Synopsis: A newly listed auto ancillary stock has surged 69% in six months, driven by strong business momentum and rising investor interest.
A newly listed auto ancillary stock has surprised the market with a sharp 69% rally in just six months. Strong business momentum, improving financial performance, and rising investor interest in the auto components sector have collectively fueled this impressive surge. The article below provides a detailed overview of the company’s performance and future outlook.
With a market capitalization of Rs. 14,513.93 crore, the shares of Belrise Industries Limited were trading at Rs. 163.10, down by 1.01 percent from its previous closing price of Rs. 164.76. In today’s trading session it has touched an intraday low of Rs. 162.51 per equity share.
Reasons for rallying 69% in 6 months
IPO Raised for Debt Reduction
Belrise Industries entered the market with strong momentum after raising Rs. 2,150 crore in May 2025 and using Rs. 1,618 crore to repay debt, which strengthened its balance sheet. The stock debuted at Rs. 100, an 11.1 percent premium to its issue price, and has climbed nearly 68.45 percent to Rs. 164, reflecting solid investor interest despite a busy IPO season.
Business Model
Belrise operates a powertrain agnostic business model, supplying safety critical systems and engineering solutions for 2W, 3W, 4W, commercial and agricultural vehicles, with products suited for both electric and ICE platforms.
The company generates 79.5 percent of its revenue from manufacturing and 20.5 percent from its non-core trading segment. Within manufacturing, the sheet metal division is the dominant contributor with 75.5 percent of revenue and holds a strong 24 percent share in India’s 2W metal components market, which is expected to grow at an 11 to 13 percent CAGR through FY30.
Other divisions, such as plastic and polymer at 2.5 percent, suspension at 0.5 percent, and e mobility components remain small. In FY25, 2W and 3W together contributed 67 percent of revenue, followed by 4W commercial vehicles at 6 percent and passenger vehicles at 3 percent.
Belrise works with over 31 global OEMs including Bajaj Auto, Honda Motorcycle, Royal Enfield, Hero Motocorp, Tata Motors and Jaguar Land Rover, but revenue remains concentrated, with the top ten clients contributing 63.8 percent as of December 2024.
Expanding into the Four-Wheeler Market
The acquisition of H-One in 2024 strengthened Belrise’s presence in the four-wheeler category. This addition helped increase the content per vehicle by 60 percent to about Rs. 15,000, with plans to reach Rs. 45,000.
H-One delivered Rs. 60 crore in revenue in the second quarter of FY26 and is expected to scale significantly over the next two years even without major additional investment. This move helps reduce customer concentration and opens new opportunities with Japanese OEMs.
Premiumisation and Higher Content per Vehicle
Belrise is targeting a sharp increase in its two-wheeler content per vehicle, aiming to move from the current Rs. 12,500 to Rs. 17,300 in the next eighteen to twenty four months, driven by the addition of higher value components such as steering columns worth Rs. 1,500 per vehicle, filters worth Rs. 800, and brakes worth Rs. 2,500.
The company is also poised to gain from the growing share of premium motorcycles, where a premium chassis carries a kit value of about Rs. 5,500 compared with Rs. 2,500 for an economy model. Supported by its in-house products, this shift toward premiumisation is expected to lift overall kit value and margins.
In parallel, Belrise is transitioning from a Tier 1 supplier to a Tier 0.5 supplier by focusing on sub systems and complete system assemblies, which strengthens customer integration and increases business stickiness along with content value per vehicle.
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Diversification in Defence and Renewables
Belrise has expanded into defence systems and renewable energy equipment. It has started supplying solar structures to a global tracker manufacturer and secured orders for Indian armoured vehicle programmes.
To support these new opportunities, the company plans to invest Rs. 800 crore over two years and has already deployed Rs. 260 crore in the first half of FY26. New facilities in Chennai, Pune and Bhiwadi are already operational or nearing completion, positioning the company for the next leg of growth.
Financial Performance
Revenue has grown at a compound annual growth rate of 15 percent from FY22 to FY25, rising from Rs. 5,397 crore to Rs. 8,291 crore. Performance accelerated further in the first half of FY26, with revenue increasing 20 percent year-on-year to Rs. 4,615 crore and profit after tax rising 69 percent to Rs. 245 crore due to improved operations and lower interest costs. Margins remain steady around 12 to 13 percent, and return ratios such as ROACE at 15 percent and ROAE at 14 percent remain healthy.
Analyst Outlook
At Rs. 161 per share, Belrise trades at a price to earnings multiple of 31.6 times, which is lower than peers such as Uno Minda at 68.6 times, Endurance Tech at 43.3 times, and Minda Corp at 54.3 times.
Brokerage Phillip Capital believes the company is well placed to maintain its growth momentum supported by rising content per vehicle, increasing premiumisation, and its expansion into the defence and four wheeler segments. Other brokerages also hold a positive outlook, with Investec valuing the stock at Rs. 185, LKP Research at Rs. 192, and Sunidhi Securities at Rs. 197.
Conclusion
Belrise’s sharp rally over the past six months reflects strong fundamentals, expanding market opportunities, improving financials and a valuation that remains below peers.
With clear growth drivers ahead, the stock appears well-positioned for further re-rating provided the company continues to deliver on its execution goals. The main risks include a slowdown in the automotive sector, continued dependence on a limited number of clients and any delays in executing its expansion plans.
About the Company
Belrise Industries Limited, founded in 1988 and headquartered in Pune, is a diversified automotive components manufacturer serving two-wheelers, three-wheelers, and four-wheeler passenger and commercial vehicles.
The company produces a wide range of parts including shock absorbers, chassis systems, steering columns, exhaust systems, polymer and plastic components, BIW parts, front forks, seating system parts, battery containers, bumpers, cross car beams, and hub motors. It also manufactures two-wheeler accessories such as fairings, helmets, seat covers, and luggage boxes, along with rear-view mirrors, wishbone assemblies, and various metal press parts.
Written by: Akshay Sanghavi
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