Gabriel India Revenue Jumps 23% to ₹1,608 Crore in Second Quarter
Key Facts
Gabriel India reported consolidated revenue from operations of ₹1,608 crore in the second quarter of fiscal 2027, up 23% year on year, according to the earnings call transcript published by Investing.com. But consolidated EBITDA grew at a slower pace, rising 12% to ₹141 crore, with a margin of 8.8%. Profit before tax and exceptional items was ₹148 crore, up 14%, while its margin reached 9.2%. The comparison between revenue and profit growth shows that the expansion in sales did not translate into comparable growth in operating profit during the period. For the first half, consolidated revenue reached ₹3,034 crore, up 19% year on year.
Explaining the performance, management said revenue benefited from demand for suspension systems and aftermarket services, as well as a contribution from Anchemco, a business added after restructuring. The company presented partnerships and production investments as avenues for expansion and growth, not as direct reasons for the quarter's results. Gabriel's share of profit from equity-accounted investees was ₹48 crore, up 39% year on year. Management said HL Mando Anand's contribution to that figure had an impact for only a few days, because the transaction was completed on September 11, 2026. The limited contribution period means the quarterly figure does not reflect a full period of results from the investee.
The company's performance coincided with an improvement in activity across India's automotive industry, though that alone does not explain Gabriel's results. Production in the motor vehicles, trailers and semi-trailers manufacturing group rose 19.0% year on year in September 2026, according to data from India's Ministry of Statistics and Programme Implementation published through the Press Information Bureau. The ministry said motor vehicle components, parts and accessories were among the groups that contributed strongly to production growth. India's manufacturing sector also recorded annual growth of 7.6% in the same month. The overall index of industrial production rose 6.7% in September, compared with growth of 8.0% in August, placing the company's results in a broader industrial context beyond the motor vehicle sector alone.
As part of its expansion in seating, Gabriel India signed a joint venture agreement with Forvia subsidiary Faurecia Automotive Seating India on October 6, 2026, and the joint venture company was incorporated on October 19. Under the agreement, Gabriel will hold a stake one share short of 50%. The move puts seating among the expansion avenues outlined by management, alongside capacity investments in the Mando and Klemove businesses. The venture's impact on results will depend on its development after incorporation, as the earnings disclosures do not link it to second-quarter revenue growth. The partnership provides a framework for expanding the business in the seating sector in the period ahead.
Management said consolidated capital expenditure would remain in the range of ₹1,000 to ₹1,500 crore, depending on capacity requirements and new plants. The guidance ties spending to execution needs instead of setting a fixed amount for each period. The company announced an interim dividend of ₹2.15 per share on October 30, 2026. It set November 6, 2026, as the record date, according to a copy of the company disclosure filed with the stock exchange. The record date falls after the results announcement, while the capital expenditure range remains a management indicator of the resources that capacity expansion and new plants may require.