Synopsis:
G G Automotive Gears Limited, an Auto Ancillary Stock, reports 27.82% YoY revenue growth and a 91.38% YoY net profit surge in Q2 FY26 results
This Auto Ancillary Stock, engaged in the design, manufacture, supply, and servicing of railway gears, pinions, industrial gears, and gearboxes for diverse sectors, hit a 5 percent upper circuit after the company reported September quarterly results with a 91.39 percent YoY increase in net profit
With a market capitalization of Rs. 275.52 crores, the shares of G G Automotive Gears Limited hit a 5 percent upper circuit of Rs. 275.80 per share on Tuesday, up from its previous closing price of Rs. 262.70 per share.
Q2 FY26 Result Walkthrough
Coming into the quarterly results of G G Automotive Gears Limited, the company’s consolidated revenue from operations increased by 27.82 percent YOY, from Rs. 26.02 crore in Q2 FY25 to Rs. 33.26 crore in Q2 FY26, and increased by 18.74 percent QoQ from Rs. 28.01 crore in Q1 FY26.
In Q2 FY26, G G Automotive Gears Limited’s consolidated net profit increased by 91.38 percent YOY, reaching Rs. 3.33 crore compared to Rs. 1.74 crore during the same period last year. As compared to Q1 FY26, the net profit has increased by 28.08 percent, from Rs. 2.60 crore. The basic earnings per share increased by 80.98 percent and stood at Rs. 3.33 as against Rs. 1.84 recorded in the same quarter in the previous year, FY2025.
Financial Highlights
G G Automotive Gears Limited’s revenue has increased from Rs. 92 crore in FY24 to Rs. 114 crore in FY25, which is a growth of 23.91 percent. The net profit has also grown by 100 percent, from Rs. 4 crore in FY24 to Rs. 8 crore in FY25. G G Automotive Gears Limited’s revenue and net profit have grown at a CAGR of 15.28 percent and 31.95 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 20.4 percent and 19.7 percent, respectively. G G Automotive Gears Limited has an earnings per share (EPS) of Rs. 11, and its debt-to-equity ratio is 0.39x.
Company Overview
G G Automotive Gears Ltd is a leading Indian manufacturer of traction gears, pinions, and gearboxes, established in 1974 and headquartered in Dewas, Madhya Pradesh.
The company transitioned from automotive gears to specialize in locomotive and industrial gears, becoming a market leader in traction gears for Indian Railways and serving major industrial clients like Tata Steel and L&T.
G G Automotive Gears Ltd designs, manufactures, and supplies gears, pinions, gearboxes, and forged components for railways and industrial applications. It caters to key clients, including Indian Railways (CLW, DLW, DLMW), BHEL, and Jawaharlal Nehru Port Trust, and has expanded into exports with orders from General Electric and General Motors.
The company manufactures helical and spur gears up to 1,500 mm in diameter with DIN class 3/4 accuracy, along with industrial gearboxes for sectors like cement, steel, and sugar. It also produces hydraulic gear pumps and gearbox housings, offering end-to-end solutions from design to testing.
Written By – Nikhil Naik
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