Belrise Industri

Belrise Industries delivered a strong Q2 FY26, with total revenue reaching INR23,535 million, a 14% YoY increase, and manufacturing revenue growing 17% YoY to INR18,601 million. PAT surged 82% YoY to INR1,330 million. For H1 FY26, total revenue was INR46,157 million (up 20% YoY) and PAT was INR2,447 million (up 69% YoY). The company's ROCE improved from 14.4% to 15.3% over the past six months, with a target to reach high-teens in 18-24 months.

The company secured several key orders, including a single-source EV platform order for a leading two-wheeler OEM, expected to ramp up to INR1,500 million annually at peak within 18-24 months. A new proprietary suspension order for a three-wheeler EV program and BIW parts for a large Indian passenger vehicle OEM were also won, with content per vehicle of approximately INR2,200. To support growth, new manufacturing facilities are being set up in Chennai and Bhiwadi, with existing facilities like the Pune long-member plant also ramping up to high capacity utilization within the next two to three months.

The acquisition of Japanese company H-One in March 2025 has enhanced Belrise's expertise in high-tensile steel, a critical component for lightweighting in EVs. The H-One business contributed INR600 million in Q2 FY26, operating at 40-45% capacity utilization, and is projected to reach INR4,000-4,500 million in annual revenue within 24 months. This strategic focus aims to increase content per vehicle and strengthen relationships with OEMs by offering advanced material solutions.

Belrise maintains its capex guidance of INR8,000 million for both FY26 and the next fiscal year. Net debt as of September 30, 2025, stood at INR9,614 million, showing a sequential increase from INR770 crores to INR960 crores. Management clarified this increase was primarily due to undisbursed debt for the ramp-up of Chennai and Bhiwadi facilities, taken before the IPO, rather than new project financing.

The company experienced some headwinds in Q2, including a slowdown in September due to anticipated GST rate cuts and disruptions from a cyberattack on a major European four-wheeler customer, which subdued deliveries. Despite these, Belrise is diversifying into non-automotive segments, initiating supplies for solar structures to a global manufacturer and securing incremental orders for armored vehicle programs for an Indian defense OEM, leveraging its existing fabrication and surface treatment expertise.

The divergence between EBITDA and operating cash flow was primarily due to an increase in inventory from INR7,697 million on March 31 to INR9,600 million by September 30. This was driven by the September slowdown and the cyberattack on a key customer. Additionally, increased capital advances for the Pune long-member facility and supply advances for steel and bought-out components, along with a strategic shift to import-based steel sourcing for some European OEM models, contributed to higher current assets.