Belrise Industri

Belrise Industries reported a strong Q1 FY26, with total revenue from operations reaching INR2,262.2 crores, marking a 21% year-on-year increase. Manufacturing revenue grew by 29% YoY to INR1,832.3 crores. EBITDA stood at INR280.5 crores, up 17% YoY, with an EBITDA margin of 12.4%, consistent with the FY25 margin of 12.3%. The company's ROACE as of June 30, 2025, was 14.4%, reflecting efficient capital deployment.

The company commissioned its new Chennai facility, now supplying 2,000 exhaust systems and 500 chassis systems per day to a premium two-wheeler OEM and ATS brackets to a commercial vehicle OEM. This plant is targeted to achieve an annual turnover of INR200-250 crores at its peak. Belrise also secured an order for long members for a leading Indian commercial vehicle OEM, with a dedicated plant in Pune expected to generate a peak annual turnover of INR150 crores. Additionally, the company commenced serial production of its patented combination braking system for an electric two-wheeler OEM, contributing INR2,500 per vehicle.

Belrise spent INR105 crores on capital expenditure in Q1 FY26, aligning with its two-year guidance of INR800 crores, primarily funded through internal accruals. The IPO proceeds were utilized to repay INR1,596 crores of debt in May, reducing net debt to INR769.8 crores as of June 30, 2025. Despite the repayment, Q1 interest costs were INR80 crores, slightly higher due to the timing of repayment and the inclusion of non-convertible debenture interest for the H-One acquisition, but management expects a significant reduction in interest costs to 9-9.5% in coming quarters.

The integration of H-One India, acquired in the previous fiscal year, is progressing. In Q1 FY26, H-One contributed INR35 crores to revenue, but its performance was impacted by a >40% volume decline from a major Japanese customer. Management expects H-One's revenue to ramp up sharply in the remaining quarters, targeting an annual turnover of INR250-300 crores and reported a Q1 PAT of INR2.5 crores. The acquisition has been instrumental in leveraging global expertise in high-tensile steel forming.

Belrise is actively expanding its presence in the EV segment, with new orders for electric two-wheeler braking systems and chassis systems for an upcoming electric three-wheeler. The company is also making its maiden entry into the medium and heavy commercial vehicle segment with the long members order. In the defense and aerospace segment, Belrise received an additional order from an Indian defense OEM and secured first confirmed orders from two new defense OEMs (one Israeli, one Indian) for armored vehicle components, signaling growing penetration in these high-growth adjacent domains.

Management reiterated its guidance for stable EBITDA margins, consistent with the 12.3% achieved in FY25. The company aims to double its four-wheeler and commercial vehicle revenue within the next 2-2.5 years and increase content per vehicle in the two-wheeler segment from INR12,500 to INR17,300. Belrise is also transitioning from a Tier 1 to a Tier 0.5 system supplier, providing complete, integrated subsystems to OEMs, which is expected to enhance customer stickiness and accelerate production rollouts.