# 1. Financial Performance ## A. Key Figures * **Total Revenue:** **₹2,340.5 Cr** Q3 FY26 (+8%) · **₹6,956.3 Cr** 9M FY26 (+16%) * Manufacturing Revenue: **₹1,866 Cr** Q3 FY26 (+5%) · **₹5,558.3 Cr** 9M FY26 (+16%) * Adjusted PAT: ₹1,268 Mn Q3 FY26 (+26%) · ₹3,714 Mn 9M FY26 (+51%) * **Net Debt:** **₹700 Cr** (as of 31 Dec 2025) ## B. Revenue Growth * **Sustained Top-Line Momentum:** Revenue growth accelerated in the first nine months, reflecting strong execution and market demand across core manufacturing operations. * **Merger to Drive Scale:** Badve Autocomp and Eximius Infra contributed ~₹2,100 Cr in FY25 revenue, with the merger expected to add **₹1,000 Cr** in incremental revenue post-eliminations. ## C. Profitability Trends * **Robust Earnings Expansion:** Adjusted PAT grew at a strong double-digit pace in both Q3 and 9M, supported by operating leverage and stable EBITDA margins despite near-term cost pressures. * **Margin Resilience:** Manufacturing EBITDA margins improved to **8%** over 9M, indicating better operational efficiency, while consolidated margins remain stable amid mix shifts. * **Tax Normalization Expected:** Current high tax rate of **29%** is temporary; management expects a return to **20–24%** range, supporting future PAT accretion. ## D. Balance Sheet * **Modest Leverage:** Net debt position remains contained at ₹700 Cr, with ROACE at **1%**, reflecting early-stage capital deployment and integration phase of recent acquisitions. --- # 2. Segment & Product Performance ## A. Key Figures * Two-Wheeler Revenue (Q2 FY26): **₹15,041 Mn** (~flat QoQ) · **₹15,085 Mn** prior quarter * **Content Per Vehicle (CPV):** **~₹20,300** (post-merger, 2W/3W OEM) · **~₹17,000** (marquee OEM, near-term target) · **~₹5,000** (4W) * **Growth Rate (2W, 9M FY26):** **+12% YoY** ## B. Two-Wheeler Revenue * **Outperformance Amid Stability:** Two-wheeler revenues show strong double-digit growth year-to-date, outpacing industry trends despite near-term sequential volume stability. * **Content Expansion Accelerating:** Significant CPV gains achieved with marquee OEMs, driven by integration of **steering columns** and post-merger product bundling, with further upside from new RFQ wins. * **Strategic Platform Wins:** Chennai plant fully ramped as sole supplier for a key 2-wheeler EV platform; Bhiwadi plant now live for a premium Japanese model, enhancing scale and stickiness. * **Technology & Stickiness:** High-complexity fairing assemblies and high-tensile tech deepen OEM dependencies, particularly with Japanese customers, creating **difficult-to-replicate** franchises. * **Three-Wheeler Momentum:** Penetration increasing in ICE and EV three-wheeler platforms, with new orders and **multi-fold CPV uplifts** at major OEMs. ## C. Four-Wheeler Exposure * **Strategic Growth Vector:** Nearly **one-third of incremental post-merger revenue** to come from 4-wheeler and CV segments, marking a structural shift in exposure. * **High-Value Component Supply:** Supplies **copper bus bars**—critical for EV battery systems—to domestic 4-wheeler OEMs, with **₹5,000 average CPV** reflecting premium content. * **Complexity Over Volume:** CPV hard to isolate due to system integrator-led assemblies, but **INR2,000–3,000** metal-plastic assemblies indicate rising complexity and value addition. ## D. Non-Auto Diversification * **Powertrain Agnosticism:** Revenue base resilient to propulsion shifts, with **EV powertrain exposure** via copper bus bars supplied indirectly to major Indian OEMs. * **IP-Driven Differentiation:** Growth in **proprietary components** (suspensions, steering, high-tensile parts) underpinned by R&D and long-term IP development. * **Plastics & Tooling Reach:** Supplies high-value plastic components (dashboards, infotainment) and **tooling/dies** to top Japanese and Indian OEMs, classified under "others" but strategically significant. --- # 3. Order Book & Demand ## A. Key Figures * **Content per Vehicle:** **₹20,300** post-merger (+~20%) from ₹17,300 * Export Revenue: ₹10.75 Cr in Q3 FY26 (5.8% of manufacturing revenue) · ₹3.127 Cr in 9M FY26 (5.6% of manufacturing revenue) ## B. OEM Content Growth * **Enhanced Value Capture:** Post-merger integration drives **nearly 20% increase** in content per vehicle, with strategic shift toward **Tier-5 assemblies** enabling system-level solutions. * **Favorable Demand Outlook:** Q4 expected to show strong OEM demand, particularly in two- and three-wheeler segments, supported by low base effects in upcoming H1. ## C. Export Orders * **Global Footprint Expansion:** Exports span **China, North America, and Europe**, anchored by long-term relationships with **two major global OEMs** and a global consumer-durable player. * **Precision Capability:** Supply of **high-precision plastic components with tolerances under 5 microns** underscores technical differentiation in export markets. * **Volume Mix Impact:** Slower growth with top customer reflects **lower exposure to high-growth three-wheeler segment** (~30% YoY production growth) versus low-growth two-wheelers (~3–4%). --- # 4. Manufacturing & Capacity ## A. Plant Expansion * **Strategic Plant Wins:** Secured a strategic order to build a new manufacturing facility in **Haridwar** for one of India’s largest 2-wheeler OEMs, reinforcing client concentration and growth visibility. * **Multi-Location Capacity Buildout:** New facilities in **Chennai (EV-focused)** and **Bhiwadi** set to ramp up in the next quarter, enhancing geographic and technological reach. * **Near-Term Production Upside:** Strong demand momentum suggests potential **ramp-up in OEM production schedules**, supporting utilization of expanded capacity. * **Transitional Disruption Managed:** Bhiwadi plastic moulding facility shift for a major Japanese OEM caused temporary output loss, but full recovery expected by **Q4 FY26**. ## B. Vertical Integration * **End-to-End Control:** High degree of in-house verticalization across **plastic moulding, painting, aesthetics, and assembly** minimizes dependency on Tier-2 suppliers and strengthens supply chain resilience. * **Integrated Synergies:** Merger to consolidate overlapping operations, driving efficiencies in **people, processes, and procurement**, particularly in exhaust systems where Belrise and Badve Autocomps have complementary capabilities. * **Core Capability Expansion:** Strengthened expertise in **sheet-metal fabrication, stamping, and surface treatment**, winning new programs from top 3 two-wheeler OEMs and emerging challenger brands. * **Cross-Segment Scalability:** Uniform **plastic injection moulding processes** enable production of components for both **two-wheelers and four-wheelers**, offering diversification leverage and scalable growth. ## C. Automation Level * **Highly Automated Operations:** Manufacturing footprint features advanced automation with **~50 robots in fabrication** and **30 machines in plastic moulding**, ensuring precision, scale, and cost efficiency. --- # 5. M&A & Strategic Integration ## A. Key Figures * **Merger Valuation:** **8.3X** P/E (FY '25 earnings) vs. Belrise TTM P/E of **30.9X** * **Revenue Synergy:** Post-merger addition of **₹1,000 Cr** in revenue * **Related-Party Reduction:** **₹1,150 Cr** reduction in related-party transactions * Acquisition Valuation: **EUR0.35 Mn** (≈0.1x sales) for SDM, with FY '27 revenue expected at **EUR3–4 Mn** * Promoter Stake: Expected to increase from 66.5% to 67.9% post-merger ## B. Merger & Integration Strategy * **Highly Accretive Consolidation:** Merger of Badve Autocomps and Eximius Infra Tech is immediately **EPS and value accretive**, underpinned by a deep valuation discount relative to Belrise’s standalone multiple. * **Strategic Simplification:** Transaction streamlines group structure, significantly reduces **related-party exposure**, and enhances corporate governance transparency. * **Operational Scale-Up:** Adds **five facilities in Maharashtra** (Aurangabad, Pune), deepening 2-wheeler presence and accelerating shift toward **Tier-5 supplier status** with greater vertical integration. * **Margin and Overhead Benefits:** Expected to reduce corporate overhead and drive **EBITDA accretion**, supported by operational synergies and simplified management. ## C. Aerospace & Defense Expansion * **Strategic Entry into Global Aerospace:** Acquisition of **SDM** provides access to supply chains of the **world’s largest civilian aircraft OEM** and a **leading combat aircraft OEM**, marking first international foray. * **India-Focused Scaling:** Leveraging SDM’s technical capabilities to establish **domestic aerospace manufacturing**, supported by appointment of former **Airbus subsidiary CEO** to lead European and Indian operations. * **Rapid OEM Engagement:** Defense and aerospace segment now partnered with **six major OEMs**, including Plasan, with active programs targeting deployment in extreme environments like **Siachen Glacier**. ## D. Global Partnerships & Manufacturing Ambition * **Plasan Collaboration:** Strategic alliance to **industrialize ATEMM platform in India**, starting with local assembly and testing in high-altitude zones, positioning Belrise as a **global manufacturing partner**. * **India as Global Hub:** Positioned as a **best-cost manufacturing base** due to engineering depth and cross-sector expertise, enabling **cost-competitive production** for export via Plasan and other global OEMs. --- # 6. Customer & Market Share ## A. Key Figures * **Plastic Components Market Share:** **~25%** in Indian 2-wheeler segment post-merger (up from **~10%** standalone) * **Market Size:** **INR500–600 Cr** for core 2-wheeler plastic parts · expands to **~INR2,000 Cr** including dashboards, visors, accessories ## B. OEM Penetration * **Expanded OEM Footprint:** Broadened reach across global and domestic OEMs, now supplying suspensions to **4 major OEMs** (from 2) and achieving full coverage across Indian OEMs in steering columns. * **Deepening Relationships:** Merger drives **greater customer stickiness** and **increased wallet share** via integrated scale and long-standing promoter-led OEM partnerships. * **Diversified Exposure:** Growth supported by multi-OEM base with no signs of market share loss or program disruptions. ## C. Plastic Components Share * **Significant Share Gain:** Combined entity nearly doubles standalone market share, positioning as a dominant player in India’s 2-wheeler plastic components space. * **Product Expansion:** Secured entry into **plastic commodity segment** with key OEM, enabling supply of **fenders, dashboards, visors, and other high-value components**. * **Wallet Share Upside:** Anticipates **over 30% increase** in wallet share with key OEMs, particularly in plastics, reinforcing embeddedness in supply chains. ## D. Tier-5 Supplier Shift * **Integrated Module Advantage:** **Fairing assembly** serves as key differentiator, bundling **50+ components** into a single Tier-5 module delivered directly to OEMs. * **Strategic Pivot:** Initial OEM access barriers overcome; focus now on **scaling volume** and deepening share within existing accounts. --- # 7. Risks & Supply Chain ## A. OEM Timing Lags * **Capability Gap in EV Powertrains:** Belrise lacks copper bus bar application capability for electric 4-wheelers, limiting its competitive positioning in a high-growth segment. * **Recognition for Operational Excellence:** Achieved **two JIPM awards** for TPM Excellence, underscoring strong manufacturing discipline. * **Seasonal and Reporting Timing Effects:** Temporary dip in two-wheeler and PV revenues linked to **planned OEM maintenance shutdowns** in December and potential **timing lags** between Tier 1 and OEM reporting cycles. ## B. Program Gestation * **Extended OEM Onboarding Cycles:** New component adoption faces **9–12+ month gestation periods** due to rigorous testing and validation requirements. * **Phased Product Rollouts:** Market entry typically begins with **limited model integration**, with scale dependent on OEM performance validation. ## C. Production Transitions * **OEM Supply Chain Disruption:** PV revenue decline driven by supply chain issues at the company’s **largest Europe-based premium 4-wheeler OEM**, impacting volumes. --- # 8. Guidance & Outlook ## A. Key Figures * **Revenue Growth (9M):** **24% YoY** in passenger vehicle segment * **Growth Target:** **Double four-wheeler and CV revenue** in next two years vs. FY25 · **Mid-teens revenue growth** expected going forward ## B. Revenue Projections * **Segment Ambition:** Each business segment viewed as a potential **multi-hundred crore** opportunity within 2–3 years, supported by existing capabilities. * **Guidance Policy:** Company maintains annual (not quarterly) guidance framework, with Q4 demand tracking in line with full-year outlook. * **Near-Term Tailwinds:** GST rate cut positively impacting industry trends, with January data reflecting favorable momentum. ## C. Margin Expectations * **Margin Uplift Pathway:** Merger expected to enhance margins through **internal RPT net-offs**, signaling structural improvement potential. ## D. Growth Segments * **Aviation & Defense Momentum:** Positioned to benefit from **strong global OEM order pipelines** and India’s emergence as a top aviation market over the next **5–10 years**; defense and aerospace seen as **meaningful future revenue pillar**. * **Technology-Led Expansion:** **High-tensile components** gaining traction due to light weighting and safety trends, with adoption expected to accelerate in India following North America and Japan. * **Independent Growth Verticals:** Suspensions, steering columns, and high-tensile components to operate as distinct growth engines. * **Outperformance Confidence:** Maintains outlook to **substantially outperform industry in two-wheelers**, underpinned by product cycle strength and strategic investments.