Synopsis: Gabriel India is in focus after the company unveiled its merger plans in June 2025, where it intends to unlock its business potential by merging other units from its investment vehicle and has a goal of achieving a revenue of Rs 50,000 crore by 2030.
The shares of this flagship company of the ANAND group are in focus after the company is poised to achieve a next staggering milestone in the next five years, as laid out by the management, because of the upcoming merger. In this article, we will dive deeper into the highlights of it.
With a market capitalisation of Rs 13,876 crore, the shares of Gabriel India Ltd closed at Rs 966 per share, up 1.6 percent from its previous day’s closing price of Rs 950.60 per share. Over the past five years, the stock has delivered a multibagger return of 740 percent, outperforming NIFTY 50’s return of 71 percent.
Merger highlights
Gabriel India is mainly known for making suspension products like shock absorbers. In FY25, Gabriel generated about Rs 3,643 crore in revenue. The ANAND Group has set an ambitious goal to reach Rs 50,000 crore in revenue by 2030, representing a growth of nearly 1,300 percent. Gabriel will be the main driver to help achieve this target. To make this happen, Gabriel is bringing several automobile businesses under Asia Investments Private Limited (AIPL) directly into its operations.
One of these businesses is Anchemco. This company produces brake fluids, radiator coolants, diesel exhaust fluids (AdBlue), and special automotive adhesives. In FY25, Anchemco reported revenue of about Rs 329 crore, with EBITDA of around Rs 38 crore and a PAT of about Rs 14 crore.
So, it is profitable, although its margins are moderate compared to some other group businesses. By integrating Anchemco into Gabriel, the company gains a recurring consumables business, which strengthens its presence in the aftermarket.
Another key business is Dana Anand, a joint venture that manufactures axles, driveshafts, and EV transmission systems. This operation is larger and more profitable. In FY25, Dana Anand recorded revenue of about Rs 2,670 crore, EBITDA of Rs 428 crore, and PAT of around Rs 319 crore, with EBITDA margins close to 16 percent.
It is a strong, high-return business supplying major OEMs. Once consolidated at the economic interest level, it will significantly improve Gabriel’s overall scale and profitability.
Then there is Henkel Anand, which makes body-in-white products and noise, vibration, and harshness (NVH) solutions. In FY25, Henkel Anand generated revenue of about Rs 890 crore, with EBITDA of Rs 227 crore and PAT of Rs 161 crore. Its EBITDA margin was a very strong 26.5 percent, demonstrating high operational efficiency. This business adds technology-heavy, value-added products to Gabriel’s portfolio.
The third joint venture is Anand CY Myutec (ACYM), which manufactures synchronizer rings and aluminium forgings used in transmission systems. In FY25, ACYM reported revenue of around Rs 204 crore, EBITDA of Rs 25 crore, and PAT of about Rs 12 crore.
If we combine all the units’ revenue (along with Gabriel India), we can see that the group reported a combined revenue of Rs 8,156 crore in FY25, which is a staggering CAGR growth of nearly 44 percent.
So, coming down to the merger stages, it would look like this. First, Anchemco will merge into AIPL. Then, AIPL’s entire automotive business, which includes Anchemco and its investments in Dana Anand, Henkel Anand, and ACYM, will be separated and transferred into Gabriel. In return, Gabriel will issue 1,158 shares for every 1,000 shares held in AIPL.
After this transaction, promoter shareholding in Gabriel will rise from 55 percent to about 63.5 percent, while public shareholding will drop to 36.5 percent. The transaction is valued at roughly 8 times FY25 EV/EBITDA. Independent valuers like KPMG and BDO have reviewed the deal, and ICICI Securities has issued a fairness opinion.
Management has also indicated that the merger is expected to boost earnings per share by around Rs 7, which translates into nearly 41 percent growth for FY25 based on economic interest.
In simple terms, Gabriel is shifting from being a single-product suspension company to becoming a diversified automotive components platform. It will now engage in suspension, EV drivetrain parts, axles, body structures, NVH solutions, transmission components, brake fluids, and coolants. This move reduces reliance on one product line and increases involvement in fast-growing segments like EV transmissions.
Most importantly, this expansion is occurring without a significant cash outflow or additional debt. It is mainly a share swap, and the merger is expected to be completed by June 2026.
If completed successfully, Gabriel will no longer just be a suspension company. It will evolve into a multi-product automotive major, positioned at the centre of the group’s ambitious Rs 50,000 crore revenue goal by 2030, supported by several profitable, technology-driven businesses. It also aims to be among the top five shock absorber manufacturers in the world.
Financials and Other Highlights
The revenue from operations for Gabriel India stands at Rs 1,179 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 1,017 crores, up by 16 per cent YoY. However, on a QoQ basis, it reported a slight decline of 0.08 percent from Rs 1,180 crore.
Also, EBITDA stood at Rs 110.6 crore in Q3 FY26, a growth of 20 percent as compared to Rs 92.5 crore in Q3 FY25. However, on a QoQ basis, it reported a decline of 5 percent from Rs 116.2 crore. Also, coming to the margins front, EBITDA margins increased by 40 bps YoY, reaching 9.4 percent in Q3 FY26.
Coming down to its profitability, the company’s net profit stood at Rs 54.7 crore in Q3 FY26, a decline of 9 percent as compared to Rs 60.1 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a decline of 21 percent from Rs 69 crore. Also, coming to the margins front, PAT margins declined by 40 bps YoY, reaching 3.8 percent in Q3 FY26.
Over the past five years, the company has delivered a sales CAGR growth of 14 percent and what’s more interesting is that during the same period, it grew its net profit by a CAGR of 20 percent, which means that the company is already enjoying the benefit of operating leverage.
Its ROE and ROA also remain robust at 19 percent and 11.8 percent respectively. The company is also maintaining a healthy dividend policy, as over the past few years its dividend payout has significantly increased from just 0.90 per share in FY21 to Rs 4.70 per share in FY25. Dividend payout during the same period has increased from 21 percent to 32 percent. This signifies that not only does the company continue its growth momentum, but it also awards its shareholders consistently.
Coming to the sales mix, the company derives 62 percent of its total sales from the two and three-wheeler (including aftermarket), in which it has a strong foothold with a 32 percent market share. It derives 24 percent of its sales from passenger vehicles (including aftermarket) with a market share of 25 percent, and it derives the remaining 13 percent of its sales from Commercial Vehicles (including Aftermarket and Railways), in which it has a monopoly kind of position with a staggering 87 percent market share.
The company also has a foothold in the export market with Rs 34 crore (3 percent of revenue) coming from the segment. In this the company exports the majority of its products to Asia and the Americas, with 29 percent of exports, followed by 22 percent from the European market, 15 percent from Africa and the remaining 5 percent from Australia. Through exports, the company derives 53 percent of its sale from the OEM segment, followed by the remaining 47 percent from the aftermarket.
Other Highlights
Gabriel is expanding beyond its traditional suspension business and moving into future mobility with the e-bike segment. The company has acquired Upside Down Fork (USD) technology, which strengthens its position in premium suspension systems. Several European customers have already placed sample orders, and discussions are ongoing to turn these into mass production contracts. Gabriel has also filed patent applications for two new designs, highlighting its focus on technology-driven differentiation and high-value offerings instead of just incremental growth.
At the same time, Gabriel has entered the solar energy segment with solar dampers. This move aligns with the global shift toward renewable energy. Solar trackers help panels follow the sun to improve energy generation efficiency. These systems require reliable damping to reduce vibration and prevent structural damage. The global solar damper market is estimated to be around USD 326 million in 2025 and is expected to grow at a nearly 14.9 percent rate between 2025 and 2030. Gabriel has already secured orders from three customers in domestic and export markets, with export samples submitted and feedback anticipated soon.
This diversification comes as major economies set ambitious solar capacity targets for 2030. China aims for 900 GW, while the US and India target 300 GW each, and Europe has a goal of 350 GW. As installations increase globally, the demand for high-quality engineering components like dampers is expected to rise. Gabriel’s entry into e-bike suspension technology and solar dampers shows a broader strategic shift. The company is positioning itself as a diverse engineering solutions provider involved in long-term trends such as electrification, premium mobility, and renewable energy.
Also, on May 23, the company entered into a JV with Netherlands-based Inalfa Roof systems, which is world no. 2 in automobile sunroof systems, whose penetration is improving over the years. It has a plant in Chennai, which has an operational capacity of 4 lakh sunroof units annually for its client, namely Hyundai and Kia, and the company intends to hit a revenue of Rs 1000 crore by 2030 from this JV. The name of the JV is INALFA GABRIEL SUNROOF SYSTEMS (IGSSPL) and as per the new arrangement, Inalfa will hold 35 percent of IGSSPl and the remaining 65 percent stake will be held by Gabriel India.
Other JV’s include JINHAP, which is an affiliate of Jinos and is a global player in auto and industrial fastener technology and precision forged products. It also has a partnership with SK Enmove (part of SK group, Korea’s 2nd largest conglomerate, which is the world’s largest producer of premium base oil with 500 + blending formulations and global presence in Lubricants
Gabriel India Limited manufactures suspension systems, shock absorbers, and other automotive parts for nearly every type of vehicle, cars, trucks, bikes, and more. The company offers its products both in India and internationally, and it is recognised for developing innovative, advanced solutions for the automotive industry.
Coming off a massive 700 percent rally over the last five years, Gabriel India is now at a crossroads as it initiates a major overhaul that could lead to nearly 1,300 percent revenue growth, aligning with the group’s Rs 50,000 crore revenue goal by 2030.
The merger on the cards is set to not only double its product range but also to bring in lucrative joint ventures, enhance its foothold in EV drivetrain components and technology, driven segments, and thus set the company as the main growth driver of the ANAND Group.
However, it is to be noted that the company is trading at a higher valuation as compared to its peers; both its P/E and EV/EBITDA ratios currently remain elevated as compared to its median and industry averages. So any slowdown in the company’s growth can significantly impact its stock price.
On the other hand, even if the strategic intent and scale expansion are obvious, the actual main factor of long-term value creation will be the smooth integration, margin sustainability, competitive positioning, and continuous execution across cycles. Whether Gabriel can turn this structural change into growth at par with or beyond its previous stock performance is still a matter of disciplined delivery rather than mere ambition.
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