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• Winning new orders: During the quarter the company has won various order on EV segment such as in domestic market received new order from Aprilia, won an EV platform from TVS, Platina from BAJAJ, new business from Suzuki EV platform and for OLA MotorCycle.  The PV segment won a new order for Swift platform from MSIL as second source, Curve platform from TATA and also working on EV other platforms.
• Diversification into Sunroof to reduce single product dependency: GIL has a leadership position in the suspension systems, supplying and catering to all segments such as 2W, 3W, PV, CV, and railways and is also having support from parent Anand Group. In order to foray into a new edge product which is agnostic to power terrain technology and healthy growth prospectus, GIL has forayed into Sunroof system. Demand for sunroofs remains robust. The price difference between panoramic and normal sunroofs is almost double and current import content is 50-60%. The company has technical collaboration and alliance with Inalfa Roof Systems (51:49) for manufacturing sunroofs in the domestic automotive market. The company has received some RFQs, and the current capacity is expected to reach 50-60% utilisation of the first-line capacity by FY25. Additional capacity can be added within 3-4 weeks’ time.

Outlook & Valuation: We have positive view on the stock supported by: 1) foray into high growth and power terrain technology agnostic product like sunroof system; 2) scaling up the technological capabilities; 3) steady revenue visibility in the aftermarket (export leading the show); 4) increasing share of business in PV segment; and 5) winning new orders from E-2W OEM and expanding capacity. We rate the GIL with ADD rating with a TP of Rs.395, based on 23x on FY26E EPS.

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