GKN Driveline (India) Ltd
India's largest maker of CV-joint sideshafts, 97.03% owned by GKN Driveline International (now part of Dauch Corporation, formerly American Axle, which bought Dowlais in Feb 2026). FY26 audited: revenue ₹1,155 Cr (+5.8%), EBITDA ₹209 Cr (18.1%), PAT ₹123 Cr (+26%), EPS ₹96, zero debt, ₹90 Cr cash, dividend ₹35. At ₹1,725 the share is 17.9x FY26 earnings and 5.3x book.
Market cap
₹2,203 Cr
1.28 Cr shares
P/E ratio
17.95
Sector average 40
Book value
₹323.08
P/B 5.34
1-year return
-3.18%
52w ₹1,725 – ₹1,850
Currently 0% of the way through its 52-week range.
Indicative price history
1Y change
-3.18% ₹1,782 → ₹1,725
52-week band in this window: ₹1,706.58 – ₹1,874.66. Weekly indicative marks, not exchange-traded prices.
Key highlights
- FY26 audited: revenue ₹1,155.24 Cr (+5.8%), EBITDA ₹208.99 Cr (18.1% vs 16.0%), PAT ₹122.78 Cr (+26.3%), EPS ₹96.12; Deloitte opinion unmodified.
- Net worth ₹412.67 Cr (book value ₹323/share), zero borrowings, cash and bank ₹90.05 Cr, ROE 33%; CFO ₹97.86 Cr, capex ₹46.21 Cr.
- Dividend ₹35 a share (₹44.71 Cr, 36% payout) after ₹50 and ₹64 in the two prior years; 2.0% yield at ₹1,725.
- Ultimate parent changed to Dauch Corporation (ex-American Axle) on 3 Feb 2026 after it bought Dowlais; GKN Driveline International GmbH still holds 97.03%, public float 2.97% (3,79,253 shares).
- Exports up 115% to ₹114.9 Cr (10% of sales) while domestic sales were flat at ₹1,017 Cr; one customer = 53.4% of revenue.
- Group charges fell to ₹27.4 Cr (2.4% of revenue) from ₹40.8 Cr; KMP pay ₹4.94 Cr; no material RPT per the board.
- Contingent liabilities ₹47.5 Cr (customs ₹41.7 Cr before CESTAT) plus ₹26.1 Cr provided for entry tax and other disputes.
- Auditor rotation: B S R & Co. LLP proposed from the 41st AGM (23 Sep 2026); audit-trail remark on QAD MFGPro software.
- At ₹1,725: market cap ₹2,203 Cr, 17.9x FY26 EPS, 5.3x book, ~10.1x EV/EBITDA.
About GKN Driveline India
GKN Driveline (India) Limited (CIN U74999HR1985PLC034079, incorporated 25 July 1985) manufactures and sells driveshafts — constant-velocity joints, sideshafts and related driveline parts — to passenger-car, SUV and LCV makers from five plants at Faridabad and Dharuhera (Haryana), Pune (Maharashtra), Kadi (Gujarat) and Oragadam near Chennai. It reports a single business segment. GKN Driveline International GmbH, Germany holds 1,23,93,808 of the 1,27,73,061 equity shares of ₹10 (97.03%); the other 2.97% (3,79,253 shares) is with legacy public shareholders and trades only off-market. On 3 February 2026 Dauch Corporation (formerly American Axle & Manufacturing Holdings, Inc.) completed its acquisition of Dowlais Group plc, so the ultimate parent changed from Dowlais to Dauch; the report now describes technology coming from 'Dauch Group' under the technical collaboration agreement and engineering work done 'as one Dauch team (legacy GKN & AAM)'.
Audited FY26 (41st annual report, approved 14 August 2026, Deloitte Haskins & Sells LLP, unmodified opinion): revenue from operations ₹1,155.24 Cr (+5.8%, 'mainly due to increase in market demand'), other income ₹12.22 Cr, EBITDA as reported by the board ₹208.99 Cr (+19.4%; 18.1% of revenue vs 16.0%) helped by volume and lower commodity prices, depreciation ₹43.88 Cr, finance costs ₹6.68 Cr (of which ₹6.12 Cr is interest provided on disputed tax matters, not borrowings), PBT ₹158.43 Cr, tax ₹35.65 Cr (22.5%) and PAT ₹122.78 Cr (+26.3%; EPS ₹96.12 vs ₹76.08). Domestic sale of goods was flat at ₹1,017.35 Cr while overseas sales more than doubled to ₹114.91 Cr (from ₹53.47 Cr), mostly to GKN Driveline Japan (₹30.6 Cr) and Thailand; one customer still gave 53.4% of revenue (56.9% in FY25). Employee cost rose 10.5% to ₹157.96 Cr, including gratuity expense of ₹11.36 Cr (₹2.85 Cr in FY25) and ₹0.86 Cr of past-service cost under the new Labour Codes; material cost fell to 51.4% of revenue from 52.8%.
Balance sheet at 31 March 2026: equity ₹412.67 Cr (share capital ₹12.77 Cr, other equity ₹399.90 Cr; book value ₹323 a share, up from ₹260), no bank borrowings (lease liabilities ₹3.43 Cr), cash and bank balances ₹90.05 Cr, trade receivables ₹162.09 Cr (+19%), inventories ₹110.23 Cr, trade payables ₹184.02 Cr, provisions ₹40.33 Cr. Current ratio 1.51 (1.15), return on equity 33% as computed in the ratio note. Operating cash flow was ₹97.86 Cr after ₹41.50 Cr of tax, capex ₹46.21 Cr (₹28.48 Cr in FY25; capital commitments ₹12.28 Cr at year end), ₹10 Cr of the inter-corporate loan to fellow subsidiary GKN Automotive Bengaluru was repaid, and ₹39.19 Cr of dividend went out. The board declared an interim dividend of ₹35 a share (350%, ₹44.71 Cr, 36% payout) on 15 December 2025, to be confirmed as final at the 41st AGM on 23 September 2026 — down from ₹50 for FY25 and ₹64 for FY24, so the parent is letting cash build (cash rose ₹23 Cr in the year).
Group dealings are the main thing to understand about the margin. Charges to GKN/Dauch entities in FY26 were trademark fees ₹13.88 Cr (GKN Investments III GP), management consultancy and business auxiliary services ₹11.24 Cr and strategic management charges ₹2.28 Cr from GKN Automotive Ltd UK — ₹27.40 Cr in all, 2.4% of revenue, down sharply from ₹40.77 Cr (3.7%) in FY25, which explains a good part of the EBITDA jump. The company also bought ₹17.51 Cr of components and ₹5.74 Cr of equipment from group plants and sold ₹37.18 Cr of goods to them. The board states no material related-party transactions needed AOC-2 disclosure and that transfer-pricing documentation is maintained; executive director Madan Singh Sisodia's profile notes he 'handled transfer pricing litigation on group recharges and royalty' in the past. Key managerial remuneration was ₹4.94 Cr (₹5.49 Cr). Contingent liabilities not provided are ₹47.49 Cr, almost all a ₹41.65 Cr customs-classification demand (DRI search of March 2023; order-in-original received in FY26, now before CESTAT, ₹4.3 Cr deposited under protest), plus ₹26.11 Cr provided for entry tax (₹19.14 Cr, Punjab & Haryana High Court) and customs; ₹18.12 Cr of HUDA extension fee on the Dharuhera plant was paid in February 2026.
Board at 31 March 2026: Anthony Bell (non-executive chairman, DIN 08754802), Sanjay Katyal (managing director, DIN 08354025, with GKN since 1992, re-appointed 1 January to 31 December 2026, CTC raised to ₹1.33 Cr from 1 July 2026), Madan Singh Sisodia (executive director and former CFO, DIN 08111748, re-appointed 14 August 2026 to 13 August 2031, CTC ₹1.87 Cr), Rajeev Dogra (executive director and plant director for Faridabad/Dharuhera, DIN 05270378, same new term, CTC ₹1.24 Cr) and independent directors Bharat Dev Singh Kanwar (DIN 00428180) and Rajni Sekhri Sibal (DIN 09176377), who chairs the audit and risk committee. Tushar Jain is CFO; company secretary Richa Porwal resigned on 17 February 2026 and Aditya Kumar (ACS A25509) was appointed on 14 August 2026. Deloitte Haskins & Sells LLP retires on completing its tenure and B S R & Co. LLP is proposed as auditor from the 41st to the 46th AGM. The audit report is unqualified; it notes that the QAD MFGPro accounting software has no audit-trail (edit-log) feature and that a SOC-2 report for the outsourced payroll software was not available, which is a Rule 11(g) compliance gap rather than a qualification.
Valuation at the desk rate of ₹1,725 (lot 25): market capitalisation ₹2,203 Cr on 1.2773 Cr shares — 17.9x FY26 EPS of ₹96.12 (22.7x FY25), 5.3x March 2026 book value of ₹323, enterprise value about ₹2,113 Cr or 10.1x FY26 EBITDA, and a 2.0% yield on the ₹35 dividend (2.9% on last year's ₹50). Listed driveline peers (Sona BLW, Bharat Forge, Gabriel) trade at 35-55x earnings, so the discount prices in the 2.97% float, no listing plan and a dividend set by the parent. What to watch: the Maruti YHB programme (100,000 sets, launch rescheduled to December 2026) and four new Maruti wins, whether exports to Japan/Thailand keep doubling under Dauch, the FY27 dividend after the cut to ₹35, the CESTAT customs ruling, the auditor hand-over to BSR, and any Dauch move on the residual minority. The report flags no buyback, exit offer or capital change; the board sees FY27 PV wholesale growth of 4-6% (ICRA) and plans headcount optimisation, solar power and localisation to hold margins.
Where the revenue comes from
- Domestic sale of driveshafts to OEMs88%
FY26 ₹1,017.35 Cr, flat on FY25 (₹1,017.71 Cr); CVJ sideshafts and joints for cars, SUVs and LCVs
- Overseas sales (GKN/Dauch group plants)10%
FY26 ₹114.91 Cr vs ₹53.47 Cr (+115%), mainly GKN Driveline Japan ₹30.6 Cr and Thailand ₹5.9 Cr
- Other operating revenue2%
Tooling and prototype development ₹14.55 Cr, scrap sales ₹7.51 Cr, export incentives ₹0.74 Cr, services ₹0.19 Cr
Products & services
Constant-velocity joints & sideshafts
Fixed and plunging CVJs (third-generation joints, SX/GI/DO series) and complete sideshaft assemblies for front-, rear- and all-wheel-drive passenger vehicles and LCVs; hollow, welded-tubular and mono-block tubular shafts for NVH and weight.
EV and hybrid driveline components
Sideshafts and joints for electric and hybrid platforms (ePT/AWD solutions) engineered with the Dauch/GKN global teams; new ICE and EV business won in FY26 from local and global OEMs.
Exports to group plants
Driveshafts and components supplied to GKN Driveline Japan, Thailand, Malaysia and Taiway (₹37 Cr of related-party sales; total overseas sales ₹114.9 Cr in FY26).
Tooling, prototypes and engineering services
Customer-funded tooling and prototype development (₹14.6 Cr in FY26), CAD and test-rig work for group sites in Japan, Thailand, Poland and France.
What works
- • Market leader in CVJ sideshafts with five plants and a single customer worth 53% of sales (Maruti-type entrenchment): Oragadam won Toyota's Zero PPM award for the 10th time and held Renault-Nissan Level-1 for 11 years; Pune/Kadi won GKN Quality Olympics platinum and Maruti's Zero Defect award in FY26.
- • Profit growth outpacing revenue: FY26 EBITDA +19.4% to ₹208.99 Cr (18.1% margin vs 16.0%) and PAT +26.3% to ₹122.78 Cr on 5.8% revenue growth, helped by lower commodity prices and group charges falling from ₹40.8 Cr to ₹27.4 Cr.
- • Fortress balance sheet: no borrowings, ₹90 Cr cash and bank balances, equity ₹413 Cr (book value ₹323 a share), current ratio 1.51 and ROE of 33% per the ratio note.
- • Consistent cash returns: ₹64 (FY24), ₹50 (FY25) and ₹35 (FY26) a share paid as interim dividends; ₹97.9 Cr operating cash flow in FY26 covered ₹46.2 Cr capex and the ₹44.7 Cr dividend with room to spare.
- • Export engine starting to work: overseas sales up 115% to ₹114.9 Cr (10% of revenue), mainly to GKN Japan and Thailand, with foreign-currency inflows of ₹113.5 Cr; engineering in India now does CAD work for Japan, Thailand, Poland and France sites.
- • Technology access under the Dauch/GKN technical collaboration agreement: third-generation plunging and fixed joints, hollow and tubular shafts, AWD and e-powertrain programmes; R&D spend ₹13.78 Cr in FY26 and new ICE and EV business won from local and global OEMs.
- • Clean audit (Deloitte, no qualification), secretarial audit clean, no regulatory orders, no defaults, and a profitable tax-paying history (₹41.5 Cr tax paid in FY26).
What to watch
- • Float of only 2.97% (3,79,253 shares) and no listing plan: the parent has 97.03% and could squeeze out minorities; price discovery depends on a handful of dealers (lot 25) and the report mentions no exit offer or buyback.
- • Customer concentration: one OEM is 53.4% of revenue (56.9% in FY25); domestic sale of goods was flat at ₹1,017 Cr in a year when industry PV volumes grew 13%, and the Maruti YHB launch (100,000 sets) slipped to December 2026.
- • Group charges and transfer pricing: trademark, consultancy and strategic charges to GKN/Dauch entities were ₹27.4 Cr (2.4% of revenue) in FY26 after ₹40.8 Cr in FY25; these are set by the parent and can swing the margin, and the company has litigated transfer pricing on royalty and recharges before.
- • Ownership change: Dauch Corporation (ex-American Axle) now controls the group after buying Dowlais in February 2026; the India unit's capex, export role and dividend policy are decided abroad and minorities have no say.
- • Tax disputes: contingent liabilities ₹47.5 Cr (customs ₹41.7 Cr before CESTAT after a DRI search, ₹4.3 Cr deposited under protest) plus ₹26.1 Cr already provided for entry tax and other matters; ₹6.1 Cr of FY26 'finance cost' is interest provided on these.
- • Dividend cut: ₹35 a share for FY26 against ₹50 and ₹64 earlier, so the yield at ₹1,725 is only 2.0%; payout is at the parent's discretion.
- • Cost pressures: employee cost up 10.5% to ₹158 Cr (gratuity ₹11.4 Cr vs ₹2.9 Cr, Labour Code impact ₹0.86 Cr), power and fuel up 7%, and receivables up 19% to ₹162 Cr, slowing cash conversion (CFO ₹97.9 Cr vs ₹107.7 Cr).
- • Control environment: the accounting software lacks an audit-trail feature and the payroll vendor's SOC-2 report was unavailable (auditor's Rule 11(g) remark); the statutory auditor is changing after Deloitte's tenure, and the company secretary post was vacant from February to August 2026.
Compare with peers
| Company | Price | Market cap | P/E | P/B | Rev CAGR |
|---|---|---|---|---|---|
| GKN Driveline IndiaThis page | ₹1,725.00 | ₹2,203 Cr | 17.95 | 5.34 | +4.80% |
| Axles India | ₹545.00 | ₹872 Cr | 14.53 | 2.18 | -1.94% |
| Hella India Lighting | ₹870.00 | ₹1,271 Cr | 235.14 | 10.54 | +6.37% |
| Amalgamations Repco | ₹630.00 | ₹59.66 Cr | 11.47 | 1.07 | +6.07% |
Latest reported year: FY26 ending 31 Mar 2026.