Gabriel India Limited — Q4 FY26

Gabriel India Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Okf1vQhKX48 Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Gabriel India Limited Q4 FI26 earnings conference call. This call 0:10 10 seconds may contain forward-looking statements about the company that are based on the beliefs, opinions, and expectations of the company as on date of this call. 0:21 21 seconds These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. 0:29 29 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:39 39 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:48 48 seconds Please note this conference call is being recorded. 0:52 52 seconds I now hand over the call to Mr. Atul Jaki, managing director from Capri India Limited. Thank you and over to you sir. 1:01 1 minute, 1 second Yeah. Uh thank you. Uh uh good afternoon and a very warm welcome to everyone on the call. I hope uh everybody is doing 1:10 1 minute, 10 seconds well. So uh joining me today we have uh Mr. Mander our group CEO. Uh Mr. 1:16 1 minute, 16 seconds Mitraasta our CFO, Mr. Nilles Jan our company secretary and SGA our investor relationship advisor. 1:24 1 minute, 24 seconds We have uploaded our results and uh presentation for the quarter ended 31st March 20 uh 2026 1:32 1 minute, 32 seconds on the stock exchanges and on the company's website. I hope each one of you had a chance to go through the same. 1:39 1 minute, 39 seconds Coming to the Indian automotive industry, I think the industry witnessed a strong recovery and healthy demand 1:46 1 minute, 46 seconds momentum during uh the last quarter uh which continued even in the month of April also uh with most of the vehicle segments reporting record uh sales. 1:58 1 minute, 58 seconds Uh coming to two wheeler the production grew 21% year one year in the quarter 4 FY26. This growth was 12% overall for the uh year FY26. 2:11 2 minutes, 11 seconds Uh while the overall growth was 12%, the scooter segment saw 17% uh overall 2:17 2 minutes, 17 seconds growth. Uh this uh was uh helped uh I think the recovery happened as we know post the GST uh and uh also the finance 2:27 2 minutes, 27 seconds availability infrastructure and other rural cash flow impacts also helped the uh strong recovery in the two-heer segment. Coming to the passenger 2:35 2 minutes, 35 seconds vehicle, the production grew 11% yearonear in the quarter for FY26. 2:43 2 minutes, 43 seconds If you look at the overall year, it was 9% with UVs outperforming overall industry growing 12% yearonear. 2:50 2 minutes, 50 seconds Uh definitely the uh consumer sentiments post the GST uh related benefits flowing in and the lower interest rates uh help this uh growth momentum. 3:02 3 minutes, 2 seconds uh the commercial vehicle production also grew uh very healthy 19.5% in the quarter 4 FY26 this was 13% year on year 3:10 3 minutes, 10 seconds with M and FCV yearon-year growth at 16%. 3:15 3 minutes, 15 seconds So this overall growth highlights the resilient domestic demand and improving customer sentiments despite uh the 3:23 3 minutes, 23 seconds global uncertaintities and uh uh fuel prices and commodity related issues that are going on. 3:30 3 minutes, 30 seconds Uh the ongoing West Asia conflict remains a key event under monitoring for the 3:37 3 minutes, 37 seconds entire uh sector. Uh the with sharp changes in the crude oil prices uh can 3:44 3 minutes, 44 seconds impact the affordability negatively. Uh it can also impact the consumer sentiments if it prolongs for a for a 3:52 3 minutes, 52 seconds long period of time. we are already seeing up increases in the uh in the commodities currently. 4:00 4 minutes uh so but overall if you look at the long-term outlook uh for the Indian automotive industry it remains very 4:07 4 minutes, 7 seconds positive uh it is supported by definitely by the policy reforms infrastructure development that we see 4:14 4 minutes, 14 seconds all around lot of localization initiatives taken across and then the rising consumer demand 4:23 4 minutes, 23 seconds so before going to the company's performance and I would like to share a quick update on the restructure ing post 4:30 4 minutes, 30 seconds which we'll uh take you through brief overview of our operations and key highlights. 4:37 4 minutes, 37 seconds So I would like to update you all uh that the composite scheme involving the amalgation of ENMCO India Private 4:44 4 minutes, 44 seconds Limited into Asia Investment Private Limited followed by the de merger of automotive undertaking into Gabriel India has now received key shareholder 4:53 4 minutes, 53 seconds and NCT approvals with the scheme becoming effective from 22nd May 2026. 5:01 5 minutes, 1 second Speaking on the performance of the company, I am pleased to announce that the board of directors have recommended a final dividend of rupees 3.1 per 5:09 5 minutes, 9 seconds equity share of face value of rupees 1 each subject to shareholders approval at the coming AGM including the interim 5:18 5 minutes, 18 seconds dividend of rupees 1.9 per equity share declared earlier during the year. The total dividend for FY26 stands at rupees 5:26 5 minutes, 26 seconds 5 per equity share compared to rupees 4.7 per equity share declared in uh FY25. 5:34 5 minutes, 34 seconds Now talking about the standalone performance in quarter 4 FI 26 our standalone operating revenue grew by 19% 5:41 5 minutes, 41 seconds yearonear reaching a revenue of 1111 crores supported by higher volumes and strong sales performance including 5:48 5 minutes, 48 seconds aftermarket in all our segments for FY26 we stood at rupes 4,223 5:56 5 minutes, 56 seconds cringing 16% yearon year all segments showed LB doubledigit growth outperforming the underlying industry 6:04 6 minutes, 4 seconds Growth quarter 4 FY26 standalone adjusted AITA grew by 16% yearonear 6:10 6 minutes, 10 seconds reaching rupees 101 cr with margin at 9.1%. For FY26 this stood at rupees 383 6:18 6 minutes, 18 seconds crores growth of 18% YI with AITA margin at 9%. 6:24 6 minutes, 24 seconds The quarter 4 FY26 PD the four exceptional items grew 15% Y to rupees 6:30 6 minutes, 30 seconds 86 cr with a margin of 7.7% for FY26 this stood at rupees 335 cr growth of 18% Y with BT margin of 7.9%. 6:42 6 minutes, 42 seconds Coming to the consolidated performance in quarter 4 FY26 our consolidated operating revenue grew by 13% yearon 6:50 6 minutes, 50 seconds year reaching to rupees 1210 cr or FY26 this stood at uh rupees 4,667 6:58 6 minutes, 58 seconds cring y in quarter four fy 26 the consolidated 7:05 7 minutes, 5 seconds adjusted grew by 6.5% y reaching rupes 119 cr in margin at 9.7% 7:13 7 minutes, 13 seconds for FY26 this stood at 452 cr of 15% Y with a beta margin at 9.7%. 7:22 7 minutes, 22 seconds What are four FY26 consolidated PBT before exceptional items grew 5.5% Y to rupees 92 cr with a margin of 7.6% 7:31 7 minutes, 31 seconds for FY26 they stood at rupes 350 cr of 8% Y and PBT margin of 7.5%. 7:39 7 minutes, 39 seconds In coming to the subsidiary performance in Q4 FI26 in Alpha Gabriel Sunrof System Private Limited reported revenue 7:47 7 minutes, 47 seconds from operations of rupees 99 crores and debit of 14.5 cr with a margin at 14.6%. 7:54 7 minutes, 54 seconds FY26 revenues stood at 434 crores and AITA of 65.4 crores with a margin at uh 15.1%. 8:02 8 minutes, 2 seconds On that note I come to the end of my opening remarks. So I now request the moderator to begin the uh Q&A session. 8:09 8 minutes, 9 seconds Thank you. Thank you very much. 8:15 8 minutes, 15 seconds We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 8:25 8 minutes, 25 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use hands while asking the question. 8:36 8 minutes, 36 seconds Further, ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participants in the question queue, 8:45 8 minutes, 45 seconds we request you to kindly limit your questions to two per participant at the start. 8:50 8 minutes, 50 seconds If you have a follow-up question, please rejoin the queue again. 8:54 8 minutes, 54 seconds Ladies and gentlemen, we will wait for a moment while the question QM. 9:05 9 minutes, 5 seconds A reminder to all you may press star and one to ask a question. 9:14 9 minutes, 14 seconds We will take the first question from the line of Mammuk Mandlesa from Anandrati Institutional Equities. Please go ahead. 9:22 9 minutes, 22 seconds Yeah. Uh thank you for the opportunity and congrats on the result and the NCT approval. 9:28 9 minutes, 28 seconds Uh so firstly to Mahindra sir u uh just on the uh an group uh had earlier shared 9:35 9 minutes, 35 seconds about the 230 target of 50,000 cr and with Gabriel as a automotive growth engine for the group. uh just want to 9:44 9 minutes, 44 seconds check would you like to share an update on the progress on this milestone and what are the opportunities areas you are seeing on in our weekly area and how 9:53 9 minutes, 53 seconds Gabriel expected to play role uh in this uh target. 9:58 9 minutes, 58 seconds Yeah, thanks uh uh for the question and uh I think uh uh the way we have been discussing in past uh uh over a year. I 10:07 10 minutes, 7 seconds think the same uh continues uh from uh the Gabriel perspective. Uh I think we discussed very well which is on course 10:15 10 minutes, 15 seconds that uh the Gabriel is a growth engine uh for the group. Uh therefore all the businesses the new businesses which we 10:23 10 minutes, 23 seconds are entering into those are forming part of uh Gabriel uh and of course whatever new initiative which we are taking those will form part of the Gabriel basically. 10:34 10 minutes, 34 seconds So that is what uh our overall uh objective from from the uh Gabriel role 10:41 10 minutes, 41 seconds in 50,000 cr and how do we see Gabriel in his growth journey basically. So, so that's very clear and uh and that's 10:48 10 minutes, 48 seconds message has not changed uh uh from the past communication uh and as far as 50,000 is I think the target is very 10:58 10 minutes, 58 seconds much uh remain with us and we are very hopeful that as we are progressing in this journey uh we should be able to uh 11:06 11 minutes, 6 seconds achieve this target in 2013 and of course uh uh it's too early to say anything on this but uh we are making 11:14 11 minutes, 14 seconds good progress in the currenter to move ahead in this journey. So I think we will update you soon on this but it's too early to comment anything on this specifically with any transaction. 11:25 11 minutes, 25 seconds Got it sir. And just uh so continuing with you sir again uh on the uh with the NC approvals done sir now for the four 11:33 11 minutes, 33 seconds companies uh just want to understand how's the progress for the next companies uh which can be brought to Gibbri and just want to understand if 11:42 11 minutes, 42 seconds any if any challenges are there from the partner side and how should one look at the timelines. 11:49 11 minutes, 49 seconds I think uh good thing is that LCT has approved after the shareholders approval. So thanks to all the shareholders for their approval and uh 11:59 11 minutes, 59 seconds now in the process of uh doing the rest of the formalities I think which should be taking another another one month or 3 12:06 12 minutes, 6 seconds weeks from now. So we hope that uh this entire restructuring which we did we should be able to accomplish by end of 12:14 12 minutes, 14 seconds June or middle of June or maybe third week of June actually. So that is what first thing we want to conclude uh now 12:21 12 minutes, 21 seconds and uh as far as uh uh uh with respect to the bringing other businesses into the Gabriel fold uh as I said in past uh 12:30 12 minutes, 30 seconds there is a complete uh intention to bring all those businesses into the Gabriel fund and uh again I can't commit 12:38 12 minutes, 38 seconds any timeline because it's too early to comment on a transaction but uh as far as the challenges which someone asked uh 12:45 12 minutes, 45 seconds there is no challenges is uh the way we look at uh the next uh next part of exercise. 12:53 12 minutes, 53 seconds Got it. It's a great this sir. Uh uh so coming to Atul sir um uh just can you 13:00 13 minutes just provide update uh for new uh new uh new uh opportunities like with the go JV 13:08 13 minutes, 8 seconds which is on the fasteners solar dampers and lubricant JV sir. 13:14 13 minutes, 14 seconds Yeah. So uh I think all the new opportunities are progressing as per the timelines that we had defined. Uh uh uh 13:23 13 minutes, 23 seconds I think you can start from the solar dampers. As I said I think there is a there's a business pipeline that is getting created. Uh it takes obviously 13:32 13 minutes, 32 seconds uh the products uh are in various stages of either development or testing or validation. Uh there are certain assured 13:40 13 minutes, 40 seconds businesses. uh one from Europe, there's a local business, there's a North America business also. But yes, as as you know, they have to all go through 13:48 13 minutes, 48 seconds the uh the approval process, the validation process uh there and uh the entire development pap etc cycles have 13:57 13 minutes, 57 seconds to go through. So that is that is going on. Uh well uh even on the bike side also as I mentioned last time I think we 14:04 14 minutes, 4 seconds have we have got the first uh uh first order uh from a European customer uh just to just to share uh with you a new 14:13 14 minutes, 13 seconds which has just just come I think one of the very innovative product you know there was a Eurobike going on currently 14:21 14 minutes, 21 seconds there's Eurobike going on in Germany. uh yesterday night itself I've just got a news that Gabriel uh has got an 14:29 14 minutes, 29 seconds innovation uh award for our uh integrated uh dropper post that we have created along with a European company 14:38 14 minutes, 38 seconds biggest light maker which is called supernova. Uh so we will be getting that recognition on 24 we have already patented that product. So uh I think the 14:47 14 minutes, 47 seconds progress has been good uh and uh um at different stages. Now coming to uh the 14:55 14 minutes, 55 seconds uh the SK uh part of it. Uh so SK I think uh we are on course we 15:02 15 minutes, 2 seconds started the operations uh in this quarter already and uh the company started generating sales. Uh we should be uh moving the good in this direction. 15:14 15 minutes, 14 seconds Whatever business plan we made I think we should be achieving that number in the first year. that is something on course now and people are there uh uh we 15:23 15 minutes, 23 seconds are recruiting the team I think everything is going as per the plan and as far as the is concerned JF construction is going on of the building 15:31 15 minutes, 31 seconds that should be uh we are expecting that to end sometime in September and then uh we will start the commercial production 15:39 15 minutes, 39 seconds by Q3 of Q4 of the calendar year or Q3 of the financial year uh in the current 15:46 15 minutes, 46 seconds year and that will also start generating ing sales in the current year. So that is what uh update on on these two joint ventures. 15:54 15 minutes, 54 seconds So just to only add uh there again uh some good information. I think while they are small uh wins starting up but 16:01 16 minutes, 1 second any we have couple of wins already uh with two of the customers in the case of SK and we have also one business win in 16:09 16 minutes, 9 seconds the uh already. So I think that that work has started and as I said I think as per the timeline 16:18 16 minutes, 18 seconds Got it sir. Yeah. Uh got it. So this custom new wins uh would be us on the OEM side for the 16:27 16 minutes, 27 seconds Yeah. Yeah. They are on the OEM size just to share with you. One is with the Mahindra through the American XL and one is with the MOIS which is primary on the 16:35 16 minutes, 35 seconds EV battery fluid side as I said and Jab it is obviously uh with with the Korean 16:42 16 minutes, 42 seconds customer. So got it. anything to share sir in terms of numbers uh how do you see the revenues for the next few years? 16:53 16 minutes, 53 seconds Uh yeah see we we have already shared the business plan with you. It is it is as I Mr. Go also mentioned I think the Janab startup production is expected in 17:01 17 minutes, 1 second quarter 3. Uh what we are seeing is there we are in the process of creating the timeline and obviously the factory 17:08 17 minutes, 8 seconds is coming up. uh too early to put uh bigger numbers there but yes this every business will adds up to the number 17:17 17 minutes, 17 seconds right so whereas we are also creating for SK we are creating a complete distribution network uh some small sales have started happening even in April 17:24 17 minutes, 24 seconds also I think uh obviously in the uh in the coming months we would be we'd be sharing but yes we build block by block 17:34 17 minutes, 34 seconds got it sir got it great to hear this sir uh last in between a moment Yes. 17:42 17 minutes, 42 seconds Yeah. 17:44 17 minutes, 44 seconds Thank you. We will take the next question from the line of Amit Hanandani from Philip Capital. Please go ahead. 17:52 17 minutes, 52 seconds Uh yeah, thanks for the opportunity and congress for good set of combust. Sir, my question is revolving only on the 17:58 17 minutes, 58 seconds sunroof businesses. So if you know help us understand the reason for uh why have why decline the revenues as well as Q1 Q 18:07 18 minutes, 7 seconds also there is some some decline we have observed uh even your top key customers have reported some volume growth. Uh 18:14 18 minutes, 14 seconds secondly uh aida margin for sunroup uh has improved on a Q1 Q basis. Uh so 18:22 18 minutes, 22 seconds wanted to understand the reason and sustainability of the same. Uh continuing with the sunroof only any new order wins uh apart from the Korean 18:30 18 minutes, 30 seconds customers and uh finally on the uh you know bookkeeping like how many sunroofs total units sold in FI26 and the 18:38 18 minutes, 38 seconds penetration level we wanted to understand for the two fiscal FI25 and 26. 18:44 18 minutes, 44 seconds Okay Mo you want to take the uh the margin part first and then I come in. Uh I think uh sir I'll take uh couple of 18:52 18 minutes, 52 seconds questions in terms of uh replying. So we we sold close to 170,000 uh uh sun rooms 19:00 19 minutes in the year FY 2526 and uh the quarter and quarter drop you 19:07 19 minutes, 7 seconds see because of the KIA Syros uh the anticipation was that this nucleus 19:15 19 minutes, 15 seconds the buildup and ramp up was happening which we could not see in this quarter hence uh the drop in revenue happens uh 19:22 19 minutes, 22 seconds with respect to the margin which has improved from the quarter quarter on quarter. I think uh last quarter we 19:29 19 minutes, 29 seconds announced the additional quality impact being taken into the P&L along with the uh measures being taken to mitigate that 19:37 19 minutes, 37 seconds impact through operational efficiency and our sourcing efficiency. So some work has happened and which is also 19:44 19 minutes, 44 seconds reflected in this quarter uh results and we expect that momentum to continue uh going forward. Uh having said that we 19:53 19 minutes, 53 seconds continue to maintain our position that Sunu business margin at capital level remains between 12 to 14%. 20:03 20 minutes, 3 seconds Yeah. Uh sir you can come in on the uh next part of yeah the on the new business side uh uh again like in last call I mentioned uh 20:12 20 minutes, 12 seconds three business wins uh with the Korean customers. uh we have uh uh we have 20:20 20 minutes, 20 seconds quoted uh uh for one of the uh local customers which I said that we were in advanced discussion so some progress has happened but yes the decision is yet to 20:28 20 minutes, 28 seconds be made uh there uh as soon as it is made uh we will be sharing with you and there are some some other RSQs also we 20:37 20 minutes, 37 seconds are working with both of the current customers also there 20:44 20 minutes, 44 seconds okay on the penetration server pen ation level for FI 25 and 26 if you can highlight please 20:51 20 minutes, 51 seconds I think it is somewhere around 24 25% is the the final number variant to variant changes there 21:00 21 minutes but I think anywhere around that number is the is the penetration 21:06 21 minutes, 6 seconds right and secondly uh in the passenger vehicle shock absorber any new programs when especially in the FSD 21:15 21 minutes, 15 seconds uh and Secondly, within the two wheeler business, any timelines to start the business with Hero Motocop this is from my side. That's it. 21:24 21 minutes, 24 seconds On the passenger car, since you have asked specifically on the SSD, uh uh the uh there's one development that is going 21:31 21 minutes, 31 seconds on currently uh uh with Tata Motors on that. So that is one and then secondly again uh one or two discussions uh with 21:41 21 minutes, 41 seconds the with different customers uh uh on offering this technology is going on. Uh but yes in in the development it is 21:48 21 minutes, 48 seconds currently one model. Uh on the hero side uh the first uh launch we are expecting startup production we are expecting in 21:56 21 minutes, 56 seconds quarter two uh uh there and uh uh that is the the first business that we had 22:03 22 minutes, 3 seconds won and uh there are couple of other businesses which are under discussion and negotiation with them which we would 22:10 22 minutes, 10 seconds uh hopefully be closing soon. So but quarter two uh you can uh you can assume 22:17 22 minutes, 17 seconds the start of production Sure sir. Thank you sir and I'll I'll come back in the queue. Thank you. 22:23 22 minutes, 23 seconds Thank you sir. 22:26 22 minutes, 26 seconds Thank you. We will take the next question from the line of Jay Khali from Ilara Capital. Please go ahead. 22:34 22 minutes, 34 seconds Yeah. Uh thanks for taking my question and congratulations on a steady state of numbers and a challenging environment. U so my first question is on the uh 22:43 22 minutes, 43 seconds subsidiaries the four subsidies that you have announced from a merger perspective. uh while you have you know you you have to progressively give uh 22:50 22 minutes, 50 seconds you know disclos your financials but just an indication of how have they performed uh in this fiscal your standalone revenues grew by 16% you know 22:59 22 minutes, 59 seconds broadly uh how have they performed as a combination of four entities have they outperformed the standalone revenue growth and just come some color on how 23:07 23 minutes, 7 seconds the integration is going on uh and the second question is on uh you know SK innovation of course you started off with one product but they have a global 23:15 23 minutes, 15 seconds suit of uh uh many products uh you know how are we seeing discussions of further expanding the product portfolio over 23:23 23 minutes, 23 seconds here and any any any uh you know uh incremental information or uh headways that we've made on that side. 23:31 23 minutes, 31 seconds So uh J if if I may come in M here uh probably first uh question. So with 23:38 23 minutes, 38 seconds respect to the scheme entities the annual financial audit is ongoing and we 23:44 23 minutes, 44 seconds expect that audit conclusion to happen uh by the middle of June and and as 23:52 23 minutes, 52 seconds informed earlier from quarter one onwards uh we will consolidate the numbers. Hence we will be able to share 23:59 23 minutes, 59 seconds the better outlook with the with the numbers for FY 2526 and the Q1 numbers as well. At this point of time since the 24:07 24 minutes, 7 seconds audit is going on we may not be able to uh share the specifics about the entity. 24:13 24 minutes, 13 seconds So in general uh in general these companies are performing as per the market and uh so uh I think we don't see 24:22 24 minutes, 22 seconds any anything uh uh which is uh which is to be highlighted to uh alarming anything which need to be highlighted. I 24:29 24 minutes, 29 seconds think everything is going as for the plan and as per the market actually. So that is on uh on this associates and 24:36 24 minutes, 36 seconds subsidy companies and as far as uh SK group is concerned our relationship is right now for the lubricant business. So 24:44 24 minutes, 44 seconds that we want to first uh make sure for at least for a year and then maybe later we will see what could be the other 24:52 24 minutes, 52 seconds other opportunity uh with the group uh SK group to work on other products. 25:00 25 minutes Okay. Uh and second question is on you know on the uh MMAS financials that you know we we had targeted a turn or at 25:07 25 minutes, 7 seconds least PBD break even by uh Q4 you know how are we in that journey uh you know of course with with commodity costs 25:15 25 minutes, 15 seconds increasing how you know how the pass through is happening for that entity as well as the overall business. 25:22 25 minutes, 22 seconds Okay. So on the on the MMAS uh again uh the progress has been good uh from where we started and where we ended the year. 25:29 25 minutes, 29 seconds I think uh there's been a significant progress I would say surely say I think uh we have crossed the AITA positive uh 25:37 25 minutes, 37 seconds mark uh almost almost close to break even there. Uh not not uh uh through that but yes almost there uh on that 25:46 25 minutes, 46 seconds part. uh now we have also been able to stabilize that plant uh uh because that had lot of challenges which I think we 25:55 25 minutes, 55 seconds have been we have discussed earlier also uh we have also now since the operations have stabilized and obviously the 26:02 26 minutes, 2 seconds technology piece is taken care of the the basic fundamentals are taken care of we have now started working on new RFQS 26:09 26 minutes, 9 seconds also uh there in that particular plant uh now it is it is not specific to MMAS 26:17 26 minutes, 17 seconds on the commodity side you know the escalations are are there and I think every effort uh is being put to have a 26:24 26 minutes, 24 seconds backto-back recovery for that because which is definitely mandatory so uh the escalations are being worked out with 26:31 26 minutes, 31 seconds all the customers all the commodities there because they are all steep uh increases and principally I would say 26:39 26 minutes, 39 seconds the customers are aligned to pay uh there and I think that is that is the current status I I have not seen a 26:46 26 minutes, 46 seconds customer which is which is indicating that they will not pay. So yes we we continue that recovery because the 26:54 26 minutes, 54 seconds prices are also changing on a monthly basis I would say. So that's but it is not specific to uh J it is not specific 27:02 27 minutes, 2 seconds to MMA it is across the business across the group understood just one last in that light 27:09 27 minutes, 9 seconds any updated targets about your margin trajectory closer to 10% uh going ahead especially in this current scenario 27:17 27 minutes, 17 seconds that's also my thank you yes I think what what we have all learned from covid is that every what 27:25 27 minutes, 25 seconds are every six months every year brings a new challenge Okay. So our targets whether it is margin improvement or whether it is going to 50,000 crores or 27:33 27 minutes, 33 seconds whether it is uh continuing the acquisition journey uh I think they cannot get derailed I would say uh in 27:42 27 minutes, 42 seconds the mind also uh because of certain happenings I think these we we have all learned to live with these and we have all learned to overcome these 27:50 27 minutes, 50 seconds challenges. Yes, a month here and there can happen but the fundamental targets don't change and I'm sure the kind of 27:57 27 minutes, 57 seconds steep increase that is there the moment things streamlined uh streamlines I think this will come back to normal it may take a quarter here and there but 28:06 28 minutes, 6 seconds it'll be there so that doesn't uh change the target uh that we have taken 28:16 28 minutes, 16 seconds thanks and I'll come back in the queue thank you thanks sir Thank you. We will take the next question from the line of Radha from Motila Losal Financial Services Limited. 28:27 28 minutes, 27 seconds Please go ahead. 28:30 28 minutes, 30 seconds Hello sir. Thank you for the opportunity. Uh so my question is with with regards to Dana uh says the exports 28:37 28 minutes, 37 seconds from Dana Indian entity to the global uh companies have gone up uh from about 30% 28:43 28 minutes, 43 seconds in 2019 to 40% in 2025. So can you please highlight the growth opportunity in the exports market over and above the 28:52 28 minutes, 52 seconds respective industry growth in those regions? I mean are there any geographies which is rethinking strategies with respect to shifting 29:00 29 minutes manufacturing to India or if you could talk about any new product introductions or any new business apart from the Mahindra SUV that you mentioned. Uh so 29:09 29 minutes, 9 seconds basically I wanted to understand where do you see the scale of this business in the next two three years. So I think uh 29:15 29 minutes, 15 seconds export business has been priority uh for in Dana and it's the export going back 29:23 29 minutes, 23 seconds to the partner uh basically the global location. So I think uh uh from that point of view we continue to grow this 29:31 29 minutes, 31 seconds business the way it has been growing in past. So we don't see any any any hurdle uh anything on this uh but I can't 29:38 29 minutes, 38 seconds comment on any number specifically or any geography but uh but uh the strategy is to shift the global operation as it 29:47 29 minutes, 47 seconds is appropriate time uh for for them also uh to India. So that that continue I think we are doing good and continue to do good actually. 29:59 29 minutes, 59 seconds Okay sir. Uh thanks and second is sir uh if you look at the historical financials of donor India and the returns it seems 30:07 30 minutes, 7 seconds like there is still a lot of scope to ramp up the production um with the current gross block and hence there could be a scope for further operating 30:15 30 minutes, 15 seconds levels. So uh your current margins in that business is already higher than all the other peers in India as well as global. So is it a fair understanding 30:24 30 minutes, 24 seconds that margin there is a potential for further margin expansion in the data business or this is or or do you think 30:31 30 minutes, 31 seconds this is the case? No we we as I said that it's going on well so it's continue you know all challenges very difficult 30:39 30 minutes, 39 seconds to comment on margin sometimes the exchange going up going down there are commodity impacts uh there is a volume 30:46 30 minutes, 46 seconds uh volume changes many times so I think uh at least whatever visibility we have today uh based on that we don't see any 30:54 30 minutes, 54 seconds challenge uh things are going fine and they continue to good uh like that again I I would only add that I think 31:02 31 minutes, 2 seconds till the time the fundamentals of the company are strong. Okay. One a little challenge here and there on some impact that comes should not worry us. Correct. 31:13 31 minutes, 13 seconds And uh commodities etc are all taken care back to back there and I think has proven has a has a fantastic proven 31:22 31 minutes, 22 seconds record of continual improvement uh in operations in profitability and there's no reason why it should not continue. 31:31 31 minutes, 31 seconds Yes sir. Uh so last question is on Henkill. Uh the margins in the Henkill business has been quite volatile. So if 31:38 31 minutes, 38 seconds you can highlight what is the major base raw material that Henkill uses and where do you think the sustainable margins are for this company? 31:48 31 minutes, 48 seconds It's it's basically uh sometime commodity fluctuation is happening very 31:55 31 minutes, 55 seconds strongly especially in the current quarter. So I don't know really for the which number you are talking from the hankle perspective which year you are 32:03 32 minutes, 3 seconds talking. So I have no idea because uh as as mit said that uh our audit is going 32:10 32 minutes, 10 seconds on for the current year numbers the results will be out. So so our numbers are only available for 202425 after that 32:18 32 minutes, 18 seconds uh we have not declared any any number on this but yes uh uh I think uh the margins are uh continue the way it is. 32:27 32 minutes, 27 seconds Of course some challenges with respect to the commodity uh on the quarter to quarter could be there because there is 32:33 32 minutes, 33 seconds a recovery lag many times. So but yes uh uh otherwise there's no specific regions of changes of margins because I really 32:42 32 minutes, 42 seconds don't know which quarter you are comparing or which which year you are comparing. 32:48 32 minutes, 48 seconds I was talking about the last 10 years sir. 32:53 32 minutes, 53 seconds last 10 years uh yes there have been uh a lot of uh changes also in the business 33:01 33 minutes, 1 second uh sometime the product mix is changing uh new technologies coming so of course manufacturing facilities were shifted in 33:09 33 minutes, 9 seconds between uh where we have a cumulative production going on at Pune of course in those years when we had a large 33:17 33 minutes, 17 seconds investment uh probably had impact on the margins but yes uh last couple of years the company has been doing good and uh that's why we look at it. 33:31 33 minutes, 31 seconds All right. Thanks and all the best. 33:36 33 minutes, 36 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and one to ask a question. 33:45 33 minutes, 45 seconds We have the next question from the line of Dishan Chen from Anandati. Please go ahead. 33:51 33 minutes, 51 seconds Um thank you for the opportunity. Uh my question is regarding standalone results. Uh the gross margin were lower 33:58 33 minutes, 58 seconds by 90 bits Q on Q. So uh what would be the reason? Uh is it mainly due to higher input cost or mix of higher 34:06 34 minutes, 6 seconds four-wheeler or lower expose and any oneoffs to call in standalone and standoff margins in any other line item as well? 34:15 34 minutes, 15 seconds Yeah. Uh and thanks for the uh question. 34:19 34 minutes, 19 seconds So yes uh quarter four uh compared to quarter three uh saw a drop in the gross margin uh mainly due to material cost 34:27 34 minutes, 27 seconds impact and of course the material cost impact uh uh due to stream supply chain we have to prioritize and the mix also 34:36 34 minutes, 36 seconds took an impact where aftermarket and export uh volume took a backseat and the focus was to cater the line. uh war 34:46 34 minutes, 46 seconds impact also saw a couple of inflations being asked by suppliers which we had to incorporate to cater the lines. We have 34:53 34 minutes, 53 seconds logged the pain to the customers but due to the timing difference we had to take that impact into our audience. I think 35:00 35 minutes that has been the main reason for the uh increasing the cost which is eating the growth in m. 35:08 35 minutes, 8 seconds Okay. Uh so what would be the inflation range in terms of uh like mid single or high single digit moving forward? 35:16 35 minutes, 16 seconds It is uh it is impossible to decide because every day the commodity prices are uh changing because just to share 35:24 35 minutes, 24 seconds with you even the settlements also which used to happen quarterly, six monthly I think uh uh on certain commodities the the settlements are also happening now 35:33 35 minutes, 33 seconds on a monthly basis and customers are also releasing the purchase orders. So it is part to part it is there's a huge difference like if you take aluminium 35:41 35 minutes, 41 seconds and then you take plastics and then you take steel there is a huge difference in terms of inflation. So very difficult to 35:47 35 minutes, 47 seconds say uh where it will go and uh uh how it will change because the the March uh 35:56 35 minutes, 56 seconds rates were completely different than April. The uh April rates were completely different than May. uh the 36:03 36 minutes, 3 seconds war stops tomorrow, June may be much better, escalate, June may again see an increase. So that continues. So putting 36:11 36 minutes, 11 seconds a number is is is that I think most important is to ensure recovery. 36:17 36 minutes, 17 seconds Okay. Uh and my next question would be uh regarding Sandroof. So uh when should we see the next model ramp up for Sandroof and are there any uh wins in the last quarter or the last quarter? 36:29 36 minutes, 29 seconds Yeah, the previous quarter I I shared that three wins were there. This quarter while uh the RFQS have been addressed, there's no decision that has that has 36:37 36 minutes, 37 seconds happened. Uh in terms of in terms of the new models coming into production, I think I have already given 36:46 36 minutes, 46 seconds the dates earlier. Uh one of the EV models of Cyrus variant because you know Cyrus almost became zero. They have started producing in last few months. 36:55 36 minutes, 55 seconds Now EV uh for domestic and export is is is starting now. So that is that is going to be uh there. But uh all the new 37:03 37 minutes, 3 seconds models that are under development there are five of them actually they start coming in from the different ages in the of this year and then next year. 37:15 37 minutes, 15 seconds Okay. Thank you sir. 37:17 37 minutes, 17 seconds I I have already shared uh the dates in the in the past exact months when it is starting. 37:23 37 minutes, 23 seconds quarter three if I remember correctly but I I can check and again share also reshare that 37:30 37 minutes, 30 seconds okay thank you sir thank you thank you we will take the next question 37:38 37 minutes, 38 seconds from the line of Anurra Kaquad from Shri Bahubali stock broking please go ahead 37:46 37 minutes, 46 seconds hi uh congratulations on a great set of numbers uh could you could you uh tell how How much capeex are you planning in FY27? 37:57 37 minutes, 57 seconds Yeah, KPEX this year we uh did about 190 odds uh uh 38:07 38 minutes, 7 seconds and uh the rate which we take is about 160 to 180 crores of kicks and uh 38:14 38 minutes, 14 seconds endeavor is to keep uh the asset turn in line with what we have done in past 38:20 38 minutes, 20 seconds about 150 to 180 crores of cipex the group uh which we are targeting. to maintain. 38:29 38 minutes, 29 seconds Okay, understood. Uh, another question was on uh the semi active product that we talked about last quarter. Uh, so 38:36 38 minutes, 36 seconds have we have we onboarded any any customer for the commercialization of the semi-active product? 38:43 38 minutes, 43 seconds Yeah. So, uh, two parts to the the this question. One is on the two-heer side, one is on the car side. On the two-heer 38:50 38 minutes, 50 seconds side, the two uh developments with two customers have have started. uh they are already uh sort of uh so the alloys are 38:59 38 minutes, 59 seconds there and the development has started uh they will start coming in uh as per the timelines uh uh as per the development 39:07 39 minutes, 7 seconds timeline uh on the passenger car side uh uh while some collaborative work is happening with the customer but there is 39:14 39 minutes, 14 seconds no formal uh LOI as of now yes a P has been done with one of the customers and a P is is being planned with another 39:22 39 minutes, 22 seconds customer but as of now there's no formal LOI uh which is available. 39:29 39 minutes, 29 seconds Okay. And and what will be the margin here? Uh uh yes, 39:38 39 minutes, 38 seconds you won't need to tell the margin so that the OE start asking the discounts from here on but anyway margin will be better than the the current products. 39:46 39 minutes, 46 seconds Okay. I I can't put a number on this. Okay. Okay. Thank you. 39:57 39 minutes, 57 seconds Thank you. We will take the next follow-up question from the line of Amit Hidani from Philip Capital. Please go ahead. 40:06 40 minutes, 6 seconds Anything to read on the in the aftermarket side because the growth has tapered down in the Q4 despite we have added some new touch points also. Uh anything on the exports as well sir? 40:19 40 minutes, 19 seconds So uh I think I most touched on this point. It is after market. It is I think uh the growth uh uh the opportunity is 40:29 40 minutes, 29 seconds there. The growth was there. Yes. I think especially uh in the month of March there were certain challenges that were there primary on the supply chain 40:37 40 minutes, 37 seconds side uh owing to you know there was acute shortage of aluminium and gas in the month of March. So it was a u uh I 40:46 40 minutes, 46 seconds think uh the priority was to run the OEM lines uh there because there was some commitment there. I think that was the reason why you see a little dip in the 40:54 40 minutes, 54 seconds numbers. Otherwise uh things after market continues to grow. Uh it has been growing for last so many years and we 41:01 41 minutes, 1 second see good opportunity in terms of export also. Uh I think uh last year we had overall better numbers than the previous year. Uh uh that journey would continue. 41:12 41 minutes, 12 seconds Uh one or two new platforms are being discussed. Yes. uh they take their own time to sort of realize but yes uh we we 41:22 41 minutes, 22 seconds are very very focused on the aftermarket is nothing to worry uh 41:29 41 minutes, 29 seconds there it is it is more on the supply chain side I think I would say and this export uh Q4 drop was temporary 41:38 41 minutes, 38 seconds due to shipping challenges and all again there was certain delays there as I said I think because March uh a huge 41:48 41 minutes, 48 seconds uh pressure from the OEMs. Everybody was closing the year. Everybody wanted to have new records. Uh you know how the 41:55 41 minutes, 55 seconds commercial vehicle performed in the the last quarter. So uh and because of the 42:01 42 minutes, 1 second acute gas shortages, the tier 2s uh uh had major impacts uh to run their 42:08 42 minutes, 8 seconds plants. So it was uh there was a a calculated uh a conscious decision to uh 42:16 42 minutes, 16 seconds prioritize certain products uh from the OE side. 42:22 42 minutes, 22 seconds Understood. Uh sir second question to Mohit sir. uh sir uh if you can help us uh the total KX outlook considering all 42:31 42 minutes, 31 seconds the new entities as well and if you can uh you know give some bifurcation between the standalone sunroof and the new entities please. 42:40 42 minutes, 40 seconds Uh so for standalone I just uh uh clarified that for this year we did about approximately 190 crores of KP 42:49 42 minutes, 49 seconds next year outlook is looking between 160 to 190 odd crores for standalone business uh for consolidated entity 42:58 42 minutes, 58 seconds level as I mentioned that currently uh we are still under the last leg of uh uh 43:06 43 minutes, 6 seconds scheme conclusion and Mr. will inform that by middle of June we will conclude everything. So from Q1 onwards I think I 43:15 43 minutes, 15 seconds will be in a better position to give uh the outlook of the entities coming under through project rise. Uh so just wait 43:23 43 minutes, 23 seconds for one more quarter to give the uh consolidated outlook of the fix. 43:29 43 minutes, 29 seconds Sure sir sir if I can excuse one last question you know can you help us the broad numbers of these four you know 43:38 43 minutes, 38 seconds entities the revenue vida pat number for the full year uh I think uh uh as our uh group CEO 43:46 43 minutes, 46 seconds mentioned that the entities have done uh in line with what market has done uh you have seen the number of Gabriel and uh 43:56 43 minutes, 56 seconds uh you have the FY 2425 numbers of all these entities. So we do not expect any significant delta but all these entities 44:05 44 minutes, 5 seconds are undergoing financial audit for FY26 which we expect to close by the middle of June and uh once we complete that 44:14 44 minutes, 14 seconds audit uh along with the Q1 visit uh we we will come up with the number for a 526 as well. 44:23 44 minutes, 23 seconds Sure sir. All the best. Thank you so much. Thank you. Thank you. Thank you. 44:29 44 minutes, 29 seconds Thank you. We will take the next question from the line of Abdul Jooshi from Three Vintage Capital. Please go ahead. 44:37 44 minutes, 37 seconds Hi. Thanks for the opportunity. Am I audible? Yes. Yes. Audible. Yes, please go ahead. 44:43 44 minutes, 43 seconds Uh so, so on the two wheeler side, we have multiple SOPs in Q4 as you have mentioned in PPT, Suzuk or GS. In 44:52 44 minutes, 52 seconds addition to that, we have SOP of zero in Q2. considering that how we look at the 44:59 44 minutes, 59 seconds volume growth for this year FY27 uh and the uh uh second part is on the 45:06 45 minutes, 6 seconds our major revenue comes from two wheelers how we are seeing the trends uh may maybe it's on the schedule side even 45:14 45 minutes, 14 seconds this month we have seen that wan data indicate our major customers is still doing well but going forward how are the trends we are looking at the two leader 45:23 45 minutes, 23 seconds industry and anything to read into the next schedules that indicate that there could be a slowdown into or uh into the 45:32 45 minutes, 32 seconds demand. If you can throw some light on that that would be so uh yes so there are two parts of your question. One is 45:39 45 minutes, 39 seconds on the new uh new product generally you know in the two wheeler side the new launches start coming in uh 45:49 45 minutes, 49 seconds around the festival season. So this is how all the two wheeler new models are refresh or these thing happen. So this is how the industry works. In the two 45:57 45 minutes, 57 seconds wheeler we continue to develop and then starting from the Ganesh festival till Diwali I think you'll see multiple 46:05 46 minutes, 5 seconds launches coming in. Uh I don't see anything spec specifically changing. Yes in the last quarter we started the ABS 46:13 46 minutes, 13 seconds versions of certain models like Suzuki we started ABS etc. uh uh but uh major new models uh should start flowing in uh 46:23 46 minutes, 23 seconds as always in these particular months. Uh second coming to the volumes uh if we go with the projections uh the projections 46:31 46 minutes, 31 seconds are are really really strong from all the customers in the name of one customer but I can tell you that the projections are strong from all the 46:39 46 minutes, 39 seconds customers. Uh currently it is it is all about uh streamlining the supplies to 46:47 46 minutes, 47 seconds maximize the output but the OEMs are all quite bullish on the numbers. We will have to wait and watch. Uh even uh the 46:55 46 minutes, 55 seconds numbers for um may have been good June uh July projections are good and then obviously you get into the festival 47:02 47 minutes, 2 seconds season. uh but if the war continues for a very long time then uh we will have written watch otherwise 47:10 47 minutes, 10 seconds as we stand today the projections are good and same is with on the CV side as well 47:19 47 minutes, 19 seconds TV also yes CV numbers are CV they are doing well uh everybody is doing well I think uh uh we we had Aruti conference 47:28 47 minutes, 28 seconds they are quite uh positive about the number we had Mahindra conference they had very they very positive about the numbers. So yeah, 47:38 47 minutes, 38 seconds thank thank you so much. And just the bookkeeping question on the other uh cost there seems to be some increase into it. If you can give uh details why 47:47 47 minutes, 47 seconds it has gone up on that part it would be Oh sorry I I could not uh get your question. Which cost other other costs that that have gone up? 47:58 47 minutes, 58 seconds We are referring uh for quarter and quarter or uh last quarter and quarter. Yes 48:17 48 minutes, 17 seconds quarter on quarter I think we discussed on the gross margin part I don't think uh that gross margin you have already clarified. 48:24 48 minutes, 24 seconds Okay I will take it off no problem. uh I I anyway you check because I don't think that the other cost has gone up but 48:32 48 minutes, 32 seconds anyway you can check and then revert on this uh we have we have noted this we'll we'll uh uh come back 48:40 48 minutes, 40 seconds thank you we will take the next follow-up question from the line of Rada from Motila Financial Services Limited 48:48 48 minutes, 48 seconds please go ahead hi sir thank you again uh sir Dana global entity earlier had a 49% stake in 48:56 48 minutes, 56 seconds a company called Excels India which was sold to TSS group in 2025. So just wanted to understand are there any 49:03 49 minutes, 3 seconds product overlap or any other relations of Dana India with the entities? 49:08 49 minutes, 8 seconds Nothing has changed to our position. So uh the way uh our joint venture is with 49:15 49 minutes, 15 seconds Dana that continues uh uh without any impact actually. 49:22 49 minutes, 22 seconds Is there any product overlap sir? 49:26 49 minutes, 26 seconds And you said no change basically nothing is changing from our perspective. 49:33 49 minutes, 33 seconds Yes I want since they make actual housings I wanted to understand what is the productive change between the 49:41 49 minutes, 41 seconds they were making earlier also Excel housing they continue to that and what we do what we make uh this company is 49:48 49 minutes, 48 seconds making excel complete excel not excel housing uh for the LV category. So we continue to that. So for us nothing has 49:56 49 minutes, 56 seconds changed and I can't comment on rest of the dana if anything changed for them but for us nothing has changed. 50:05 50 minutes, 5 seconds So we are making entire excels and this company is only making actual housing. Is that the right understanding? 50:12 50 minutes, 12 seconds Excel is complete Excel we are making and Excel housing is bought actually. 50:16 50 minutes, 16 seconds This is what Mr. Goyel said. So I think we make the complete product. Yeah we make the full product. Yes. 50:25 50 minutes, 25 seconds Okay sir. Um sh Okay. Yeah. Thank you all. Thank you. Thank you. 50:34 50 minutes, 34 seconds Thank you very much ladies and gentlemen. That was the last question for today. I now I would now like to hand the conference over to Mr. Aduli for the closing comments. 50:44 50 minutes, 44 seconds Thank you sir. 50:46 50 minutes, 46 seconds Yeah. Thank you. Uh so thanks thanks for all the uh questions. So I take this opportunity to thank everyone for joining the call. Uh I hope we have been 50:55 50 minutes, 55 seconds able to address all the queries. Uh uh for any further information uh please get in touch with any one of us or SGA 51:04 51 minutes, 4 seconds our investor relation advisers. Thank you so much again for joining the call. Thank you. 51:10 51 minutes, 10 seconds Thank you members of the management. On behalf of Gabriel India Limited that concludes this conference. Thank you all for joining with us today and you may now disconnect your line. Thank you.