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Gabriel reported 19% YoY increase in net sales to ₹1,274 crore

ICICIdirect Research 22 Jul 2026 DISCLAIMER

News: On standalone basis, Gabriel reported 19% YoY increase in net sales to ₹1,274 crore. EBITDA for the quarter came in at ₹107 crore with corresponding margins at 8.4%, down 50 bps QoQ. PAT surged by ~27% YoY to ₹76 crore. On the sunroof segment it clocked ~₹ 150 crore sales and ~11% EBITDA margins. Announces two major acquisitions.

View: Gabriel delivered steady results for Q1FY27, but the major highlights were the acquisition it has announced. Gabriel India's board has approved two strategic investments that significantly broaden its automotive components portfolio and reinforce its role as the ANAND Group's listed growth and consolidation platform. The larger transaction involves the acquisition of 29% stake in HL Mando Anand India Pvt. Ltd. (HMAI) from the promoter Asia Investments Pvt. Ltd. for a total consideration of ₹2,231 crore, comprising ₹1,881 crore through the preferential allotment of 1.44 crore Gabriel shares and ₹350 crore in cash. The transaction implies an equity valuation of approximately ₹7,695 crore for HMAI, translating into an implied P/S multiple of ~1.4x based on FY25 revenue of ₹5,425 crore, and an implied P/E of ~20x based on FY25 PAT of ₹388 crore—a reasonable valuation for a profitable, technology-focused auto components company with established OEM relationships in steering, braking and suspension systems. Separately, Gabriel India will acquire a 30% stake in HL Klemove India Pvt. Ltd. for USD 98.44 million (~₹945 crore). Based on FY26 revenue of ₹1049 crore, the transaction values HL Klemove at an implied P/S multiple of ~3.0x, reflecting the premium typically accorded to fast-growing ADAS and automotive electronics (ECU) businesses. Strategically, the acquisition provides Gabriel with exposure to autonomous driving technologies and automotive electronics through a long-term 70:30 joint venture with HL Klemove. These are positive developments and are intended to be executed at very reasonable valuations, making us structurally long term positive on Gabriel India. The company continues to be the growth engine for the group and now accounts for ~65% of group turnover vs. ~40% before, within group’s broader aim to augment its turnover to ₹ 50,000 crore by FY30 vs. ~₹ 20,000 clocked in FY25.

Impact: Positive

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