Gabriel India Ltd Q4 FY26 Earnings Call: Guides Rs. 150-190 Cr Capex, Revenue Grows 19% YoY

Gabriel India Ltd held its Q4 FY26 earnings call on May 13, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue Growth Across Standalone and Consolidated

• Standalone operating revenue grew 19% YoY to Rs.1,111 croresin Q4 FY 2025-2026; for full FY 2025-2026, revenue stood at Rs.4,223 crores, up 16% YoY.
• Standalone adjusted EBITDA was Rs.101 crores (margin 9.1%)in Q4 FY 2025-2026; full FY 2025-2026 EBITDA was Rs.383 crores (9.0% margin), growing 18% YoY.
• Consolidated operating revenue rose 13% YoY to Rs.1,210 croresin Q4 FY 2025-2026; full FY 2025-2026 consolidated revenue was Rs.4,667 crores, up 15% YoY.
• Consolidated adjusted EBITDA reached Rs.119 crores (9.7% margin)in Q4 FY 2025-2026; full FY 2025-2026 consolidated EBITDA was Rs.452 crores (9.7% margin), up 15% YoY.
• Standalone PBT before exceptional items was Rs.86 crores (7.7% margin)in Q4 FY 2025-2026; full FY 2025-2026 PBT was Rs.335 crores (7.9% margin), up 18% YoY.
• Board recommended a final dividend of Rs.3.1 per share, bringing total FY 2025-2026 dividend to Rs.5.0 per share (vs. Rs.4.7 per share in FY 2024-2025).

Scheme Effective; New JVs Begin Operations

• Composite scheme of amalgamation/demerger became effective from 22 May 2026after shareholder and NCLT approvals; remaining formalities expected by June 2026 (Q1 FY 2026-2027).
• Anand Group's Rs.50,000 crore 2030 target— management cited "Anand Group's 2030 target of Rs.50,000 crores remains" with Gabriel positioned as the group's automotive growth engine;no specific revenue guidance was provided for this target.
• SK JV operations started in Q4 FY 2025-2026with sales commenced; customer wins secured from Mahindra (via American Axle) and Mobis (EV battery fluid).
• GeneP JV construction targets completion by September 2026with commercial production expected in Q3 FY 2026-2027; one business win secured with a Korean customer.
• Solar damper business pipeline is being createdwith orders from Europe, local, and North America; an innovation award was received for an integrated dropper post with Supernova.
• Consolidation of four scheme entities will commence from Q1 FY 2026-2027, with financial disclosures following audit conclusion by mid-June 2026.

Two-Wheeler Leads; Sunroof Penetration Steady

• Two-wheeler industry production grew 21% YoY in Q4 FY 2025-2026; passenger vehicle production rose 11% YoY and commercial vehicle production increased 19.5% YoY.
• Sunroof subsidiary (Inalfa Gabriel) reported Q4 FY 2025-2026 revenue of Rs.99 croreswith EBITDA of Rs.14.5 crores (14.6% margin); FY 2025-2026 revenue was Rs.434 crores, EBITDA Rs.65.4 crores (15.1% margin).
• Total sunroofs sold in FY 2025-2026 reached 1,70,000 units; sunroof penetration stood at ~24-25% (variant-dependent);revenue declined QoQ due to lower-than-expected Kia Seltos ramp-up.
• After-market growth in Q4 FY 2025-2026 was impacted by supply chain shortages(aluminium and gas) in March, described as temporary and not structural; export dip was due to temporary shipping delays.
• Hero MotoCorp start of production (first business win) is expected in Q2 FY 2026-2027; FSD development ongoing with Tata Motors for one model; additional businesses under discussion.
• On Sandhar, one EV model variant (Cyrus) restarted production; five new models under development will start at different stages in FY 2026-2027 and FY 2027-2028.

Gross Margin Under Pressure; Pass-Through Mechanisms Active

• Standalone gross margin in Q4 FY 2025-2026 fell ~90 basis points QoQdue to higher material costs, strained supply chain, unfavorable mix (prioritising OEM vs. aftermarket/export), and supplier inflation claims that temporarily impacted the P&L.
• Commodity inflation (aluminium, plastics, steel) remains volatile; settlements now occur monthly for some items, making a forward-looking inflation range impossible to provide; management's priority is ensuring recovery from customers.
• Management confirmed commodity cost escalations are being recoveredthrough back-to-back pass-through with principal alignment from all customers, though prices change monthly.
• Sunroof EBITDA margin improved QoQ; management maintained ongoing guidance of 12-14% for sunroof EBITDA margin.
• MMAS achieved EBITDA positive and is close to break-evenby Q4 FY 2025-2026, with plant operations stabilised and new RFQs being pursued.
• Margin improvement targets remain unchangeddespite near-term commodity headwinds, with normalisation expected in a quarter or two;Henkel margin volatility was attributed to commodity swings, product mix changes, and investment periods, though recent years (FY 2024-2025 and after) have been stable.

FY27 Capex Guided at Rs.150–Rs.190 Cr; Semi-Active Products Progressing

• FY 2025-2026 standalone capex was approximately Rs.190 crores; management guided FY 2026-2027 standalone capex in the range of Rs.150–Rs.180 crores (Segment 8) to Rs.160–Rs.190 crores (Segment 9) to maintain asset turns and support internal growth targets.
• Consolidated capex outlook for new entities (Project Rise)will be disclosed after audits conclude by mid-June 2026, likely alongside Q1 FY 2026-2027 results.
• Semi-active products: LOIs received from two customers on the two-wheeler side; development has started, with commercialisation expected as per the development timeline.
• On the passenger car side, no formal LOI yet; one POC completed with a customer and another POC being planned; semi-active margins expected to be better than current products,but exact margins were not disclosed because OEs would then ask for discounts.
• Key SOPs include Suzuki Access/Gixxer (Q4 FY 2025-2026) and Hero (Q2 FY 2026-2027); new two-wheeler model launches expected during the upcoming festival season.

Strong Demand Signals; Trade War Monitored as Key Risk

• Demand projections from all OEM customers for FY 2026-2027 are "very strong"per management, with May and June-July projections positive;a sustained trade war is cited as a risk.
• Dana India's export business is a prioritywith the strategy to shift global operations to India; exports to global companies increased from 30% (2019) to 40% (2025);no forward-looking numerical target was given for export scale.
• Two-wheeler industry trends remain robust; Maruti and Mahindra have also expressed optimism for their respective segments.
• Gabriel India's JV with Dana remains unchangedwith no impact from Dana's sale of its 49% stake in Axles India to TSF Group in 2025; Gabriel manufactures complete axles for the LV category while Axles India produces only axle housings — no product overlap.
• Management guided no specific numerical targetsfor Dana's export scale, margin trajectory, or Henkel's sustainable margins; SK Innovation partnership is currently limited to lubricant business with expansion evaluation after one year.
• Risks monitored include West Asia conflict, sharp crude price changes, and potential trade war impact on sustained demand.