1. At a Glance
GNA Axles is that quiet Punjabi factory owner who doesn’t scream on TV ads but keeps exporting metal to the world and cash to the bank. With a market cap of ~₹1,886 Cr and a stock price of ~₹439, the company has suddenly decided to wake up investors by delivering a 26% YoY jump in quarterly profit while sales politely stayed flat.
In Q3 FY26 (Dec 2025), revenue came in at ₹375 Cr, PAT at ₹32 Cr, and OPM jumped to ~18%, which is the kind of margin expansion that makes accountants smile and auto OEMs slightly nervous.
The stock is up ~39% in 3 months and ~47% in 6 months, despite operating in a sector that investors usually treat like a cyclical headache. Add exports at 52% of revenue, ROCE of ~14%, debt-to-equity of 0.22, and suddenly this axle maker is behaving like a disciplined gym-bro instead of a rusty tractor part supplier.
But don’t get carried away just yet. Sales growth over the last few years has been… let’s say “emotionally unavailable.” So the big question is: Is GNA Axles finally shifting gears, or is this just a torque spike before the next speed breaker?
2. Introduction
Auto component companies are like background dancers in a Bollywood item number — nobody notices them until they stop moving. GNA Axles has spent years quietly supplying axle shafts and spindles to tractors, trucks, and off-highway vehicles while investors chased shinier EV stories.
Founded in Punjab and now exporting to North America, Europe, South America, and Asia, GNA Axles has built a solid niche in rear axle shafts, which account for ~74% of revenue. Add spindles (~20.5%) and a dash of other shafts, and you get a company that is deeply entrenched in the drivetrain ecosystem.
FY24 wasn’t exactly a victory parade. Sales growth was muted, CV cycles were soft, and tractors weren’t throwing parties either. But margins held, balance sheet stayed sane, and management
quietly approved a ₹400 Cr capex plan — the corporate equivalent of saying, “Boss, picture abhi baaki hai.”
Now with SUV axle shafts, light vehicles, and EV components on the radar, GNA is trying to de-risk its dependence on MHCVs and tractors. Whether this turns into a multi-year growth story or just a well-machined detour depends on execution — and demand cycles behaving like adults.
So let’s open the bonnet and see what’s really going on.
3. Business Model – WTF Do They Even Do?
If you remove GNA Axles from the auto ecosystem, a lot of vehicles would just sit there looking confused.
The company manufactures rear axle shafts (2 kg to 150 kg) — yes, everything from small tractors to heavy commercial vehicles — along with spindles and drive shafts. These parts are critical, high-precision, and not something OEMs casually change suppliers for after a bad lunch.
Revenue Mix FY24:
- Axle Shafts: 74%
- Spindles: ~20.5%
- Other Shafts: ~5.5%
End-Market Split:
- Commercial Vehicles: 65%
- Off-Highway (tractors, construction, agri): 35%
This is a classic cyclical cocktail — when CVs sneeze, GNA catches a cold. That’s why management has started flirting with SUVs, LVs, and EV components, which have smoother demand curves and better long-term visibility.
Manufacturing happens at two plants in Punjab, with an installed capacity of ~6.7 million pieces per annum.
