Belrise Industries specializes in manufacturing automotive components, offering a diverse range of safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles.

The product portfolio includes over 1,000 distinct products across chassis systems, exhaust systems, body-in-white parts, polymer components, battery containers, suspensions and steering columns, among others.

Over the years, expanded its operational capabilities to include precision sheet metal pressing and fabrication for two-, three-, and four-wheelers. Currently is one of the top three companies with a market share of 24% in the overall two-wheeler metal components segment in India as of March 31, 2024, in terms of revenue.

During 9M FY25, the Sheet Metal Division contributed 73.41% to revenue, Plastic and Polymer Division 2.66%, Suspension Division 0.54%, E-Mobility 0.07%, and Others 23.32%. Most of its products are agnostic to vehicle powertrain types. This provides substantial insulation against shifts in automotive industry trends and positions it to capitalize on the growing demand for electric vehicles. During 9M FY25, 57.62% of revenue was from sale of powertrain agnostic products.

In addition to core operations, engaged in overseas trading, focusing on commodities such as metals, lithium-ion batteries, and electronics. This provides valuable insights into commodity data.

Revenue generated from direct supplies to electric vehicle OEMs increased from Rs 152.57 crore for the Financial Year 2022 to Rs 236.87 crore for the Financial Year 2024, growing at a CAGR of 24.60%.

Built and maintained long standing relationships with a diverse customer base, including leading multinational OEMs such as Bajaj Auto, Honda Motorcycle and Scooter India, Hero MotoCorp, Jaguar Land Rover and Royal Enfield. As of December 31, 2024, successfully serviced 29 OEMs across segments including 13 two-wheeler OEMs, 3 three-wheeler OEMs, 8 four-wheeler OEMs and 5 others.

During 9M FY25, two wheelers contributed 64.56% to revenue, three-wheelers 2.92%, PVs 3.54%, and CVs 5.66%.

Apart from strong domestic presence, exports to several key global markets including Austria, Slovakia, the United Kingdom, Japan and Thailand. Exports contributed 4.63% to revenue in 9M FY25.

Exploring inorganic growth opportunities through mergers and acquisitions in Europe and North America to expand reach in export markets.

The acquisition of H-One India, a specialist in high precision automotive and motorcycle components, added two manufacturing facilities, both equipped to serve a major four-wheeler OEMs.

As of March 31, 2025, operated 17 manufacturing facilities across 10 cities in nine Indian states, with integrated capabilities across the value chain. Backward integration includes tool making, tube bending, and press operations, while forward integration covers system assembly, coating, and painting. The facilities process over 60,000 tons of steel annually.

A strong focus on design and process engineering has enabled the development of a portfolio that includes heavy engineering chassis systems, air tanks, patented suspensions, and high-precision steering columns. In 9M FY25, 1.05% of revenue was derived from intellectual property products.

Expanding into the renewable energy sector, with a newly established production line for sheet metal parts for solar panels, aimed at supplying a major North American solar power company. Additionally, production of exhaust systems for CNG-powered vehicles has commenced.

Focused on increasing content per vehicle through the introduction of high-value and complex products, with plans to launch a variety of powertrain-agnostic lines, including suspensions, steering columns, and brakes. There are also plans to expand capabilities from producing sub-systems to complete systems for automobiles.

Offer and its objects

The IPO comprises a fresh issue of equity shares worth up to Rs 2,150 crore.

Price band for the IPO is Rs 85 to Rs 90 per equity share of face value Rs 5 each.

The objectives of the fresh issue include Rs 1,618.12 crore for the repayment or pre-payment of certain outstanding borrowings, with the remaining amount allocated for general corporate purposes.

The promoters are Shrikant Shankar Badve, Supriya Shrikant Badve and Sumedh Shrikant Badve. The promoters and promoter group hold an aggregate of 64,97,26,304 equity shares, aggregating to 99.81% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 73.01%.

The issue, through the book-building process, will open on 21 May 2025 and will close on 23 May 2025.

Strengths

A distinguished market leader in the high-growth field of precision sheet metal pressing and fabrication, with the ability to supply a wide range of automotive components, positioning it as a preferred multi-product vendor.

Well equipped with sufficient installed capacity and access to land in key automotive hubs across India, enabling rapid scale-up of production to meet growing customer demand across vehicle types.

Developed longstanding relationships with customers, including global OEMs.

Largely EV-agnostic product portfolio, strategically positioned to scale in tandem with burgeoning electric vehicle market in India. During 9M FY25, 7.62% of revenue was from sales of powertrain agnostic products.

Proximity to customers, combined with backward and forward integration, enables end-to-end control over quality, cost, and delivery, while fostering close collaboration and innovation aligned with evolving trends.

Consistently increased the value and complexity of components supplied per vehicle, and currently developing key proprietary components such as motors, motor controllers, and chargers to further increase content per vehicle, particularly in the electric vehicle market.

Implemented a ‘just-in-time’ inventory model that optimizes inventory levels and enhances ability to meet OEM customer’s needs with agility.

Extensive experience of promoters and senior management personnel.

Weaknesses

Faces customer concentration risk, with 18.33% of revenue coming from the largest customer during 9M FY2025 and around 36.94% from the top three customers.

Fluctuations in prices and disruptions in the availability of raw materials, including sheet metal, bright bar, mild steel wire, tubes, polymer, spring wire, and shocker oil, may adversely affect profitability.

Despite a large EV-agnostic portfolio, a decline in internal combustion engine vehicle sales due to rising EV adoption may adversely affect the business. During 9M FY25, products used in internal combustion engine vehicles accounted for 21.06% of total sales.

Certain Promoters and Group Companies are engaged in similar lines of business, which may give rise to potential conflicts of interest."

Manufacturing facilities under construction in Bhiwadi (Rajasthan), Chennai (Tamil Nadu), and Pune (Maharashtra) may face delays or cost overruns, which could adversely affect business operations.

Belrise Industries and certain of its Group Companies were subject to a tax investigation in Pune, during which various issues were identified and tax liabilities, including interest, were levied.

Involved in certain legal proceedings, including criminal cases. Any adverse outcome may negatively affect reputation and business operations.

Valuation

Net sales increased 0.9% to Rs 6013.43 crore in 9M FY2025 as compared with 9M FY2024. The OPM decreased 18 bps to 12.40%, leading to a 0.6% decrease in OP to Rs 745.41 crore. OI fell 7.2% to Rs 41.34 crore. Interest cost rose 9.8% to Rs 243.45 crore. Depreciation costs went up 6.2% to Rs 246.94 crore. PBT fell 12.7% to Rs 306.36 crore. Tax expenses were Rs 60.89 crore as compared with Rs 53.26 crore. Net profit decreased 17.5% to Rs 245.47 crore.

Net sales increased 13.7% to Rs 7,484.24 crore in FY2024 as compared with FY2023. The OPM decreased by 95 bps to 12.35%, leading to a 5.6% increase in OP to Rs 924.46 crore. OI surged 86.6% to Rs 71.43 crore. Interest costs rose 15.9% to Rs 290.24 crore. Depreciation costs went up 4.8% to Rs 321.35 crore. PBT before EO increased 7.7% to Rs 384.4 crore. Extraordinary item was a loss of Rs 12.26 crore compared to nil. Tax expenses were Rs 60.56 crore as compared with Rs 43.04 crore. Net profit remained almost flat, falling by 0.7% to Rs 311.48 crore.

The TTM EPS (excluding extraordinary items and relevant tax) on post-issue equity works out to Rs 3. At the upper price band of Rs 90, P/E is 30.

Total outstanding borrowings amounted to Rs 2,904.49 crore as of March 31, 2025. As much as 55.71% of the debt will be repaid from the issue proceeds, bringing down interest costs substantially and boosting profit. The TTM EPS works out to Rs 4.6 if 55.71% of its interest cost is removed, keeping all other items, including tax rate, same. The re-worked P/E at the upper price band moderates to 20.

With a strong presence in sheet metal parts and fabrication, the business is well placed to benefit from expected growth in India’s two-wheeler market in FY26, supported by sustained rural demand, a good monsoon, and better economic conditions. Its focus on making more complex and higher-value parts could help improve profitability. However, risks such as raw material price fluctuations and ongoing legal proceedings should be closely monitored.

Listed peers such as Bharat Forge traded at TTM P/E of 58, Endurance Technologies at TTM P/E of 38, Minda Corporation at TTM P/E 45 of, and JBM Auto at TTM P/E of 85 as on 19 May 2025. The OPM and the ROE stood at 12.35% and 13.33% respectively, in FY2024. These were 16.31% and 13.26% for Bharat Forge, 12.97% and 13.67% for Endurance Technologies, 11.06% and 11.49% for Minda Corporation and 11.66% and 15.31% for JBM Auto, respectively.