Gabriel India Ltd Q4 FY26 Results Analysis: EBITDA Margin Compresses 83 bps, EV Share Exceeds Targets

Gabriel India Ltd's Q4 FY26 numbers came in mixed, with revenue of Rs. 1,209.59 Cr (+12.71% YoY) and PAT growth of +3.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Gabriel India reported 12.7% YoY revenue growth in Q4 FY26 with strong cash generation (CFO/PAT 1.37x) and low leverage (0.06x), but EBITDA margin compressed 83 bps YoY to 9.30% due to surging finance costs (+77.5% YoY) and missed the double-digit margin target by 160 bps. The sunroof subsidiary is scaling well with higher margins, and EV market share at 62% exceeded targets, but margin improvement and working capital management remain key execution areas.

Key Investment Insights

Key Positives

• Consolidated revenue grew 12.7% YoY in Q4 FY26 and 14.9% FY YoY, outpacing broader auto sector trends
• EV 2W market share at 62% in H1 FY26 exceeded management's long-term >50% target
• Normalized standalone PAT grew 19.5% FY YoY after adjusting for one-time Labour Code exceptional charge
• Subsidiaries (primarily sunroof JV) contributed 9.3% of revenue but 16.2% of EBITDA, indicating higher margin contribution
• Operating cash flow strong at 1.37x PAT, free cash flow positive at Rs 1,046.55 Mn
• Net cash position improved 200% YoY to Rs 1,135 Mn, with low debt/equity of 0.06x

Risk Factors

• EBITDA margin compressed 83 bps YoY in Q4 FY26 and 50 bps for FY26, missing double-digit target by 160 bps
• Finance costs surged 77.5% YoY in Q4 due to lease expansion and subsidiary borrowings, a material margin headwind
• Capex of Rs 151 Cr exceeded management's guidance of Rs 100-140 Cr by 8%
• Trade receivables increased Rs 757 Mn, reflecting working capital absorption despite payables growth
• Reported PAT growth of only 3.5% YoY in Q4 due to one-time Labour Code exceptional charge of Rs 137.64 Mn