Belrise Industries Limited Q3 FY26 Earnings Call Summary

Summary

Belrise Industries Limited - Q3 FY 2026 Earnings Call Summary Monday, February 02, 2026 11:00 AM IST

Event Participants

Executives 5 Rahul Ganu (CFO), Shrikant Badve (MD), Sumedh Badve (President - Strategy), Sunil Kulkarni (CMO), Swastid Badve (General Manager)

Analysts 6 Ashwin Patil (LKP Securities), Jeemit Shah (Motilal Oswal), Navin Matta (Mahindra Manulife), Nitij Mangal (Jefferies), Radha (B&K Securities), Raman KV (Sequent Investments), Viraj Sanghvi (Ambit Capital), Vijay Pandey (Nuvama)

Financials & KPIs

Geographic & Segment Commentary

• 2-Wheeler / 3-Wheeler: Contributed 80.6% of manufacturing revenue in Q3. Revenue remained sequentially flat (~₹1,504 crore) due to planned OEM maintenance shutdowns in December, though 9M growth (+12% YoY) outperformed the industry.
• Passenger & Commercial Vehicles: PV and CV contributed 4.9% and 7.9% respectively. Performance was impacted by supply chain issues at a European premium OEM and production shifting at the Bhiwadi plant, but 9M PV revenue remains up 24% YoY.
• Aerospace & Defense: Established via the acquisition of SDM (France) and a partnership with Israel’s Plasan Sasa. Focus is on high-precision aerostructures and the ATEMM autonomous defense platform, aiming to make India a “best cost” manufacturing hub.

Company-Specific & Strategic Commentary

• Promoter Entity Merger: Approved the merger of Badve Autocomps and Eximius Infra Tech with Belrise at a valuation of 8.3x FY25 P/E (significant discount to Belrise’s ~31x P/E). The move will consolidate the 2-wheeler plastic market share to 25% and reduce RPTs by ₹1,150 crores.
• Strategic Acquisitions: Acquired SDM in France for €0.35 million (0.1x sales) to enter global aerospace supply chains (Airbus/Dassault). Management plans to leverage SDM’s tech to scale Indian aerospace operations.
• Product Verticalization: Scaling proprietary “Tier-0.5” assemblies like fairing modules (50+ parts) and copper bus bars for EV battery systems. Steering columns and high-tensile products are now supplied to almost all major Japanese and Indian OEMs.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Two-Wheeler Revenue Performance

• Question: Why did 2W revenue dip/stay flat compared to the growth seen at peers like Bajaj Auto? (Vijay Pandey)
• Answer: Growth was sequentially flat due to December maintenance shutdowns and an industry timing lag. However, Belrise’s 9M growth of 12% still outperforms the broader industry (Swastid Badve).

Merger Valuation & Rationale

• Question: What is the financial impact and timeline for the merger of promoter entities? (Raman KV)
• Answer: Merger is executed at 8.3x FY25 P/E, making it immediately EPS-accretive. It will eliminate ₹1,150 crores of RPTs and add ~₹1,000 crores to consolidated revenue after eliminations. Timeline is 10-12 months (Swastid Badve).

Aerospace & Defense Strategy

• Question: How significant can the Defense and Aerospace contribution be? (Shubham Jain)
• Answer: It will be a “substantive” contributor. The SDM acquisition provides a European footprint and tech for high-precision machining, while the Plasan partnership targets the Indian MOD for autonomous mission modules (Sumedh Badve).

Content Per Vehicle (CPV)

• Question: How is the journey from ₹12,500 to ₹17,300 CPV progressing? (Jeemit Shah)
• Answer: With a marquee OEM, Belrise has already reached ₹17,000 via steering columns and plastics, with discussions for further products to hit ₹18,000+ this fiscal year. Consolidated CPV will reach ₹20,300 after merging promoter entities (Swastid Badve).

Key Takeaway

Belrise Industries delivered a steady Q3 FY26 with an 8% YoY revenue increase to ₹2,340.5 crores, though sequential performance was muted by industry-wide December shutdowns and supply chain issues in the PV segment. The quarter was defined by significant strategic consolidation, specifically the merger of two promoter entities (Badve Autocomps and Eximius Infra Tech), which is expected to be highly value-accretive, boosting the 2-wheeler plastic market share to 25% and increasing consolidated CPV by ~₹3,000. Strategically, the company accelerated its diversification into Aerospace and Defense through the SDM acquisition and Plasan Sasa partnership, moving beyond core automotive fabrication. Management remains confident in maintaining mid-teens revenue growth and doubling its 4W/CV revenue by FY27. Investors should monitor the regulatory progress of the merger and the successful ramp-up of the new Haridwar and Chennai facilities.