💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 11% YoY to INR 8,290.8 Cr in FY25. Manufacturing revenue, the core segment, grew 9% YoY to INR 6,593.8 Cr in FY25 and accelerated to 22% YoY growth in H1 FY26 reaching INR 3,692.3 Cr. Trading revenue contributed 20.5% of total revenue in FY25. The H-One business subsidiary recorded INR 60 Cr in Q2 FY26 with plans to double this to INR 400-450 Cr within 24 months.

Geographic Revenue Split

The business is primarily domestic-focused with exports contributing 5.6% to manufacturing revenue in H1 FY26, amounting to INR 205.2 Cr. Q2 FY26 export contribution was 5.7% (INR 106.7 Cr).

Profitability Margins

Gross Profit margins remained stable between 19.0% and 19.5% in FY25. PAT margins improved significantly from 3.5% in Q2 FY25 to 5.7% in Q2 FY26, an 82% YoY increase in absolute PAT to INR 132.98 Cr, driven by operational efficiencies and reduced interest burdens.

EBITDA Margin

Consolidated EBITDA margin stood at 12.3% for FY25 (INR 1,021.1 Cr) and improved to 12.6% in Q2 FY26. Manufacturing-specific EBITDA margins are higher at 14.3% as of Q2 FY26, up from 13.4% in the previous year, reflecting better operating leverage.

Capital Expenditure

Net cash used in investing activities was INR 981.14 Cr in FY25, primarily for property, plant, and equipment additions (INR 867.7 Cr). The company is currently ramping up four new facilities in Chennai (two units), Pune, and Bhiwadi to support future volume growth.

Credit Rating & Borrowing

CRISIL maintains a 'Stable' outlook. Interest coverage is projected to improve to over 5.5 times in FY26 from 3.5 times in FY25. Total outstanding borrowings were INR 2,904.5 Cr as of March 31, 2025, but were significantly reduced following the INR 2,150 Cr IPO in May 2025.

⚙️ Operational Drivers

Raw Materials

Precision sheet metal (steel), polymers for plastic components, and electronic components for EV motors and chargers. Cost of Goods Sold (COGS) represents approximately 80.9% of total revenue.

Capacity Expansion

Current capacity utilization at the H-One subsidiary is 40-45%, with plans to double revenue with minimal additional capex. New facilities are being commissioned in Chennai and Rajasthan to handle new project pipelines.

Raw Material Costs

COGS increased 11.4% to INR 6,711.6 Cr in FY25, tracking revenue growth. Procurement strategies focus on maintaining gross margins in the 19-20% range despite material cost fluctuations.

Manufacturing Efficiency

ROCE improved from 14.4% to 15.3% over the six months ending September 2025, with a target to reach high-teens (17-19%) within 18-24 months through better capacity utilization.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be driven by doubling H-One subsidiary revenue to INR 450 Cr, ramping up new plants in Chennai and Bhiwadi, and increasing the share of high-margin proprietary products like steering columns and suspension systems. The company is also targeting the EV segment with in-house developed motors and chargers.

Products & Services

Precision sheet metal parts, polymer components, suspension systems, steering columns, braking systems, filtration systems, EV motors, motor controllers, and EV chargers.

Brand Portfolio

BELRISE, H-One India (Subsidiary).

New Products/Services

Proprietary EV components including motors, controllers, and chargers are in development to increase the kit value per vehicle.

Market Expansion

Expansion of manufacturing footprint in Chennai, Pune, and Bhiwadi to serve regional OEM hubs and increase market share in the Passenger Vehicle (4.7% current share) and Commercial Vehicle (8.5% current share) segments.

Market Share & Ranking

Distinguished market leader in the precision sheet metal segment.

Strategic Alliances

Acquisition of H-One India Private Limited (completed March 2025) to bolster technical capabilities and customer reach.

🌍 External Factors

Industry Trends

The industry is shifting toward Electric Vehicles (EVs) and premiumization. Belrise is positioning itself by developing proprietary EV motors and chargers to capture the growing 0.06% EV revenue share.

Competitive Landscape

Competes with other large-scale auto-component manufacturers like Endurance Technologies (where some management previously worked).

Competitive Moat

Moat is built on long-standing OEM relationships, high switching costs due to integrated manufacturing, and ownership of intellectual property for critical components like steering and suspension.

Macro Economic Sensitivity

Highly sensitive to domestic consumer demand and macro-economic events affecting the automobile industry.

Consumer Behavior

Shift toward EVs and higher safety standards in vehicles driving demand for advanced braking and suspension systems.

Geopolitical Risks

Exposure to trade barriers affecting the 5.6% export segment and potential global supply chain disruptions for electronic components.

⚖️ Regulatory & Governance

Industry Regulations

Subject to automotive safety standards and environmental norms (BS-VI and upcoming regulations) which dictate component specifications.

Environmental Compliance

Committed to carbon-neutral operations and renewable energy adoption as part of ESG principles.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 23.6% (INR 75.53 Cr tax on INR 320.19 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Cyclicality of the auto sector could impact revenue by over 10-15% during economic slowdowns. Margin pressure from simultaneous plant startups is a near-term risk.

Geographic Concentration Risk

High concentration in India, with specific clusters in Chennai, Maharashtra, and Rajasthan.

Third Party Dependencies

Dependent on major OEMs for order flow; loss of a top customer would significantly impact the 81.9% 2W/3W revenue base.

Technology Obsolescence Risk

Risk of traditional sheet metal parts being replaced or modified in the EV transition, mitigated by R&D into EV-specific motors and controllers.

Credit & Counterparty Risk

Trade receivables stood at INR 1,184.6 Cr in H1 FY26; debtor days increased to 70 days in FY25 from 60 days in FY24, indicating slight working capital stretching.