Gabriel India Shares Hit 20% Upper Circuit on Restructuring Plans

On Tuesday, the Gabriel India share price touched 20 percent upper circuit limit with a day’s high price of Rs. 842.75 on NSE after the company’s exchange filing revealed that it has unveiled a major corporate restructuring plan aimed at transforming the company from a mono-product suspension component manufacturer into a diversified, technology-driven mobility solutions provider. 

The restructuring involves a composite scheme of arrangement with its parent company, Asia Investments Private Limited (AIPL), and Anchemco India. Under this scheme, Gabriel India will acquire AIPL’s automotive business undertakings, including Anchemco’s operations in brake fluids, radiator coolants, diesel exhaust fluid (DEF), AdBlue, and PU/PVC based adhesives, along with equity holdings in Dana Anand India, Henkel Anand India, and ANAND CY Myutec Automotive. This consolidation will significantly broaden Gabriel’s product portfolio beyond suspension systems to include drivetrain components for electric vehicles (EVs), body-in-white and noise, vibration, harshness (NVH) solutions, synchroniser rings, aluminium forgings, and sunroofs, among others.

The share swap ratio for this transaction has been set at 1,158 equity shares of Gabriel India for every 1,000 equity shares held in AIPL, with the deal valued at approximately 8x FY25 EV/EBITDA. The restructuring is expected to be completed within 10 to 12 months, pending regulatory and shareholder approvals. As per Anjali Singh, the executive chairperson, this move aligns with the broader ANAND Group’s ambitious target of achieving Rs. 50,000 crore in revenue by 2030, with Gabriel India positioned as the key growth driver within the group.

Gabriel India in FY25 posted a 19.3 percent year-on-year revenue increase, reaching Rs. 4,063 crore, driven by higher sales volumes and broad-based demand. EBITDA surged 34 percent to Rs. 390 crore, with margins expanding by 105 basis points to 9.6 percent, showcasing improved operational efficiency and cost management. Net profit also grew impressively with 36.87 percent growth year on year, reaching Rs. 245 crore with margins expanding to 6 percent in FY25.

The company is also aggressively expanding its presence in premium and emerging mobility segments. Gabriel's joint venture with global sunroof leader Inalfa, Inalfa Gabriel Sunroof Systems Pvt. Ltd., has rapidly scaled operations since its launch in March 2024. Sunroof revenues hit Rs. 420 crore in FY25, constituting around 10 percent of Gabriel’s topline. They have plans to double capacity by late 2025 through two new lines in Chennai. The localisation of components is at 30 percent, with a target of 50 to 60 percent over the next three to five years. The long-term ambition for this vertical is to reach Rs. 1,000 crore in revenue by 2030.

In addition to sunroofs, Gabriel is entering the solar damper market, which supports solar tracker systems critical for renewable energy installations. This segment is projected to grow at a 15 percent CAGR through 2030, with a market opportunity of USD 326 million by 2025. 

Gabriel has onboarded two export customers and one domestic client, with production expected to start in FY26. They are targeting revenues of Rs. 200 to Rs. 300 crore within three years. Gabriel is also positioning itself in the rapidly growing e-bike component market, engaging with several European OEMs to develop high-performance forks and other parts. Although it is still in early stages.

While these diversification efforts offer significant growth potential, Gabriel India acknowledges execution risks, including customer commitments for capacity expansions, technology maturation in solar dampers, and contract closures in the e-bike segment.