Gabriel India Ltd
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Gabriel India Ltd Q2 FY27 Results Analysis: Revenue Jumps 22.9%, Margin Compresses 49 bps

Cofacto Research Published October 30, 2026 4 min read
Positive

Gabriel India Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,608.00 Cr (+22.90% YoY) and PAT growth of +15.81% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateOctober 30, 2026
Revenue (Q2)Rs. 1,608.00 Cr (+22.90% YoY)
PAT (Q2)Rs. 123.97 Cr (+15.81% YoY)
EBITDA margin11.77% (-49 bps YoY)
EPS (Q2)Rs. 3.79 (+9.54% YoY)

Quarter Snapshot

Gabriel India delivered 22.9% YoY consolidated revenue growth and 15.8% PAT growth, with the HMAI acquisition already contributing via a 39.6% YoY rise in associate profit (Rs.483 Mn). Execution on Project Jupiter and HL Klemove was on schedule, the credit rating was upgraded to AA+/Stable, and net worth targets were met early. Key watch items are commodity-driven margin compression (EBITDA margin -49 bps YoY), a 134.5% jump in finance costs from the Rs.10,000 Mn NCD, and weak cash conversion (CFO/PAT 0.54x) from receivables build-up.

Management Guidance vs Delivery

What management saidWhereWhat happenedVerdict
Standalone capex Rs.150–180 Cr FY27CFO, Q1 FY27 concallH1 FY27 capex Rs.68.59 Cr (Rs.685.92 Mn) — 38–46% of annual guidance deployed in H1On Track
Net worth >Rs.4,000 Cr by Mar 31, 2027CRISIL rationaleStandalone other equity Rs.34,025.96 Mn (Rs.3,402.60 Cr) — already above target with 6 months remainingExceeded
Adjusted gearing <0.30xCRISIL rationaleDebt-equity ratio 0.27x (standalone) — within guidance rangeMet
Project Jupiter completion Sep–Oct 2026CRISIL expectationCompleted Sep 11, 2026 (HMAI acquisition) — within guidance timelineMet
HL Klemove payment 75% by Sep 15, 2026Mgmt, Q1 FY27 concallAcquisition completed Aug 25, 2026; 75% paid upfrontMet
FORVIA seating JV completion Dec 31, 2026Mgmt, Q1 FY27 concallJV incorporated Oct 19, 2026; completion pendingOn Track
"Margin dip of 80–100bps" (Q1 FY27) due to commodity inflation and lag in cost recoveryCFO, Q1 FY27 concallEBITDA margin (consolidated, pre-associates) declined from 12.26% (Q2 FY26) to 11.77% (Q2 FY27) = 49 bps compression — margin pressure persists but less than flagged rangePartially confirmed
"Finance costs to rise" following Rs.1,000 Cr NCD at 8.15%Mgmt, Q1 FY27 concallFinance costs increased 134.5% YoY to Rs.147.28 Mn (consolidated) — significant increase as guidedConfirmed
"Project Jupiter will be EPS accretive from day one"Chairman, AGM presentationShare of profit from equity accounted investees: Rs.483.00 Mn (Q2 FY27), up 39.6% YoY; EPS Rs.6.80 vs Rs.6.01 YoY — associate contribution visible in P&LConfirmed
"Operating leverage via CORE 90 framework"CFO, Q4 FY26 concallOperating margin: 7.12% (Q2 FY27) vs 7.68% (Q2 FY26) — declined 56 bps — margin compression despite frameworkNot confirmed

Key Numbers, Quarter by Quarter

MetricQ2 FY26Q3 FY26Q4 FY26Q1 FY27Q2 FY27Trend
Standalone EBITDA Margin (notes)9.0%9.0%9.1%8.4%8.21%Declining — 79 bps below Q2 FY26
Consolidated EBITDA Margin (notes)9.8%9.4%9.7%8.7%11.77%Pre-associates P&L-derived; not directly comparable
Standalone Revenue (Rs. Cr)1,0661,0721,1111,2741,399Accelerating — +22.7% YoY
Consolidated Revenue (Rs. Cr)1,1801,1791,2101,4261,608Accelerating — +22.9% YoY

Key Investment Insights

Key Positives

  • Consolidated revenue grew 22.9% YoY to Rs.16,079.96 Mn; H1 FY27 revenue up 19.3% YoY
  • Share of profit from equity accounted investees rose 39.6% YoY to Rs.483 Mn, reflecting HMAI acquisition contribution
  • Consolidated PAT grew 15.81% YoY to Rs.1,239.69 Mn; standalone PAT grew 11.6% YoY
  • CRISIL upgraded credit rating to AA+/Stable from AA
  • Standalone net worth of Rs.3,402.60 Cr already exceeds the >Rs.4,000 Cr Mar 31, 2027 target (per source note); adjusted gearing at 0.27x within <0.30x guidance
  • Project Jupiter (HMAI, 28.99% stake) completed Sep 11, 2026 within guided timeline; HL Klemove (29.99%) completed Aug 25, 2026 with 75% paid upfront
  • Inventory turnover improved to 11.71x from 10.22x YoY
  • Effective tax rate declined to 16.33% from 17.73% YoY

Risk Factors

  • Cost of materials as % of revenue rose 212 bps YoY to 74.90%; EBITDA margin contracted 49 bps YoY to 11.77%
  • Finance costs surged 134.5% YoY to Rs.147.28 Mn after Rs.10,000 Mn NCD at 8.15% coupon (Rs.815 Mn annual interest burden)
  • CFO declined 42.7% YoY to Rs.780.24 Mn; CFO/PAT ratio fell to 0.54x from 1.13x
  • Trade receivables increased Rs.1,820.31 Mn in H1 FY27 vs Rs.1,011.26 Mn prior year
  • Standalone operating margin contracted 56 bps YoY to 7.12% despite the CORE 90 framework
  • Interest service coverage ratio declined to 11.15x from 29.92x YoY
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.

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