Synopsis: A leading auto ancillary company posted strong quarterly growth, with net profit soaring 82 percent YoY, driven by premium products, EV orders, and operational efficiencies, sparking positive investor sentiment.
A leading auto ancillary stock surged in Wednesday’s trade after reporting strong sequential and annual growth in profitability for the September quarter, supported by rising premium product sales and cost efficiencies. Investor sentiment remained upbeat following the company’s robust performance and improvement in margins.
Belrise Industries Ltd., with a market capitalisation of Rs. 13,797.58 crore, opened at Rs. 156.10 and touched an intraday high of Rs. 158.45 and had a previous close of Rs. 151.45, marking a gain of 4.6 percent at the day’s peak.
Financial Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Belrise Industries posted steady sequential growth during Q2FY26. Revenue increased from Rs. 2,262 crore in Q1FY26 to Rs. 2,354 crore, registering a rise of 4.1 percent. Profit before tax rose from Rs. 140 crore to Rs. 181 crore, up 29.3 percent. Net profit improved from Rs. 112 crore to Rs. 133 crore, marking an increase of 18.8 percent over the previous quarter.
Year-on-Year (YoY): Compared to the same quarter last year, revenue advanced from Rs. 2,069 crore in Q2FY25 to Rs. 2,354 crore, showing a growth of 13.8 percent. Profit before tax surged 110.5 percent from Rs. 86 crore to Rs. 181 crore, while net profit soared 82.2 percent from Rs. 73 crore to Rs. 133 crore. The EBITDA margin expanded from 11.8 percent to 12.6 percent, and PAT margin improved significantly from 3.5 percent to 5.7 percent, reflecting improved cost control and a richer product mix.
Financial Highlights
Manufacturing revenue grew 17 percent year-on-year to Rs. 1,860.1 crore from Rs. 1,589.9 crore in Q2FY25, contributing 79 percent to total revenue. Manufacturing EBITDA rose 25 percent to Rs. 266.3 crore from Rs. 213.8 crore, with margins improving to 14.3 percent. Exports accounted for 5.7 percent of manufacturing revenue, while 73.1 percent of the manufacturing revenue came from powertrain-neutral products.
Operational Highlights
In the two-wheeler segment, the company initiated the setup of a new facility in Chennai for a leading OEM to supply chassis systems and BIW parts for its EV platform as a single source. It also finalized its first GPA order with a top electric two-wheeler manufacturer for plastic molded parts from the Aurangabad facility.
In the four-wheeler passenger and commercial vehicle segment, Belrise commenced production at its Bhiwadi plant, supplying plastic molded components to a Japanese OEM. It also secured a major order from a large Indian passenger vehicle OEM for over 37 BIW parts for upcoming SUV models. The facility producing high-tensile long members for the M&HCV segment is nearing peak utilization.
In its proprietary and premium product portfolio, the company recorded a key win for suspension systems from a growing two and three-wheeler OEM for its 3W EV program. It further expanded its export presence with a chassis order from a Japanese two-wheeler OEM for a premium model, which carries nearly twice the content per vehicle compared to existing programs.
On the diversification front, Belrise began supplying solar structures to a global solar tracker manufacturer for North America, with discussions underway for India and Europe expansion. It also won additional orders from an Indian defense OEM for armored vehicle programs, marking deeper participation in the defense manufacturing ecosystem.
Comments from the Management
Commenting on the Q2 and H1FY26 performance, Mr. Shrikant Badve, Managing Director of Belrise Industries Limited, said,
Focus on Innovation and Margin Expansion
“This growth was driven by increasing content per vehicle, a higher share of premium and proprietary products in the manufacturing sales mix, better utilization of existing assets and rising contributions from newly commissioned facilities. Our EBITDA stood at Rs. 2,962 million, up 22 percent with margin at 12.6 percent and manufacturing EBITDA stood at Rs. 2,663 million with margin at 14.3 percent. The Company utilized IPO proceeds to repay debt of Rs. 15,960 million, resulting in substantial interest cost savings and driving an 82 percent growth in PAT to Rs. 1,330 million.”
Diversified Growth Drivers Ahead
“During the quarter, Belrise secured multiple new orders across segments, including a major EV platform win from a leading two-wheeler OEM and a new suspension order from a fast-growing two and three-wheeler manufacturer.”
“These new orders, though modest in near-term revenue contribution, lay the groundwork for meaningful scale-up over the next few quarters. At Belrise, we intend to focus our investments across auto and non-auto applications including EVs, consumer durables, defense, renewables and other high-value engineered systems to steadily expand our addressable market and position us for the next phase of growth.”
About the Company
Belrise Industries Limited is a diversified automotive component manufacturer based in India, offering safety-critical and engineered systems for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles. The company’s portfolio includes metal chassis systems, polymer components, suspension systems, body-in-white components, and exhaust systems, catering to both domestic and international OEMs across mobility and emerging technology platforms.
-Manan Gangwar
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