Ladies and gentlemen, good morning, and welcome to the Q3 and 9M FY 2026 Earnings Conference Call of Belrise Industries Limited. As a reminder, all participant lines will remain in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touch-tone telephone. Please note that this conference is being recorded. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectation of the company as on date of this call. These statements are not the guarantee of future performance of the company, and it may involve risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Shrikant Badve, Managing Director from Belrise Industries Limited for opening remarks. Thank you, and over to you, sir.
Good morning, everyone, and thank you for joining us for Belrise Industries Q3 and nine-month financial year 2026 earnings call. Joining me on this call are my sons, Sumedh and Swastid, along with our CFO, Mr. Rahul Ganu, our CMO, Mr. Sunil Kulkarni, and our Investor Relations Advisors, SGA. Belrise Industries is a leading Tier-1 automotive component manufacturer with 22 manufacturing facilities across India and France. As we look at Q3, our focus on innovation and expanding relationships has continued to drive growth. Within our core automotive business, we continue to strengthen our positioning through higher content per vehicle and expanding OEM partnerships. During the quarter, we secured a strategic order to establish a new manufacturing plant in Haridwar for one of India's largest two-wheeler OEMs. Our Chennai plant ramped up production in line with rising OEM volumes where we are single-source supplier for a key two-wheeler EV platform.
Meanwhile, our Bhiwadi plant began supplies for a premium Japanese model after achieving full operational readiness. A key highlight in the non-auto segment was the acquisition of a French company, SDM. Through this acquisition, we have now entered the supply chains of the largest civilian aircraft OEM globally, as well as a leading combat aircraft OEM. Further, we also entered into strategic partnerships with various platforms partner to bring the flagship ATEMM platform to India and to become an integral part of their global supply chain. I am also happy to announce the much-awaited merger of Badve Autocomps and Eximius Infra Tech with Belrise Industries Limited. Both of these promoter entities are being merged at a valuation close to their respective book values and hence represent a significant discount to what Belrise is trading at today.
This transaction will be EPS and value accretive for all shareholders of Belrise Industries Limited from day one. I would request everyone to keep the merger presentation handy, which has been uploaded on our website and the stock exchanges, as we will be referring to it later in the call. Turning to the results, total revenue from operations for Q3 FY 2026 stood at INR 23,405 million, up by 8% year-on-year, including manufacturing revenue of INR 18,660 million, which grew 5% year-on-year. Our EBITDA and manufacturing EBITDA stood at INR 2,869 million and INR 2,579 million respectively, with margins at 12.3% and 14%. Our adjusted PAT grew sharply to INR 1,268 million, which is up by 26% year-on-year. With this brief, I will now hand over the call to Swastid, who will take you through our merger and related business updates. Thank you very much.
Thank you everyone for joining the call today. I will be going through the merger presentation uploaded on our website as well as the stock exchanges. Firstly, it gives me immense pleasure to announce that the board has approved the proposed merger of Badve Autocomps Private Limited and Eximius Infra Tech Solutions Private Limited with our listed entity, Belrise Industries. If you turn to page four of the merger presentation uploaded on the exchanges, I will walk you through the strategic rationale behind this transaction and explain why it makes strong financial as well as operational sense for the listed company and its shareholders. To begin with, these two entities together represent one of the largest players in the Indian two-wheeler plastic components segment with a combined market share of approximately 14%. Belrise, on a standalone basis, currently has close to a 10% market share.
Post-merger, the combined entity will command nearly a 25% market share in two-wheeler plastic components. This scale translates into a higher wallet share with OEMs and greater customer stickiness. Second, both Badve Autocomps and Eximius Infra Tech are promoter-owned entities with long-standing relationships with multi-global OEMs, including a large two and three-wheeler OEM and a leading global consumer durables OEM, amongst others. These relationships have been built steadily over many years and have grown in tandem with the success of these OEMs in the market. Third, from a financial standpoint, these entities are already meaningfully scaled. In FY 2025, Badve Autocomps reported revenues of approximately INR 14 billion, whilst Eximius Infra Tech reported revenues of close to INR 7 billion. Profit after tax stood at INR 793 million and INR 330 million respectively. This represents a meaningful profit addition to Belrise, and accordingly, the transaction will be earnings accretive.
Finally, on valuation, as discussed earlier, our objective has always been to execute this transaction as close to book value as possible. In line with this philosophy, this merger is being executed at a P/E multiple of 8.3x based on FY 2025 numbers for these two entities, while Belrise is currently trading at a P/E multiple of approximately 30.9x on a TTM basis. Given this valuation differential, the transaction will be both EPS and value accretive from day one. If we now move to slide five, I will outline the merger rationale in greater detail. Firstly, the merger will result in significantly simplified group structure with related party transactions reducing materially by close to INR 11.5 billion. Secondly, the merger will also increase our content per vehicle by over INR 3,000, taking it from approximately INR 17,300- INR 20,300, an increase of nearly 20%.
This will also be accompanied by a greater push towards Tier-0.5 assemblies, enabling us to offer more consolidated system-level solutions to our OEMs. Thirdly, given the merging entities and Belrise already contract and operate alongside each other, the merger will also lead to a higher degree of verticalization with all operations coming under a single umbrella. This will drive strong operational efficiencies across people, processes, and performance. Fourth, we also expect a meaningful increase in wallet share, particularly in the plastic component segment of over 30% with certain multi-OEMs. This expansion in wallet share will further enhance customer stickiness. Finally, as mentioned earlier, the transaction immediately EPS accretive. Now, if we move on to page seven, I'd like to highlight a few additional data points that are worth noting. Together, these entities operate five facilities across Maharashtra, four in Aurangabad and one in Pune.
This will further expand Belrise's geographical footprint. Their revenue mix is largely powertrain agnostic. One particularly interesting capability is Eximius Infra Tech's presence in the EV powertrain space, the manufacture of copper busbars, which are critical conductive components used in battery systems. Currently, this is supplied indirectly to a major Indian passenger vehicle OEM. There's also a high degree of in-house verticalization with capabilities spanning plastic molding, painting, aesthetic application, and assembly, resulting in minimal dependence on Tier- 2 suppliers. Moving to page eight, in terms of post-merger revenue mix, what is particularly exciting is the significant strengthening of our exposure to PV and CV OEM segments. Post-merger, approximately 34% of the incremental revenue contribution from these two entities will come from the passenger vehicle and commercial vehicle segments. This allows us to continue gaining market share in four-wheelers and commercial vehicles and growth in these sectors.
On page nine, from people and infra standpoint, the merger will add approximately 2,000 employees to the Belrise family, including around 1,550 blue-collar workers and 400 white-collar employees. The operations of these two entities are also highly automated with approximately 50 robots used in fabrication, around 30 machines deployed in plastic molding. Moving on to page 10. While the overall product mix is broadly similar to Belrise's current portfolio, there are two key differentiators. The first is assembly, where over 50 individual components, both manufactured in-house and sourced externally, are assembled into a complete module and supplied directly to OEMs. This is a strong example of our continued transition towards a Tier-0.5 assembly model. The second differentiator, as I mentioned earlier, is the copper busbar application for electric four-wheelers, a capability that Belrise does not currently possess, and one that strengthens our presence in the EV powertrain segment.
On page 11, from the perspective of awards and customer relationships, these entities work closely with two marquee global OEMs. In addition, they export higher precision engineered plastic components with tolerances less than five microns to a global consumer durables OEM across China, North America, and Europe. Achieving this level of precision with plastic components at scale is challenging, and Badve Autocomps has built this capability through strong R&D in mold design and product engineering. From an awards perspective, we are also proud of receiving two JIPM awards from the Japan Institute of Plant Maintenance, which is among the most prestigious global recognitions for TPM excellence. Now, if we move to the next slide. This merger also supports Belrise medium to long-term strategy in key ways. Firstly, in deepening our two-wheeler presence.
Secondly, in increasing verticalization, and thirdly, in accelerating our evolution from a Tier-1 to a Tier-0.5 supplier. As shown on slide 14, firstly, the merger is expected to drive an approximately 30% increase in wallet share in plastics for marquee two and three-wheeler OEMs. Beyond the guided content per vehicle of INR 17,300 for Belrise, we can incremental increase around INR 3,000, taking consolidated content per vehicle to approximately INR 20,300. The flow charts on slide 15 illustrate how these entities already synergize. For instance, in fairing assemblies, Belrise supplies the metal component while Eximius Infra Tech supplies the plastic part, with final assembly carried out at Eximius Infra Tech. Similarly, in exhaust systems, Belrise focuses on heavy stamping and tube frosting, while Badve Autocomps handles fabrication, surface treatment, and assembly. Bringing these capabilities under one umbrella will further enhance operational efficiencies. Moving on to slide 16.
As mentioned earlier, we undertake a highly complex fairing assembly comprising over 15 individual components for a leading two-wheeler and three-wheeler OEM. This is structured architect as an extremely sticky business. Lastly, coming to the financials on slide 18. These entities generate strong profitability with a combined PAT of approximately INR 1.1 billion, with robust EBITDA margins. Post-merger, net of related party elimination, we expect an incremental INR 10 billion of revenue to be added to Belrise, along with a margin uplift driven by the internal RPT net off. As mentioned earlier, based on FY 2025 numbers, the transaction is being executed at a P/E multiple of 8.3x based on FY 2025 numbers, while Belrise is trading at approximately 30.9x P/E ratio on a TTM basis.
In terms of advisors on this deal, Ernst & Young acted as the independent registered valuer, while JM Financial provided the fairness opinion for the transaction. Promoter shareholding currently stands at approximately 66.5% pre-merger and is expected to increase to around 67.9% post-merger, with the balance held by the public. This is, of course, subject to regulatory and shareholder approvals at the upcoming AGM or EGM. With that, I will pause here and hand it over to Sumedh, who will walk you through our entry to aerospace and defense and how this opens up the next phase of growth beyond automotive.
Thank you, Swastid. The quarter was particularly significant for us with meaningful progress across both these verticals. First, during the quarter, we entered into a strategic collaboration agreement with Plasan Sasa, a leading Israel-based defense company with strong capabilities in advanced armoring and autonomous defense mobility solutions. Plasan is globally recognized for its integrated platforms and has a flagship product, the ATEMM, which translates to All-Terrain Electric Mission Module, which has been deployed across multiple geographies globally and at scale. The ATEMM platform is particularly suited for highly rugged and inaccessible terrains and is also capable of autonomous operations, making it relevant for deployment in sensitive zones where human and conventional vehicle movement is constrained. This strategic collaboration with Plasan is two-pronged.
Number one, we will team with Plasan in India to jointly engage with the MOD, defense PSUs, and other relevant stakeholders to industrialize and productionize the ATEMM solution for the Indian ecosystem. The initial phase will involve assembly in India and testing this solution across diverse terrains in the country, like in remote and inaccessible areas such as the Northeast and the North of India, such as Siachen Glacier. Second, beyond the Indian market, we will become an integrated manufacturing partner for Plasan's global supply chain, enabling cost-effective production of Plasan's advanced systems in India. We have already initiated prototype and initial supplies for select platforms. Over time, we expect to become one of Plasan's key partners globally for components catering to their global exports. This dual approach allows us to generate stable revenues while simultaneously building a differentiated defense mobility solution tailored to Indian operating conditions.
In addition to this, during the quarter, I am very happy to share that we also completed our first-ever international acquisition in the aerospace segment through the acquisition of SDM, a European aerospace manufacturer specializing in high-precision machine parts for aerostructures and robotics. Today, SDM supplies to some of the world's leading aerospace OEMs, including the largest global aircraft manufacturer, French fighter aircraft OEM, including the largest global commercial aircraft manufacturer, and the fighter OEM that I mentioned, and a large French robotics OEM, and various others. With this acquisition, we have entered the supply chain of all these marquee customers. To lead this business, we have onboarded the former CEO of an Airbus subsidiary, who not only has key experience in scaling businesses in Europe, but also in shifting complex supply chains globally from a supply chain angle. The acquisition was completed at an attractive valuation.
SDM is expected to generate revenues of approximately EUR 3 million-EUR 4 million in FY 2027. While the acquisition was done at a consideration of EUR 0.35 million, implying an entry valuation of approximately 0.1x sales. This is a very strategic acquisition in nature. It is very small enough to manage and gives us a European footprint to further grow our engagement in that geography. Going forward, we plan to grow the business in Europe while also leveraging SDM's technical capabilities to establish and scale aerospace manufacturing operations in India and positioning India as a best cost manufacturing hub. When we refer to best cost, we mean a combination of three specific factors. Number one, favorable labor economics. Number two, a strong engineering depth recognized globally across automotive, industrial, med- tech, and aerospace sectors. Number three, India's proven ability to integrate culturally and operationally with global customers.
Together, these factors position India as a preferred destination for aerospace manufacturing. Also, given the strong order pipeline of global aircraft OEMs and the increasing importance of India as one of the largest aviation markets globally, we believe this trend will continue to play out over the next 5- 10 years, and we expect to be a key beneficiary of this shift. Let me now hand over to Mr. Rahul Ganu, our CFO, to take you through our financial performance for Q3 and nine months of FY 2026. Over to you.
Thank you, Mr. Sumedh. To all of you who are on the call, let me take you through the key financial highlights. Quarter three FY 2026 consolidated financial highlights. Total revenue of quarter three FY 2026 stood at INR 23,405 million, up 8% year-over-year from INR 21,668 million in Q3 FY 2025. Manufacturing revenue for Q3 FY 2026 stood at INR 18,660 million, up 5% YoY from INR 17, 801 million. EBITDA stood at INR 2,869 million, up 10% YoY in Q3 FY 2025. EBITDA margin stood at 12.3%. Manufacturing EBITDA stood at INR 2,579 million, up 11% YoY, and manufacturing EBITDA margin stood at 14%.
Adjusted PAT, which is excluding the exceptional item expense of INR 64.1 million related to increase in employee related obligations resulting from the change in the Labour Codes by Government of India, stood at INR 1,267 million, up 26% YoY INR 1,006 million, and PAT margin stood at 5.2%. Exports contributed 5.8% to our manufacturing revenue in quarter three FY 2026, that is INR 1,075 million. Coming to the segmental performance of the manufacturing front, two-wheeler and three-wheeler contributed 80.6%, passenger vehicles contributed 4.9%, commercial vehicles contributed 7.9% for Q3 FY 2026, and others would be 6.6%. Nine monthly FY 2026 consolidated financial highlights. Total revenues for nine monthly FY 2026 stood at INR 69,563 million, up 16% YoY from INR 60,165 million in nine monthly FY 2025. Manufacturing revenue for nine monthly FY 2026 stood at INR 55,583 million, up 15% YoY from INR 47,947 million.
EBITDA stood at INR 8,636 million, up 15% YoY from INR 7,452 million in nine monthly FY 2025. EBITDA margins were stable at 12.4%. Manufacturing EBITDA stood at INR 7,778 million, up 18% YoY from INR 6,608 million, and manufacturing EBITDA margin stood at 13.8%. Adjusted PAT stood at INR 3,714 million, up 51% YoY from INR 2,454 million, and PAT margin at 5.3%. Exports contributed 5.6% to our manufacturing revenue in nine monthly FY 2026, that is INR 3,127 million. Net debt as of December 2025 stood at INR 7,767 million, and ROACE stood at 15.1%. Coming to the segmental performance of the manufacturing front, two-wheeler and three-wheeler contributed 81.5%, passenger vehicles contributed 4.8%, commercial vehicles contributed 8.3% [for quarter three FY 2026], and others would be 5.4%.
With this, I would like to give it back to Mr. Sumedh for the closing remarks on the closing notes. Thank you.
Thank you, Mr. Ganu. Finally, we would like to share our vision for the company and where we are headed over the next few years. Since embarking on our public market journey, we have continued to strengthen and reign in our core capabilities. In sheet metal fabrication, in stamping, and surface treatments, we have not only secured incremental program wins with our top three two-wheeler OEM customers, but also achieved meaningful traction with the challenger OEMs, customers that are growing rapidly where our historical presence was limited. This momentum is translating into increased market share, both with existing customers and across new large OEM relationships. Alongside this, we have deliberately established new verticals, each of which we believe has the potential to become a substantive revenue contributor over the medium term.
In steering columns, we now supply to all marquee OEMs in India across two-wheelers and three-wheelers and have recently commenced exports to a global European OEM as well. In suspensions, we have made strong progress, expanding from engagements with two large two-wheeler OEMs at the start of the year to four today. In tandem, our education in high tensile technology has enabled us to deepen relationships with existing Japanese customers while expanding our offering to Indian OEMs as well. We strongly believe that high tensile technology will see wider adoption in India over the next few years as the industry reaches an inflection point driven by the need for light-weighting and enhanced crash safety, trends which have already well established in North America and in Japan. In addition, we are undertaking a fundamental strategic pivot in our approach to the defense and aerospace segment.
This has been a focus area for us for some time, and through recent milestones, including our collaboration with Plasan and the acquisition of SDM, we are now working with six aerospace and defense OEMs within a very short span. We are bullish on this segment and expect to become a meaningful revenue contributor over the next few years. Lastly, a key commitment we made during our IPO and subsequent earning calls was to simplify our corporate structure. We have delivered on this commitment in a very value accretive manner for both public and institutional shareholders from day one. We believe this merger will enable higher wallet share, greater vertical integration, increased customer stickiness, and overall EBITDA accretion at the consolidated level. As we move forward with this vision, we would like to thank all our stakeholders for being part of this journey so far. This is only the beginning.
With this, we can open the floor for questions. Thank you so much.
Thank you. Ladies and gentlemen, we will now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to two questions per participant and rejoin the question queue. We will wait for a moment while we poll for questions. We take first question from the line of Nitij Mangal from Jefferies. Please go ahead.
Hi, good morning. Thank you for accepting my question. Firstly, congratulations on getting the approval for the merger of the promo entities and I must say it's coming at pretty attractive valuations . My first question is on the core business. We are seeing some decent two-wheeler revenues as well as passenger vehicle revenues on a YoY basis. Could you explain what is leading to this and how do you see the trends in these businesses going forward?
Thank you. Thank you. This is a good question. Firstly, on the two-wheeler bit, that is exactly our point. In terms of revenues, the company's two-wheeler revenues remains largely flat on a sequential basis. We were around INR 15,085 million in the quarter two of FY 2026, and right now we are at around INR 15,041 million in quarter three of FY 2026. If you even look at the volumes of our top four customers in this two-wheeler segment, even their volumes have largely remained flat on a sequential basis. Hence, if you would have asked me at the start of October about where we see volumes, this would largely have been an expected outcome for us. Secondly, I think if you look at the larger trend for Tier-1, December usually is a slow month for the industry.
OEMs usually have a planned maintenance shutdown for at least a few days. Perhaps what you are also seeing is a bit of a lag between perhaps the numbers of the Tier-1 players report and what the OEM purchase. Maybe a bit of timing that is seen over here, and that is what we are probably seeing in this quarter. However, one thing I would like to point out is in terms of our two-wheeler growth in the nine months, we are still outperforming the industry. We are still up 12% on a YoY basis if we compare the nine months of this year to compare the nine months of last year. We see absolutely no issue in terms of us continuing to outperform the industry.
Of course, in the coming quarter, I think we'll get a lot of help from the upcoming facilities, the one in Chennai for the leading EV platform for a two-wheeler OEM, the Bhiwadi facility where we're supplying to a premium Japanese two-wheeler OEM, as well as the Hyderabad facility for a leading two-wheeler OEM. All three of these facilities will come into play in this quarter. In that sense, we see absolutely no issue in continuing to outperform the industry and doing well going forward.
Sounds perfect. Secondly, I think you have winning quite a number of orders in the new components like suspension, steering columns, high tensile products, et cetera, over the last one and a half years. How do you see the business scaling up for let's say over the next three years, and how much can these components start to contribute to the top line in the future?
Okay. Thanks, Nitij. Firstly, I will talk about these components that you mentioned, including suspension, the steering columns, the high tensile components. Firstly, these are, as we mentioned, largely proprietary parts. They require a fair amount of investment that goes into the IP itself. Because they are, say, parts that are IP and require R&D, usually OEMs have very long due diligence periods to onboard these parts. At any time they have to onboard any of these parts, they actually go through at least 9-1 2 months of testing, if not more, to then get to a stage like this. I think what we've really achieved so far is really penetration or entry amongst multiple OEMs. In suspension, we started the year supplying to only two OEMs, now we're supplying to four OEMs.
These are all really large OEMs that we're working with. In steering columns, we're again working with all of the Indian OEMs as well as the marquee foreign OEMs, and also in high tensile components. Now we're working with almost all of the Japanese OEMs as well as speaking to a couple of Indian OEMs. Across all of these segments, we have now entered multiple OEMs. The entry and a broad base of OEMs has been a critical part so far. Now the real key will be penetrating and gaining wallet share amongst all of these OEMs. I think the tougher part, if you ask me, is the entry itself. Because once a technology is established, to take it to an inflection point is not as tough as, say, entering in the first place.
Now that we are in all of these OEMs, the purchase side, R&D side, production side is in link with the benefit we are getting from this technology. All we have to do is, say, continue to win new programs and grow this business. In terms of where we want this business to be, we feel each of these three verticals, so suspension, steering columns, and high tensile components, each of them can be a growth vertical of its own. I think it would be pretty fair to say that each of them going forward can be multi-hundred crore businesses. This way thinking about from medium term perspective in the next two to three years. So that's where we want our ambition to be, and we think we have the building blocks in place to achieve that.
Can I ask one more question if I can?
I am sorry to interrupt you, Mr. Nitij. Could you please turn back to queue for follow-up questions?
Sure.
Thank you.
Thank you.
Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Vijay Pandey from Nuvama. Please go ahead.
Thank you for taking the question and good that you have completed the acquisition, the related party acquisition. It was one of the key points which you highlighted at the time of IPO. Coming on to the Q3 numbers, generally the other suppliers which have reported the numbers, they have seen a good level of growth, especially for the two-wheeler segment. Even Bajaj Auto, their sales were up around 7% in third quarter . A bit confused as to where our underperformance is coming from. Is it, say, any particular model or how is it? Because I am just not able to get that sense why we have underperformed. Even if I compare it with Bajaj Auto's number.
While we do not comment on particular OEMs, you would appreciate that our growth is based across multiple OEMs. I think we answered on why we think two-wheeler numbers have been fairly stagnant as compared to last year. Of course, there can be a bit of impact of mix, but that being said, it is not like we are losing any programs. We are continuing to get more RFQs, win more programs. Of course, different OEMs grow in different segments. It is not, say, same sales for each of them. There can be certain models that do well, certain models that do not do well. So we, of course, do not inform OEMs strategically in that sense.
What we can talk about is what we are hearing from the OEMs and the plan that we are setting up with them, means that we are well on track to achieve the numbers that we have guided for, not only the two-wheeler segment, but also as a larger company.
How do you see currently the demand looking like? For the fourth quarter, do you expect it to be positive mix in language it goes into the fourth quarter or do we expect a flattish quarter?
We will not be commenting on quarterly guidance. We have an annual guidance that we give to all analysts and investors, and we maintain that going forward. Of course, the GST rate cut has been positive. I think the numbers for January should be out soon, and they show quite a positive trend.
Okay. Just-
Vijay, I do have [inaudible]
No. It's a follow-up to the same question.
Please go ahead.
Just one. Okay.
How is the inventory situation at the OEMs level? Because some of the OEMs have guided that the inventory level is-
We don't comment on OEM for our customers.
Okay.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Jeemit Shah from Motilal Oswal Financial Services Limited. Please go ahead.
Hi, am I audible?
Yes.
Hi. Thanks for the opportunity. Just a couple of questions. One of the key growth drivers for us was taking the CPV for the number one and number two OEM from INR 12,500-INR 17,500. Now to go to INR 20,500 with the inclusion. For number three, number four, to go to INR 12,500 first. Where are we in that journey? Is there traction from the OEM? Any update on that?
Right. I can talk about maybe one of our marquee OEMs with one of the larger OEMs that we work with. We have already gone from, say, INR 12,500-INR 14,000 with the additional steering column. With this acquisition, with the same OEM, we have gone close to INR 17,000. As we speak, we are also in discussions with them for two new products, which we can take it from INR 17,000 to say upwards of INR 18,000 over this fiscal year. With one OEM, I have already seen that journey from INR 12,500-INR 18,000, which is a 45% increase. That is something that I say happened over the past few months.
One thing I would like to point out is usually when you enter a new product, of course, you will not get a lion's share of the wallet share immediately. Usually, OEMs will introduce you to one model and then based on performance, broad-based the growth amongst different models. I believe entries are important and those are things that are happening as we speak. Now we will continue to grow them. In terms of your second question on taking our third and fourth largest OEMs to higher levels. I can talk about one of the largest two-wheeler TVS OEMs, which is in that category. With them now we are covering two different things. One, we are supplying to them for their premium segment.
By supplying to them in their premium segment, our content per vehicle has gone up by around 1.8x- 2x specifically for them. Secondly, for the same OEM, we have now entered the plastic commodity segment. By entering the plastic commodity segment, we are now supplying a wide variety of products including fenders, cowls, covers, dashboards, visors, all relevant plastic parts which can result in an increase in content per vehicle around INR 2,000. Maybe with another premium two-wheeler OEM, we are basically doing more of the suspension parts. The suspension entry has just happened recently and that will also lead to a content per vehicle increase of around INR 1,500.
Just to summarize, our top OEM, we are kind of growing quite fast, increase content per vehicle by 45% and let's say our third, fourth, fifth type OEM will just continue the increase of new commodities that we are selling to them.
Thank you for your detailed answer. Secondly, on the overall business side of things, on the core business. Two-wheeler OEMs are very comfortable on the demand going ahead. Q4 numbers expected to be very strong for all two-wheeler, three-wheeler OEM. And relatively low base of H1 for the next year also bodes well for the industry growth. Is there any ramp-up of schedule from the OEMs that you're seeing or anything on the demand front that you're expecting?
In general, we don't comment on the schedules that we get from OEMs. I think the numbers are out for everyone to see in terms of the January books number for OEMs. I think as you mentioned correctly, the numbers seem positive and seem to be growing in the right trajectory. We maintain our guidance of outperforming the industry in two-wheelers substantially and also maintaining that mid-teen kind of revenue growth going forward.
Sure. Thanks for that.
Thank you.
Thank you. We take the next question from the line of Shubham Jain from Investec. Please go ahead.
Hi, thanks for the opportunity. My first question was on defense and aerospace growth percent. How do we see this business scaling up over the next three years? And the second question was a bookkeeping question. The tax rate this quarter seems to be high at about 29%. What should be the tax rate number that we should work with? Yeah. That's all.
I can take the first one. Yeah. From a defense perspective, I think, as we mentioned on the call, fundamentally, we started working with six new OEMs. There is very, very positive traction from domestic as well as international OEMs. I want to supplement that with saying not just defense, but defense and aerospace. Aerospace is an area for us that we're looking at very keenly. We have already entered supply chain of two of the largest players in that space. As I'm sure you must have seen in the news over the past few months of the year, the largest OEMs in the aerospace industry and the aviation industry are looking at India very seriously. They're looking to set up manufacturing or source more from India and also manufacture in India. We want to capitalize on that positive trajectory.
While the French acquisition is an entry mechanism for us to start very close engagement with the European counterparts, with the European OEMs. We want to fundamentally set up manufacturing facilities in India for the aerospace and defense vertical, which is currently in the works. Largely, in the medium term, we see this as a very positive and meaningful contributor to our revenues going forward. I unfortunately cannot comment on the specific numbers, but it will be a meaningful contributor in the short term.
To answer your second question on the tax rate, I think over the course of the year, we should normalize around 20%-22% of corporate tax rate.
Thank you. We take the next question from the line of Viraj Sanghvi from Ambit Capital. Please go ahead.
Hi, thanks for taking my question. My first question is on the four-wheeler part. It is mentioned in the merger presentation that the post-merger exposure to four-wheelers is rising sharply than what we had previously. Can you provide more color as to what is the customer profile over here? Is it largely e-four-wheeler OEM? What are the kind of products and what is the change in CPV on the four-wheeler side, post-merger event?
Great. Thank you, Viraj, for the question. Just to shed some light on that, we will be adding close to INR 1,000 crore of revenue or INR 10,000 million of revenue post-merger and around 34% of this would be geared towards passenger vehicles as well as commercial vehicles. I think two major parts of what we will be supplying to passenger vehicles and commercial vehicles. Number one would be the copper busbar, which are extremely important from a battery and battery management perspective since it is a critical part that rules conductivity in a system. Secondly, these companies also have a decent exposure in the plastic segment. We are supplying a lot of different parts like dashboards, tire covers, tire wheels, and interior infotainment parts for marquee passenger vehicle OEM.
In terms of mix, we actually also work with a four-wheeler Indian domestic OEM for their busbar and for the plastic parts at a wide variety of OEMs, including a couple of European OEMs as well as a couple of domestic OEMs. Some of which is direct and some of which is towards Tier-1, given that a lot of these parts go into infotainment systems, which are managed by particularly Tier-1. I think, the contribution increase that you can see in four-wheeler would be slightly higher, would be close to INR 5,000 that you're able to see.
Thanks. Secondly, from this quarter's perspective, we've seen a decline in the PV revenue as well. Could you shed some details on how the two-wheeler performed, but any color on why the decline was based on the PV side?
On the PV side, a couple of factors coming together contribute to it. Firstly, in the last quarter and this quarter, there were some supply chain issues with one of our largest Europe-based four-wheeler OEMs, which is a premium automaker. In fact, this OEM is also our largest four-wheeler OEM. As they have several volume reports that has had a negative impact on our revenues. Second was, as we announced last time, we were setting up a facility in Bhiwadi for plastic molding for one of the largest Japanese OEMs. This plant was being shifted from another location. During the shifting of course, there was a bit of loss of production. However, that is transitional and you'll see it getting recovered in the fourth quarter of FY 2026.
Another important point I would like to highlight is, H-One and Belrise both also work a lot in the tooling and die industries where we supply tooling to a lot of marquee Japanese as well as Indian passenger vehicle OEMs. This is being categorized in the other category. While these sales are indeed happening to a passenger vehicle OEM, we have technically classified them as others because it's a different product category. Just totally on a broader perspective, if you look at our passenger vehicle numbers, we're still up 24% on a year-on-year basis if you compare nine months against nine months and hence we again don't see any change in our guidance, which is to double our four-wheeler and commercial vehicle revenue in the next two years as compared to FY 2025 numbers.
I think we can definitely achieve that and there is no reason why that can't happen.
Perfect. Thanks. Lastly, just
Thank you.
Sure.
Thank you. We take the next question from the line of Navin Matta from Mahindra Manulife Investment Management Private Limited. Please go ahead.
Yeah, hi, sir. Thanks for the opportunity. Just another kind of follow-up on the two-wheeler growth being lower for us in this quarter. I just wanted a bit more understanding. When you look at your mixes, two-wheeler plus three-wheeler is about 64%. Is it possible for you to split this between two-wheeler and three-wheeler, or what would be the composition of this?
Thank you, Navin, for the question. This would largely be two-wheeler. While I don't have the exact number in front of me, I think it's close to 60% two-wheelers, probably 3% or 4% three-wheelers.
Okay. Because when I look at your largest customer's production growth YoY, it looks like two-wheelers is about 3%, 4% growth and three-wheelers is about 30% growth, which is why the question. If we have lesser resiliency in that three-wheeler mix, is that the reason why our number is kind of trending flattish or kind of broadly in line with our largest customer? Is that the explanation or do you think there's another way to look at this?
I think that's also a fair way to look at it. I think another important point that I'd like to highlight here is that our penetration in the three-wheeler sector is going up. For our largest customer or for a couple of our largest customers, we have won orders with them across their upcoming chassis systems for their upcoming three-wheeler platforms, both across ICE and EV. We've also won additional orders from them for suspensions, both in ICE and EV. So you're right. Right now, the presence in three-wheelers per se is lower, but I think that is also going up in the future.
Fair enough, sir. That's just another. Thank you.
Thank you. We take the next question from the line of Radha from B&K Securities. Please go ahead.
Hi, sir. Thank you for the opportunity. My first question is, I wanted to understand how big is the market size of plastic components in two-wheelers and three-wheelers, and four-wheelers, specifically in India. Is this business entirely outsourced by OEMs in India or is there a captive market share also?
I would probably have the two-wheeler numbers handy on me right now. That market, for a limited set of products, if I just consider three products, which is a fender, cowl, and cover, that would be close to INR 500 crore-INR 600 crore market. Of course, if you add the dashboard and the visor and the helmet accessories, I think my best guess would be this could be close to INR 2,000 crore market on a consolidated basis in the two-wheeler segment. I unfortunately don't have the numbers handy on me for passenger vehicles. And whether this is all outsourced, yes. I don't think any OEM does a lot of plastic manufacturing in-house. It is usually outsourced to Tier-1 suppliers.
What is the maximum content per vehicle that can be reached in these products in two-wheelers and four-wheelers specifically? This would help us understand how big can this business become for us.
One thing I'd like to point out is when it comes to plastic molding or say fabrication, I think the process largely remains the same. We can say manufacture almost all components that go into a two-wheeler or four-wheeler using a similar plastic injection molding process. In, say, two-wheelers, I think the cost of a vehicle that we have guided for is around INR 2,000 that is there currently. And of course, that going up with carrying assemblies, which has a bit of plastic as well as a bit of metal. So that can go from INR 2,000 to around INR 3,000. In four-wheelers, it's tough to comment on a cost of a vehicle amount because there's a very wide variety of products that go into a four-wheeler, and usually each of them are managed by system integrators.
It depends a lot on which system integrator you're working with. If you get entry with the system integrator or become a system integrator yourself, that's a very lumpy type of growth that you get in four-wheelers.
Just to add to that, in the four-wheeler especially, it is more complex because like Swastid said, the system integrators, and these are pretty much larger assemblies that they supply now, the Tier-1s especially. A lot of it also includes a part of the engine system. It includes the chassis panel. So all of this comes pretty much well-forged and just ready to fit. So apart from plastic, there are other parts also which get into it. So it is really very difficult to analyze as to what could be the total content when you look at such an assembly being supplied to four-wheelers.
Understood, sir. Thank you and all the best.
Thank you. We take the next question from the line of Raman K.V. From Sequent Investments. Please go ahead.
Hello, sir. Can you hear me?
Yes, please go ahead.
My first question is with respect to the merger of the promoter-owned entity. Together with Badve Autocomps and Eximius Infra Tech, they did around INR 2,100 crore of revenue in FY 2025. I just want to understand how they performed in the current nine-month period for the financial year FY 2026, and what do you expect the growth of these two entities to be in the next one or two years? One is that. As you mentioned, this will reduce the related party transaction by INR 1,100 crore-1,200 crore, which will basically add around INR 1,000 crore to the revenue of Belrise . I just want to understand by when this will be finalized, by FY 2026 or FY 2027?
Right. I think to answer your second question, this is of course subject to a lot of regulatory approvals, because we have to get the approvals from the exchanges as well as the NCLT for the merger to be finalized. I think the timeline that we've indicated in our presentation is anywhere between 10- 12 months. You can assume that this happens within FY 2027 itself. Sorry, what was your second question?
My first question was the growth with respect to the Badve Autocomps and Eximius Infra.
Right. In general, we will not be commenting on the growth for these companies of now. Once we get the clarity of when and how these companies are merging, we will speak more about this then.
Understood. Just a follow-up on this. Both of these merger, it will reduce your excess corporate overhead. These mergers will be margin accretive as well, right?
Of course, when your RPT revenues are getting netted off and the EBITDA is being added in. I think if you look at the EBITDA margins of these two entities, they are still close to 12%-13%. So fairly in line with what Belrise EBITDA margins are. Imagine that the revenues are in net off, but the EBITDA is getting added in. In that sense, of course, it will be EBITDA accretive as well as margin accretive.
Understood, sir. And sir, what is the-
Raman, you can please stand by the queue for follow-up first.
Just a follow-up. I just want to understand the debt and cash in these border entities.
That is a part of presentation, I think. You can just take a quick look at it.
Okay. Thank you, sir.
Thank you. We take the next question from the line of Ashwin Patil from LKP Securities Limited. Please go ahead. Ashwin, please unmute your line and proceed with your question.
Sure.
Since there is no response, ladies and gentlemen, due to time constraint, we take that as the last question and we conclude the question- and- answer session. I now hand the conference over to the management for their closing comments.
Thank you everyone for your time and different questions.
Hey everyone, I would like to put this last point. Thank everyone for their time and for the questions. I hope we have been able to address most of your queries. We remain confident in our growth trajectory both near-term and long-term, driven by strategic investments and our commitment to advancing products and technologies. For any further queries, please reach out to us or to our IR partners. Thanks again.
Thank you. On behalf of Belrise Industries Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your line.