integrate other businesses into the Gabriel brand in the future, with financial audits for these scheme entities ongoing and consolidation expected from Q1 FY27.

Gabriel India is actively pursuing new growth avenues. For solar dampers, a business pipeline is being developed, with products undergoing development, testing, or validation, including assured businesses from Europe and North America. The SK Enmove operations have commenced in Q4 FY26, generating sales and securing two customer wins. The Jinhap JV is progressing with building construction, targeting commercial production by Q4 calendar year or Q3 FY27, and has already secured one business win.

The Inalfa Gabriel Sunroof Systems subsidiary reported Q4 FY26 revenue of INR 99 crores with an EBITDA margin of 14.6%. The Q-on-Q revenue decline was attributed to issues with the ramp-up of Kia Syros. The company has secured three new business wins with Korean customers and is in advanced discussions for a local customer, with sunroof penetration estimated at 24-25%. For semi-active products, two 2-wheeler customers have signed LOIs and development has started, while for passenger cars, POCs are underway but no formal LOI is yet available.

The company experienced a 90 bps Q-on-Q drop in gross margin during Q4 FY26, primarily due to material cost increases and strained supply chains, exacerbated by acute shortages of aluminum and gas in March. Management noted that the focus was on prioritizing OEM lines. Efforts are being made to achieve back-to-back recovery of commodity escalations from customers. Despite these challenges, the sunroof business is expected to maintain an EBITDA margin between 12-14%, and the MMAS subsidiary is nearing EBITDA breakeven with stabilized operations.

Gabriel India remains committed to the ANAND Group's target of INR 50,000 crores by 2030, with Gabriel positioned as a key growth engine. For FY27, the standalone capex outlook is between INR 160-190 crores, aimed at supporting growth. New model launches, particularly in the 2-wheeler segment, are anticipated around the festival season. While the company is optimistic about demand, it continues to monitor global uncertainties, such as the West Asia conflict, and their potential impact on crude oil prices and consumer sentiment.