Gabriel India has approved two significant acquisitions to expand its technology portfolio and strengthen its position as a comprehensive mobility platform. The Board of Directors approved the acquisition of a 28.9% stake in HL Mando Anand and a 30% stake in HL Klemove India during its meeting held on July 21, 2026. These strategic moves are part of the company's inorganic growth journey, aimed at entering high-growth segments such as steering systems, braking solutions, automotive electronics, and advanced driver assistance systems (ADAS). Management indicated that these initiatives will accelerate the company's growth trajectory and support its aspiration of achieving group revenues of ₹50,000 crore by 2030.

Financial Details of the Transactions

The total consideration for the acquisition of a 28.9% stake in HL Mando Anand from Asia Investments Private Limited (AIPL) is approximately Rs 2,231 crore. This will be discharged through a combination of equity shares and cash, with Rs 1,881 crore paid via a share swap and Rs 350 crore in cash. For the HL Klemove India transaction, Gabriel India will acquire a 30% minus one equity share stake for a total consideration of USD 98.44 million (approximately Rs 935 crore). The payment for this stake will be made in cash, split into two tranches: an upfront payment of 75% (USD 73.83 million) and a deferred payment of 25% (USD 24.61 million).

Strategic Rationale and Target Overview

The acquisitions are designed to provide access to next-generation products and technologies, including steering systems, brakes, suspensions, and ADAS. HL Mando Anand, a joint venture established in 1997, is a leading manufacturer of these products for Indian and global automobile manufacturers, with key customers including Hyundai, Tata Motors, Kia, and Maruti Suzuki. HL Klemove India, a subsidiary of HL Klemove Corp, specializes in automotive electronics and autonomous driving solutions. The company reported a turnover of INR 10,488.30 million in FY 2025-26 on an unaudited basis.

Governance and Future Outlook

Following the transactions, Gabriel India will hold significant influence in both entities. The Board of HL Klemove India will comprise ten directors, with four nominated by Gabriel India. These investments are expected to drive EPS accretion and enhance the company's cash flow profile. The company's inorganic journey, including previous acquisitions under Project Rise, has transformed it into a diversified mobility solutions company. The proposed investments under Project Jupiter will further strengthen Gabriel India's portfolio by adding new products and advanced technologies.

Gabriel India Limited reported a 14.9% rise in standalone net profit to ₹759.68 crore for the quarter ended June 30, 2026. Revenue from operations increased to ₹12,742.47 crore from ₹10,716.81 crore in the corresponding period of the previous year. Total income stood at ₹12,929.26 crore, while total expenses were ₹11,931.02 crore. The board approved the unaudited financial results for the quarter ended June 30, 2026, in its meeting held on July 21, 2026. Price Waterhouse Chartered Accountants LLP provided the limited review report.

The figures for the previous periods have been restated following the approval of a Composite Scheme of Arrangement by the National Company Law Tribunal (NCLT) vide its order dated May 11, 2026. The scheme involved the merger of Anchemco India Private Limited with Asia Investments Private Limited and the subsequent demerger and transfer of the Automotive Undertaking to the company.

Strategic Acquisitions

The board approved the acquisition of 28.99% of the equity share capital of HL Mando Anand India Private Limited from Asia Investments Private Limited. The acquisition involves the purchase of 4,81,34,427 equity shares at a price of ₹463.50 per share. The aggregate consideration for the acquisition is ₹22,310 million, comprising ₹3,500 million in cash and the balance through the preferential allotment of equity shares.

The company approved the issuance and allotment of 1,44,04,204 equity shares to Asia Investments Private Limited on a preferential basis at an issue price of ₹1,305.89 per share, aggregating to ₹18,810.31 million. This allotment constitutes 7.52% of the post-issue paid-up share capital and is subject to shareholder and regulatory approvals.

Additionally, the board approved an investment in HL Klemove India Private Limited by purchasing 37,844,999 equity shares for an amount equal to the INR equivalent of USD 98.44 million. This investment will result in the company holding 30% minus one share of the total paid-up share capital of the target company.

Financial Performance

The company’s earnings per share (EPS) for the quarter stood at ₹4.29 on a standalone basis, compared to ₹3.36 in the same period last year. The exceptional item for the quarter related to obligations for employees' past service created pursuant to the implementation of the four labour codes. The company operates in a single operating segment, "auto components and parts".

Standalone Financial Results (₹ in Million)

Conference Call Update

In continuation to the intimation regarding the Investors/Analyst conference call to discuss operational and financial performance for Q1 FY27, the company has informed that the audio recording of the said call has been uploaded on its website. The recording can be accessed via the Investor Information – Audio Transcript tab.