Whalesbook
📉 The Financial Deep Dive
Belrise Industries Limited unveiled robust financial results for Q3 and 9M FY26, showcasing significant year-on-year growth.
The Numbers:
For Q3 FY26, total revenue grew 8% YoY to INR 23,405 million. Manufacturing revenue increased 5% YoY to INR 18,660 million. EBITDA reached INR 2,869 million (+10% YoY) with margins at 12.3%. Manufacturing EBITDA was up 11% YoY to INR 2,579 million at 14.0% margins. Adjusted Profit After Tax (PAT) surged 26% YoY to INR 1,268 million, excluding an exceptional item expense of INR 64.1 million related to employee benefit obligations. PAT margins stood at 5.4%.
For 9M FY26, total revenues grew 16% YoY to INR 69,563 million, with manufacturing revenue also up 16% YoY to INR 55,583 million. EBITDA for the nine months was INR 8,636 million (+16% YoY) at 12.4% margins. Manufacturing EBITDA rose 18% YoY to INR 7,778 million at 13.8% margins. Adjusted PAT saw substantial growth of 51% YoY to INR 3,714 million, with PAT margins at 5.3%.
Strategic Consolidation & Diversification:
A pivotal announcement was the Board's approval for the merger of promoter entities, Badve Autocomps Private Limited and Eximius Infra Tech Solutions Private Limited, with Belrise Industries. This transaction is structured at a valuation close to book value, representing a P/E multiple of 8.3X based on FY25 numbers for the merging entities, starkly contrasting Belrise's TTM P/E of approximately 30.9X. The merger is anticipated to be immediately EPS and value-accretive for shareholders, streamline the group structure, and reduce related-party transactions by INR 11.5 billion. Post-merger, an incremental INR 10 billion in revenue and a margin uplift are expected, alongside an increase in the company's market share in the Indian 2-wheeler plastic components segment to around 25%.
Belrise Industries also marked its strategic entry into the aerospace and defense (A&D) sectors. This includes the acquisition of SDM, a European aerospace manufacturer, for EUR 0.35 million, projected to contribute EUR 3-4 million in revenue by FY27. Additionally, a partnership with Israel's Plasan Sasa will bring the ATEMM platform to India, integrating Belrise into a global supply chain.
Operational Progress & Outlook:
Operationally, the company secured a strategic order for a new manufacturing plant in Haridwar for a leading 2-wheeler OEM. Its Chennai plant ramped up production for a key 2-wheeler EV platform, and the Bhiwadi plant commenced supplies for a premium Japanese model. While 2-wheeler revenues were flat sequentially, they grew 12% YoY for 9M FY26, with expectations to outperform the industry. Management reiterated guidance to double its 4-wheeler and commercial vehicle revenue in the next two years compared to FY25 and aims for mid-teens revenue growth in the core business.
Financial Snapshot:
Net debt stood at INR 7,767 million as of December 31, 2025. Return on Average Capital Employed (ROACE) was 15.1%.
Risks & Forward View:
Key risks include the successful integration of the promoter entities and the execution of the ambitious A&D strategy. Investors should monitor the synergy realization from the merger and traction in the new A&D segment. The company's reliance on the cyclical auto sector remains, though diversification aims to mitigate this.