1. At a Glance
GNA Axles just skidded into Q1 FY26 with a -7.6% stock drop and a quarterly profit that looks more like a rounding error than an earnings beat. With sales falling to ₹344 Cr (down 13.9% YoY) and PAT down to ₹23 Cr (down 17.1%), this axle-maker is testing the brakes on its growth trajectory.
2. Introduction with Hook
Imagine buying a luxury car but discovering it still uses a Maruti 800’s axle. That’s the kind of existential dread auto OEMs would feel without companies like GNA Axles. This company is the backbone (or back axle?) of trucks, tractors, and SUVs across the globe.
But here’s the kicker:
Q1 FY26 Net Profit: ₹23 Cr ↓
TTM Sales: ₹1,484 Cr ↓
Looks like the “rear axle” isn’t the only thing lagging. Time for a pit stop?
3. Business Model (WTF Do They Even Do?)
They make rear axles, shafts, and spindles. Translation? The rotating metal sticks that let your wheels do their thing.
GNA’s customers?
- Commercial vehicles
- Tractors
- Off-highway monsters
- SUVs
Basically, if it moves and weighs more than your cousin’s gym ego, GNA might be in it.
They don’t make the sexy stuff (no infotainment screens here) – just the hardcore, grease-dripping, steel-spinning innards of mobility.
4. Financials Overview
Last 5 Years? A mixed bag of torque and tremors.
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue (Cr) | ₹1,540 | ₹1,506 | ₹1,583 |
| EBITDA | ₹211 Cr | ₹197 Cr | ₹233 Cr |
| Net Profit | ₹107 Cr | ₹100 Cr | ₹130 Cr |
| OPM | 14% | 13% | 15% |
| ROE | 12.5% | 13% | 15% |
Margins are thinner than a college kid’s patience for Excel formulas. The cash conversion cycle? Ballooned to 155 days. That’s nearly half a year of “Udhari mode”.
5. Valuation
Let’s do the maths the market hates:
P/E: 13.1
Book Value: ₹210
CMP/BV: 1.48
ROE: 12.5%
Edu Fair Value Estimate:
- Method 1: P/E 15x FY25 EPS (₹24.95) = ₹375
- Method 2: EV/EBITDA 8x FY25 EBITDA (₹211 Cr) = ~₹360
Edu Fair Value Range™: ₹350–₹375
“If you’re buying GNA Axles at 20x earnings, you probably overpay for pani puri too.”
6. What’s Cooking – News, Triggers, Drama
Board-approved Capex of ₹400 Cr – because what’s better than flat growth? Flat growth with capital expenditure.
Subsidiary GNA Mobility Ltd incorporated – expect future buzzwords like “EV-focused vertical” or “drivetrain synergies”.
Credit rating upgraded to AA- – which is nice unless you remember they still have ₹259 Cr debt and 151 days of receivables.
Also, they commissioned a 4 MW rooftop solar plant – not a game changer, but hey, it’s green.
7. Balance Sheet
| Metric | Mar 2025 |
|---|---|
| Equity Capital | ₹43 Cr |
| Reserves | ₹857 Cr |
| Borrowings | ₹259 Cr |
| Total Liabilities | ₹1,365 Cr |
| Fixed Assets | ₹406 Cr |
| Other Assets | ₹959 Cr |
“Debt: Not Titanic-level, but the lifeboats are definitely being checked.”
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY25 | ₹92Cr | -₹111Cr | ₹26Cr | ₹7Cr |
| FY24 | ₹98Cr | -₹86Cr | -₹13Cr | -₹0Cr |
| FY23 | ₹105Cr | -₹66Cr | -₹39Cr | ₹0Cr |
“Cash flow looks like your overachieving cousin – working hard, but never quite rich.”
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 12.5% |
| ROCE | 14.3% |
| PAT Margin | 6.9% |
| Debt/Equity | 0.30 |
| P/E | 13.1x |
“ROCE is okay, but not exactly roast-the-competition level.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY25 | ₹1,540Cr | ₹211Cr | ₹107Cr |
| FY24 | ₹1,506Cr | ₹197Cr | ₹100Cr |
| FY23 | ₹1,583Cr | ₹233Cr | ₹130Cr |
“PAT dipped like your diet plan on a weekend.”
11. Peer Comparison
| Company | P/E | Rev (Cr) | PAT (Cr) | ROE |
|---|---|---|---|---|
| Bosch | 55.5 | 18,087 | 2,012 | 15.6% |
| Schaeffler | 59.7 | 8,547 | 1,058 | 19.2% |
| Uno Minda | 66.6 | 16,775 | 934 | 17.5% |
| Bharat Forge | 62.3 | 15,123 | 923 | 11.2% |
| GNA Axles | 13.1 | 1,484 | 102 | 12.5% |
“Looks like the least drunk guest at a wedding full of finance bros.”
12. Miscellaneous – Shareholding, Promoters
Promoter Holding: 68.95% (as of June 2025)
FIIs: 0.56%
DIIs: 11.32%
Public: 19.17%
Bonus issue in FY24 (1:1), solar plant commissioned, and family settlements sorted – because nothing says “professional” like intra-family litigation cleaned up.
13. EduInvesting Verdict™
GNA Axles is that silent, steel-wielding workhorse with zero PR but decent torque. It’s not a multibagger, but if you like your investments boring, metal-heavy, and grinding at 150 debtor days – you might just vibe with it.
“A mid-cap pitstop. Bring your own grease and patience.”
Written by EduInvesting Team | 25 July 2025
Tags: GNA Axles Ltd, Auto Components, FY26 Q1 Results, Edu Style Article, SEBI Regulation 30, EduInvesting Premium
