# 1. Financial Performance ## A. Key Figures * **Operating Revenue:** **₹985 Cr** standalone (+14%) · **₹1,098 Cr** consolidated (+16%) * **PAT:** **₹62 Cr** consolidated (+8%) * **EBITDA:** **₹108 Cr** consolidated (+19%) * **EBITDA Margin:** **9.9%** consolidated (+30 bps) * **Segment Growth (YoY):** **12%** 2/3-Wheeler · **11%** Passenger Vehicle · **29%** CV, Railway & Aftermarket ## B. Margin Trajectory * **Profitability Optimization:** Consolidated margins are trending toward the upper end of the historical range, bolstered by the **Core 90 program** for sustainable cost efficiency. * **Subsidiary Performance:** Margin expansion is being supported by strong contributions from both the standalone entity and the Inalfa partnership. * **Segment Turnaround:** Management expects the MMAS business segment to achieve profitability by **Q4 FY '26** following initial margin headwinds. ## C. Capital Expenditure * **Suspension & Sunroof Investment:** Projected FY '26 spend includes **₹150 Cr** for the core suspension business and **~₹50 Cr** for Inalfa Gabriel Sunroof Systems (IGSS). * **Strategic Acquisitions & Expansion:** Q1 spend included **₹40 Cr** for the MMAS acquisition; meanwhile, all planned capex for the Chennai facility has been fully executed. * **New Business Vertical:** A dedicated investment of **₹60 Cr to ₹70 Cr** is earmarked for a new fastener plant, to be financed via a mix of equity and term loans. --- # 2. Product & Segment Performance ## A. Key Figures * **Sunroof Revenue:** **₹114 Cr** current quarter · **₹30 Cr** Chakan 2 (MMAS) Q1 contribution * **Sunroof Margins:** **14.4%** EBITDA · **~5.5%** PAT * **Sunroof Guidance:** **₹150 Cr** full-year MMAS revenue projection * **Fastener Guidance:** **₹180 Cr – ₹200 Cr** revenue target by FY30 ## B. Sunroof Systems * **Strategic Diversification:** Partnership with Inalfa Roof Systems aims to reduce category dependence by strengthening presence across OEM and aftermarket channels. * **Profitability Roadmap:** Management expects the MMAS business to turn **PBT positive by Q4**, supported by cost optimization and long-term order book improvements. * **Capex & Scaling:** Future investment is contingent on the **Hyundai Talegaon plant** acquisition and pending RFQs; segment scaling is tempered by high development costs and long lead times. ## C. Fastener Business * **Localization Strategy:** The Jinhap JV focuses on "Make in India" production to capture a **₹1,500 Cr** import-substitution market, primarily serving passenger cars. * **Long-term Outlook:** Anticipating robust scaling with **double-digit EBITDA** margins by 2030 as the segment matures. ## D. Railway & Aftermarket * **Railway Growth Drivers:** Sustained momentum expected through FY26, fueled by government coach/bogie volumes and participation in high-profile platforms like **Vande Bharat**. * **Aftermarket Expansion:** Plans to leverage the established Gabriel brand and distribution network to scale the **Anchemco business** and diversify revenue streams. ## E. Suspension Business * **Segment Momentum:** Performance remains robust, specifically underpinned by strong demand within the Commercial Vehicle (CV) and railway sectors. --- # 3. Manufacturing & Capacity ## A. Key Figures * **IGSS Performance:** **₹114 Cr** Quarterly Revenue · **14.4%** EBITDA Margin * **Localization Value:** **₹100 Cr - ₹120 Cr** Phase 1 Target ## B. Plant Utilization & Production Ramps * **Incremental Revenue Drivers:** The newly commissioned Chakan 2 facility is projected to contribute **₹150 Cr** in top-line growth this fiscal year. * **Sunroof Scaling:** Management anticipates a utilization rate of **40% to 50%** for the second sunroof line starting in **2025**, with future plant locations dictated by high logistics costs and product aesthetic criticality. * **Specialized Component Momentum:** Significant volume ramp-up achieved in front forks; solar damper production commences this quarter for domestic markets, with exports following in **Q1 FY27**. * **Future Product Pipeline:** E-bike component production is slated for **Q4 FY26**, while a new fastener plant is expected to begin commercial operations around **July 2026**. ## C. Localization & Strategic Expansion * **Import Substitution:** Construction has commenced on a new facility dedicated to localizing high-value imported products to optimize the cost structure. * **Capacity Roadmap:** Multi-year expansion plans for FY26 and FY27 are underway to accommodate Hyundai, Kia, and anticipated new customer wins. * **Investment Contingencies:** While Chennai facility implementations are complete, further capital expenditure remains contingent on pending OEM decisions which may necessitate an expedited timeline. --- # 4. M&A & Strategic Partnerships ## A. Key Figures * **JV Equity Split:** **51%** Gabriel India · **49%** Jinos (Jinhap affiliate) * **Partner Scale:** **$500 Million** Jinhap annual revenue ## B. Composite Scheme of Arrangement * **Strategic Pivot:** Transitioning from a suspension-centric model to a **diversified mobility solution provider** via the integration of four Anand Group entities (Anchemco, Dana Anand, Henkel Anand, and Anand CY Myutec). * **Synergy Roadmap:** Integration targets immediate operational benefits alongside long-term technology transfers and global market access through established partners like **Dana and Henkel**. * **Portfolio Expansion:** The scheme unlocks high-demand **aluminum forging** capabilities, specifically targeting the lightweighting trend within the two-wheeler segment. ## C. Joint Venture & Technology Licensing * **Fastener Market Entry:** New partnership with South Korea’s Jinhap focuses on manufacturing **specialty fasteners** and **precision forging** to support "Make in India" initiatives for existing clients. * **Technical Moat:** A formal technology license agreement with Jinhap grants Gabriel proprietary access to specialized coatings and advanced technical expertise. * **Global Ambitions:** While initially focused on domestic supply, the JV is positioned to leverage the partner's existing footprint in Korea and the **United States** for future export opportunities. ## D. Integration Progress * **Opex Headwinds:** Recent spikes in employee and administrative expenses are linked to the **MMAS integration**, **Project Rise** initiatives, and one-time restructuring costs. --- # 5. Customer & Market Metrics ## A. Key Figures * **Segment Growth:** **12%** 2-Wheeler segment growth · **30%** EV 2-Wheeler industry growth * Industry Volumes: **6.1 Mn** 2W/3W units (Flat) · **1.2 Mn** PV units (+1%) · **2.4 Lakh** CV units (+1%) * **Market Share:** **25%** Dana aftermarket · **40%** Contribution to total Anand Group size * **Production Volume:** **15,000 units/month** Inverted front forks (vs. ~2,500 units/month YoY) ## B. OEM Relationships * **Market Outperformance:** Achieved double-digit growth in the 2-wheeler segment, significantly decoupling from flat industry trends via strong off-take from TVS, Suzuki, and Honda. * **Strategic Client Acquisition:** In advanced discussions with **Hyundai** for the Bc4 order at the Talegaon plant; final decision expected in the coming weeks. * **Sunroof Business Dynamics:** Currently anchored by Hyundai and Kia, with active RFQs underway to secure additional OEMs within the next **one to two quarters**. * **Short-term Headwinds:** Top-line impacted by **Kia's nil production** and the Syros model launch underperforming expectations; recovery projected for the second half of the year. ## C. Market Share & Industry Trends * **Segment Divergence:** SUV growth (+9%) and Scooter growth (+6%) are currently offsetting declines in entry-level cars and bikes. * **Competitive Positioning:** Management expects a distributed market landscape rather than single-player dominance, despite significantly outperforming the broader market in Q1. * **Aftermarket Presence:** Maintains a strong foothold in the Dana aftermarket segment, while emerging product lines like coolants and brake fluids remain in an evolving growth phase. ## D. Premiumization & Order Pipeline * **Premiumization Tailwinds:** Rapid scaling of inverted front fork production—increasing nearly **six-fold** year-on-year—reflects successful capture of the high-end 2-wheeler trend. * **Export Diversification:** Expanding the international order book through solar dampers and e-bike components specifically targeting the **European market**. --- # 6. Risks & Operational Factors ## A. Regulatory & Consolidation Timelines * **Integration Horizon:** Full consolidation of results is deferred until **FY 2027** due to anticipated regulatory approval lead times. * **Sunroof Joint Venture Restructuring:** PN3 approval remains pending amid restrictive government policies; management expects partner **Inalfa** will be required to pivot to a **minority stake** to secure clearance. * **Equity Control Strategy:** Gabriel intends to maintain majority shareholding in the sunroof venture to align with domestic regulatory conditions. * **Ongoing Negotiations:** Formal filings are pending as the company continues active discussions regarding partner equity structures and future approvals. ## B. Competitive Intensity * **Market Saturation:** The sunroof segment is witnessing heightened competition as nearly all major global players have established Indian tie-ups, often leveraging legacy parent-customer relationships. --- # 7. Guidance & Outlook ## A. Key Figures * **Profitability Timeline:** **PBT positive** for MMAS by Q4 current year ## B. Profitability Goals * **Margin Expansion:** Management is pivoting the core business toward a higher profitability floor, raising the target range from the previous **8% to 10%** to sustained double-digit levels. * **Segment Dynamics:** While the sunroof business is expected to stabilize at healthy double-digit margins, MMAS profitability will likely remain below standalone levels despite reaching a PBT breakeven milestone shortly. * **Competitive Headwinds:** Long-term sunroof margins are projected to settle at current guidance levels as the market matures and competition intensifies. ## C. Long-term Strategy * **Macroeconomic Outlook:** Near-term sentiment remains cautious and tied to rural demand; however, the **100 basis point** repo rate reduction by the RBI is viewed as a primary catalyst for improving vehicle affordability. * **Consolidation Strategy:** Growth targets for FY27 are underpinned by the full integration of the invested portfolio and various business units.