Gabriel Q2 revenue rises 23% while EBITDA and PBT margins fall

Gabriel India Ltd. reported standalone revenue growth of 22.7% year on year in Q2 FY27, reaching Rs 1.3992 thousand crore. Profitability grew more slowly: earnings before interest, tax, depreciation and amortisation (EBITDA) margin fell to 8.2% from 8.8%, while profit before tax (PBT) margin declined to 6.3% from 7.2%.

Why did Gabriel’s Q2 revenue grow?

Gabriel’s standalone revenue rose to Rs 1.3992 thousand crore in Q2 FY27 from Rs 1.1403 thousand crore in Q2 FY26, an increase of 22.7% year on year. Revenue also increased 9.8% from Rs 1.2742 thousand crore in Q1 FY27, making Q2 the higher of the two reported FY27 quarters. The presentation does not provide an operational breakdown of the revenue increase.

Gabriel’s revenue grew faster than operating earnings in the quarter. EBITDA rose 14.6% year on year to Rs 114.9 crore in Q2 FY27 from Rs 100.3 crore in Q2 FY26, while PBT increased 7.4% to Rs 88.6 crore from Rs 82.5 crore. Sequentially, Q2 EBITDA rose 7.2% from Rs 107.2 crore in Q1 FY27, but PBT declined 11.3% from Rs 99.8 crore.

How much did Gabriel’s Q2 profitability change?

Gabriel’s EBITDA margin declined by 0.6 percentage points year on year to 8.2% in Q2 FY27, from 8.8% in Q2 FY26. It also declined by 0.2 percentage points from 8.4% in Q1 FY27, despite the increase in EBITDA from Rs 107.2 crore to Rs 114.9 crore over the quarter.

Gabriel’s PBT margin saw a larger movement, declining by 0.9 percentage points year on year and 1.5 percentage points sequentially to 6.3% in Q2 FY27. PBT was Rs 88.6 crore, above Rs 82.5 crore in Q2 FY26 but below Rs 99.8 crore in Q1 FY27. The presentation reports the margin movements but does not state a cause for them.

The quarterly sequence differs between operating earnings and PBT. EBITDA increased by Rs 7.7 crore between Q1 FY27 and Q2 FY27, while PBT decreased by Rs 11.2 crore over the same period. Against Q2 FY26, EBITDA rose by Rs 14.6 crore and PBT by Rs 6.1 crore, even as both reported margins declined.

What did Gabriel report for H1 FY27?

Gabriel reported standalone revenue of Rs 2.6734 thousand crore for H1 FY27, up 20.9% from Rs 2.212 thousand crore in H1 FY26. H1 EBITDA rose 12.8% to Rs 222.1 crore, while H1 PBT increased 17.3% to Rs 188.4 crore. Revenue therefore expanded faster than EBITDA across the six-month period.

Gabriel’s H1 FY27 EBITDA margin was 8.3%, compared with 8.9% in H1 FY26, a decline of 0.6 percentage points. Its PBT margin declined by 0.3 percentage points to 7.0% from 7.3%. Q2 FY27 revenue of Rs 1.3992 thousand crore exceeded Q1 FY27 revenue of Rs 1.2742 thousand crore.

Gabriel said that, following approval of a composite scheme of arrangement involving the merger of Anchemco India Pvt Ltd with Asia Investments Private Limited, it retrospectively applied the pooling-of-interest method for all periods and the year ended March 31, 2026. The company also said FY26 EBITDA excludes non-operational expenses and a one-time wage-code impact, while FY26 PBT excludes the one-time wage-code impact.

How do Gabriel’s financial record and ratios compare?

Gabriel’s standalone revenue increased from Rs 2.9717 thousand crore in FY23 to Rs 4.5773 thousand crore in FY26, representing the 15.5% compound annual growth rate stated by the company. EBITDA increased from Rs 213.7 crore to Rs 423.2 crore over those years, while EBITDA margin increased from 7.2% to 9.2%. H1 FY27 EBITDA margin of 8.3% was below the FY26 level, although H1 is a partial-year period.

Gabriel’s PBT increased from Rs 177.9 crore in FY23 to Rs 355.2 crore in FY26, with the company reporting a 25.9% compound annual growth rate. PBT margin rose from 6.0% in FY23 to 7.8% in FY25 and FY26, before declining to 7.0% in H1 FY27. Profit after tax increased from Rs 132.4 crore in FY23 to Rs 258.5 crore in FY26, and was Rs 144.4 crore in H1 FY27.

Gabriel’s net working-capital days rose from 18 days in FY23 to 30 days in FY26 and 32 days in H1 FY27. Net worth increased from Rs 870.3 crore in FY23 to Rs 1.4521 thousand crore in FY26 and Rs 3.4218 thousand crore in H1 FY27. Gabriel attributes the increase in net worth to strategic investments through Project Jupiter and Project Rise.

Gabriel’s debt-to-equity ratio was 0.01 in FY23, FY24 and FY25, increased to 0.09 in FY26, and reached 0.34 in H1 FY27. Its current ratio was 1.8 times in FY23, 1.9 times in FY24, 2.0 times in FY25, and 1.8 times in both FY26 and H1 FY27. Return on equity was 8.4% in H1 FY27, compared with 17.8% in FY26, while return on assets was 5.1%, compared with 10.9%.

How did Gabriel’s revenue mix change in Q2 FY27?

Gabriel’s two-wheeler and three-wheeler segment accounted for 63% of standalone revenue, including the fluid business, in Q2 FY27. This was higher than 58% in Q1 FY27 and 60% in Q2 FY26. Passenger cars represented 19% of Q2 FY27 revenue, while commercial vehicle replacement accounted for 17% and trading for 1%.

Gabriel’s original equipment manufacturer channel represented 91% of Q2 FY27 standalone revenue, compared with 88% in Q1 FY27 and 89% in Q2 FY26. The replacement channel accounted for 9%, down from 12% in Q1 FY27 and 11% a year earlier. The presentation does not link the mix changes to the reported EBITDA or PBT margin movements.

Conclusion

Gabriel’s Q2 FY27 results show revenue expanding faster than reported earnings measures. Standalone revenue rose 22.7% year on year to Rs 1.3992 thousand crore, while EBITDA margin declined to 8.2% and PBT margin to 6.3%. The H1 pattern was similar, with revenue up 20.9% and both EBITDA and PBT margins below H1 FY26 levels.

The next reported periods will show whether Gabriel can sustain revenue growth while narrowing the gap between sales growth and profit growth. The presentation leaves the drivers of the Q2 margin movements unresolved, while net working-capital days increased to 32 in H1 FY27 and debt-to-equity rose to 0.34 from 0.09 in FY26.