Gabriel India Navigates Growth and Diversification in Q2 FY26

Gabriel India Limited, a prominent player in the automotive components sector, has reported a robust performance for the second quarter and half-year ended September 30, 2025 (Q2 FY26). The company's consolidated operating revenue reached 1,180.3 Crore, marking a significant 15% year-on-year growth. This impressive top-line expansion was complemented by a healthy EBITDA of 116.2 Crore, reflecting an 18% increase over the previous year, with margins improving to 9.8%. Profit Before Tax (PBT) also saw an 11% growth, standing at 91 Crore for the quarter. These figures underscore Gabriel India's ability to leverage strong market demand and operational efficiencies.

The growth narrative for Q2 FY26 was broadly supported by strong sales performance across all key segments. The 2W/3W (two-wheeler and three-wheeler) segment continued to be a primary revenue driver, contributing 64% to the total. Passenger Vehicles (PC) accounted for 23%, while Commercial Vehicles (CVR) and Trading made up 12% and 1% respectively. Management attributed this widespread growth to steady domestic demand and a notable surge in exports, particularly to Africa, Latin America, and the Middle East. The overall automobile industry experienced a 9.5% year-on-year growth, providing a favorable backdrop for Gabriel India's performance. The company's 'CORE 90' operational excellence program was instrumental in enhancing margins, demonstrating a disciplined approach to cost management and efficiency.

Strategic Diversification and New Growth Avenues

Gabriel India is actively pursuing a strategy of diversification and technological advancement to transition from a suspension-centric company to a comprehensive mobility solutions provider. A significant move in this direction is the joint venture with Inalfa Roof Systems for sunroofs. Despite initial regulatory hurdles, the shareholding structure has been revised to 65% for Gabriel India and 35% for Inalfa, with an aspiration to achieve 1,000 Crore in revenues by 2030. However, management noted that this target might see a 1-2 year delay due to current market dynamics and the underperformance of certain key models like Kia Syros and Alcazar, which has led to lower capacity utilization.

Further expanding its portfolio, Gabriel India has forged two new joint ventures: one with SK Enmove Co., Ltd. for lubricants and functional fluids, and another with JINHAP Korea for fasteners. The SK Enmove JV, with Gabriel India holding a 49% stake, aims to build a 500 Crore business in the next 5-6 years, leveraging Gabriel's OEM customer base and aftermarket channels. The JINHAP JV, where Gabriel India holds a 51% stake with an investment of 26.8 Crore, is set to address localization needs for fasteners. Commercialization for both these JVs is anticipated by FY27, with significant revenue contributions expected by FY28.

Enhancing Capabilities and Sustainability

The company's commitment to strengthening its core business is evident in the acquisition of Marelli Motherson Auto Suspension (MMAS) assets, completed on April 1, 2025. This acquisition added substantial capacity for shock absorbers and gas springs, solidifying Gabriel India's market position. While the MMAS acquisition initially impacted overall margins, management is focused on achieving positive PBT by the year-end. In terms of innovation, Gabriel India is making strides in future mobility segments, including e-bikes and solar dampers. They have developed new fork models for e-bikes, with patent applications filed and RFQs received. For solar dampers, orders have been secured from both export and domestic customers, with samples developed for export, positioning the company in a market expected to grow at a CAGR of 14.9% (2025-30).

Gabriel India also continues to prioritize sustainability, with 5 out of its 7 plants receiving Zero Waste to Landfill (ZWLF) verification. The company has set ambitious targets to achieve water-neutral and carbon-neutral operations by 2027, reflecting a strong environmental, social, and governance (ESG) commitment. This proactive approach to sustainability, coupled with continuous technological advancements through its Gabriel Europe Engineering Centre (GEEC) and Indian tech centers, positions the company for long-term resilience and growth.

Outlook and Strategic Focus

Looking ahead, Gabriel India anticipates continued growth in the passenger car segment, expecting a 4-5% increase in market share from next year due to new platform wins from Maruti. In the EV 2-wheeler segment, while historically dominant, the company aims to maintain over 50% market share amidst increasing competition. The management's commentary reflects a balanced outlook, acknowledging challenges in new ventures like sunroofs and exports, but expressing confidence in their strategic adjustments and pipeline development. Gabriel India's Q2 FY26 performance highlights a company in transition, strategically diversifying its product portfolio and enhancing its manufacturing and R&D capabilities to capture emerging opportunities in the evolving mobility landscape.