GNA Axles Ltd Q2 FY26 – Shafts, Spindles & Solar Dreams: When Punjab’s Forging Kings Decide to Power Up the EV Era
1. At a Glance
If you think axles are boring, you haven’t met GNA Axles Ltd, Punjab’s homegrown gearhead that quietly manufactures the backbone of global drivetrains — quite literally. The company just rolled out its Q2 FY26 results with sales of ₹3,480 million (₹348 crore) and PAT of ₹312 million (₹31.2 crore). That’s a modest 9.3% profit growth YoY, even as sales dipped by about 10% thanks to the slowdown in commercial vehicle (CV) exports.
At ₹314 per share, GNA Axles’ market cap stands at ₹1,347 crore, trading at a reasonable P/E of 12.8x, with an ROE of 12.5% and dividend yield near 1%. In a sector where margins are often thinner than tandoori rotis, their Operating Margin of 14.8% still deserves applause.
But here’s the spicy part — while other component makers are chasing EV badges and IPO buzz, GNA is sticking to its steel-and-forge roots, adding a 4 MW solar rooftop plant just to flex that it’s eco-friendly while hammering out 6.7 million axle pieces a year.
The story is classic Punjab: family-run, asset-heavy, no drama — except the occasional “family settlement” BSE announcement.
2. Introduction
Let’s get this straight — if cars are the body, GNA Axles is the spinal cord. Without its shafts, nothing moves. Founded back in the day when Indian auto ancillaries were busy copying Japanese catalogues, GNA quietly forged its way into the global supply chain.
Today, it exports 52% of its production across 50+ countries — from tractors in North America to off-highway monsters in Europe. Their client list reads like a who’s who of machinery: John Deere, Dana, Kubota, CNH, M&M, and TAFE.
The company doesn’t make flashy dashboards or smart sensors. It makes the parts that take punishment, not Instagram likes. Yet, behind the smoke and molten steel, there’s an unmistakable ambition brewing — ₹400 crore capex over four years, aimed at light vehicle, SUV, and EV axles.
In short: they want to go from being the unsung hero of tractors to the backbone of Teslas-on-a-budget.
3. Business Model – WTF Do They Even Do?
GNA Axles makes rear axle shafts, spindles, and other drivetrain components. If that sounds boring, that’s because it’s supposed to be — this is the stuff that keeps the wheels literally turning.
Their flagship product, the rear axle shaft, makes up 74% of total revenue, followed by spindles (20.5%) and other shafts (5.5%). The mix screams “we know what we’re good at, and we’ll keep hammering it.”
Let’s decode their revenue pipeline like a car mechanic who moonlights as a finance nerd:
Consumer segment: 65% from commercial vehicles (CVs), 35% from off-highway and agri equipment.
Geography: Exports 52% of revenue, with Asia leading at 51%, followed by North America (24%), Europe (15%), and South America (10%).
Production capacity: 6.7 million units per annum from two massive facilities in Hoshiarpur and Kapurthala, Punjab.
They recently entered the SUV axle shaft segment to balance the cyclicality of CV demand. Imagine GNA Axles as the quiet blacksmith who finally decided to enter the SUV gym to flex new muscles.
4. Financials Overview
Source table
Metric (₹ million)
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
3,480
3,875
3,440
-10.2%
1.2%
EBITDA
610
540
500
12.9%
22.0%
PAT
312
285
230
9.3%
35.6%
EPS (₹)
7.27
6.65
5.36
9.3%
35.7%
Annualised EPS = ₹7.27 × 4 = ₹29.1 → P/E = 314 / 29.1 ≈ 10.8x, below industry average of 33.4x.
GNA’s Q2 was a mixed bag — top line shrunk, but profit margins held steady thanks to better cost control and export realization. Essentially, they sold fewer shafts but made each one count.
5. Valuation Discussion – Fair Value Range
(a) P/E Method: EPS (FY25 TTM) = ₹24.5 Industry P/E = 33.4 Fair Value Range (10x–18x) = ₹245 – ₹440
