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Key Conference Call Highlights

Industry update & Performance

* Consolidated revenue grew 12.7% YoY to INR 12.1 Bn in Q4FY26, while FY26 consolidated revenue increased 14.9% YoY to INR 46.7 Bn

* Domestic automotive industry continued witnessing a strong momentum with 2W production up ~12% YoY in FY26, PV industry up ~9% YoY and CV production up ~13% YoY

* Gabriel continued outperformed underlying industry average growth across segments, supported by strong customer traction, aftermarket growth and contribution from Chakan-2 operations

* 2W/3W segment reported ~14.2% YoY growth in FY26, led by strong demand from TVS, HMSI and Yamaha, while PV segment grew ~16.7% YoY, aided by strong UV demand from M&M and MSIL

* CV business remained the strongest performer with 34.8% YoY growth in FY26, supported by rising demand for cabin dampers and multiple SOPs for AL

Sunroof business update (IGSSPL):

* IGSSPL reported Q4FY26 revenue of ~INR 990 Mn with EBITDA margin at ~14.6%, while FY26 revenue stood at ~INR 4.34 Bn with EBITDA margin of ~15.1%

* Gabriel sold ~170k sunroof units in FY26, while domestic sunroof penetration currently stands at 24–25% in passenger vehicles

* The company highlighted temporary Q4FY26 weakness due to lower-thanexpected Kia Syros production ramp-up; however operational efficiencies and sourcing initiatives supported margin recovery QoQ

* The management maintained long-term EBITDA margin guidance of 12– 14% for the sunroof business

* Second production line with additional capacity of ~200k units became operational in FY26 at Chennai, taking total annual installed capacity to ~400k sunroofs

* The management reiterated its aspiration to scale up Sunroof revenues to ~INR 10 Bn by 2030

Challenges:

* Q4FY26 margin witnessed temporary pressure due to sharp increase in commodity cost, particularly aluminium, plastics and steel, along with supplychain disruptions during March

* The management highlighted acute shortages of aluminium and gas in Q4FY26, forcing prioritisation of OEM supplies over exports and aftermarket business

Outlook & guidance:

* The management remains optimistic on long-term domestic automotive demand, supported by localisation trends, infrastructure development and healthy customer sentiment

* Gabriel reiterated confidence in sustaining a long-term margin improvement trajectory despite temporary commodity headwinds and supply-chain disruptions

* Sunroof business is expected to maintain EBITDA margin in the 12–14% range while new program launches and capacity ramp-up support growth

* The management remains confident of achieving planned business targets across solar dampers, lubricants and fasteners in the medium term

Capex & balance sheet:

* FY26 standalone capex stood at INR 1.89 Bn as compared to INR 1.28 Bn in FY25, primarily towards Chakan-2 integration, Hosur-2 land acquisition and plant expansion initiatives

* FY27 capex guidance stands at INR 1.5–1.8 Bn aimed at supporting growth initiatives and maintaining asset-turnover discipline

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