Highlights
- Gabriel India's proposed Project Jupiter transactions are intended to broaden its financial scale through investments in HL Mando Anand and HL Klemove India.
- The proposed businesses together contributed FY26 revenue exceeding ₹6,900 crore, according to the presentation.
- Following Project Rise, Gabriel India expects further earnings expansion through the proposed HL Mando Anand investment.
- The initiatives would also extend the company's presence across steering systems, braking technologies, automotive electronics and Advanced Driver Assistance Systems (ADAS).
- Both proposed transactions remain subject to the required regulatory and other approvals.
Gabriel India (NSE: GABRIEL) Continues Its Expansion Strategy
Following Project Rise, Gabriel India (NSE: GABRIEL) has proposed Project Jupiter to further expand its automotive business through investments in HL Mando Anand and HL Klemove India. According to the company, the initiative is intended to strengthen its financial scale, broaden its product portfolio and expand its presence across multiple automotive technologies through inorganic growth.
Project Jupiter Brings Large-Scale Automotive Businesses
Project Jupiter includes the proposed acquisition of a 28.9% stake in HL Mando Anand for approximately ₹2,231 crore and a 29.99% stake (30% less one equity share) in HL Klemove India for around ₹935 crore. The HL Mando Anand transaction comprises approximately ₹1,881 crore through a share swap and ₹350 crore in cash, while the HL Klemove India consideration is structured as 75% upfront and 25% deferred, subject to approvals.
HL Mando Anand reported FY26 revenue of ₹5,886 crore, adjusted EBITDA of ₹639 crore, PAT of ₹358 crore and net cash of approximately ₹493 crore. HL Klemove India reported provisional FY26 revenue of around ₹1,049 crore and adjusted EBITDA of approximately ₹129 crore, providing Gabriel India with exposure to automotive electronics and ADAS technologies.
Revenue Base Could Expand Further
Gabriel India's presentation highlights the growth in its consolidated operating revenue through successive business integrations. Revenue increased from approximately ₹4,667 crore before Project Rise to around ₹9,176 crore after Project Rise. Following the proposed Project Jupiter transactions, the company indicates consolidated operating revenue could reach approximately ₹16,111 crore, reflecting a broader presence across the automotive value chain. These figures are based on the company's presentation and remain subject to completion of the proposed transactions.
Earnings Profile May Continue to Evolve
Gabriel India stated that Project Rise increased FY26 earnings per share from ₹17.6 to ₹24.3, representing approximately 38% EPS growth. The company also estimates that the proposed HL Mando Anand transaction could contribute an additional 13% pro forma EPS accretion based on FY26 financials, while supporting profitability and cash flow over time. These estimates remain subject to successful completion of the proposed investment.
Technology Expansion Supports a Broader Business Portfolio
The proposed transactions would also expand Gabriel India's technology and manufacturing capabilities. HL Mando Anand operates three manufacturing plants near Chennai, supported by an R&D centre and more than 4,600 employees, while HL Klemove India has a manufacturing facility near Chennai with over 400 employees. Together, the businesses manufacture steering systems, braking systems, suspension products, automotive electronics, radar systems, smart cameras and ADAS-related products, complementing Gabriel India's existing ride control portfolio.
Long-Term Direction
According to Gabriel India, Project Jupiter is intended to build a broader mobility platform spanning ride control products, steering, braking, driveline systems, transmission systems, automotive electronics and ADAS. The company believes the proposed transactions would diversify its technology portfolio while strengthening its presence across the automotive components value chain, subject to the required approvals.
Conclusion
Project Jupiter represents another phase of Gabriel India (NSE: GABRIEL)'s expansion strategy by adding businesses with established operating scale and technology capabilities. The proposed transactions are expected to broaden the company's product portfolio, manufacturing footprint and financial base while supporting its long-term mobility strategy. Their implementation remains subject to regulatory and other approvals.
FAQs
Q: What are the proposed investments under Project Jupiter?
A: Gabriel India has proposed acquiring a 28.9% stake in HL Mando Anand and a 29.99% stake (30% less one equity share) in HL Klemove India, subject to the required approvals.
Q: What financial scale do the proposed businesses add?
A: HL Mando Anand reported FY26 revenue of ₹5,886 crore, while HL Klemove India reported provisional FY26 revenue of approximately ₹1,049 crore, according to the company presentation.
Q: How could Project Jupiter affect Gabriel India's earnings?
A: The company estimates the proposed HL Mando Anand investment could provide approximately 13% pro forma EPS accretion based on FY26 financials, subject to transaction completion.
Q: Which technology areas would be added through the proposed transactions?
A: The proposed businesses would expand Gabriel India's presence across steering systems, braking systems, automotive electronics and Advanced Driver Assistance Systems (ADAS), complementing its existing ride control portfolio.