Gabriel India Ltd (GABRIEL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Gabriel India Limited Q2 FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mahendra Goyal, Group CEO and Managing Director, for opening remarks. Thank you, and over to you, sir.
Mahendra Goyal (Gabriel India Ltd): Good morning, everyone. Hope I am audible. Good morning. A very warm welcome to all of you, and thank you for joining the call today. And we'll take this opportunity to begin with an important strategic development for Gabriel India before we get into the operational review. As a strategic initiative, 6th October 2026, we signed a joint venture agreement with company named Faurecia Automotive Seating India Limited, part of FORVIA, a global automotive technology group, to establish Faurecia Anand Seating India Private Limited, which was subsequently incorporated on 19th October 2026. This represents another important step in Gabriel India's transformation into a diversified technology-led mobility solution enterprise. The joint venture will focus on developing, manufacturing, supplying seat frames and complete seating systems for passenger vehicle, where the Gabriel India will be holding 50% less one share, and FORVIA will be
Mahendra Goyal (Gabriel India Ltd): to 50% plus one share. With this joint venture, we bring here FORVIA's global seating technology, product engineering, complete seat capabilities, and manufacturing expertise with ANAND Group's strong relationship with Indian OEMs, extensive local operating footprint, and deep understanding of the domestic automotive market. Importantly, this partnership builds on the trust, relationships between FORVIA and ANAND Group in emission control business that was going on before 2000. And with FORVIA, I think they acquired partnership this business globally in sometime in 2009-10. So, while the business of emission control has been before 2000, but partnership with FORVIA is almost 2009 and 2010 onwards actually. The venture is expected to benefit from access to FORVIA's wider seating product and engineering portfolio and to strengthen manufacturing supply chain and talent capabilities in India. The partnership is fully aligned with FORVIA Seating ambition to reach approximately 10% market share in India over the next 5 years as its fast, first growth milestone. For Gabriel India, entry into passenger vehicle seating system is strategically important because it further broadens our product offering into the powertrain agnostic category, strengthens our participation across automotive value chain, and provides a platform for long-term technology-led growth. The JV reaffirms our stand that Gabriel would be the principal growth engine of ANAND Group's automotive business. So, that continues. Moving to our consolidated performance, revenue from operations for quarter two financial year 2027 stood at 1,608 crore, reflecting a year-on-year growth of 23%. For half year '27, consolidated revenue stood at 3,034 crore, registering a growth of 19%. Consolidated EBITDA for Q2 '27 stood at 141 crore, reflecting a year-on-year growth of 12% with an EBITDA margin of 8.8%. And half year consolidated EBITDA stood at 265 crore, registering a growth of 9% year-on-year with an EBITDA margin of 8.7%. Coming to our equity-accounting investing companies, which includes Dana Anand India Private Limited, Henkel Anand India Private Limited, SKANFAB Gabriel India Private Limited, along with our new strategic investments in HL Mando Anand India Private Limited and HL Klemove India Private Limited, our share of profit before tax stood at 48 crore in Q2 financial 2007, reflecting a year-on-year change of 39% over. For H1 '27, this is stood at 91 crore, which grew almost 24% year-on-year. Importantly, the contribution from HL Mando Anand reflects only for few days, as the transaction took place on 11th September 2026. So, results only including very, very few, few numbers in the current quarter. Those will start reflecting on the full quarter basis from the from the next year, sorry from the next quarter. Consolidated PBT before exceptional item for Q2 financial 2000 stood at 148 crore, reflecting a year-on-year growth of 14% with a PBT margin of 9.2%. And half year, PBT before exceptional items stood at 281 crore, registering a growth of 10% year-on-year with a margin of 9.3%. Overall, our consolidated performance reflects the contribution from now from operating subsidiaries together with the share of earnings from our joint venture and associates under the expanded business structure. So, it means that now now onwards, actually, that our results are our standalone Gabriel, of course, subsidiaries companies of Gabriel and also profit coming from associate companies, especially HL Anand HL Mando, HL Klemove. Those will start reflecting from the following quarter on a on a full quarter basis, but this this quarter, we had result from Henkel, Dana Anand, and other other subsidiaries basically. With the strategic investment undertaken through Project Rise and Project Jupiter, we continue to strengthen our presence across a wider range of automotive component and technology business. So, those results will start keep on moving now onto our business. I'm also pleased to announce that Board of Directors have declared an interim dividend of INR 2.15 per share having the face value of INR 1 each. With this, I would now request to
Mahendra Goyal (Gabriel India Ltd): Jagdish to to update you on standard Gabriel and also the industry trends and before Mr. Jagdish start, I take this opportunity to wish you all a happy Diwali. Thank you.
Jagdish (Gabriel India Ltd): Thank you Mr. Goyal. Good morning everyone and a warm welcome to all the participants on the call. Coming to the automotive industry, manufacturing activity remained quite strong during the quarter two FY27. This was supported by the GST led affordability, improving financing conditions and resilient rural demand supportive of festive season momentum. Coming to the two wheeler segment, the production grew by 16.5% YoY in Q2 FY27, while overall production growth for H1 FY27 stood at 19.5%. Scooters continue to outperform the industry recording strong growth of 31% during the first half of the FY27 while motorcycle production increased by 14%. Coming to passenger vehicles, industry production increased by 25% year-on-year in Q2 FY27 while growth for H1 FY27 stood at 21%. Utility vehicles continue to lead the segment recording growth of 25% during H1 FY27 reflecting sustained customer preferences for SUVs. Commercial vehicle production registered a very strong growth of 34% year-on-year in the quarter two FY27 taking the overall growth for the first half of the year to 25%. During the first half, LCV production increased by 27% while the M&HCV production grew by 21%. Three-wheeler production also remained healthy growing by 24% in Q2 and 34.5% during the first half of the year, supported by strong last mile mobility and cargo transportation demand. Overall the industry performance reflects resilient domestic demand and improving customer sentiment. Although, geopolitical uncertainties and volatility in crude oil and commodity prices remain important factors to to monitor. Coming to our Q2 FY27 performance, as explained in the previous quarters, following the completion of restructuring our financial results now reflect the expanded business portfolio of Gabriel India. During September 26 we successfully completed the allotment of INR 1,000 crore of unsecured rated listed and redeemable non NCDs through private placement carrying an annual coupon of 8.15% with tenure for three years. This formed part of our financing arrangements to support the company's strategic growth and expansion initiatives. Coming to the stand alone performance, revenue from operations stood at INR 1,399 crores in Q2 FY27 reflecting a YoY growth of 23%. The performance was supported by demand across our core suspension business, aftermarket operations and contribution from the in-chemco business added through the restructuring called as the fluid business. For HY H1 FY27, standalone revenue stood at 2,673 crores, registering a year-on-year growth of 21%. Standalone EBITDA adjusted EBITDA for Q2 stood at INR 115 crore, reflecting a YoY growth of 15% with an EBITDA margin of 8.2%. For H1 FY27, adjusted EBITDA stood at INR 222 crores, registering a growth of 13% YoY with an EBITDA margin of 8.3%. Standalone PBT before exceptional items for Q2 stood at 89 crores representing YoY growth of 7% with PBT margin of 6.3%. For H1 FY27, PBT before exceptional items stood at 188 crores registering a growth of 17% year-on-year with a margin of 7%. I also take this opportunity to wish everybody a very happy Diwali and with this I come to an end of my opening remarks. Now request the moderator to begin the question and answer session. Thank you, over to you.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Participants please limit your questions to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Moderator: The first question is from the line of Jay Kale from Elara Capital. Please go ahead.
Jay Kale (Elara Capital): Yeah. Good morning. Thanks for taking my question. And seasons greetings for to the management and also congratulations on your JV with Forvia. Addition of new products. Sir, my first question is in terms of a Vision 2030 of 50,000 crores. You know, you seem to have multiple paths to reach there apart from organic and group consolidation. New JVs, buying out companies, expanding product portfolio in existing group JVs as well. Which of these according to you is likely to be a bigger opportunity in the next 2 to 3 years as per discussions currently? And also, any thresholds the management has for these actions in terms of, you know, what return profile, margin profile, technology, client access you would want from your addition of new products? How should we think about this likely opportunities?
Mahendra Goyal (Gabriel India Ltd): Okay, thank you. So, I think considering our vision statement of 50,000 crore in 2030, the current initiative which we have taken, especially in the current year, where we have added a couple of new joint ventures. Of course, one is HL Klemove India and other very recently on on the seating side with the Forvia Group. So, I think these are the very, very important joint ventures with our journey of 30,000 50,000 crore in 2030. It's very difficult to share the numbers as I said. It's very, very important business aspects from from these two businesses. Simply that they are high-value items, that is one. Generally, their product value could be, I would say, in the range of for the passenger car, 30 to 50,000 per car set when it comes to the product value. So, so that way, I think these business will have a good prospectives. And especially on ADAS side, as you will know, that that's the regulations are expanding in the industry with the passenger car, with a two-wheeler, three-wheeler, and, of course, in the commercial vehicle. And I think that will give us more and more opportunity growing our market in this segment. And also the seating side, I think if you look at from the car perspective, it's very important that interior of the car is going to play a very key role in the growth from the product contribution side. So, the seating is one thing that is is primarily will add a lot of value from the technological changes point of view within the interior setup in the car. So, so I think with these two joint ventures, and of course, the way the Indian market has grown in the current year, I mean, for 2026, that growth which we have seen, it is taking us closer to our target of 2030. Of course, we are not there yet and for which we have a good time and good preparation to to to visit or achieve our strategic objective. And from the technology point of view, I think we continue as I said that with a global players. So, ADAS is is one of one of the global players, HL, HL Group, Mando, which is dealing with brakes and steering system and having helping providing a integrated solution from the technology point of view why the product will come from the different companies, but from the technology point of view it helps to integrate the technology in the HL system. And of course, Forvia is one of the leading player in the technology when we talk about the seating. So, as as usual, we continue to work with the global players who are who are their market leader in their field, and that is what that is what our reason to bring technology or focus technology in the future.
Jay Kale (Elara Capital): Great. Thanks. Thanks for this. My next question is regarding the Forvia Seating JV. You've mentioned that the mechanism portion is out of the JV and it will be supplied directly by Forvia. If you could just give a broad sense of what is the content for a vehicle and how much of that is in the JV and how much is, you know, not in the scope of the JV?
Mahendra Goyal (Gabriel India Ltd): Yeah. So, I think when we when we talk from the customer perspective, for the customer perspective, we are going to quote for the
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