Gabriel Q1: revenue up 15% but consolidated PAT flat YoY as margins compress
PAT +2% YoY · revenue +15.5% · margins compressing
₹1,425.68 Cr
+15.5% YoY
₹108.13 Cr
+2% YoY
7.56%
+1.9pp YoY
₹6.06
Gabriel India's Q1 FY27 (consolidated, primary basis) delivered ₹1,425.7 Cr revenue, up 15.5% YoY and 3.3% QoQ against the restated base, but net profit of ₹108.1 Cr (₹107.4 Cr attributable to owners) was essentially flat — just +2.0% YoY and down 9.2% sequentially. Net margin compressed roughly 100 bps to ~7.5% (from ~8.5% a year ago), and EPS printed ₹6.06 on an enlarged share count. Profit trailing revenue by such a wide margin is the story of the quarter, not the double-digit topline.
Q1 FY-2027 vs prior quarters
The drag sits in the group layer, not the core. Standalone tells the opposite story: revenue ₹1,274.2 Cr (+18.9% YoY), PAT ₹76.0 Cr (+27.4% YoY) with margin EXPANDING to ~5.96% — the ride-control plus newly-merged Anchemco business is healthy. The >20-point divergence between standalone (+27%) and consolidated (+2%) PAT growth comes from the subsidiary/JV tier — principally the Inalfa Gabriel sunroof operation, exactly the margin pressure management flagged on its last call (localization at 33%, targeting 60% within ~1.5 years). Consolidated operating margin slipped to ~6.4% from ~7.0%; a ₹42.7 Cr share of associate profit (+10% YoY) cushioned the bottom line but could not offset the subsidiary softness.
The stock went into the print at ₹1,441.8, up 16.1% over the past month of trading.
Comparisons must be read on the restated basis: a Composite Scheme of Arrangement demerged the promoter's Automotive Undertaking into Gabriel effective 1 April 2026 (pooling-of-interest, prior periods restated), so pre-scheme records showing a year-ago ₹1,098 Cr / ₹62 Cr consolidated are a different, smaller entity and not comparable. The board also fired off major concurrent actions: agreeing to buy 28.99% of HL Mando Anand India (steering/braking/suspension; ~₹5,425 Cr FY25 turnover, ₹388 Cr PAT) for ₹2,231 Cr via a ₹1,881 Cr preferential allotment to promoter AIPL plus ₹350 Cr cash — lifting promoter stake from 42.67% to ~46.98% — and 30%-minus-one of HL Klemove India for $98.44M; alongside a leadership change, Mahendra Goyal elevated to Group CEO & MD and Atul Jaggi re-designated MD (Ride Control).
W1
Consolidated margin recovery from ~7.5% NPM — sunroof (Inalfa Gabriel) localization at 33%, management target 60% within ~1.5 years
W2
Hero MotoCorp SOP (guided early FY27) ramp and Hyundai sunroof order (SOP Dec 2027) volume contribution in coming quarters
W3
HMAI equity-method earnings (₹388 Cr FY25 PAT) once the 28.99% acquisition closes (targeted by FY27-28 AGM); associate income already ₹42.7 Cr/qtr
Clean digital filing (limited review, unaudited). Source in Rs Million, ÷10 to Cr. No exceptional item this quarter (prior quarters carried a labour-code past-service charge). CRITICAL: Composite Scheme of Arrangement restated ALL prior periods (Automotive Undertaking demerged from promoter Asia Investments into Gabriel eff 1-Apr-2026, pooling-of-interest) — growth computed vs PDF's RESTATED comparison columns, NOT our pre-restatement DB (₹1,098 Cr rev/₹62 Cr PAT year-ago = pre-scheme, not comparable; would falsely show ~+73%). Consolidated PBT includes ₹42.743 Cr share of associate profit; consol PAT ₹108.126 Cr total incl ₹0.775 Cr NCI → ₹107.351 Cr attributable to owners (used for YoY/EPS). Paid-up capital rose to 177.23M shares (from 143.64M) via scheme, diluting EPS base.