Gabriel India Q2 profit rises 16% as associate income climbs

Gabriel India Limited reported consolidated net profit after tax of Rs 123.969 crore for the quarter ended September 30, 2026, up 15.8% from Rs 107.052 crore a year earlier. Revenue from operations rose 22.9% to Rs 1,607.996 crore, while profit from equity-accounted investees increased 39.6% to Rs 48.3 crore.

How did Gabriel India perform in Q2 2026?

Gabriel India reported consolidated net profit after tax of Rs 123.969 crore in the September 2026 quarter, compared with Rs 107.052 crore in Q2 2025. Profit attributable to shareholders was Rs 123.112 crore, up from Rs 106.713 crore, while non-controlling interests accounted for Rs 85.7 lakh, compared with Rs 34.1 lakh a year earlier.

Revenue from operations increased to Rs 1,607.996 crore from Rs 1,308.324 crore in the corresponding quarter of 2025. Other income declined to Rs 6.607 crore from Rs 6.91 crore, taking total income to Rs 1,614.603 crore. Total expenses rose to Rs 1,514.734 crore from Rs 1,219.705 crore.

Gabriel India recorded total comprehensive income of Rs 123.511 crore in Q2 2026, against Rs 106.828 crore in Q2 2025. Basic and diluted earnings per share were Rs 6.80, compared with Rs 6.01 after restatement of the comparative figure for the scheme of arrangement.

Why did Gabriel India’s Q2 profit rise faster than pre-associate profit?

Gabriel India’s share of profit from equity-accounted investees rose by Rs 13.701 crore year on year to Rs 48.3 crore, exceeding the Rs 4.34 crore increase in profit before that income, exceptional items and tax. Pre-associate profit rose 4.5% to Rs 99.869 crore from Rs 95.529 crore, compared with the 15.8% increase in consolidated net profit.

Adding associate profit took profit before exceptional items and tax to Rs 148.169 crore from Rs 130.128 crore. There were no exceptional items in either September-quarter period. Total tax expense was Rs 24.2 crore, compared with Rs 23.076 crore, and included a deferred-tax credit of Rs 1.939 crore in Q2 2026.

The gap between revenue growth and pre-associate profit growth reflects higher costs in the quarter. Cost of materials consumed rose to Rs 1,204.373 crore from Rs 952.141 crore, other expenses increased to Rs 172.623 crore from Rs 136.325 crore, and finance costs rose to Rs 14.728 crore from Rs 6.28 crore. Employee-benefit expense increased to Rs 89.153 crore from Rs 87.246 crore.

Gabriel India reports a single operating segment, auto components and parts, so the filing does not give a product-level revenue or profit breakdown. It separately presents associate income in the consolidated statement, but does not identify the contributions of individual investees to the Rs 48.3 crore quarterly figure.

What changed in Gabriel India’s first-half profit and cash flow?

Gabriel India’s net profit after tax for the half year ended September 30, 2026 rose 9.2% to Rs 232.095 crore from Rs 212.509 crore a year earlier. Revenue from operations rose 19.3% to Rs 3,033.679 crore from Rs 2,542.682 crore, while associate profit increased 24.2% to Rs 91.043 crore from Rs 73.319 crore.

Profit before associate income, exceptional items and tax increased 4.3% to Rs 190.386 crore from Rs 182.589 crore. After associate income, profit before tax reached Rs 281.429 crore, compared with Rs 255.908 crore. First-half tax expense rose to Rs 49.334 crore from Rs 43.4 crore.

Net cash inflow from operating activities fell to Rs 111.839 crore in the first half from Rs 174.35 crore in the prior-year period. Trade receivables increased by Rs 190.967 crore, compared with an increase of Rs 93.589 crore a year earlier, while inventories increased by Rs 37.706 crore. Cash generated from operations consequently declined to Rs 155.433 crore from Rs 216.694 crore before net income-tax payments.

Investing cash outflow widened to Rs 1,070.448 crore from Rs 97.8 crore, principally because investment in associates used Rs 1,060.224 crore. Financing activities generated Rs 979.102 crore, compared with an outflow of Rs 47.328 crore in the earlier half, including Rs 1,131.734 crore of borrowing proceeds. Cash and cash equivalents at September 30, 2026 were Rs 132.784 crore, versus Rs 109.501 crore a year earlier.

Which associate acquisitions and funding arrangements affected Gabriel India?

Gabriel India acquired a 28.99% stake in HL Mando Anand India Private Limited on September 11, 2026 for a composite consideration of Rs 2,231 crore. It issued preferential equity shares worth Rs 1,881 crore to promoter Asia Investments Private Limited and paid the remaining Rs 350 crore in cash.

Gabriel India also acquired 37,844,999 shares in HL Klemove India Private Limited on August 25, 2026 for US$98.44 million. Management accounted for the acquisition on a provisional basis and said it was identifying and determining fair values of tangible and intangible assets under Indian Accounting Standard 28, Investments in Associates and Joint Ventures.

Investments accounted for using the equity method rose to Rs 1,965.406 crore at September 30, 2026 from Rs 409.049 crore at March 31, 2026. The consolidated entity list includes HL Mando Anand India as a 28.99% associate from September 11, and HL Klemove India as a 29.99% associate from August 25, alongside three other associates.

Gabriel India issued unsecured, listed non-convertible debentures of up to Rs 1,000 crore with an 8.15% fixed annual coupon. The next interest payment of Rs 81.5 crore is due on September 10, 2027, while the Rs 1,000 crore principal instalment is due on September 10, 2029. Non-current borrowings were Rs 1,187.557 crore at September 30, compared with Rs 107.389 crore at March 31.

How comparable are Gabriel India’s Q2 figures with last year?

Gabriel India restated comparative figures after the National Company Law Tribunal approved a scheme of arrangement on May 11, 2026. The scheme merged Anchemco India Private Limited with Asia Investments Private Limited from an appointed date of April 1, 2025, followed by the demerger and transfer of the Automotive Undertaking to Gabriel India from April 1, 2026.

Gabriel India applied the pooling-of-interest method retrospectively to all periods presented and to the year ended March 31, 2026. Q2 2025 earnings per share became Rs 6.01 after the scheme, compared with Rs 4.81 before accounting for it; first-half 2025 earnings per share became Rs 11.93, compared with Rs 9.12.

Price Waterhouse Chartered Accountants LLP reviewed the consolidated results dated October 30, 2026 and reported that nothing had come to its attention indicating material non-compliance with the applicable accounting standards or disclosure requirements. The reviewer also said that comparative information relating to the transferred Automotive Undertaking was furnished by management and had not been reviewed by it.

Conclusion

Gabriel India’s September-quarter profit increase combined a 22.9% rise in revenue with a 39.6% increase in profit from equity-accounted investees. Associate income grew more quickly than the 4.5% increase in profit before associate income, exceptional items and tax, while first-half operating cash inflow fell by Rs 62.511 crore as receivables rose.

The next disclosed matters to watch are management’s finalisation of fair values for the HL Klemove India acquisition and the new Faurecia Anand Seating India Private Limited joint venture. The joint venture was incorporated on October 19, 2026 with an initial investment of Rs 20 crore, while Gabriel India declared an interim dividend of Rs 2.15 per share with a November 6, 2026 record date.