Gabriel India (NSE:GABRIEL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Gabriel India Limited Q1 FY 'twenty seven Earnings Conference Call. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. 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. Please signal an operator by pressing star then 0 on your touch tone phone. Please note that this conference is being recorded.

0:48 Joining us from the management team today are mister Mahindra Goel, group CEO and managing director mister Atul Jaggi, managing director, Ride Control and senior management team from Anand Group and Gabriel India Limited along with SGA, the investor relations adviser to the company. I now hand the conference over to Mr. Mahindra Goel, Group CEO and Managing Director, for the opening remarks. Thank you, and over to you, sir. Good morning, everyone. Hope you can hear me clearly and loudly. As part of GABRIEL's ongoing growth journey and commitment to building scale, technology, leadership, and future credit capabilities.

1:40 We are pleased to share that the board of directors yesterday approved two strategic transactions. One is related to acquisition of twenty eight point nineteen and nine nine equity stake in actual Mando, Ireland India Private Limited from Asia Investment Private Limited for a total consideration of rupees 2,231 crore. And we also acquired 30% minus one share equity in HL Clomo India for a total cash consideration of US dollar 98,440,000 as part of a proposed joint venture with HL Plomo. These investments represent an important milestone in the analyst group long term automotive industry and enforce our commitment to creating a simpler, more integrated, and future ready enterprise.

2:34 They build on successful execution of project rise, which is under listing approval from the stock exchange under which Gabriel acquired equity stakes in in a few of the businesses, Dana, Anand, Henkel, Anand. And these are bringing the right inputs and, of course, I just see the structural and and we have solutions. We further diversified our product offering through the acquisition of 76.1% stake in and the merger of India's high performance automotive chemical and food business into the Gabriel. We are pleased to report that project has been completed successfully. As I said, we are just waiting for the approval from rest of exchange for the listing.

3:23 The successful execution of the important strategic initiative was a significant milestone in our journey and has already contributed an acceleration in EPS. This has been a central objective of the strategic action undertaken by the analyst group with a clear focus on enhancing value creation and strengthening our competitive position and driving sustainable long term growth. The progress we have achieved to reinforce our confidence in direction of our strategy and the opportunities that lie ahead. Building on this momentum, the board has now approved project to Peter. Through this initiative, Gabriel India will acquire strategic minority stake in NHL, Anand, Mando, Anand India Private Limited, and NHL Provo India Private Limited.

4:09 Further strengthening its position as the group automotive component platform. We have also uploaded a detailed, which is a business update presentation, which is self explanatory and has all the relevant details on both transaction and the project details. Before I hand over to mister Jaggi for the operational and financial update for the quarter, let me briefly outline these two strategic investments starting with the HL Mando, Allen India Limited. HL Mando, Actually, a leading automotive components company in breaking, steering system, and part of suspension business. For the passenger vehicle, the investment with Central Gabriel's across key automotive component segments, definitely broadening our product portfolio and which is creating long term value through operational, technological, and business synergies.

5:02 To provide a sense of scale, this company is turnover around 5,886 crore, the largest company of the and profit after tax of $3.58 crore in the financial year 2526. The company had a net worth of 1,924 crores. Gabriel India will acquire 28.99, a promoter of Gabriel India. Acquisition will be funded through a combination of equity and cash transaction consideration. And as a conviction, Gabriel India will allot 1.44 per hour equity share to Asia investment at an issue price of $13.00 5.89 per share, aggregating to rupees $1.81 crore and balance $3.50 crore will be paid in cash taking the total transaction consideration to 2,231 crore.

5:57 Additional information on H. Mando Island is available on slide 13, 14, 15 of the business update presentation. The strategic rationale is to consider the group investment in HL Mendo, analyst under Gabriel India, aligning his highly quality business, which listed over the components platform and enabling both the companies and its public shareholders to participate directly in the future value creation. Another transaction was with respect to the HL Como, which is a new investment or a new joint venture, and which is primarily in the business of ADAS. We have entered into a joint venture agreement with India, creating a significant opportunity for, again, Gabriel to participate in high value technology segment, including advanced driving assistance system and auto electronics.

6:44 Importantly, this partnership provides access to the advanced capabilities like technology that would have taken considerably longer to build originally. India reported revenue of thousand crore plus and profit after tax of $1.23 crores in financial year 2026. As part of a conviction, Gabriel India will acquire 30% minus one equity share in HEL Plomo India for a total consideration of 98,440,000. The investment will be completed in two times. We'll be paying 73,830,000 USD on or before the 09/05/2026. Balance, USD 24,610,000 within eighteen months of signing the definitive agreements.

7:30 The acquisition will be funded through a combination of internal accruals and that further details are available on slide 17, eighteen and nineteen of the business of representation. The objective of this investment and joint venture is to establish meaningful presence in India's fast growing adult business through a strong partnership with HL Gloomo. Together these strategic initiatives positioning Gabriel India as Ireland's primarily growth vehicle and business consolidation platform for the automotive component sector. They strengthen our portfolio, deepen our technology capabilities, expand our ex... Addressable market, and announce our ability to create sustainable long term value for all stakeholders. With Project Jupiter, we are not simply adding new investment to our portfolio. We are taking the next step in Gabriel India's transformation, building a stronger, more technology driven, and a future ready enterprise supported by world class partnerships and positioned to capitalize on the evolving opportunities within the automotive industry.

8:32 So thank you so much. And now I'll hand over to Mr. Purjaggi for operational and financial update for the quarter. Yeah. Thank you, Mr. Guril. Good morning, everyone, and a warm welcome to everybody who has joined the call. I hope all of you are doing well. So the manufacturing activity in the automotive industry remained very positive during first quarter of FY twenty seven with production increasing across all major vehicle categories. Two wheeler production expanded by 23% year on year during the quarter one FY twenty seven. Scooters were the strongest contributor recording growth of 32%, while motorcycle production increased by 18%. In the passenger vehicles, industry production rose by 17% year on year during the quarter.

9:20 Utility vehicles continue to lead the segment with production increasing by 21%, reflecting the continued shift in customer preference towards SUVs and crossovers. Coming to the commercial vehicle production increased by 15% in the quarter one FY twenty seven. LCVs delivered very strong growth of 21% and HCV production was higher by 6%. At the same time, crude oil and commodity price volatility along with the other geopolitical developments in the West Asia remain important factors to monitor because of their potential impact on the input cost, vehicle ownership economics and customer sentiments. Coming to the quarter one FY twenty seven performance, before taking you through the financial performance, I would like to briefly explain the reporting structure following the completion of the restructuring.

10:16 The financial results for quarter one FY 'twenty seven reflect the expanded business portfolio of Gabriel India. To facilitate a meaningful comparison, the corresponding quarter one FY 'twenty six figures have also been presented after incorporating the financial performance of the businesses covered under the restructuring. Therefore, the year on year comparison discussed today are also on a like to like basis. Coming to the stand alone performance, revenue from operations grew by 19% Y o Y to INR $12.74 crores in quarter one FY 'twenty seven. The performance was supported by healthy demand across the core suspension business, continued growth in aftermarket and contribution from the Encampo business added to the restructuring.

11:03 Stand alone EBITDA increased by 7% to INR207 crores compared with INR100 crores in quarter one FY 'twenty six. The EBITDA margin stood at 8.4% in quarter one FY 'twenty seven. Moving to our consolidated performance. Revenue from operations stood at INR $14.26 crore in quarter one FY 'twenty seven, a growth of 15.5% Y o Y. Consolidated EBITDA for the quarter stood at INR124 crores, reflecting a growth of 2.3% Y o Y. The EBITDA margin stood at 8.7% in the first quarter. The share of profit before tax and equity accounted in invested companies, Dena Anand India Private Limited, Henkel Anand India Private Limited and SKM move Gabriel India Limited has increased by 10% Y o Y. This is from INR 39 crores in quarter one FY 'twenty six to INR 43 crores in quarter one FY 'twenty seven.

11:58 The EBITDA stood at INR 133 crores, a growth of 6% year on year with margins standing at 9.3%. The consolidated performance reflects the contribution from our subsidiaries, together with the company's share of earnings from joint ventures and associates under the expanded business structure. We have also presented the FY 'twenty six financial performance by incorporating the businesses covered under the restructuring in both the reported financials and the presentation. On that note, we come to the end of our opening remarks. I now request the moderator to begin the question and answer session. Thank you so much. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone.

12:46 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Participants, please restrict yourselves to two questions in the interest of time and fairness to others. For any more questions, you may rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of with Anand Rathi Institutional Equities. Please go ahead. Yep. Thank you, sir, for the opportunity. And congrats on bringing the into the state and attractive valuation, and the one which was unexpected to come soon, and also an acquisition in the hybrid area, ADAS technology areas.

13:40 So firstly, on the relationship, sir, you're building with particular large Korean entities like group, which is expanding the relationship for Gabriel in the area of ADAS technology. Can you share more background story? What is driving such relationships? And how are you doing... How are seeing the such relationship with group earlier with SK Innovation for the future growth opportunities for the GP? So one question. Yeah. Okay. So I think our relationship with HL Mendel Group goes back to 1996.

14:28 So it has been a journey of almost thirty years now and started with the with the single product, started with brakes. And, of course, from time to time, we have been adding... Expanding these relationships as the trust between the partners increasing. I mean, we have added multiple products. So we added breaking... Started with breaking. We added suspension, and we, like, later added the steering products, actually. You know? So happy to share that in thirty years time, of course, we had many other businesses also within group, but this company has grown the most. I think this company has reached to almost 5,500 plus, like, very close to the 6,000 crore.

15:23 If you see the result of 2,026. So, of course, this twenty five years, thirty years relationship has built a lot of confidence. They have seen us. We have seen their manufacturing capabilities. And, of course, what they are doing on on the new technologies actually. So so this is overall in the Mitchell Mando. And, of course, we are increasing our relationship with Mitchell Mando again with Mitchell Clomo, the same group. And, of course, as a as a overall expansion plan in Korea, Mando... Actually, Mando Group has been consistently working on on the advanced products for last seven, eight years.

16:11 They have brought a special focus on this business by creating a separate entity, which was part of a consolidated entity earlier in Korea. So so that is one. Of course, as you know that most of most of the people, they want to do business in India. They look for partner as well. I think since we have a very strong relationship and we also trusted many things, not only from from the people point of view, but also from management capabilities. Their strength in Korea, their succession plan, I think we are very, very confident that we can expand our relationship with the group. And therefore, I think based on our current relationship, we became also the very trusted partner for them in India.

17:03 And so we join in together and happy to take this company up together now. I think... So that is what all the story behind this. Got it, sir. Thank you for that, sir. Secondly, just on the the new JV acquisition on the ADAS area. If you can guide us how to look at the medium term growth path for this entity. With some background, if you can share what are the some new orders they are working, some of the key customer mix, which which are the key customers they are working with. And any targets to share? Obviously, last two years has seen 23% CAGR.

17:49 If you can guide us how to look at the medium term opportunity for this entity. Okay. So I think it's very difficult to share the overall numbers. But, yes, as we look at this business and would like to just answer maybe what is built up in the pricing also of this transaction. I think we have a great hope from this business. The business pipeline is very strong. The company has been working with the with... Good thing is not only with Korean customers, this company has been working with with Mahindra and with Tata Motors actually. So that is one of the important thing. And just to share a small thing on this that the Mahindra new vehicle, which they have launched in last two years. This company has a business similarly with Tata Motors. I think the growth opportunities are enormous from this business. The product cost itself is very large actually. The per vehicle cost becomes very, very large, which help us to take turnover very significantly high in very few years actually. So I think we have a very high expectation and and see that in our journey of 50,000 crore in 2030, this company will make significant difference, actually.

19:12 Got it, sir. Got it. Thank you. Thank you for the opportunity. I'll come back again in the soon. Thank you. The next question comes from the line of Jay Kale with LRR Capital. Please go ahead. Yeah. Good morning. Thanks for taking my question, and congratulations team for the transactions. So my first question was, you know, on the two entities. I just wanted to check with you, you know, know, one of the things that the local OEMs are also struggling with in adopting these kind of technologies is a localization effort. So, you know, just wanted to check from your perspective in these entities. Are we significantly high in terms of localization and, hence, cost competitiveness? You know, how are we versus peers in in India who are offering this?

20:01 And are there any significant players who've already set up capacities over here? So just from a cost competitiveness and, you know, peers that wanted to check whether we have opportunities in other OEMs apart from Korean OEMs and Mahindra and Tata's that you mentioned. Yeah. Thank you. I think localization point of view, if we look at the first transaction, which is with respect to the actual mango, I think there is a fair level of the localization has already reached. And from the business perspective, this company was depending on Korean customers. Very pleased to share that the dependence has significantly reduced. Now almost I think say 40% of the business is coming from non Korean companies with respect to HL Mando actually. So we have opened door with all the customers.

21:00 We started with Hyundai. Of course, when Kia came in, so we had a business with Kia. Now we have Tata Motors. We have with Mahindra. We have with Marcus Sujubi as well actually. So I think the actual Mando is well poised from that point of view. And when you look at the other transaction on the actual promo side, the localization will start. I think we are as as the industry will move, I think there are fair plan to further look lies. And as I said already from the business perspective, other than Korean customers, we are there with Mahindra. We are there with the... They're with the Tata. I think the... Primarily, the only one customer is left, Marquis Sujukian, of course, that is something as they appropriately adopt this advanced technology also, we will have opportunities with them as well.

21:52 You know? I mean, so far, they have not reached to a level we are adopting a proper level of data. So I think those are the percent they will emerge, and the OEM will have the plans, actually. Understood. That's hard to know. And secondly, I thought you just looked at your 05/30 target, of course, ambitious targets of 50,000 crores. That entails a lot of inorganic opportunity as well. And it's hard to know that we started with a a decent size inorganic opportunity apart from the earlier two ones announced last year. Any targets or any direction that you can give that how should we see the mix in FY 'thirty from a segment perspective? Is it that incrementally passenger vehicles will be a larger component going ahead given your relationships with the Koreans?

22:41 And is there any conscious effort to diversify further maybe into CVs and two wheelers? Also, any any any direction you can give from that perspective? And also, is non auto anywhere in the scheme of things, any segment of the non autos in your f five thirty targets? Okay. So I think I look at it overall group perspective. So we are INR 50,000 crores and we'll be targeting in 2030. That is what our plan is. And when we look at it, the Gabriel becomes definitely the key entity for bringing these growth opportunities. So right now we are focusing on automotive components growth businesses.

23:29 What we intend to bring to the Gabriel India. And yes, not limiting, I will say to the passenger car. I think there's no such strategy that we will be only limiting to the passenger car. Our growth is around commercial vehicle. We have a lot of focus on the two wheeler side actually, the business that is another segment which is growing. And we also intend to bring focus on the all fiber segment that is also going to be our priority as one of the growth area. So these are some of the initiatives on the EV side. Yes. We have a separate vertical already, which is which is there in the name of annual, which we started some time back. So that is still progressing, actually. So we have reached reached to a matured level, but it's still progressing actually, basically.

24:29 So so in nutshell, I think we are not favorite to any segment, and we are not adverse to any segment. But, yes, we will stay with the automotive segment actually from the growth perspective. Thank you. The next question comes from the line of Viraj with Simple. Please go ahead. Yes. Hi. Thanks for the opportunity. Just a couple of questions. First is, can you just call out the is there any restructuring or merger related charges on FY 'twenty six? So on an annualized basis, what would that be? So that is one. Second is on the JVs and the new businesses. Can you give some color in terms of what are the regulatory major regulatory events you expect playing out in 'twenty seven and next two, three years? And do you see any major tailwinds for the business? So I think you talked about KHL, Clemo, there's autonomous and we see breaking standard, which is going to be implemented.

25:31 So any color you can give on that? And third is, again, on the JV, See, if you look at rental or Mutek, right, you've by, you've seen a very subdued growth vis a vis what the end industry has done. And similarly, into the profitability, you've seen a degrowth in the FY 2026. So what has really happened there? And how do you see those two entities going forward? Yeah. Once again, actually. Shall I answer the restructuring cost question which you mentioned, Viraj. So I think in the project rise earlier and now in the project Jupiter, we have transparently declared all the advisers who whom we have worked to ensure the high level of governance and their advisory fees have been incorporated in last year profit and loss and whatever we will be paying for this year has also been incorporated. So the number which you see for the profitability after considering those costs, at the overall level, we do not see that that cost has any significance with respect to our property.

26:47 The later part of the question with respect to the two entities. So one was in question on the regulatory events related to this project. I think regulatory events is primarily is already approved by the Board of Directors. So that is done and therefore you replace both the projects. Sir, sorry to interrupt. What I meant from a regulatory is, say, you have and then you have industry standards in terms of autonomous emergency braking, which might probably impact positively the H. Killen move, right? So similarly, do you see any other regulatory norms which would positively or negatively affect our previous businesses? Yes. I think if you look at both the projects are to dealt with the safety.

27:39 And you can see from the safety perspective, the regulatory changes which may emerge in future is definitely going to help both the products actually when you look at from the steering point of view or from the breaking point of view, which is part of HL Mando. And if you look at the HL Clomo, which is primarily, again, to to deal with ADAS products actually. And you can see what is happening now. The ADAS regulations are being effective. I think there are different level of the technology. I see this is happening in commercial vehicle at a lower level. And, of course, the things are moving in the passenger car as well. So so looking from the future perspective, the regulatory will only help growing these businesses, you know, whether it is braking or is it steering or it is ADAS because all to that with safety.

28:39 So we see the positive impact in future of all those changes as far as the business is concerned. And one more thing, which is also very important to understand that, you know, that ours is to deal with breaking and steering actually. You know? So it's a very integrated solution which we should be able able to provide from the technology point of view, which I'm not sure that very easy that someone else will try to bring it to the customer actually. So I think it should all help in the growth of the business. On the two JV, sir, you've seen moderate performance in '26 and profitability is also de grown. I think one the thing was with respect to the Sun Group business that is primarily I'm sure you must have heard that there was some issue, the operating issue at one of the supplier of Hyundai Movies and where the Hyundai was not able to produce vehicles actually.

29:45 Almost our business was down because of the Hyundai was not able to produce the crater and that impacted the business especially in the sunroof. So that is creating some impact in the current quarter actually. But I think as we look at from the customer perspective, they say that they should be able to recover the production of which they lost in the first quarter. I I meant about and for FY '26. You know, have seen a profit de growth. Again, I think it's a it's a issue with respect to some of the commodity changes, which we started with the Middle East situation. So, you that has impacted and we account for these recoveries on the actual business. I think these impacts will come in the future in their profitability actually.

30:39 Thank you. The next question comes from the line of Amit Hiranandani with PhillipCapital. Please go ahead. Yes. Congratulations to the team for two strong acquisitions. Sir, just on the HL play move, I just wanted to understand how much is the content per vehicle and the localizations plans you have on this thing? Yes. The content per vehicle will always depend actually, but I think in my view it can go, I think my estimate is maybe 20,000 to 60, 70,000 per vehicle. All will depend what kind of a level the customer... Our OEMs would like to target in their vehicle. But I think the content can go as high as 60,000 and as low as maybe 20,000 or or slightly less actually. You know? So that is that is one part of the information, and I think there are fair localization plan.

31:42 So those details we will continue to share with you. But as we look at, we are entering into the joint venture as we examine the business plan. I think they are fair localization plan in this direction as well. Right. And sir, how much gross debt and cash we have as on June 30? And how much amount are we planning to raise for HLPA? Yeah. We have about $2.50 crores of cash at the end of quarter one. And so far we have been funding our working capital and keep it since from the internal approvals, which we can avail the short term facility, which will take care of the customers of conviction that we intend to discharge in by September.

32:40 The total date we will be putting up for the shareholders approval is about 1,500 crores. However, on the start and midterm visit, we see that we will be having a date of thousand per room. Thank you. The next question comes from the line of Rakesh Jain with AXIS AMC. Please go ahead. Yeah. Hi. Congratulations, my manager, for another set of companies consolidating. So I have two questions. My first question is mainly on the H. L. Mandos revenue. If you can dissect us, what percentage of the revenue come from exports today?

33:30 With this INR 5,500 crores, given their affiliation with two Korean OEMs, it seems that there's a sizable portion of export revenue which is sitting. And how should one think about it? Because for HL Mando, globally, we are about almost 10% to 12% of their global revenue. So we are fourth largest. Is that something one should keep in mind when looking at revenue trajectory going forward in terms of the export opportunity? Because and how does the export opportunity size the group thinks about from this transaction? And second question I have on the ADAS journey.

34:17 So we do see that the HL Group talking about software defined vehicles, ADAS picking up. Do you think that we are on the inflection point where these OEMs are going to translate into the journey of ADAS and software defined vehicles in India? And how do we transpire that across OEMs? From a capability point of view, if you can tell us how does our ADAS stands today? Thank you. Yes. So thanks. Think from the exports perspective, right now we do maybe 7% to 8% of the current business size exports.

35:02 And I can't guide you any number in future, but I would like to generally relate with the overall business outlook what most of our partners are looking including including actual mango. I think what generally the direction is that how the India become a manufacturing sector for supporting their their businesses out of India, actually. So that is that is the theory. That is the objective, which will drive further exports as we move ahead in in future years. So that is something which we are very confident that the exports opportunities will emerge with with this direction of our partners, actually.

35:51 That is one part. And second is with respect to Adaas. I think, as I mentioned, that I think all new vehicles, you see this this configuration is there on the software point of view of Adas. I think it's a it's a need in my view, and it's a additional feature which which OEMs are building into their vehicle. So so that is something which I would say that there will be a overall focus from from the OEM point of view. And what we can bring to the table. I mentioned already that we will be the unique player which are bringing breaking, steering, ADAS together actually to the OEM.

36:37 And one can understand that ADAS is to do everything with breaking or the steering actually. You know? So so if you look at this concept, we become one of the unique supplier in India to to give... Provide a integrated solution to to the OEMs, actually. And as far as our capabilities are concerned, we have a huge number of people who are who are in India and who are who are also in Korea working in engineering centers. And those facilities are definitely helping us to grow the technology actually. Sure. And just one follow-up for the ADAS, the software piece of the business, does it come as a part of our integration or that fits with the global entity?

37:25 So it is... So whatever is required for the vehicle software for the business which we will be targeting in India, So that will... Services will be availed from the engineering centers, and that become part of our business. But we are not participating in any business which is outside of India, actually. Okay. This is helpful, sir. Thank you so much. All the best. The next question comes from the line of Aditya Ketan with Smiths Institutional Equities. Please go ahead. Thank you, sir, for the opportunity. Just a couple of questions. Sir, on to the stand alone business, we have seen a decent dip of 80 to 100 basis points on margins. If you can quantify any sort of cost pressure we are seeing over there? Second, sir, on to the Sandroof side, you mentioned that there was production loss from one of your customers, Hyundai Creta.

38:18 Any number, sir, if if you can throw, like, what was the revenue and EBITDA and how much loss we have taken quarter? And so what sort of volume number we are looking for FY twenty seven and update on the second phase of the growth? Yeah. Okay. So coming to the first question on the on the margins on the standalone business. Yes, if you look at the details of the number, there has been in this quarter, there has been pressure on the volume cost, commodity inflation that has happened. So it is a combination of that comes on a mathematical level because once even if the recovery is there, there is always a denominator impact that comes in. And and secondly, there is sometimes there is also a little lag in the recovery.

39:09 What we are spending in the in the month doesn't get the government same month there. So the the recoveries are are sort of getting in aligned with the customers. Some of them already settled some of them in the discussion. But you know, sometimes it can take some time to release the purchase orders, etc. And this is that only we take it as a part of. So the yes, whatever there is a delay in recovery, we are looking forward in next quarters to make the recovery better than the margin part. Secondly, on the Sun Group business, I think Mr. Whale already mentioned, there was some challenges with one of the suppliers leading to the lower production.

39:56 I think the overall numbers when we look at the quarter, they're around I think somewhere around 15,000 to 20,000 numbers that could have been produced more. The good thing is that the customer is has started pulling those numbers. They are very confident of making up those gaps in this quarter and the next quarter. And I think so from the budget point of view, we are not looking at any shortfall coming in because it is a timing issue definitely for something which is completely beyond the control of whether the OEM or all the suppliers, we are not looking at any shortfall coming in. It. Sir, onto the passenger vehicles, when we look, sir... So during the quarter, like, we have grown by some five and a half percent versus the passenger vehicle market growing by 15%.

40:48 Clearly, have underperformed over here and our share also in the total top line mix has came down from 24% to 20%. Any change, sir, like are we focusing more onto the smaller cars like you mentioned in the presentation? Like earlier, we were present into the SUV side, has that mix gone down more towards smaller car which is why the growth is slowing? Any thoughts on this? So, I think if you look at smaller cars, the growth is significantly higher than the market growth, but gap is certainly on account of the UVs there. Some of the models I think that have performed really well, we are not there on those platforms and some of biggest customers overall wallet share has been coming down. So that is also impacting where we are very strong there. So it is a model mix issue, I think for the quarter, which is leading to this change.

41:47 So when this improves are going right, like it's coming back to the normal range or like this will continue? Again, see these things, they are purely depend upon the model where you are present and how the model the new launches will perform. So obviously, given a choice, I would like all our models to do exceedingly well. Let us keep the fingers crossed. But yes, the model makes the issue has sometimes been very supportive also, and sometimes it can be a challenge. But, yes, I think generally, it averages out over a period of time. Thank you. The next question comes from the line of Radha with Motilal Oswal. Please go ahead. Congratulations, team, and thank you for the opportunity.

42:35 So my first question is you mentioned that M and M and Tata type customers from Metro, X of Hyundai, India. So wanted to understand whether Mano is supplying shock absorbers to a minimum data as well. And if yes, then how will this be differentiated between the suspension business of Gabriel India Standard versus the suspension business of HMN and in terms of technology, do they have all the passive passive plus and active suspension technology as well? Can you be a little clear, think either you are on a speaker or you are at a place where it is The voice. With the voice is You can hear. Yeah. I think maybe you can speak a little slowly and don't use the speaker. It will be helpful, please.

43:27 Yes, sir. Is it better? No. No. No. Rather, could you please use your phone on the handset mode? Yeah. Hello? Is this Yes. Much better. Please go ahead. Okay. So I did mention that... So you mentioned that M and M and Tata are top customers from HL Mando. So I wanted to understand whether HL is supplying shock absorbers to M and M and Tata as well. And if yes, then how will this be differentiated from the suspension business of Gabriel stand alone and the suspension business of SL Mando? And in terms of technology, do they have passive and semi active suspension technology as well? Yes. I think from the business perspective, we don't see right now Tata having business with the actual Mando.

44:18 Whatever we talked about, it was related to the sharing products from the actual Mando side in the data. We don't have any business with Tata Motors and that is what it is. I think from the technology point of view, they well ahead as per the market. So we don't see any issue. In fact, with this transaction, it becomes complementary actually for us, whether the business is in Tata Motors with this Mando, HL Mando or with Gabriel. Finally it becomes part of the Gabriel actually as this consolidation actually. So that is in fact helping us to integrating the technology directly or indirectly and also the business into our fold. Understood.

45:05 So second question is, Dana parent entity in USA has merged with Eton Mobility, and that significantly expands the product portfolio of Dana. So is there any conversation around how the eTON mobility plants in India are going to operate? Whether there can be synergies that can be beneficial from for Gabriel from this point of view? Too early to comment actually the transaction we just announced. It is not even closed actually, let's say. So I think these discussions will fall in place maybe once the transaction is also closed. So as you would see that it was announced last month, I think the process has to close from the process point of view. And then I think this discussion may take place. But right now our joint venture has been doing very, very good, this business.

45:58 And when we do look at any integration solution in future, maybe we have to see whether it is right for us or not to go with the e 10 actually, you know, considering our... The way we... The business is performing currently at least. So I think those analysis will take place later, you know, and... But it's too early right now. You. The next question comes from the line of Prateek Bachani with Union AMC. Please go ahead. Pratik, please unmute your line in case if you're on mute and go ahead with your question. No, Pratik. Your voice is very feeble. Could you please use your phone on the handset mode, please? Am I audible?

46:45 Could you be a little louder? Yes. Can be a little louder and go ahead with your question. Thank you. Yes. So thank you for the opportunity, and congratulations on the transaction. Just a couple of questions. Firstly, on the consolidation part, what are the white spaces which the management is now incrementally looking to address considering that the balance of the entities would be consolidated someday in the future? So in order to reach to that INR50000 crore mark, what are the white spaces that the management is looking for? That is one. And second, if the management can also address on the newer CapEx and the capacity expansion target which the company has given. So one part was the INR180 crore expansion which was called out in the media a couple of days back.

47:32 What was that related to as in which all entities are they trying to address considering a host of entities are already present in Hosur? And also on the export target, the 10% export target, what is the trajectory they would want to reach all entities they are targeting to ramp up on the exports part? So those would be my two questions. I think the reference that you are taking is predominantly on the, I would say, suspension part of the business of the standalone business. There, I think a couple of points were discussed. One was the CapEx part, the extensions that we are doing in various locations, including the one in the largest plant around Hosul.

48:22 But it is not only limited to Hosul, it is also across certain other expansions because we are expanding the plant in Kansa, which is Gurgaon. We are also making expansions in our Sanem plant. I think it was a combination of all the expansions and new investment, including the technology investments that we are making on the suspension business. On the export part, I think we discussed predominantly on the way forward on the export opportunities that we are looking at potential opportunities on the auto focus on our side and also on the the solar and the bike side. So I think this is the combination of all three. We had set up a target of 10% exports in the coming time line. So this is to answer your questions.

49:15 Thank you. The next question comes from the line of Shashank Kanodia with ICICI Securities. Please go ahead. Yeah. Good morning, sir, and congratulations on a good set of acquisitions, especially in the particular interest of my shareholders and the acquisition becoming EPIC equity from day one. I have just one question, sir. So as you mentioned that post Mandarin, we now account for 70% of group revenues. So what's the outlook on the rest 30% of the pie? So it is something which gets consolidated in the due course time, and if you could assign any timeline to it, or is this something which is difficult to consolidate? I think if you see, as we have been talking last one year, full project that Gabriel is our growth engine, and that's why we have been talking. And our idea is to also look at bringing new businesses into GABRIEL and also as appropriately fitting bringing the existing business into the the Gabriel pool from Asia actually or from NANL.

50:22 So so we made significant progress. As you can see that the project rise, we reached up to the 58% of the group sale and we've now project Jupiter, which is mango, which I said the largest business which we are bringing into the Gabriel Ford. So we'll be reaching almost 70%. So the balance 30% is left. I think that appropriate time as we as we have seen, you know, in past. So those efforts will be there as they are, appropriately fitting from the strategy point of view or from the partners perspective also. So we don't deny that those will not come. But yes, timeline we have to see as it is appropriate actually. Understood. Thank you, sir. Thank you. The next question comes from the line of Jayesh Gandhi with Harshad Gandhi Securities.

51:17 Please go ahead. Yes. Please go ahead with your question and unmute your line in case if you're on mute. Am I audible? Yes. Yes. Go ahead, please. Okay. So first of all, congratulations for the acquisitions. I have two questions. First is, does this agreement on JV give us an opportunity to increase our holding in future also? Okay. There is no option right now, but it doesn't mean that we can't do that. I think if I look at overall the global scenario, mostly the people will look for an opportunity to to...

52:10 Like, give us opportunity to increase our share because they also need cash. And as as Indian market is doing good, definitely, our desire will be to increase our stake actually, basically. So if it is not in agreement, it doesn't mean that it is not possible. You know? Everything can be can be discussed and decided whatever is not written in the agreements. Okay. So another question is for. Can you just provide an opportunity size and competitive landscape which which is there currently in India. And I I I guess you haven't provided any color on the margins which the company is doing currently. Think we have already shared our information which is there in in the investor deck, which is uploaded already.

53:06 I think if we look at the 2026 results, we are talking around 1,000 crore of the company in the current year, financial year '26, which is right now, unaudited business, but we are very close to the audit. And we are looking for adjusted EBITDA of around $1.29 crore from this business actually. That is again on a retail, but very close to the audit. This is something which is there. And as far as the facilities are concerned, the facilities are there manufacturing engineering, which is also very, very much given in our investor data actually. So you can refer slide thirteen and twenty, which will give you the details of both the entities. I think all the all the expected answers are there on these two slides.

53:57 Thank you. The next question comes from the line of Viraj Sanghvi with Ambit Capital. Please go ahead. Hi, sir. Thank you for taking my questions. Congratulations on the transaction. I have two questions surrounding HL Climov. First one is that HL Mendo Group globally has been vocal about its prospects on robotics, humanoids and actuators. And HCLimov India seems to be in a line of business with a similar growth solution. So if they plan to bring those products to India, would they be housed in this HCLimov India entity? And secondly, India seems to be doing primarily business with and which means you're providing an integrated solution. So would that be the...

54:48 Which will continue going forward, or would there be more third party sales also happening from HLK Move India? I think the company started with supporting HL Mando in India. And so therefore, that whatever as a supplier they are working that continue to work. So it means that if I said Mando is growing business and the projects which are primarily related to the issue and those will continue. But from the HL Clovo independently, I think that is not the strategy that they will only depend on HL Mando. Our primary aim, not only aim, it's already started actually. So we have good business with Mahindra secured. We have good business with Tata secured already.

55:38 Those are in their upcoming retail, which are already on the road. And the product side also I shared almost 50 to 60,000 per own per vehicle set. So we have all good good future and and for actual promo. But certainly, our target is is just to support for actual mango that continues because there's no point in replicating the facilities at two places. But but the primary objective to grow independently business on the other side as far as actual global is concerned, actually. You know? But good thing for us that we are partnering both. So if there were any transaction happening within these companies, it is it is helping us overall? Sure. And on the first question, sir, about robotics actuators and Sorry?

56:28 Sorry. Can you say again? What was that? Was that there are other products like actuators and all. The thing as well explained, even if you look at the actual Mando group also, I think we started with one product. Over a period of time. We continue to add the product similarly. So that is... That happens in any joint venture once the relationship is there. The trust is there, which is there probably in the last thirty years. Obviously, this this has just been signed off now. And obviously, at the appropriate time, we will also look at the opportunities, more opportunities coming in the Indian market, and we continue to explore expanding the portfolio. But giving a sort of a firm answer today on this, I think it is too early on. Only only one thing is to understand that I think we are their partner in India. So anything Mando do globally, which they want to bring to India, I think we become the preferred partner for businesses actually.

57:34 Thank you. The next question comes from the line of Norman with Sangvi Family Office. Please go ahead. Norman, please go ahead with your question. To me? Hello? Norman, please be... Yes. Now please go ahead. Yes. You're audible now. Thank you. Right. Sir, so I... Well, I understand from the business update presentation that now majorly after these these structuring that has taken place, majority of the group's revenue will now kind of be reflected at Gabriel. Is that understanding correct? Or are there some other entities also that might be, you know, in in another roundup for restructuring?

58:20 So that's the only question. I think we already answered that same thing that we started this journey with the project RISE and now with the project Jupiter. And we have been very openly talking to all of you that our aim is to to bring new investment in GABRIEL and also look at appropriate opportunity to transfer the existing business into to the GABRIEL Port. A significant portion is already done with this transaction. And of course, as it is appropriate, we will also look at other businesses at the right time basically. Ladies and gentlemen, due to time constraints, we will take the last question from the line of with Arihant Capital.

59:09 Please go ahead. Thank you so much, sir, for the opportunity. Hope I'm audible. Yeah. Great. So sir, my question is regarding fundraising via QIP. So given the Gabriel's historical cash or comfortable balance sheet position, Is this capital tagged for inorganic acquisition or accelerated or EV CapEx or debt restructuring? Also, as we see after the consolidation in the Gabriel, some debt amount transferred to the company. So what is the debt equity outlook for FY twenty seven? And what are the expected annual interest cost implications?

1:00:01 This was the question. So this is Manishil from Anand, and we have no plans to work on QIP right now as Mohit explained earlier. We are looking at funding these both transactions as a combination of debt and equity. So that is the plan. And for that, we will find out whether... What kind of finance works out. This is where we are. And what was the other question? On the debt equity. So that equity should be one is to one. Once we close our transactions, both these transactions, the debt equity from the 2627 perspective should be one is to one. Right now it is less than 0.1 to 0.2 and then it will be around one is to one.

1:01:00 And what will will be the annual interest cost implications? See, we still have to work it out the various sources of funds which we are evaluating from the various instruments of date. And as Manish explained, we are at a very comfortable stage looking at the consolidated balance sheet and PHL, which we have presented for Q1, Q2 subject to approval, this size will go up. I think we are at a very comfortable stage of raising approximately 800 crores of debt. We are evaluating we mentioned various instruments and we will pick out the cost and probably it will start reflecting from the next quarter. We will be in a better position to extend the cost of interest to come next quarter onwards.

1:01:58 Thank you. Ladies and gentlemen, that ends the question and answer session. I would now like to hand the conference over to Mr. Mahindra Goel for the closing remarks. Thank you so much for participating today's call, and we hope that we have been able to address all your queries. For any further information, kindly get in touch with any of us or a strategic group adviser or investor relation advisers. And thank you once again for your participation. Thank you so much. Have a good day. Thank you, sir. Ladies and gentlemen, on behalf of Gabriel India Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.