Gabriel India Limited
Know the Company
Gabriel India Limited (Gabriel), the flagship company of the ANAND Group, is a leading manufacturer of shock absorbers and suspension systems for the Indian automotive industry. The company is a trusted name in the shock absorber industry and holds a dominant market share of 89% in the commercial vehicles segment. In addition to shock absorbers, Gabriel also manufactures struts and front forks. To strengthen its product portfolio, the company has recently formed an alliance with Netherlands-based ‘Inalfa Roof Systems’, a global leader in sunroof systems.
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Gabriel serves multiple business segments, including two- and three-wheelers, passenger vehicles, commercial vehicles, railways, and the aftermarket. The company has a presence across six continents and operations in over 25 countries including an aftermarket footprint. The company operates 11 manufacturing facilities strategically located near OEMs to ensure timely supply, optimized logistics, and competitive pricing.
Gabriel’s manufacturing facilities are in, Chakan, Maharashtra for Passenger vehicle suspension components. Nashik, Maharashtra plant produces Ride control products. Hosur, Tamil Nadu plant manufacturers Shock absorbers and front forks for two-wheelers. Dewas, Madhya Pradesh facilities make Ride control products for various automotive segments. Its Khandsa (Gurgaon), Haryana plant makes Suspension components for passenger and commercial vehicles and Parwanoo, Himachal Pradesh unit makes Ride control products as well as Sanand, Gujarat makes Suspension components for passenger vehicles.
Business Segments
Two and Three Wheelers: Gabriel India is a key player in the 2W and 3W and the EV segment, having a 31% market share. The company’s major customers include TVS Motors, Suzuki Motorcycle, and Honda Motorcycle & Scooter India.
Passenger Vehicles: The company holds a 35% market share the passenger vehicle market. The company also has a strong relationship with OEM suppliers including MSIL, M&M, TML, TKM Private Limited, and VW.
Commercial Vehicles (CV) and Railways: Gabriel India dominates the CV segment with an 89% market share. It has expanded into railway shock absorbers and is the sole Indian supplier for Vande Bharat Express. The company has entered global markets through partnerships with DAF and plans collaborations with Volvo, JBM, and new EV customers. Key CV clients include Tata Motors, Mahindra & Mahindra, and Ashok Leyland.
Replacement Market: With a 40% market share, Gabriel India leads the aftermarket sector across 2W, 3W, passenger vehicles, and CVs. It has over 25,000 retail outlets and expanded exports by 22%.
Sunroof Business: Gabriel India entered the sunroof market through Inalfa Gabriel Sunroof Systems (IGSS), a partnership with Inalfa Roof Systems. Its clients for sunroofs to Volkswagen, Skoda, Toyota, Suzuki, and Mahindra.
Strengths
Gabriel is one of the largest players in the Indian automobile suspension component segment, with a strong presence across OEMs, aftermarket, and export segments. The company deploys cutting-edge technology, robust designs, and refined engineering capabilities to produce world-class suspension systems. Its relentless pursuit of excellence ensures that all products surpass industry standards, enhancing customer satisfaction and brand loyalty.
The two- and three-wheeler, passenger car, and commercial vehicle segments contributed 63%, 24%, and 11% to sales, respectively. Additionally, Gabriel also has a strong presence in the aftermarket segment, which accounted for nearly 12% of sales, further enhances its revenue diversity. The company holds a market share of 30% in the two- and three-wheeler segments, 24% in the passenger vehicle segment, and 88% in the commercial vehicle segment.
Gabriel has a diversified Product Portfolio and Market Leadership position in the automotive components industry, offering an extensive range of over 500 high-precision ride control products, including shock absorbers, struts, and front forks. Over the past five years, the company has expanded its product portfolio with 1,337 new SKUs and introduced 21 new product lines. Its market presence spans all vehicle segments, including two- and three-wheelers, passenger cars, commercial vehicles, and railways.
Gabriel has strong Research & Development (R&D) Capabilities and invests significantly in R&D to develop next-generation suspension solutions, catering to the evolving needs of electric vehicles (EVs) and modern automotive designs. By focusing on innovation, the company ensures that its products remain at the forefront of technological advancements. With 85 patents filed (28 already granted), Gabriel continues to pioneer cutting-edge ride control solutions that meet and exceed industry benchmarks.
Gabriel India strategically entered into the sunroof market through a partnership with Netherlands-based Inalfa Roof Systems as recognizing the growing demand for premium automotive features. This venture has significantly boosted the company’s record financial performance in recent quarters. The company is investing Rs 170 crore in a state-of-the-art manufacturing facility near Chennai, with an initial sunroof production capacity of 200,000 units annually. This move positions the company as a key player in the domestic sunroof market, where nearly 50% of demand is met through imports. Strategic acquisition is also part of the company’s growth path. It recently acquired an assets worth Rs 60 crore from Marelli Motherson Auto Suspension Parts Pvt Ltd, adding an annual manufacturing capacity of 3.2 million shock absorbers and 1 million gas spring units. This acquisition reinforces Gabriel’s ability to meet growing demand for advanced vehicle technologies.
Gabriel has formed a robust customer base, serving leading OEMs and new-age EV manufacturers. The company has secured strategic partnerships with industry leaders including TVS Motors, Suzuki Motorcycle, Honda Motorcycle & Scooter India, Maruti Suzuki, Skoda, Volkswagen, Mahindra & Mahindra, Tata Motors, and Ashok Leyland, etc. In the EV segment, Gabriel collaborates with marquee names such as Okinawa, Ather, TVS, Hero Electric and Ola Electric, further strengthening its market position.
The company is actively expanding its presence in high-growth regions, including Southeast Asia, Africa, and Latin America. Through market-specific product adaptations, strategic alliances with leading distributors, and acquisitions, Gabriel India is enhancing its global reach.
The company’s strategic initiatives have led to impressive financial growth, with the sunroof business emerging as a key driver of profitability. In Q3 FY25, Gabriel reported a year-on-year EBITDA margin expansion of 107 basis points, reflecting its strong operational performance. The company continues to capitalize on the premiumization trend in the automotive industry, benefiting from the increasing demand for high-value components.
Gabriel India actively engages in multiple OEM programs, supporting the launch of new models and platforms. The company has secured significant orders, including collaborations with Volkswagen, Tata Motors (EV platforms), Stellantis, MSIL, Volvo, Fuso Japan, and emerging EV manufacturers. Additionally, Gabriel is contributing to TVS Motors’ new platform with an inverted front fork and is developing advanced semi-active suspension systems.
Gabriel has a leading position in the aftermarket segment with a 40% market share, where it offering high-quality replacement parts across all vehicle categories. The company has expanded its distribution network to over 25,000 retail outlets across India, particularly in B and C-class towns. Its aftermarket exports registered an impressive growth of over 20% growth in past financial years.
Q3 Financials and Balance Sheet
For the third quarter ended December 31, 2024, Gabriel reported sales of Rs 924 crore, compared to Rs 814 crore a year ago. Net profit for the period stood at Rs 54 crore, up from Rs 42 crore in the previous year. Earnings per share for the reported period stood at Rs 4.18, compared to Rs 2.87 a year ago.
The company maintains a healthy, debt-free balance sheet with sufficient cash reserves. The only debt at the consolidated level is a working capital loan of Rs 25 crore availed by its wholly owned subsidiary, IGSSPL, as of March 31, 2024. The balance sheet is further strengthened by cash reserves exceeding Rs 300 crore as of the same date. Gabriel has planned capital expenditure of Rs 500–600 crore over fiscals 2025–27. These investments will focus on capacity enhancement, product development, and automation and will be primarily funded through internal cash accruals.
Outlook
Gabriel’s short-to-medium-term business strategy focuses on three key pillars such as product innovation, capacity expansion, and geographic diversification. The Company’s future remains optimistic about the growth prospects of the Indian automotive industry, driven by favorable demographics, rising disposable incomes, and evolving consumer preferences for personal mobility and sustainable transportation solutions. To maintain a competitive edge and to meet the evolving needs of our customers, the company proposes to continue to invest in advanced technologies, product development, and capacity expansion.
As part of its diversification efforts, it has established a manufacturing facility for sunroofs to cater to the growing demand in the Indian automotive market. Sunroofs are technologically advanced and artistically appealing, enhancing the overall driving experience. Gabriel’s vision for this segment extends beyond the initial orders from Hyundai and Kia and actively engaging with other OEMs.
Gabriel is optimistic about industry growth going forward and targets a revenue of Rs 10,000 crore by CY2030, through strengthening its product portfolio. While the company continue to excel in its core suspension systems business, the sunroof venture serves as a complementary revenue stream, positioning Gabriel India for sustainable growth and long-term value creation.
We anticipate robust expansion in the two-wheeler segment, moderate growth in the passenger car segment, and marginal expansion in the commercial vehicle segment in the years to come. Gabriel’s strategic focus remains on strengthening exports and increasing its market share in passenger cars and two-wheelers. At the same time aftermarket business units continue to thrive, driven by replacement demand. Additionally, the company’s state-of-the-art R&D facilities in Chakan and Hosur, along with its Technology Centre in Genk, Belgium, are at the forefront of developing innovative solutions for emerging market demands. The Company is also actively exploring opportunities for inorganic growth through strategic mergers and acquisitions, further reinforcing their market leadership in the future.
Concerns
Gabriel’s profitability is exposed to pricing pressures from OEMs and increasing competition in the auto component segment. As a result, the company has limited flexibility to pass on raw material cost increases, putting pressure on its operating margins. The automobile industry is cyclical, making the company’s performance vulnerable to economic downturns driven by macroeconomic factors such as low growth, high inflation, and elevated interest rates. Additionally, Gabriel faces customer concentration risk, with its top five customers accounting for approximately 66% of its revenue.
Sector: Automobile and Auto Components
Market Price: Rs. 481.90 as on today
FV: Rs 1/-
Stock Name: Gabriel India Ltd
BSE Code: 505714, NSE Code: GABRIEL
Market Cap.: Rs 7030 Cr
Book Value: Rs. 74.9
Segment: Auto Parts – Shock absorbers
Incorporation: 1961
Headquarters: Maharashtra, India
