At a Glance
Gabriel India delivered a smooth ride in Q1 FY26, reporting Sales of ₹985 Cr (+14% YoY) and Net Profit of ₹56 Cr (+9% YoY). The stock jumped 4.4% to ₹1,028, proving even investors love a cushioned landing. With zero significant debt and an ROCE of 26%, Gabriel is the automotive suspension guru that’s still flexing.
Introduction
Remember that feeling when your bike hits a pothole but doesn’t break your spine? Thank Gabriel India. This Anand Group company has quietly built a shock absorber empire, supplying to everything from two-wheelers to Vande Bharat coaches. While peers struggle with margin bumps, Gabriel keeps gliding with double-digit growth. However, at P/E of 68, the stock is priced like it’s selling Tesla tech, not dampers.
Business Model (WTF Do They Even Do?)
- Segments:
- 2W & 3W: Among top 3 in India, leader in 3W.
- Passenger Cars: Preferred struts/shocks supplier to OEMs.
- Commercial Vehicles & Railways: ~89% market share, including indigenous dampers for Vande Bharat.
- Aftermarket: Strong presence with “fit-and-forget” products.
Revenue streams come from OEMs, Aftermarket, and Exports. Essentially, they control how comfy your ride feels – and they make money doing it.
Financials Overview
Q1 FY26 Results:
- Revenue: ₹985 Cr (+13.9% YoY)
- EBITDA: ₹88 Cr (OPM 9%)
- PAT: ₹56 Cr (+8.8% YoY)
- EPS: ₹3.88
FY25 Snapshot:
- Revenue ₹3,643 Cr
- PAT ₹212 Cr
- ROE 19.6% – healthy as ever.
Valuation
- P/E: 68.3 (premium for growth)
- P/B: 12.8 (nosebleed territory)
- Fair Value Range: ₹850 – ₹1,050 using peer EV/EBITDA and historical multiples.
What’s Cooking – News, Triggers, Drama
- JV Move: Acquired 51% stake in Jinhap Automotive India with Jinos Co. (Korea) to enter fasteners.
- EV Opportunity: Already supplying to EV 2W manufacturers.
- Macro Tailwinds: Auto demand up, rail infra boom ongoing.
Balance Sheet
| Assets | ₹ Cr |
|---|---|
| Total Assets | 1,786 |
| Net Worth | 1,156 |
| Borrowings | 9 |
| Liabilities | 621 |
Auditor’s Punchline: Debt is almost non-existent. This company doesn’t borrow – it just rides high on its own cash.
Cash Flow – Sab Number Game Hai
| Year | Ops | Investing | Financing |
|---|---|---|---|
| FY23 | ₹136 Cr | -₹104 Cr | -₹34 Cr |
| FY24 | ₹189 Cr | -₹120 Cr | -₹52 Cr |
| FY25 | ₹146 Cr | -₹101 Cr | -₹67 Cr |
Remark: Healthy ops cash flow, investing aggressively, financing negative because dividends & buybacks.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 19.6% |
| ROCE | 26.4% |
| D/E | 0.0 |
| OPM | 9% |
| P/E | 68.3 |
Verdict: Ratios are sexy, valuation stressy.
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹2,972 Cr | ₹214 Cr | ₹132 Cr |
| FY24 | ₹3,343 Cr | ₹290 Cr | ₹185 Cr |
| FY25 | ₹3,643 Cr | ₹322 Cr | ₹212 Cr |
Consistent growth – the kind long-term investors love.
Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Bosch | 18,087 | 2,012 | 58 |
| Schaeffler India | 8,547 | 1,058 | 59 |
| Uno Minda | 16,775 | 934 | 65 |
| Gabriel India | 3,764 | 216 | 68 |
Peers are bigger, Gabriel is niche and expensive – classic “quality at a price”.
Miscellaneous – Shareholding, Promoters
- Promoters: 55%
- FIIs: 5.97% (rising)
- DIIs: 15% (rising)
- Public: 24%
Smart money creeping in – not a bad sign.
EduInvesting Verdict™
Gabriel India is the silent cash machine in auto components. Dominance in railways and 3W, coupled with strong aftermarket, makes it resilient. Valuations are stretched, but growth + near-zero debt keep bulls excited.
SWOT
- Strengths: Market leader, diversified segments, debt-free.
- Weakness: High valuation, thin margins (9%).
- Opportunities: EV shock absorbers, JV in fasteners, railway expansion.
- Threats: Raw material volatility, competition, P/E derating risk.
Final Word: Gabriel’s stock is like its products – designed to absorb shocks. But at P/E 68, even a small bump could rattle valuations. Long-term, still a smooth ride.
Written by EduInvesting Team | 29 July 2025SEO Tags: Gabriel India, Q1 FY26 Results, Auto Components Stocks, Anand Group
