Belrise Industri

Belrise Industries announced the merger of promoter-owned entities Badve Autocomps Private Limited and Eximius Infra Tech Solutions Private Limited, valued at 8.3X P/E based on FY25 numbers. This merger is expected to add INR10 billion in incremental revenue and be EPS and value-accretive from day one, significantly increasing the company's market share in 2-wheeler plastic components to nearly 25%. Additionally, Belrise acquired French aerospace company SDM for EUR0.35 million, which is projected to generate EUR3-4 million in revenue by FY27, marking the company's entry into the supply chains of major civilian and combat aircraft OEMs globally.

For Q3 FY26, Belrise reported total revenue from operations of INR23,405 million, an 8% year-on-year increase, with manufacturing revenue growing 5% to INR18,660 million. Adjusted PAT for the quarter surged 26% year-on-year to INR1,268 million, achieving a PAT margin of 5.4%. For the nine months ended December 31, 2025, total revenues reached INR69,563 million, up 16% YoY, and adjusted PAT increased 51% YoY to INR3,714 million, with a PAT margin of 5.3%.

In the core automotive business, Belrise strengthened its positioning through higher content per vehicle and expanding OEM partnerships. The company secured a strategic order to establish a new manufacturing plant in Haridwar for a leading 2-wheeler OEM. The Chennai plant ramped up production to meet rising OEM volumes for a key 2-wheeler EV platform, while the Bhiwadi plant commenced supplies for a premium Japanese model after achieving full operational readiness.

Beyond the SDM acquisition, Belrise entered a strategic partnership with Israel's Plasan Sasa to bring the ATEMM platform to India and integrate into Plasan's global supply chain. This dual approach aims to industrialize and productionize advanced defense mobility solutions for the Indian ecosystem and position Belrise as a key global partner for components. Management expects this segment to become a meaningful revenue contributor over the next few years.

Belrise is making significant progress in new component verticals like suspensions, steering columns, and high-tensile products, expanding its OEM penetration from 2 to 4 OEMs in suspensions. Post-merger, the company anticipates a substantial increase in its 4-wheeler and commercial vehicle segment exposure, with approximately 34% of incremental revenue coming from these segments. This includes copper bus bars for EV powertrains and various plastic parts, with content per vehicle in 4-wheelers expected to increase by INR5,000.

Despite overall growth, Q3 FY26 saw a sequential flatness in two-wheeler revenues, which management attributed to customer volumes remaining largely flat and December being a typically slow month for the industry. The PV segment experienced a decline due to supply chain issues with a major European 4-wheeler OEM and a temporary loss of production from shifting a plastic molding plant in Bhiwadi. However, management expects recovery in Q4 FY26 for these temporary issues.