Are Gabriel India Ltd latest results good or bad?

Gabriel India Ltd's latest financial results reflect a complex operational landscape. In Q2 FY26, the company reported net sales of ₹1,180.30 crores, achieving a year-over-year growth of 14.92%. This indicates a solid demand continuation, although the sequential growth from Q1 FY26 moderated to 7.46%. The net profit for the same quarter was ₹69.03 crores, marking a year-over-year increase of 9.71% and a quarter-over-quarter improvement of 11.39%. However, the operating margin experienced a slight contraction, reported at 9.56%, down from 10.13% in the previous quarter. This margin compression suggests ongoing challenges related to raw material costs and competitive pricing pressures within the automotive supply chain. Despite these challenges, the return on equity (ROE) stood strong at 20.01%, indicating effective capital utilization. Looking at the broader context, the company's financial performance for FY25 demonstrated impressive growth, with net sales surging 19.40% to ₹4,063 crores and net profit increasing by 37.08% to ₹244 crores. This performance underscores Gabriel India's operational strength, although recent quarterly trends indicate that growth rates are normalizing from elevated levels observed in prior periods. In the most recent quarter ending December 2025, Gabriel India reported a net sales growth of 15.94% year-over-year, which is a decline from the previous year's 24.67%. The consolidated net profit, however, saw a decrease of 9.05% compared to a significant growth of 45.72% in the same quarter last year. The operating profit margin remained relatively stable at 9.00%, reflecting the company's efforts to maintain profitability amidst fluctuating market conditions. Overall, while Gabriel India continues to demonstrate operational resilience and strong financial fundamentals, the recent adjustments in its evaluation suggest a need for careful monitoring of growth sustainability and margin pressures moving forward.