Gabriel India Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, disclosing significant progress in environmental metrics and workplace safety. The report reveals that renewable energy now accounts for 18% of the company’s total energy mix, up from 16% in the previous year, driven by increased investment in captive solar power. Additionally, the company achieved zero waste to landfill across all operations since FY25 and reported a ~93% reduction in the Lost Time Injury Frequency Rate (LTIFR) for workers, signaling improved operational safety standards.

The filing was made pursuant to Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Price Waterhouse Chartered Accountants LLP provided a reasonable assurance report on the identified sustainability information included in the BRSR Core attributes. The assurance covers key performance indicators related to greenhouse gas emissions, water footprint, energy consumption, waste management, employee wellbeing, and gender diversity.

Environmental Performance and Energy Mix

Gabriel India’s total energy consumption for FY26 stood at 2,56,983.98 GJ, with 46,598.77 GJ sourced from renewable sources. The company highlighted specific initiatives contributing to this shift, including a 1.05 MWp solar installation at its Nashik plant and an additional 0.5 MWp at the Chakan plant. These renewable energy projects are estimated to avoid approximately 2,478 tonnes of greenhouse gas emissions annually. Furthermore, energy efficiency initiatives across manufacturing processes contributed to an additional avoidance of 227 tonnes of GHG emissions per year.

Waste Management and Water Stewardship

The company maintained its commitment to circular economy principles, generating 6,316.25 metric tonnes of waste in FY26, of which 4,681 metric tonnes were recovered through recycling, reusing, or other recovery operations. The firm continues to operate with zero waste to landfill, having implemented this standard across all plants since the previous financial year. Water stewardship remains a priority, with total water withdrawal recorded at 2,21,064.43 kiloliters. The company has implemented Zero Liquid Discharge (ZLD) mechanisms at four locations—Hosur, Chakan, Nashik, and Dewas—to recycle industrial wastewater.

Workplace Safety and Social Metrics

Safety performance improved markedly, with the LTIFR for workers dropping from 2.48 in FY25 to 0.18 in FY26. Employees recorded zero lost-time injuries for the second consecutive year. The workforce comprises 790 employees and 5,649 workers, with women constituting 12% of employees and 14% of workers. The Board of Directors maintains 50% female representation. The company also reported one upheld complaint regarding sexual harassment under the POSH mechanism, which was concluded in April 2026.

What the Numbers Show

The divergence between rising total energy consumption and declining energy intensity per rupee of turnover suggests that revenue growth is outpacing energy use expansion. While total energy consumed increased by approximately 17.5% from FY25 to FY26, the energy intensity per rupee of turnover remained stable at 6.07 GJ/₹ million. This indicates improved operational efficiency despite higher absolute production volumes. However, Scope 2 emissions rose significantly, reflecting the increased reliance on grid electricity where renewable substitution has not yet fully offset demand growth.

Gabriel India Limited has scheduled its 64th Annual General Meeting (AGM) for Wednesday, August 19, 2026, primarily to seek shareholder approval for the acquisition of a 28.99% stake in HL Mando Anand India Private Limited (HMAI). The transaction, valued at up to ₹2,231.03 crore, marks a strategic expansion into steering, braking, and suspension systems, consolidating the Anand Group’s automotive investments under the listed entity. The meeting will also address leadership restructuring, including the appointment of Mahendra K. Goyal as Group CEO and Managing Director.

The acquisition from promoter Asia Investments Private Limited (AIPL) involves purchasing 4,81,34,427 equity shares of HMAI. The consideration will be discharged through a combination of preferential allotment and cash. Gabriel India will issue 1,44,04,204 equity shares at ₹1,305.89 per share, aggregating to ₹1,881.03 crore, with the balance of ₹350 crore paid in cash. Independent valuers KPMG Valuation Services LLP and BDO Valuation Advisory LLP determined the fair exchange ratio, while Amar Garg & Co. certified the floor price under SEBI ICDR Regulations.

Key AGM Resolutions

To facilitate the share issuance, shareholders are asked to approve an increase in authorized share capital from ₹18.72 crore to ₹20.16 crore. This involves creating 1,44,04,204 additional equity shares of ₹1 face value each. Concurrently, the company seeks approval to adopt new Articles of Association aligned with the Companies Act, 2013, replacing those adopted under the 1956 Act.

Leadership Restructuring

Mahendra K. Goyal, currently a Non-Executive Director, will be redesignated as Executive Director and appointed Group CEO and Managing Director for five years starting July 21, 2026. His annual salary is set at ₹40 million. Atul Jaggi will be redesignated from Managing Director to Managing Director (Ride Control), retaining his tenure until October 17, 2029, with no change in remuneration. These changes reflect the expanded scope of operations following the recent Composite Scheme of Arrangement.

Financial and Governance Updates

The Board proposes reappointing Price Waterhouse Chartered Accountants LLP as Statutory Auditors for a second term of five years, with proposed fees of ₹94 lakh per annum for FY2026-27. Cost auditor M/s. Dhananjay V. Joshi & Associates has been appointed for FY2026-27 with remuneration ratified at ₹2,00,000 plus taxes. Shareholders will also vote on enhancing borrowing limits to ₹1,600 crore and investment limits to ₹4,000 crore to support future growth and acquisitions.

What the Numbers Show

The ₹2,231 crore acquisition represents approximately 48% of Gabriel India’s consolidated turnover of ₹46,669.33 crore for FY2025-26, indicating a significant capital allocation toward vertical integration. By acquiring HMAI, which reported a profit after tax of ₹388 crore and turnover of ₹5,425 crore in FY2024-25, Gabriel India aims to capture synergies in ride control and safety systems. The use of equity shares for 84% of the consideration conserves cash resources, though it dilutes public shareholding from 36.45% to 33.71%, remaining above the 25% regulatory threshold.