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Sunroofs and New Mobility Platforms to Drive Visibility: Sunroofs remain a key structural growth vector for GABR. The recent order from Hyundai to supply 3 different variants, translates into ~130,000 units and ~INR 1,200 Mn of annual revenue. This will strengthen long-term order book visibility and supports improved utilisation of the second sunroof line to 60–70% as it transitions to a hybrid configuration. Beyond core segments, GABR is selectively expanding into emerging areas, such as e-bikes, solar dampers and EV components, building optionality across new mobility platforms.

Diversification to Support Sustainable Growth: Strategic diversification efforts are gaining momentum with the inclusion of Anchemco and equity stakes in Dana Anand, Henkel Anand and ACYM, adding scale and product diversity. This supports an estimated revenue CAGR of ~20% over FY25–28E. Additionally, GABR’s joint venture with SK Enmove, in which it holds a 49% stake, expands its presence into automotive and industrial lubricants.

We expect these initiatives to supplement the strong core business and support sustained growth. We believe GABR is well-positioned to diversify its revenue mix, reduce single-product dependence and drive a gradual uplift in PV market share in the medium term.

View and Valuation: We revise our FY26/27/28E EPS estimate downwards by 6.0%/6.0%/8.0%, factoring in short-term margin pressure. We value the company at 28x P/E multiple on FY28E EPS and arrive at a target price of INR 1,050. Driven by an improved growth visibility, a strong order pipeline and a medium-term earnings recovery outlook, we upgrade our rating on the stock, from ‘REDUCE’ to ‘BUY.’

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