Gabriel India Q1 FY27 Results (NSE: GABRIEL)
Signal: Growth decelerated
The read
Q1FY27 standalone revenue grew +18.9% YoY to ₹1,274 Cr, but OPM contracted 210bps QoQ to 10.1% as raw material cost-to-sales rose 140bps YoY and employee cost plus other expenses outpaced revenue sequentially. Consolidated PAT (controlling) grew only +2.0% despite 15.5% revenue growth — margin compression and higher tax dampened the flow-through. The headline event is the proposed acquisition of 28.99% in HL Mando Anand and ~30% in HL Klemove India through a mix of preferential equity (18,81 Cr) and cash (350 Cr) — this repositions Gabriel as ANAND Group's consolidation platform and significantly expands its electronics/driveline exposure. Execution is pending shareholder and regulatory approvals.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹127.42 Cr | 18.9% | 5.3% |
| EBIT | ₹12.86 Cr | 14.2% | |
| Net profit | ₹7.6 Cr | 27.4% | |
| EPS | ₹4.29 | 27.7% | |
| EBIT margin | 10.1% |
P&L walk
Consolidated revenue ₹1,425.68 Cr +15.5% YoY; OPM at 10.1% contracted 210bps QoQ from 12.0% — employee costs grew 5.0% YoY and other expenses +15.6% YoY outstripped revenue growth; associate income was strong at ₹42.74 Cr (Reported share of profit) vs ₹38.72 Cr YoY, up 10.4% YoY. PAT (controlling) ₹107.35 Cr +2.0% YoY; lower YoY growth due to higher depreciation and tax expense.
Key positives
- Standalone revenue ₹1,274 Cr +18.9% YoY — accelerated from Q4's +12.8% YoY.
- Standalone PAT ₹75.97 Cr +27.4% YoY — growth outpacing revenue on lower finance cost and higher other income.
- Consolidated associate income ₹42.74 Cr +10.4% YoY — strong recurring contribution from associates (Henkel, Dana, SK Enmove).
- Two strategic acquisitions approved — 28.99% of HL Mando Anand (driveline) and ~30% of HL Klemove India (electronics) — diversify product mix and add high-growth adjacencies.
Key concerns
- Consolidated OPM contracted 210bps QoQ to 10.1% — raw material cost-to-sales rose 150bps YoY to 73.9%.
- Consolidated PAT (controlling) grew only +2.0% YoY to ₹107 Cr — flat despite revenue +15.5%.
- Promoter preferential allotment at ₹1,305.89 per share (vs CMP ~₹1,435) may dilute equity by ~8% (1.44 Cr shares on 14.36 Cr existing base) — EPS headwind ahead.
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