Gabriel India Limited ($505714)

Ladies and gentlemen, good day, and welcome to the Gabriel India Limited Q4 FY '26 Earnings Conference Call. This call may contain forward-looking statements about the company that are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties are difficult to predict. [Operator Instructions]. Please note this conference call is being recorded. I now hand over the call to Mr. Atul Jaggi, Managing Director from Capital India Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, and a very warm welcome to everyone on the call. I hope everybody is doing well. So joining me today, we have Mr. Mahendra Goyal, our Group CEO; Mr. Mohit Srivastava, our CFO; Mr. Nilesh Jain, our Company Secretary; and [indiscernible], our Investor Relationship Advisor. We have uploaded our results and presentation for the quarter ended 31st March 2026 on the stock exchanges and on the company's website. I hope each one of you had a chance to go through the same. Turning to the Indian automotive industry. I think the industry witnessed a strong recovery and a healthy demand momentum during the last quarter, which continued even in the month of April also, with most of the vehicle segments reporting record sales. Coming to 2-wheelers, the production grew 21% year-on-year in the quarter 4 FY '26. This growth was 12% overall for the year FY '26. While the overall growth was 12%, these [indiscernible] segments saw 17% overall growth. This was helped -- I think the recovery happened as we know, post the GST and also the finance availability, infrastructure and other [indiscernible] cash flow impact also helped the strong recovery in the 2-wheeler segment. Turning to the passenger vehicle, the production grew 11% year-on-year in the quarter 4 FY '26. If you look at the overall year, it was 9% with [indiscernible] outperforming overall industry or growing 12% year-on-year. Definitely, the consumer sentiment post the GST-related benefits flowing in and the lower interest rates helped this growth momentum. The commercial vehicle production also grew a very healthy 19.5% in the quarter 4 FY '26. This was 13% year-on-year with [indiscernible] CV year-on-year growth at 16%. So this overall growth highlights the resilient domestic demand and improving customer sentiment despite the global uncertainties and fuel prices and commodity related issues that are going on. The ongoing West Asia contract remains a key event under monitoring for the entire sector, with sharp changes in the crude oil can impact the affordability negatively. It can also impact the consumer center which prolongs for a long period of time. We are already seeing op increases in the commodities currently. So but overall, if you look at the long-term outlook for the Indian automotive industry, it remains very positive. It is supported by -- definitely by the policy reforms, infrastructure development that we see all around our localization initiatives taken across and then the rising consumer demand. Before going to the company's performance, and I would like to share a quick update on the restructuring post which we'll take you through a brief overview of our operations and key highlights. So I would like to update you all that the composite involving the analyzation of [ Camco ] India Private Limited into Asia Investment Private limited followed by the demerger of automotive and they're taking into Gabriel India has now received key shareholder and [ NCLT ] approvals. The scheme becoming effective from 22nd May 2026. Speaking on the performance of the company, I'm pleased to announce that the Board of Directors have recommended a final dividend of INR 3.1 per equity share of face value of [ INR 1 ] is subject to shareholders' approval at the coming AGM. Including the interim dividend of INR 1.9 per equity share declared earlier during the year. The total dividend for FY '26 stands at INR 5 per equity share and INR 4.7 share declared in FY '25. Now talking about the stand-alone performance in quarter 4 FY '26, our stand-alone operating revenue grew by 19% year-on-year, reaching a revenue of INR 111 crores, supported by higher volumes and strong sales performance, including aftermarket in all our segments. For FY '26, stood at INR 4,223 crores, growing 16% year-on-year. All segments showed all double-digit growth outperforming the underlying industry growth. Quarter 4 FY '26, stand-alone adjusted EBITDA grew by 16% year-on-year, reaching INR 101 crores with margin at 9.1%. For FY '26, this stood at INR 383 crores, growth of 18% Y-o-Y with EBITDA margin at 9%. The quarter 4 FY '26 PBT before exceptional items grew 15% Y-o-Y to INR 86 crores with a margin of 7.7%. For FY '26, this stood at INR 335 crore growth of 18% Y-o-Y with PBT margin of 7.9%. Coming to the consolidated performance. In quarter 4 FY '26, our consolidated operating revenue grew by 13% year-on-year, reaching to INR 1,210 crores. For FY '26, this stood at INR 2,667 crores, growing 15% Y-o-Y. Quarter 4 FY '26, we consolidated adjusted EBITDA grew by 6.5% Y-o-Y, reaching [indiscernible] INR 19 crores in margin at 9.7%. For FY '26, we stood at INR [ 450 ] crores, growth of 15% Y-o-Y with EBITDA margin at 9.7%. Quarter 4 FY '26 consolidated PBT before exceptional items grew 5.5% Y-o-Y to INR [ 392 ] crores with a margin of 7.6%. For FY '26, we stood at INR 350 crores, growth of 8% Y-o-Y and PBT margin of 7.5%. Coming to the subsidiary performance in Q4 FY '26 in [indiscernible] Systems Private Limited reported revenue from operations of INR 99 crores and EBITDA of INR 14.5 crores to a margin at 14.6%. FY '26 revenue stood at INR 434 crores and EBITDA of INR 65.4 crores with a margin at 15.1%. On that note, I come to the end of my opening remarks. I now request the moderator to begin the Q&A session. Thank you.

[Operator Instructions]. We will take the first question from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities.

Congrats on the results and the [ NCLT ] approval. Sir, firstly, to Mahendra, sir. Just on the ANAND Group has early shared about the 230 target of INR 50,000 crores and with Gabriel as an automotive growth engine for the group. Just wanted to check, would you like to share an update on the progress on this milestone? And what are the opportunities areas you're seeing in our [indiscernible] area and how really expected to play a role in this target?

Yes. Thanks for the question. And I think the way we have been discussing in past over a year, I think the same continues from the Gabriel perspective. I think we discussed very well, which is of course that Gabriel is a growth engine for the growth. Therefore, all the businesses, the new businesses, which we are entering into, those are forming part of Gabriel. And of course, whatever new initiative, which we are taking, those will form part of the Gabriel business. So that is what our overall objective from the Gabriel role in INR 50,000 crores. And how do we see Gabriel in this growth journey basically. So that's very clear. And that math not changed from the past communication. And as far as INR 50,000 crores, I think the target is very much remains with us, and we are very hopeful that as we are progressing in this journey. We should be able to achieve this target in 2030. And of course, it's too early to say anything on this, but we are making good progress in the current year move ahead in this journey. So I think we will update you soon on this, but it's too early to comment anything on this specifically with any transition.

Got it, sir. And just, sir, continuing with you, sir, I mean on the -- with the NCLT approvals done now for the 4 companies, I just want to understand how is the progress for the next companies, which can be brought to [indiscernible]? And just want to understand if any challenges are there from the partner side it? And how should one look at the time lines?

I think the good thing is that NCLT has approved after the shareholders' approval. So thanks to all the shareholders for the approval. And now in the process of doing the rest of the formalities, I think which should be taking another 1 month or 3 weeks from now, we hope that this entire restructuring, which we did, we should be able to accomplish by end of June or mid of June or maybe third week of June, actually. So that is the first thing we want to conclude now. And as far as with respect to the bringing other [indiscernible] businesses into the Gabriel fold, as I said in the past, there is a complete intention to bring all those businesses into the Gabriel brand and again, I can't commit any pipeline because it's too early to comment on a transaction. But as far as the challenges with someone else, there is no challenges. The way we look at the next part of [indiscernible] business.

Got it. So great to this. Sir, coming to Atul, sir. Can you just provide an update where new opportunities like with the [ NOS ] JV on the fastener solar [indiscernible] and lubricant JV, sir?

Yes. So I mean, all the new opportunities are progressing as per the time line that we have defined. I think you can start from the solar [ dampers ], as I said, I think there is a business pipeline that is getting created. It takes, obviously, products are in various stages of either development or testing or validation -- there are certain assured businesses, one from Europe. There's a local business, there's a North America business also. But yes, as you know, they have to all go through the approval process, the validation process there and the entire development [indiscernible] cycle we have to go through. So that is going on well. Even on the bike side also, as I mentioned last time, I think we have got the first order from a European customer, just to share with you news which has just come. I think one of the very innovative product, there was a euro bike going on. Currently, there's [indiscernible] going on in Germany. Yesterday night, itself has just got a means that Gabriel has got an innovation award for our integrated dropper post that we have created along with a European company, biggest light maker, which is called [indiscernible] move. So we will be getting that recognition of [indiscernible]. We have already attempted that product. So I think the progress has been good and at different stages. Now coming to the [ SK ] part of it.

The [ SK], I think we have, in course, we started the operations in this quarter already, and the company started generating sales. We should be moving the good in this direction, whatever business plan we made, I think we should be achieving that number in the first year, but it's something on [indiscernible] now. People are there. We are recruiting the team. I think everything is going according to the plan. And as far as the [indiscernible] is concerned, construction is going on of the building. That should be -- we are expecting that to end sometime in September, and then we will start the commercial production a Q3 of -- Q4 of the calendar year or Q3 of the financial year in the current year. And that will also start generating sales in the current year. So that is what a update on these 2 joint ventures.

Just to only add there is, again, some good information. I think while they are small wins starting up, but a couple of wins already with 2 of the customers in the case of [ SK ] and we have also one business win in the [indiscernible]. So I think that work has started. And as I said, I think as per the time line.

Got it, sir. Yes. Got it. So this customer new wins would be on the OEM side for the [indiscernible].

Yes, they are on the OEM side. Just to share with you, one is with the [indiscernible] through the [indiscernible], and one is the mobile, which is finally on the EV battery fuel side. As I said, and [indiscernible] obviously with the Korean customer.

Got it. Anything to share, sir, in terms of numbers? How do you see the revenues for the next few years?

Yes. See, we have already shared the business plan with you as Mr. Goyal also mentioned, I think the [indiscernible] production is expected in quarter 3. What we are seeing is there, we are in the process of creating the time line and obviously, the factory is coming up. is too early to put a bigger numbers there. But yes, the every business will add up to the number. So here we are also creating for SK, we are creating a complete distribution network. Some small sales have started happening even in April also. I think, obviously, in the coming months, we would be sharing, but to build block by block.

[Operator Instructions]. We will take the next question from the line of Amit Hiranandani from Phillip Capital.

Sir, my question is revolving only on the [ Sanuk ] businesses. So if you can help us understand the reason for -- while decline in the revenues. As a Q-on-Q also, there is some decline we observed. Even your top 2 customers have reported some volume growth. Can we EBITDA margin for [ Sandu ] improved on a Q-on-Q basis. So I want to understand the reason and sustainability of the same continue to be some only any new order wins apart from the [indiscernible] customers? And finally, on the bookkeeping like how many [indiscernible] total units sold in FY '26 and the penetration level, we wanted to understand for 2 fiscal FY '25 and '26.

Okay. [indiscernible], do you want to take the margin part first and then I comment?

I think, sir, I'll take a couple of questions in terms of declines. So we sold close to 170,000 [indiscernible] routes in the year [indiscernible] and the quarter-on-quarter drop you see because of the peers, the anticipation of what this [indiscernible] will do the -- in the last quarter, the business example was happening, which we could not see in this quarter, hence the drop in revenue happened. With respect to the margin, which has improved from the quarter-on-quarter, I think last quarter, we announced the additional royalty impact being taken into the P&L along with the measures being taken to mitigate that impact through operational efficiency and our sourcing efficiency. So some work can happen and which is also reflected in this quarter's results. And do you expect that momentum to continue going forward? Having said that, we continue to maintain our position that some new business margin at EBITDA level removed between 12% to 14%. Yes. Sorry, you can comment on the mix part of [indiscernible].

Yes. On the new business side, again, like last call, I mentioned 3 business wins with the Korean customers. We have we have quoted for one of the local customers, which I said that we were in advanced discussions. So some progress has happened, but [indiscernible] decision is yet to be made there. As soon as it is made, we will be sharing with you. And there are some other RFPs also. We are working with both the current customers also.

On the penetration [indiscernible] level for FY '25 and '26, if you can highlight, please?

Is somewhere around 24%, 25% is the final number variant to variant engines there, but I think anywhere around that number is the [indiscernible].

And sir, secondly, in this passenger vehicle shock [indiscernible] any new program wins, especially in the [ FFB ]? And secondly, within the 2-wheeler business, any time to start the business with [indiscernible].

On the passenger car, since you have asked specifically on the [ SSD], we -- there's one development that is going on currently with Tata Motors on that. So that is one. And then secondly, I mean, one or 2 discussions with our different customers on offering this technology is going on. But yes, in the development, it is currently one model. On the euro side, the first launch, we are expecting start-up production we are expecting in quarter 2 there. And that is the first business that we had won and there are a couple of other businesses, which are under discussion and negotiation with them, which we would hopefully be closing soon. So but quarter 2, you can assume the start of production.

We will take the next question from the line of Jay Kale from Elara Capital.

Congratulations on the set of numbers in a challenging environment. My first question is on the subsidiaries, for subsidiaries that had announced from a merger perspective, while able to progressively disclose the financials. But just an indication of how have they performed in this fiscal? Your stand-alone revenues grew by 16%, broadly how have they performed as a combination of 4 entities have they outperformed the standalone revenue growth? And just some color on how the integration is going on. And the second question is on [ SK ] Innovation. Of course, we started off with one product, but they have a global suite of many products. How are we seeing discussions of further expanding the product portfolio over year? And any incremental information or ways that we've made on that side?

So if I may come in here. For the first question, so with respect to the team into the annual financial target is ongoing, and we expect that audit conclusion to happen by the middle of June. And as informed with you from quarter 1 onwards, we will consolidate the numbers. Hence, we would be able to share the better outlook with the numbers for FY '25, '26 on the Q1 numbers as well. At this point of time, since the order is going on, you won't be able to share the specifics about [indiscernible].

So in general, these companies are performing edge for the market. And so I think we don't see anything which is to be highlighted to alarming anything, it needs to be highlighted. I think everything is going as per the plan and it's for the market actually. So that is on the associates and subsidiary companies. And as far as [ SK ] Group is concerned, our relationship with right now for the lubricant business so that we want to first measure for at least for a year and then maybe later, we will see what could be the other opportunity with the group -- SK Group to work on other products.

Okay. And the second question is on the M&A financials, we have targeted [indiscernible] or at least PBT breakeven by Q4. How are we in that journey? Of course, with commodity costs increasing, how the pass-throughs are happening for that entity as well as the overall business.

Okay. So on the M&A, again, the progress has been good from where we started and where we ended the year, I think there has been a significant progress. I would surely say, I think we have crossed the EBITDA positive, almost close to breakeven there, not through that, but he is almost there on that part. Now we have also been able to stabilize that plant because that had a lot of challenges, which I think we have discussed here also. We have also now since the operations have stabilized, and obviously, the technology piece is taken care of, the basic fundamentals are taken care of, we have now started working on new RFPs also there in that particular plant. Now it is not specific to M&A. On the commodity side, the escalations are there. And I think every effort is being put to have a back-to-back recovery for that because which is definitely mandatory. So the escalations are being worked out with all the customers, all the commodities there because they are all steep increases. And principally, I would say, the customers are aligned to pay there and I think that is the current status. I have not seen a customer which is indicating that they will not. So yes, we continue that recovery because the prices are also changing on a monthly basis, I would say. So that's -- but it is not specific to it is not specific to [indiscernible]. It is across the business, across the group.

Understood. Just one last in that slide, any updated targets about your margin trajectory closer to 10% going ahead, especially in this current scenario?

Yes, I think what we have all learned from COVID is that every quarter, every 6 months, every year brings a new challenge, okay? So our target, whether it is margin improvement or whether it is going to INR 50,000 crores or whether it is continuing the acquisition journey, I think they cannot get derailed, I would say in mind also because of certain happenings. So I think -- we have all learned to live with this, and we are all want to overcome these challenges. Yes, a month here and there can happen. But the fundamental targets don't change. And I'm sure the kind of increase that is there, the moment can streamline, I think this will come back to normal. It may take a quarter here and there, but -- so that doesn't change the target that we have taken.

We will take the next question from the line of [ Radha ] from Motilal Oswal Financial Services Limited.

Sir, my question is with [indiscernible]. Sir, the exports from [indiscernible] Indian entity to the global company have gone up from about 30% in 2019 to 40% in 2025. So can you please highlight the growth opportunity in the exports market over and above the respective industry growth in those regions? I mean, are there any geographies which is rating strategies with respect to shifting manufacturing to India? Or if you could talk about any product introduction or any new business like a part of the [indiscernible] you mentioned. So basically, I wanted to understand where do you see the scale of this business over the next 2, 3 years?

I think export business has been priority for in [indiscernible] and it's the export going back to the partner, basically the global locations. So I think -- from that point of view, we continue to grow this business the way it has been growing in the past. So we don't see anything on this, but I can't comment on any numbers specifically or any [indiscernible], but the strategy is to shift the global operations as it is the appropriate time for them also to India. So that's continuing. I think we are doing good and continue to do good actually.

Okay, sure. And second is, sir, if you look at the historical financials of [indiscernible], India and the [indiscernible], it seems like there is still a lot of scope to ramp up the production with the current gross block and hence, there could be a scope for further operating leverage. So your current margins in that business is already higher than all the other peers in India as well as [indiscernible]. So is it a fair understanding that largely there is a potential for further margin expansion in the [indiscernible] business or this is [indiscernible]?

No. We -- as I said, that it's going on well. So it continues our challenge is very difficult to comment on margin sometimes exchange going up, going down or [indiscernible] impacts. There is a volume changes many times. I think at least whatever visibility we have today are still done that we don't see any challenge. Things are going fine, and they continue to go like that.

Again, I would only add that I think in the time, the fundamentals of the company are strong, okay? One -- a little challenge here and there on some impact that comes, should not worry us, correct? And commodities, et cetera, are all taken care back to back there. And I think [indiscernible] has a fantastic improvement of continual improvement in operations and profitability, and there is no reason why it should not continue.

Sir, last question is on [ Henkel ]. The margins in the hotel business has been quite volatile. So if you can highlight what is the major base raw material in that [indiscernible] us in? And where do you think the sustainable margins for this company?

It's basically sometime, commodity fluctuation is happening very strongly, especially in the current quarter. I don't know really for which number you are talking from the Henkel perspective, which year you are talking I have no idea because as Mohit said that our audit is going on for the current year numbers, those results will be out. So our numbers are only available for 2024, 25 after that we have not declared any number on this. But yes, I think the margins are -- continue the way it is. Of course, some challenges with respect to the commodity on the quarter-to-quarter could be there because there is a recovery lag many times. So -- but yes, otherwise, there's no specific reasons of changing the margins. I really don't know which margin you are comparing or which year you are comparing.

I was talking on the last 10 years, sir.

Last 10 years, yes, there have been a lot of changes also in the business. Sometimes the product mix is changing, new technologies coming. So of course, manufacturing facilities are shifting between where we have a cumulative production going on [indiscernible]. Of course, in those years when we had a large investment, probably had impact on the margins. But yes, last couple of years, the company has been doing good, and that's why we look at it.

[Operator Instructions]. We have the next question from the line of [indiscernible] from [ Anand Rathi ].

My question is, I mean stand-alone results, the gross margin was lower by 9% Q-on-Q. So what would be the reason? Is it met higher input cost or mix of higher power or lower exports? And any one-offs to call in standalone and [indiscernible] margins in another line item as well?

Yes, thanks for the question. Yes, quarter 1 compared to quarter 3 a drop in the gross margin mainly due to the sale cost impact. And of course, the [indiscernible] impact data stream supply chain we have to prioritize. I mean the mix also took on in part, we were a customer and store volume to the backseat and focus to cater the [indiscernible] line. [indiscernible] impact also for a couple of inflations [indiscernible] we have vocal, which we had to record to take the line. We have launched the [ tail ] to the customers. But due to the timing difference, we have to take that impact into our [indiscernible]. I think that has been the main reason for this [indiscernible] cost, which is in the drop in March.

So what is your inflation range in terms of like mid-single or high single digit moving forward?

It is impossible to decide because every day the commodity prices are changing because just to share with you even the settlements also which used to happen quarterly, 6 monthly, I think on certain commodities, the settlements are also happening now on a monthly basis and customers are also releasing the purchase orders. So it is -- part is there's a few difference. Like if you take aluminum and then you take plastics and then you exceed there is a few differences in terms of inflation. So very difficult to say where it will go and how it will change. Because in the March, it were completely different than April, the April is completely different than May. Tomorrow, June much better escalate [indiscernible] may again see an increase. So that continues. So putting a number is -- I think most important is to ensure recovery.

Okay. And my next question will be regarding [indiscernible]. So when should we see the next model ramp-up for Santro? And then are there as in the last quarter or doesn't last quarter?

Yes, the previous quarter, I shared that 3 wins were there this quarter, while the RFPs have been addressed, there is no decision that has happened. In terms of -- in terms of the new models coming into production, I think I have already given the date earlier, one of the EV models of [ Cyrus ] variance because you know [indiscernible] almost we gain 0. They have started producing in the last few months. Now EV for domestic and export is starting now. So that is going to be there. But all the new models that are under development, there are 5 of them actually, they start coming in from the different ages in the -- this year and then next year. I have already showed the dates in the past months when just starting at quarter 3, if I remember correctly, but I can check and again share also. We share that.

We will take the next question from the line of [indiscernible].

Congrats on a great set of numbers. Could you tell how much CapEx are you planning in FY '27?

The CapEx, this year, we did about INR 190-odd crores and the range which we take is about INR [ 150 ] crores to INR 180 crores of CapEx and [ endeavor ] is to keep the asset term in line with what we have done in past. About INR [ 150 ] crores, to INR 180 crores of CapEx to cater the growth which we are targeting maintaining.

Okay, understood. Another question was on the [indiscernible] product that we talked about last quarter. So have you onboarded any customer for the commercialization of the same active product?

So 2 parts to this question. One is on the 2-wheeler side, on the car side. On the 2-wheeler side, the 2 developments with 2 customers have started. There sort of -- so the LOIs are there and the development are starting. They will start coming in as per the time line for the development time line. On the passenger car side, while some collaborative work is happening with the customer, but there is no formal LOI as of now. Yes. POC has been done with 100 customers, and the POC is being planned with another customer. But as of now, there is no formal LOI, which is available.

And what would be the margin share?

We won't detail the margins so that the [indiscernible] start asking the discounts from here on. But any margin will be better than the current products. I can't put the number on this.

We will take the next follow-up question from the line of Amit Hiranandani from PhillipCapital.

Sir, anything to lead on in the aftermarket study because the growth has tapered down in the Q4, despite we have added some new touch points. Also anything on the exports as [indiscernible]?

So I think [indiscernible] has touched on this point. It is aftermarket, it is, I think, a growth the opportunity is there, the growth was there. Yes, I think is in the month of March, there were certain challenges that were there [indiscernible] on the supply chain side into [indiscernible] there was a huge shortage of aluminum and gas in the month of March. So it was a -- I think the priority was to run the OEM line there because there was some commitments there. I think that was the reason why you see a little dip in the numbers. Otherwise, I think the aftermarket continues to grow. It has been growing for the last so many years, and we see good opportunities. In terms of export also, I think last year, we had overall better numbers than the previous year that journey would continue. One or 2 new platforms are being discussed. Yes, they take their own time to sort of realize but yes, we are very, very focused on -- so on the aftermarket, there's nothing to worry there. It is more on the supply chain side also.

And this export Q4 drop was temporary because shipping challenges now?

Again, there were certain delays there. As I said, I think because March a huge pressure from the OEMs. Everybody was closing the year, everybody wanted to have new record how the commercial vehicle performed in the last quarter. So -- and because of the acute gas shortages, the Tier 2s had major impacts to run their plants. So it was -- there was a calculated conscious decision to prioritize certain products on the OE side.

Understood. Sir, second question to Mohit. Sir, if you can help us, the total CapEx outlook considering all the new entities as well? And if you can give some application between the stand-alone and [indiscernible] and the new displace?

So for stand-alone, I just clarify that for this year, we did approximately INR 190 crores of CapEx. This year outlook is looking between INR 160 crores to INR 90-odd crores per stand-alone business. For consolidated entity level, as I mentioned that currently, we have still under the last level of team conclusion and Mr. Goyal [indiscernible] by [indiscernible] of June, we will conclude everything. So from Q1 onwards, I think I will be the booking position to give the outlook of the entities coming on the -- through project price. So just wait for 1 more quarter to get the consolidated outlook of CapEx.

Sure, sir. Sir, if I can squeeze one last question. Can you [indiscernible] broad numbers of these 4 entities, the revenue with a PAT number for the full year?

I think as our group CEO mentioned, talking to have done in line with what market has done. You've seen the number of Gabriel and you have the '24, '25 numbers of all these entities. So we do not expect to be a significant delta but all these entities are undergoing financial audit for FY '26, which we expect to close by middle and once we complete our product along with the Q1 business, we will come up with a number for 5 [indiscernible].

We will take the next question from the line of [ Abu Joshi ] from Vintage Capital.

So on the 2-wheeler side, we have multiple SOPs in Q4, as you have mentioned in the [indiscernible]. In addition to that, we have [indiscernible] of 0 in Q2. Considering that, how do you look at the volume growth for this year FY '27? And the second part is on the -- our major revenue comes from 2-wheelers, how we are seeing the trends maybe on the scheduled side? Even this month, we have seen that data in our major customer, [ VF ] is still doing well. But going forward, how are the trends we are looking at the 2-wheeler industry? And anything to read into the next schedules that indicate that there could be a slowdown into the demand. If you can throw some light on that, that would be all.

So yes, there are 2 parts of your question. One is on the new product. Generally, in the 2-wheeler side, the new launches start coming in around the festival season. This is how all the [indiscernible] new models or refresh or the thing happens. So this is how the industry works in the 2-wheeler. We continue to develop and then starting from the [indiscernible] festival world till Diwali. I think you'll see multiple launches coming in. I don't see anything specifically changing. Yes, in the last quarter, we started the ABS versions of certain models like [indiscernible] started ABS, et cetera. But major new models should start flowing in as always, in these particular months. Second, coming to the volumes. If we go with the projection, the projections are really, really strong from all the customers, which in the [indiscernible] customer, but I can tell you that the projections are strong from all the customers. Currently, it is all about streamlining the supplies to maximize the output, but the OEMs are all quite bullish on the number. We will like to wait and watch. Even the numbers for May have been good, June, July projections are good, and then obviously get into the festival season. But if the war continues for a very long time, then we will have [indiscernible] was otherwise as we stand today, the projections are good.

And same please on the [ CV ] side as well?

[ CV ] also yes, CV numbers are [indiscernible], we are doing well. Everybody is doing well. I think we had conference, they are quite positive over the members we had an conference. They are very positive about the numbers. So yes.

And just a bookkeeping question on the other costs. There seems to be some increase in that. If you can give details why it has gone up on that part it would be --

No, sorry, I could not get your question. Which cost?

Other costs, but that has gone up.

You are referring for quarter-on-quarter or the last?

Quarter-on-quarter.

Quarter-on-quarter, I think we disclosed on the gross margin part. I don't think that --

Margin, you have already clarified. Okay. I will take it off net. No problem.

Any way you check because I don't think that the other costs have gone up. But anyway, you can check and then we work on this. You have noted this, we will come back.

We will take the next follow-up question from the line of [ Prada ] from Motilal Oswal Financial Services Limited.

Sir, [indiscernible] global entity earlier had a 49% stake in a company called [indiscernible], which was sold to [indiscernible] Group in 2025. So just wanted to understand, are there any product overlap or any of the relations of [indiscernible] India with these entities?

Looking a change to our position very -- our joint venture is with [ Dana ] that continues without any impact, actually.

Sir, any product overlaps?

Had no change basically. Nothing is changing from our perspective.

Yes, since they make [indiscernible] housings, I wanted to understand what is the product is in?

They were making earlier also housing, they continue to do that. And what we do -- what we make this company is making [indiscernible], not [indiscernible] housing for the LV category. So we continue to that. So for us, nothing has changed. And I can't comment on rest of the [indiscernible], if anything change for them. But for us, nothing has changed.

So they are making entire [ access ] and this company only making actual houses. Is that the right understand?

[indiscernible] is complete at we are making and actual housing [indiscernible].

[indiscernible] Mr. Goyal said. So we make the complete products. [indiscernible].

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to [ Ms. Sabal Jake ] for the closing comments. Thank you.

Thank you. So thanks for all the questions. So I take this opportunity to thank everyone for joining the call. I hope we have been able to address all the queries. For any further information, please get in touch with any one of us or SGA, our Investor Relations adviser. Thank you so much again for joining the call. Thank you.

Thank you, members of the management. On behalf of Gabriel India Limited, that concludes this conference. Thank you all for joining with us today, and you may now disconnect your lines. Thank you.