Ladies and gentlemen, good afternoon and welcome to the Q4 and fiscal year 2025 earnings conference call of Belrise Industries Limited. 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 guarantees of future performance of the company and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participants 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 touchtone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Shrikant Badve, Managing Director from Belrise Industries Limited for opening remarks.
Thank you and over to you.
Good afternoon. My name is Shrikant Badve. It's my pleasure to welcome all of you to first earning call of Belrise Industries Limited. Joining me today are my sons, Sumedh and Swastid, our Chief Financial Officer, Mr. Rahul Ganu, our Chief Financial Officer, Mr. Sunil Kulkarni and our investor relations advisors, namely SGA, that is Strategic Growth Advisors. On May 28th, 2025, Belrise Industries Limited was officially listed on the stock exchanges, a momentous milestone for all of us. I'd like to express my sincere gratitude to all our stakeholders, investment bankers and business partners who have placed their trust in us. As this is our first earning call, I'd like to begin with a brief overview of the company and our growth strategy, followed by highlights of our operational and financial performance for quarter four and financial year 2025.
Just as a brief, we closed quarter four with a record profit after tax of INR 1.1 billion, our highest quarterly performance to date. Our investor presentation has been uploaded on the stock exchanges and I hope everyone has had the opportunity to go through it. Belrise began its journey in the year 1996 and has since grown into one of India's leading integrated automotive component manufacturers. We offer a diverse portfolio of safety-critical systems and solutions for two-wheelers, three-wheelers, four-wheelers, commercial vehicles and heavy vehicles. Our product range include metal chassis systems, exhaust systems, polymer components, board invite components and other non-auto engineering products. We also design and manufacture proprietary solutions such as premium chassis and exhaust systems, cross car beams, air tanks, seating systems, steering columns, suspension systems and many more.
Belrise specializes in precision sheet metal stamping and fabrication and we are currently the largest player in the Indian two-wheeler metal component with a 21% market share. This means that nearly one in every four chassis here on the Indian roads or exported from India is manufactured by Belrise. As you all would appreciate, the chassis is one of the most safety-critical systems in the body as it forms a structural framework of a vehicle, holding everything together from the engine to the main body. We have long-lasting partnerships with 30 OEMs, including several global leaders, supplying a wide range of mission-critical components. For a controlled portion of the components we supply, we are nominated as a single-source supplier, strengthening our stickiness with our OEMs.
Over time, we have significantly increased the value and complexity of our offerings with tech change per vehicle now going up at approximately INR 2,500 for two-wheelers and INR 7,000 for four-wheelers and commercial vehicles. This growth is not just limited to our home state, Maharashtra. We have also expanded into other states across India wherever our potential customers are setting up their manufacturing units. More importantly, our facilities are built with scalability in mind for the future. A key strength of Belrise is that most of our products are powertrain agnostic, compatible with both electric and internal combustion engine vehicles. In the financial year 2025, over 75% of our managing revenue is executed from such powertrain neutral products. This offers us protection from abrupt shifts in automotive trends and ensuring continued relevance in the growing EV ecosystem.
Currently, four-wheelers commercial and passenger segments contribute around 12% of our managing revenue. Given our strong order book in these categories, we expect this share to double in the next two or two and a half years. Over the years, many complex processes that OEMs handled in-house have been gradually outsourced, and Belrise has been at the forefront of this shift. This truly reflects the level of trust OEMs have shown in our execution and engineering expertise. By designing, developing, and owning key processes, we have gone way beyond traditional component manufacturing. Today, we are not just Tier 1 supplier, but we are moving towards a concept called Tier 0.5 supplier, which is an integrated role getting more deeply entrenched with the OEMs by offering complete systems and sub-assemblies. Belrise has consistently led innovation in automotive manufacturing. Some key milestones I'd like to share here with you.
We are the first company to introduce fabrication of robotics at shop floor. We are the first company to use IoT at large on the shop floor, which helps in centralizing, monitoring, and knowing the bottleneck detection at the right time. First to sub-assemble a large quarter panel sub-assembly for a marquee Indian OEM. We are first to install a nickel coating plant long back, and acrylic carbon dioxide pollution plant also long back for a marquee Indian OEM. In the financial year 2025, we are the only Indian auto-component supplier which received two JIPM awards. These awards recognize Japanese Institute of Plant Maintenance for TPM excellence. JIPM is the most prestigious global recognition in manufacturing. The typical gestation period for a JIPM award is two to three years after application, and two to four years as a typical member before application.
This makes the achievement all the more significant. Today, our capabilities span across product design, prototyping, tool development, robotic fabrication, coating, and systems development. All of these capabilities are being leveraged to deliver complex engineering products with high reliability and precision. These capabilities are being actively applied in the automotive domain today and have high applicability in adjacent high-growth domains.
Thus, we intend to make a meaningful push to grow in these adjacent and high-growth sectors in the medium term. With that, I now hand over the call to Sumedh to discuss our acquisition strategy and manufacturing footprint in more detail.
Thank you all for joining the call. Let me now take you through our manufacturing footprint and the progress that we have made across our operations. We offer advanced manufacturing and design capabilities to produce over 1,000 unique products across 17 state-of-the-art manufacturing facilities, supported by a network of more than 800 robots and a 160-member dedicated product development team. These capabilities allow us to consistently deliver high-quality engineered systems at scale and to respond quickly to evolving customer needs. Belrise is known for its precision engineering, consistent product quality, and reliable delivery performance. With our presence across 10 cities and nine states, our manufacturing network is strategically spread to support a wide spectrum of OEM customers and industry segments as well.
Over the years, we have been honored with 31 quality awards at our manufacturing sites, reflecting external recognition from both OEM customers and renowned national and international audit organizations as well. Our significant investments in robotics and automation is complemented by the use of advanced digital monitoring systems and IoT platforms, which enhance our ability to predict and resolve bottlenecks real-time. We are strategically also establishing three manufacturing facilities in Chennai in Tamil Nadu, in Bhiwadi in Rajasthan, and in Pune in Maharashtra. Commercial operations are underway in Chennai, and trial production has already commenced at our Pune facility. Our Bhiwadi facility is on track to start in Q2 fiscal year 2026. The Chennai facility, in particular, is poised to become a key growth driver for us.
It is catered to multiple programs for both a marquee two-wheeler OEM and a marquee commercial vehicle OEM, where we serve as a single-source supplier across several components. We will continually invest in building new facilities, upgrading existing production assets, and integrating new technologies into our plants as we have done at our factories onshore. The management has approved a capital expenditure plan of approximately INR 8,000 million over the next two years. This will support facility expansion, asset upgrades, and the development of infrastructure for new products and programs. We also support our customers and product validation and supply across a wide range of commodities and categories, which has helped us position ourselves as a preferred multi-product vendor. Our customized capabilities built through close collaboration with customers and backed by our pan-India presence are tough to replicate and help us build strong long-term relationships.
We utilize strategically located warehouses near our customers to optimize our cost structure even further. This setup ensures faster delivery and avoids the high costs of setting up facilities with less than optimum capacity. Now, turning to our inorganic growth initiatives. I would like to briefly touch upon two important developments from the past year, both aligned with our long-term strategy and expanding into high-growth verticals and enhancing our engineering depth. The first is the business transfer agreement, BTA, of Max Filters, which was executed as a consideration of INR 165 million. This transaction allows us to establish a new vertical within our filtration systems product line catering to two-wheelers, three-wheelers, as well as four-wheelers. More importantly, it provides us entry into one of India's largest passenger vehicle OEMs, significantly expanding our cross-selling potential across platforms.
At full utilization, this facility acquired for INR 165 million again is expected to generate up to INR 1.25 billion in annual revenue. Complementing this was our acquisition of H-One India Private Limited, where we acquired a 100% stake for INR 1.9 billion from their Japanese parent, H-One. This acquisition was strategic from both a technological and customer access standpoint. It brings in critical capabilities in high-tensile strength stamping and fabrication, a domain that is essential for meeting the lightweighting and safety requirements of modern automotive, especially four-wheeler platforms. Today, most steels used in Indian automotive applications operate in the range of 600 megapascal -700 megapascal strength range.
With this H-One acquisition, we now have the capability to operate even upwards of 1,000 megapascals, which enables us to meet global standards for lightweighting and high-strength body structures. In terms of infrastructure, this acquisition has added two fully operational and very well-equipped state-of-the-art manufacturing facilities in Greater Noida in U.P. and in Bhiwadi, Rajasthan. These plants are equipped with robotic welding systems, high-tonnage press lines, and in-house die manufacturing setups, allowing us to execute complex assemblies with high-dimensional accuracy. For any future inorganic expansion, our focus will be on strategic opportunities that will allow us to strengthen our verticalization, diversify our product portfolio, or to expand our customer base. We will evaluate customer-driven acquisitions or partnerships that align with these principles going forward. With this, I now hand over the call to Swastid, who will take you through our growth strategy and the way forward. Thank you.
Thank you all for joining the call. Over the past 28 years, Belrise has grown through three distinct phases and now are entering into a fourth phase of growth. In the establishment phase, which spanned from 1996- 2009, we scaled primarily under a single customer who introduced us to new commodities and new geographies. This phase laid a foundation for our capabilities and helped us mature operationally. Over this period, we grew at a CAGR of 51.3%, reaching revenues of INR 3.15 billion by 2009. In the multi-dimensional growth phase, which was between 2009- 2017, we adopted a three-pronged approach focusing on newer geographies, customers, and currencies. This enabled rapid expansion and helped us position ourselves as a full-service supplier. We also broadened our presence across multiple vehicle classes, including two-wheelers, three-wheelers, four-wheelers, and commercial vehicles.
During this period, we achieved a CAGR of 29.2%, reaching a revenue of INR 24.37 billion by 2017. In the resilience phase, which was between 2017- 2020, despite the worst ever two-wheeler volume decline in India, we were among the few companies that did not witness a single year of degrowth, growing at a CAGR of 13.3%. We deepened our partnership with two of our top six customers and also executed two important inorganic acquisitions, H-One and Max Filters. As we enter our platform expansion phase, we are targeting mid-teen revenue growth over the medium term, driven by a balanced mix of organic and inorganic growth while maintaining EBITDA margins at current levels. We will also look to expand our RoCE to the high teens on the back of increased capacity utilization and agile manufacturing practices.
To achieve this, we will focus on four key strategic pillars. The first one is deepening our presence in the two-wheeler segment. We plan to grow in the two-wheeler space through three core strategies. One is increasing our content per vehicle. Our content per vehicle currently stands at INR 12,500. We plan to increase this to INR 17,300 over the next couple of years by introducing three new products into our portfolio. Second is expanding into the premium two-wheeler segment. We are already working with multiple OEMs in this space and are the inherent market leaders here. We see three clear advantages to further deepen our engagement here. Firstly, stronger tailwinds. The premium two-wheeler segment is growing faster than the commuter segment. This will allow us to ride the growth curve into the future. Secondly, a higher content per vehicle.
While a chassis in the commuter segment averages INR 2,500, a chassis in the premium segment averages INR 5,500. Thus leading towards 2.2x increase in cost per vehicle for us. Thirdly and lastly, higher barriers to entry. The premium segment demands greater precision and aesthetics, which thus increases customer stickiness and creates a network competitors mode first. Thirdly, we look to improve our cost per vehicle with our second, third, and fourth largest OEM as compared to our first OEM. While our cost per vehicle with our largest OEM is INR 12,500, it is currently lower with our second, third, and fourth largest OEMs. We aim to raise this cost per vehicle to INR 12,500 as well, bringing these second, third, and fourth OEMs in line with our top account over the next few years.
In terms of the second strategy out of the four strategies, we intend to build a portfolio of proprietary products. Today, we are developing a range of proprietary products, both in-house and through collaborations, which have IP-based barriers to entry. This involves increased investment in R&D, new product development, and testing infrastructure. For example, we recently started making and supplying suspension systems, which we hold a patent for, and steering columns, which was a monopoly product historically. Specifically on steering columns, we have won four orders from three marquee two-wheeler OEMs and one order from a large European OEM in fiscal year 2025. We are also actively exploring lightweighting and modular technologies, especially in the premium chassis and exhaust system space to improve component efficiency.
The high tensile steel technology that we have acquired through [inaudible] enables us to manufacture lightweight components with a strength of up to 2,000 mega pascals. This technology is already being commercialized for a chassis system co-designed by us for a large commercial vehicle OEM EV platform. The third out of the four strategies is expanding in the four-wheeler and commercial vehicle segment. In fiscal year 2024 and 2025, four-wheeler and commercial vehicle segments contributed approximately 12% of our manufacturing revenue.
However, this space offers substantial headroom for growth, and as I further mentioned, we expect to increase our share in these two segments to double in the next two to two and a half years. Our approach to scaling in this segment is threefold. One is faster wins through new model penetration. Rather than displacing incumbents in mature platforms, which often involves long and uncertain cycles, we will focus on new model launches where we can gain share more quickly. We have already implemented this playbook across four passenger vehicle OEMs and three commercial vehicle OEMs.
Secondly, we will leverage our H-One acquisition for increasing our Japanese OEM expansion. The H-One acquisition opened up relationships with two prominent Japanese OEMs with whom we had minimal prior engagements. We will thus leverage this acquisition to deepen engagement with these OEMs and build new relationships with other Japanese OEMs. Thirdly, we will look to cross-sell proven products. Over the past 2.5 years, we have successfully commercialized multiple proprietary products like air tanks, premium chassis systems, and cross-car beam with major two-wheeler and PV OEMs. The next phase of our strategy is to cross-sell these platforms across existing customer base. Lastly, we also see exports as a critical lever. Building on our established relationship with one of Europe's leading premium OEMs, we will aim to emulate this success with other European OEMs.
We have recently secured orders from two major European OEMs, with production for both scheduled to commence in the second half of fiscal year 2026. These orders mark the beginning of a broader export push that we intend to scale up. Going back, the fourth and last strategy that we look to grow with is evolving from a Tier 1- Tier 0.5 system supplier. We are consciously evolving from a Tier 1 component supplier into a Tier 0.5 system supplier, thereby increasing both our value addition and strategic importance to OEMs. This transformation has been underway over the past decade and is already yielding tangible outcomes. Some anecdotes that will add to the story is for a marquee Indian two-wheeler OEM, we are currently supplying a sub-system comprising 200- 250 unique components across 70+ variants on a single-source basis.
This depth of integration is allowing us to closely align to the OEM's goals, highlighting both our operational rigor and the agility that we have built over time. Secondly, for a leading commercial vehicle OEM, we first initially supplied a collection of discrete chassis components. We have now enhanced our role and have been selected as a single source to co-develop and manufacture the complete chassis system for their upcoming CNG and EV platforms, with production targeted to begin in the second half of fiscal year 2026.
This again marks a major step towards our role as a system integrator. Thus, through this Tier 0.5 role, we are steadily moving up the value chain, deepening customer relationships, expanding our product scope, and aligning ourselves with future-ready platforms. Now, moving on to the financials. In fiscal year 2025, consolidated revenue grew by 11% to INR 82.908 billion, with EBITDA growing by 10% to INR 10.211 billion.
EBITDA margin stood at 12.3%, and PAT for the year was INR 3.554 billion, a growth of 13% year-on-year. Manufacturing revenue grew by 9% to INR 65.938 billion, with approximate EBITDA margins of 14.2%. This includes a 150 basis point contribution from a subsidy received by the company, which is expected to continue for at least another decade. Following successful IPO of our company in May 2025, the company has also repaid debt to the tune of INR 15.96 billion. This deleveraging will result in significant interest cost savings and improvement in debt ratios.
Looking ahead, we are encouraged by favorable macro indicators, including a promising monsoon forecast, the recent 50 basis point RBI cut, and higher MSPs for key crops. These are expected to enhance liquidity and fuel demand across product categories. We believe that the outlook for the auto sector remains strong, with strengthening rural demand and increasing human activity.
Belrise is well-positioned to benefit from momentum. We will continue to focus on operational efficiency, profitability, and further strengthening our balance sheet. We also remain committed to responsible manufacturing. Our plants are designed for zero liquid discharge, and a portion of our energy needs is met through renewable sources. Our ESG journey is a continuous one, and we consider it a fundamental pillar of our long-term sustainability and competitive advantage.
As part of our integrated operations, we also engage in related party transactions with our group companies. These transactions are undertaken to leverage specialized process capabilities, improve labor efficiencies, and foster a robust and reliable supply chain across the organization. These are all also conducted on an arm's length basis. However, in line with our broader governance strategy, we intend to simplify this corporate structure over time by reducing related party transactions through a combination of mergers, acquisitions, divestments, and third-party outsourcing. With that, I would now like to hand over the call to our Chief Financial Officer, Mr. Rahul Ganu, to take you through the detailed financial highlights.
Thank you. Welcome to everyone on the call. Coming to fiscal year 2025 consolidated financial highlights. Total revenue for fiscal year 2025 stood at INR 82.908 billion, up by 11% year-on-year. Manufacturing revenue for fiscal year 2025 stood at INR 65.938 billion, up 9% year-on-year on the back of increased demand and higher content per vehicle. This is a testament to our focus on growing core business. EBITDA stood at INR 10.211 billion, up 10% year-on-year. EBITDA margins stood at 12.3% and are expected to remain stable in the range going ahead. Manufacturing EBITDA stood at INR 9.372 billion, a growth of 10% year-on-year, and manufacturing EBITDA margins remained stable at 14.2%. PAT stood at INR 3.564 billion, a growth of 13% year-on-year. This includes a loss of INR 122 million last year on account of exceptional loss in fiscal year 2024. Net debt stood at INR 27.507 billion.
Through the IPO proceeds, the company has repaid debt to the tune of INR 15.960 billion. This will lead to significant interest savings and improvement in debt ratios. In fiscal year 2025, ROE stood at 14.9% and RoCE stood at 14.1%. Note that these numbers are excluding the numbers of H-One India Private Limited, as we acquired them on March 28th, 2025, only three days before the end of the financial year. The top three customers and their ecosystem vendors accounted for 67% of manufacturing revenue. Coming to the segmental performance on the manufacturing front, two-wheeler contributed 81.3%, three-wheeler contributed 3.6%, passenger vehicle contributed 4.4%, commercial vehicle contributed 7.3% for fiscal year 2025, and others stood balance to be 3.5%. As of March 2025, revenue from EVs stood at 4.0% of manufacturing revenue. Exports contributed 5.8% of our manufacturing revenue in fiscal year 2025, that is, INR 3.803 billion.
We remain committed to growing this share through strategic expansion into newer geographies and deeper engine lines with global OEMs. Now to Q4 fiscal year 2025 consolidated financial highlights. Total revenue for Q4 fiscal year 2025 stood at INR 22.743 billion, up by 49% year-on-year. Manufacturing revenue for Q4 fiscal year 2025 grew by 21% year-on-year to INR 17.993 billion. EBITDA stood at INR 2.76 billion, up 58% year-on-year. EBITDA margins stood at 12.1%. Tax for the quarter stood at INR 1.1 billion. With this, we can open the floor for questions. Thank you.
Thank you. Ladies and gentlemen, we will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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, we will wait for a moment while the question queue assembles. The first question comes from the line of Aditya Pawar from Investec. Please go ahead.
Thanks for the opportunity and congrats on good set of numbers. A few questions from my end. One, on the rare earth metals. Are you seeing that there is any change in the production schedule of any of your customers because of unavailability of rare earth metals?
Thank you, Aditya, for the question. As of now, we are unable to comment on the exact customer schedules of our key customers. We do hope that the situation does sort itself out in terms of securing more rare earth metal access in the next few weeks or next few months. Thank you.
Okay. Thank you. Next question is on H-One acquisition, H-One and Max Filters. You mentioned that the financials of H-One got included in Q4, but I think the acquisition was towards the fag end of March. Right? The full impact of the quarter would be visible only in Q1. Is that correct?
That is a fair assumption. The acquisition happened on March 20th. Technically, only three days of the acquisition value has been included. You are correct. In Q1, we will get the full picture for the acquisition.
Okay. What about Max Filters?
Max Filters was a business transfer agreement and that happened in Q3. The results of those are included in our financials. Since it was a business transfer agreement, it is not a separate entity that we require to say. The revenues from the Max Filters acquisition are already a part of the Q4 of fiscal year 2025.
Sure. Thank you. Final question. Swastid, if you can comment a little bit on the group company transfer. Multiple strategies we are following in that to transfer these group companies into the listed entity. If you can give us a timeline of what is the outer timeline of completing all these transactions.
Aditya, I think we will look to move fairly quickly. I think our foremost goal and objective remains to create stakeholder value and to simplify the corporate government structure. I think we have already placed and hired an advisor who is helping us on the same. We feel in this fiscal itself, you should hear something to the tune of a few of these mergers or divestments being planned out, which will further lead to simplification and reduction in our entities.
Okay. Ballpark, I think the book value was about INR 690 crore and you had transferred about INR 100 crore. The INR 590 crore by end of this year, the entire INR 590 crore worth of book value companies will be transferred?
That would be the intention. The timeline, of course, does depend on regulatory information and permission, which are outside our control, but that does remain the intention as we speak.
Perfect. So that is it from my side. All the best. Thank you.
Thank you, Aditya.
Thank you. We take the next question from the line of Abhishek Jain from AlfAccurate Advisors . Please go ahead.
Thanks for the opportunity and congratulations on the set of numbers. My first question on the new plants. You are going to add three new plants in fiscal year 2026. How much total investment in these plants and how much incremental revenue will come from these plants from fiscal year 2026, and how would be the peak revenue from these plants?
A large majority of the investment that is to be going to this plant has already happened in the fiscal year 2025. The Chennai plant that we spoke about is already operational. We expect that plant over the next couple of years to hit a revenue of close to INR 2,000 million or INR 200 crore. That in itself will be a major driver.
There we will work exclusively with a premium two-wheeler OEM and also a commercial vehicle OEM. In the Bhiwadi facility that we are expanding into, we will work across two passenger vehicle OEMs and two two-wheeler OEMs. Again, that plant is right close to completion with commercial production stated to start in quarter two of this fiscal year. We also expect a good amount of revenue to come from the plant.
I think it is tough to comment on the exact revenue because it would depend a lot on the program launches that are being done with respective OEMs. We are seeing some finalization changes still happening as we speak. Thirdly, and lastly, the Pune manufacturing facility that we are piloting is for the hub motor. This is a trial production facility, so it is quite small in terms of size and potential revenue. We do not expect this to increase our revenues materially, but it is an important step for us because it is our first foray into the electric vehicle powertrain segment.
How much total investment in all three plants?
We haven't finalized any exact investment for these three plants, but the majority of them has already been done as we speak.
Apart from this, you are also saying that 800 crore would be invested in the next two years. If you can throw more light, what are the key products you will introduce and how the investment will be done? Is it a dedicated plant for few OEMs?
No, so this will be across our plants. As you'll appreciate, we have maintenance CapEx that goes across our plants. We have growth CapEx that also goes across all of our plants. The good thing, as my father mentioned earlier, is that we have facilities in all of the automotive hubs in the country. So a lot of these will be brownfield projects, and we look to expand into the 17 facilities that we have already and the three facilities that are coming up in the second quarter of fiscal year 2026. We think these 20 facilities will be enough to grow further in the next couple of years. Also, the INR 800 crore CapEx or the INR 8,000 million CapEx that we spoke about is an outer limit. We expect not to reach that or to be a little lower than what we have committed.
Okay. How is the current capacity utilization of all these plants or applause and of painting plants?
Our current capacity utilization is. Please.
Hello.
Sorry. Our current capacity utilization is close to 65% across all four plants. It is not really an apples-to-apples comparison because we have both general purpose machinery as well as special purpose machinery. It is very rare to combine capacity across plants. The 65% can scale up substantially over the next two to 2.5 years.
Okay. As you also mentioned that the contained positioning is right now the INR 12,500. What are the key products you are supplying to the OEMs, and who are the key OEMs into two-wheeler spaces?
As a policy, we will not name the OEMs that we are supplying to. That being said, we supply to all of the major OEMs in the two-wheeler space today. There is maybe one or two OEMs who we do not work with, but we probably start to work with in this fiscal year. On the INR 12,500, the major part of those will be metal components. Inside metal components, the major is the chassis, which is a very strategic part of the body, defines the structural integrity of the vehicle. Second is the exhaust system. Third would be the metal periphery. All of the swing arm or the main stand or the side stand or the side guard, these are all of the metal periphery that go into a vehicle. We also make all of the polymer components that go into a vehicle.
The fender, cowl, cover, or visor, all of these are the plastic accessories that we make in a bike. Then we also make the suspension product, which is the front fork and the rear shock absorber for two-wheeler. So that would be the main constituents of the INR 12,500.
Thank you very much.
You are welcome.
I have one more thing.
Yes. I think from technique. Sorry, you want to. Is there a question?
No, going forward.
Yeah, going forward to what [inaudible] said, these form the basis or the prime basis of this INR 12,500. We are also having, if you look at from a sharing economy perspective, that's a new proprietary product that we added for a certain scooter products. We also got the disc brake system, which has been developed, designed, tested, and this is also going to be one of our products for growth. Apart from that, the air circulation products we talked about also go into the two-wheeler segment. This will also add on to the content per vehicle going forward.
Okay. My last question on the margin side, that most of the products are metallic products, where the margin is always fluctuate because of that increase in the prices, increase or decrease the prices of the metal. Just wanted to understand how much the sensitivity with the different materials.
Our raw material prices are on a back-to-back basis, so they get settled on a quarterly or semi-annual basis, with our OEM. We are not exposed to any fluctuations in raw material prices in our business. Sunil Govind Kulkarni , if there's anything you would like to add to that.
Yeah. As mentioned by you, the prices of raw materials, which are There is a fluctuation in the market, but those have been compensated by a debit note credit note issued to the customer from time to time. Normally, in the auto industry, it is a partially system which has been followed. Practically, there is no impact on the profitability per se.
Okay. In export market, how much is sensitive?
Sorry, could you repeat that?
In export market, I think export also contributes a significant part of your revenue. How much is it sensitive with fluctuations of raw material prices in export?
It is the same methodology that is followed also in export market.
How much is the export contribution right now? If you have available.
5.8% of our margin revenue is export contribution.
Just to add on from the export system that you mentioned, as far as the raw material pricing and indexing is concerned, as per our experience with the customer, it is on a quarterly basis, which is done very regularly.
Okay. Thanks a lot for my turn.
Thank you.
Thank you.
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to limit to two questions per participant. The next question comes from the line of Vijay from Nuvama Wealth Management. Please go ahead.
Thank you, sir, for taking my questions, and congratulations on an excellent quarter. I am looking at the company for the first time. Just let me know in case of any minor questions or minor discrepancy. I wanted to check, there is a huge growth in the consolidated numbers when I see the Q4 numbers year-on-year as compared to the standalone. The standalone grew by around 23% and consolidated was up around 50%. What is driving this delta? Is it because of any new consolidation or any acquisition? If you can help me out, because one of the acquisition is only for a period of two days, so I just want to check what are the other things that are driving this change.
I think on a year-on-year basis, the revenue growth has been at a console level, at 11% growth. You can see there is a bit of change in the quarter on quarter because you would appreciate that this is a seasonal industry. Based on certain festivals and certain other important dates that shift with any year, the performance of our OEMs, our performance does shift. That being said, the Q4 in fiscal year 2025 was especially good because we did ramp up, of course, a part of the Chennai plant and there was good demand based on a ramp-up of a commercial vehicle platform that we also developed. I think those were two major factors. Also, our revenue from three-wheelers in this particular increased by 20% and our sales to one of the largest commercial vehicle manufacturers grew by 12% in this fiscal year.
Those, I think, would be the large parts of why the growth came.
But largely on a year-on-year basis, if you compare, that's where you'll be able to normalize it annually.
Okay. I was comparing it year-on-year only, but when I look at the fourth quarter of last year, fourth quarter of this year, the sales has gone up from INR 1,150 crore- INR 7,285 crore. So that's why I wanted to check what's driving that growth. So has there been any acquisition done over the last one year, like any major acquisition?
I think the only business announcement we made in the previous year was for Max Filters, but that was not material in terms of revenue. The second one, as you said correctly, is the H-One acquisition, but that was only consolidated for three days, so that also didn't have a material impact. Usually, historically, our quarter three and quarter four numbers in terms of revenue have been quite similar. If you look at a track of the past four years, quarter three and quarter four revenues are fairly similar. I think in that case, last year was a bit of an anomaly where the quarter four numbers were a little lower than quarter three numbers due to a variety of reasons, including festivals and planned plant stoppages by few of our OEMs. Those were the main reasons.
Okay. And sir, what is our expectation for fiscal year 2026 if you could help in terms of growth and margin levels? That will be helpful.
I think as we mentioned in the speech, we look to grow in the mid-teens through both organic and inorganic growth, and this would be driven at the EBITDA margins going ahead.
Okay. Thank you.
Thank you.
Thank you. We take the next question from the line of Namit Arora from IndGrowth Capital. Please go ahead.
Thank you for the opportunity and many congratulations to the entire family and the entire team for a successful listing. I have two questions. My first question was around capabilities. You have mentioned about product engineering. If you could give us more color on your efforts around product engineering. That was question one. My second question was around the fourth pillar of your growth strategy, which is transitioning from a Tier 1- Tier 0.5 supplier. You have mentioned about two customers in the slide, and I think there was a discussion in the call about another three customers. If you could give us some more color about your efforts to transition from Tier 1- Tier 0.5 and any other customers amongst your top six where you could make this transition, some color around that and how that could strategically benefit the company.
Thank you very much.
Right. Sorry, what was the first question regarding capabilities?
Yeah, product engineering.
Yeah.
You had mentioned about. Yeah, sorry, please go ahead.
Yeah, you were saying?
No, I was just saying, you have mentioned about product engineering. If you could give us some more color on your efforts around that. Thank you.
Absolutely. We have invested in our process engineering expert, and we have endeavored over the past few years to move from not only a process expertise but also to a product development expertise. We showcase that through multiple products that we have developed over the past few years. Most recently, for example, the steering column which we have taken from the drawing board to commercialization with multiple OEMs. Three, four OEMs actually across the two-wheeler and three-wheeler space for domestic as well as exports to Europe and North Africa. Some of these OEMs were interested. That is the focus area. That is also evidenced in our M&A strategy, the Max Filters acquisition, again moving towards the proprietary and premium segment. This foundation with respect to capability is from a process to a product side.
Another point that we could add here is the premium chassis and exhaust systems that we deliver to a lot of premium bike makers in the country. As you will appreciate, the chassis is extremely critical from a stability perspective, and any sort of distortion that comes into a chassis fabrication or assembly can result in complete vehicle performance. It is what connects the whole vehicle together, and when it comes to premium vehicles, the aesthetic quality of the chassis, as well as the precision required, usually goes into the micron scale. We have been able to work across almost all of the premium bike makers in the country, and there we have been co-developing and co-engineering these products with a few of these premium OEMs in the country.
I would like to add one more aspect here, is from a high tensile strength steel manufacturing capability. As [inaudible] mentioned on the call, this capability or the ability to mold higher tensile strength materials is not trivial. It requires high levels of simulation, high levels of looking at different performance under different stress conditions and how it translates to manufacturing on a mass scale. With the H-One acquisition, that is something which we are further strengthening and that will allow us to increase our value addition in that component as well.
If you allow me, I would just like to add from a technical perspective. Please understand that our technical strength today is almost 150 engineers, not only from a process engineering perspective, but also from a product engineering perspective. We were earlier probably more into polymer and sheet metal, but when we talk about products like the steering column, we built expertise in forgings and aluminum die casting, okay, which is something very different from what we used to do. When we look at the proprietary products like suspension and brakes, we are staffed with a good deal of expertise from a vehicle simulation perspective, in co-design and testing. This is the kind of infrastructure that we put in place to ensure that the alignment of being a very technically driven company is met in all standards with the customers.
Got it.
To answer your second question.
Yeah, please go ahead.
Answering your second question, [inaudible]. The Tier 1.5 that we have done with the Indian marquee two-wheeler OEM, as well as the Indian commercial vehicle OEM, we have also recently emulated that with another marquee Japanese OEM, where as you would imagine, Japanese OEMs are very disciplined and there is a lot to learn from them. They were manufacturing the complete chassis in-house. We were chosen as a formal supplier, to outsource the chassis completely. We were chosen as a single-source supplier to manufacture the complete chassis for them and this in itself was a 2.5-year to three- year process. More or less to say that different OEMs will look to outsource more and more components, and we would like to be at the forefront in terms of this outsourcing, thus increasing our entrenchment with them going forward.
Thank you very much. All the best to the entire team and I really appreciate various team members coming forward and giving various examples. Thanks a lot. Thank you.
Thank you.
Thank you. The next question comes from the line of Amal Kaur from Axis Capital. Please go ahead.
Hi. Good afternoon, team, and congratulations on your listing and the financial results that you have produced. I had a couple of questions. One was related to H-One, you talked about working on it already, maybe some products in hand. If you could shed some light on what kind of EBITDA incrementally could you see from that business? Plus, if there are any synergies with your existing businesses that you would execute, that you could exploit to probably build the profitability further.
Yeah. Thank you, Amal, for the question. I think H-One is really an acquisition for us. I think the EBITDA margins that we expect from this business would be in line with the manufacturing EBITDA margins that we have in Belrise today. I think inherently, the H-One acquisition has a lower capacity utilization. Step one would be to increase that capacity utilization by insourcing a few of the components that we were originally outsourcing. Second would be to also expand with Japanese OEMs. H-One works very closely with two major Japanese OEMs in India, and we look to grow more with them going forward. I think Sumedh can add more to that.
From a synergies perspective, I think one immediate synergy that we are able to immediately capitalize on is the strategic location of both the facilities that they currently have. Both are state-of-the-art facilities, very strong engineering footprint, and obviously we are really excited that we are able to integrate on day one. With respect to, again, the location, the existing facility in Bhiwadi is only 4.5 km away from our existing facility. Very easy for us from a manual standpoint to have that kind of a coordination and control going forward.
Understood. Just a small clarification. You said, it is currently underutilized, so probably once it is utilized to an optimum level, then the profitability will be similar to the existing profitability from an H-One business that you have, right?
That is correct.
Understood. On the second part, I wanted to understand a little bit of the opportunity that you are seeing on the four-wheeler side to both PVs and CVs. Currently, it is maybe around 10% of your revenues are coming from these businesses. With the kind of orders that you have in hand and the kind of traction that you are seeing with the PVs CV OEMs, what could this number look like maybe two years, three years down the line?
Today, passenger vehicle and commercial vehicle combined is close to 12% of our revenue. As we mentioned briefly before, we expect this revenue from these two segments to double in the next 2.5 years. This is on our current order book, which spans five passenger vehicle OEMs and three commercial vehicle OEMs. The order book right now is maybe skewed a little more towards commercial vehicle OEMs, but now given our capabilities in high tensile steel in products like the crosscar beam and in products like filtration technologies, we also expect passenger vehicle order book to rise sharply in the next few months.
Given the kind of products that you are doing for four-wheeler OEMs, would it be fair to assume that profitability could be marginally better than the manufacturing profitability that you have in two-wheeler OEMs, or would it be similar?
I think I will answer this question in two parts. One, it depends on what product we make in the four-wheeler and commercial vehicle segment. So when you think of these 0.5 families per se, where you manufacture the complete chassis or give a crosscar beam, which is again an assembly of more than 50, 55 parts or filtration system as an IP-based barrier. These products inherently have higher EBITDA margins. So if we increase our share over there, of course we will have higher EBITDA margins, and which has been the push over the past couple of years. So the push towards product engineering with process engineering has been very prevalent in the company.
To answer your question in more of a systemic way, if I was to just do an apple-to-apple comparison of selling X products in the two-wheeler industry as compared to selling X products in the four-wheeler industry, you are right that margins would be slightly better in the four-wheeler industry. But the major thing to always look out for the four-wheeler industry for us has been the shifts in rankings in between the OEM. When an OEM does commit to a certain volume, if we achieve that certain volume, we do achieve high EBITDA margin. However, if there is a fluctuation at their end, it does kind of come to a similar EBITDA margin as it is in two-wheeler.
Understood. Thank you so much, and all the best to you.
Thank you.
Thank you.
Thank you. The next question comes from the line of Surya Narayan Nayak from Sunidhi Securities and Finance Limited . Please go ahead.
Yeah, thanks for the opportunity. Just a couple of questions. One is, you said a lot of product engineering and the introduction of new products and contracts for vehicles will be increasing. Can we presume that no accurate 100 basis points hike in the gross margin, in the contracting revenue? And number two is that last year, H-One was in loss. It was very negative network. What is the closing profit and revenue for the H-One? Because of the negative network, shall we get any tax offsets this year? What would be the resultant tax system this year, and what is the rate of interest for the
To answer your first question, I think, we have guided for stable EBITDA margins in the medium term, so the EBITDA margins do remain stable going forward. To answer your question on H-One, yes, it did report a loss in fiscal year 2025. This was due to a multitude of factors, including, as I mentioned before, the lower capacity utilization and expat costs that come with managing a business in India. When we take over the business, I think, the two things that we will work more deeply on is increasing the capacity utilization and also insourcing a lot of the components that were initially being outsourced. To the other point, there are some absorbed depreciation losses that we can offset in the coming fiscal year, and that may lead to a benefit in terms of taxes in the coming fiscal year.
What about the interest rate?
I am sorry, could you say it again?
What about the interest rate for the receivables for days after the payment of the IPO money? I presume two months will be considered for the existing days of fiscal year 2025 books and 10 months for the rest of the period. Am I right, sir?
Could you please raise the question?
For the interest calculation, shall we consider two months as the old fiscal year 2025 days in the books and the rest for the 10 months, the post IPO and post payment of the days, what are the receivable days? So what is the coupon rate or what is the rate of interest we can presume?
The assumption you are making is correct, that we paid down our debt at the trust name. In the first two months of the fifth year, we did retain the debt, and then, of course, since then we have paid down INR 1.5 billion crore or INR 15.96 billion.
INR 1.5 billion.
Which will, of course, result in interest savings in the fifth year.
On page number 16, it has been mentioned that for H-One, there is a hidden land value in Delhi. If you can elaborate on that. Secondly, with the new intention to onboard more four-wheeler clients, will there be CapEx guidance for H-One going forward? Because obviously, we will definitely be trying more four-wheeler clients. What is the CapEx plan plan for H-One specifically?
On your point on the hidden land value, I think the factories that H-One has currently are placed in Greater Noida and Nuh. Greater Noida and Nuh in terms of acquisition of land is becoming increasingly difficult. There is lower piece of plots that are available for manufacturing companies like ourselves. Naturally, we would have had to acquire these lands on our own. But given that there is spare capacity and spare land available in H-One, we can avoid buying these new lands in these pretty high-cost areas. So that is the hidden land value that we are talking about.
Okay, sir. Shall we relocate to some other areas where land value is lower and monetize the costly land, if possible, going there?
That is a discussion that we will develop over time. We are unable to comment on that at this moment.
Okay. Thank you, sir.
Thank you.
Thank you. We take the next question from the line of Jyoti Singh from Aryan Capital Markets Limited. Please go ahead.
Yeah, thank you for the opportunity. Sir, my question basically on this segment rise. Like you talked about, we are going to increase our revenue mix on the four-wheeler side. Just wanted to understand the strategy and any new product that we are going to introduce, and also if we can disclose which are the OEMs we will going to implement. Another question on the chassis system side. I heard on one or two TV calls that there is a constraint on chassis systems. If you can talk on that side. Another on the content per vehicles. If you can explain what kind of content per vehicles we have for across all segments, and going forward then our utilization will going to increase 80% or 90%, which is currently 65%. What kind of content per vehicle we will going to see? Thank you.
Thank you, Jyoti, for this question. I think there are quite a few questions left, so I will try to answer the ones that I noted down. Firstly, I am not able to name the OEMs that we are getting in panel with. That, as a policy, will be followed not only for this earnings call, but future earnings calls also. To your point on chassis systems, it is an increasingly difficult commodity to manufacture. I think only a handful of Tier 1 suppliers in India can manufacture the complete chassis for a passenger vehicle or commercial vehicle. A lot of other players in the metal industry usually manufacture chassis in discrete components and do not possess the know-how to co-design or develop the complete chassis, which we have developed over the past half a decade.
So that does put us into a competitive advantage and does allow us to have higher barriers to entry. To your point on content per vehicle, today our content per vehicle is around INR 30,000 in the four-wheeler industry. I think the major strategy in the four-wheeler industry will be not only to increase this INR 30,000 but also to benefit any new models. As I mentioned earlier, I think the strategy that we will follow would be to enter newer models as compared to taking shares from existing suppliers for existing models. That would be the primary way that we would go. On the export side, we already work with a large premium European automaker, so we look to emulate that European relationship with other major European OEMs. In terms of more of the product launches, maybe, Sunil Kulkarni, you would like to add something to that?
Yes. When we talk about especially on the passenger vehicles or the commercial vehicle, four-wheeler segment, please understand that as per the government regulations, you will see now they have become very eminent now. So five-star safety is very particular. It is a requirement, and for that, the frame of the chassis, high tensile strength material is becoming the order of the day for all our customers that we speak to. The criteria for all new models will be a larger content of high-strength steel, and that is where the H-One acquisition becomes very strategic for us. In terms of other products, from the CV perspective, we spoke about air tank which is going to be a key driver for us. Currently, we are with one of the large CV OEMs, but this is something that we will expand to the other CVs.
Friction products, again, it is not only dedicated to two-wheelers, but it has a major content in the four-wheelers also. This promotion of this product across the other leading OEMs will also be a major initiative for the team in this financial year. So in a nutshell, this is how we are looking at growing. This is going to be our broad-based strategy. In terms of capacity utilization, you mentioned about increasing that. We mentioned that on average, our capacity utilization is at 65%. We plan to take it to 73%-74%. We have to keep some capacities for peak periods and the festive periods, and that is how our strategy from capacity utilization will be taken forward. Thank you.
Thank you. We take the next question from the line of Arpit Shah from Stallion Asset. Please go ahead.
Hello. Hi, am i audible?
Yes.
Yeah. Congratulations for the IPO, for the listing. I just wanted to understand, in a commentary you mentioned about some of the group companies getting more divested. If I see the revenue today for our company which is listed, it is about INR 8,200 crore. What would be outside of the INR 8,200 crore which is not part of the revenue currently, and this can become a part of the revenue in the next one year?
We are not able to comment on how much will become a part of the listed company in the next one year, because as we mentioned before, that will depend a lot on some regulatory permissions that we require from various government bodies. A portion of the revenue does sit outside with two of our entities, but, as we disclosed in our DRHP, we have signed a non-compete with all of these other entities to make sure that Belrise is the only entity that is dealing with all of the OEMs. Based on that, we expect all of the revenue to be consolidated within Belrise in the very near future.
What shall be that number? Let's say, what shall be the number of the group revenues, which may not be consolidated this year or next year, but what will be that quantum?
We are unable to comment on the exact number. Of course, the balance sheets of these companies are available on our website. But I would say in terms of our consolidated revenue, it is a small portion. It will be a small portion of our total consolidated revenue.
Got it. The trading revenues that we show are separately compared to manufacturing revenues. Are these trading revenues largely from our group companies as a company?
No. Trading revenues are only with third parties.
Okay.
Complete with third parties, not group companies.
Got it. Perfect. Thank you so much.
Thank you. Thank you for your question.
Thank you. We take the next question from the line of Kripa Shankar Maurya Choice Equity Broking . Please go ahead.
Yes, hi. Thanks for the opportunity. Sir, I have two questions. One is that in fiscal year 2022, our gross margin as per our presentation is around 21.8%. It came down to
Sorry, it came down to.
Now it is clear.
Sorry. Could I mute my mic then you come closer to mic, please.
No. It is clear now?
Yes.
Hello. Yeah.
Yes.
Thank you for the opportunity. I have one question on the gross margin. As per our presentation, it is 13% in fiscal year 2022. We have a gross margin of 21.8%, and it is 19% in fiscal year 2025. There is a drop of 300 basis points just because of our product mix, or how should we read this?
That is due to a change in the portion of the trading businesses compared to the manufacturing business. As that mix will change, that will get affected. That being said, I think our gross margins only for our manufacturing business, our gross margins only for trading business remain largely stable.
Okay. The tax rate in fiscal year 2025 was around 20%, whereas in the last few years it has been around 14%, 13%. Just wanted to understand here, what will the tax rate for fiscal year 2026?
I think for fiscal year 2026, it would get more normalized upwards of 20%. So maybe an increase by a couple of hundred basis points. Of course, we get a shield due to the subsidies that we receive from various governments, and those incentives allow us to enjoy those tax breaks.
Okay. One last question. On the mix in the trading, what will be the mix between the steel and aluminum on a PC component side?
Aluminum today is very, very little in India. I think there is a lot of discussions between OEMs and suppliers to move towards aluminum. But in general, I think it's a raw material that's pricier and more difficult to manufacture. That's why stainless steel, mild steel does remain the more prevalent raw material source, almost with excess of 97%, 98%, I would say. Anyways, even if there's a movement towards aluminum in the future, we are already gearing up for the same. So we have over time developed a capability in also working with aluminum materials through our fabrication stamping process.
Okay. Thank you. Thank you very much.
Thank you. 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.
I would like to thank everyone for joining the call today. We delivered a resilient performance in fiscal year 2025, supported by steady demand and improved operational execution. We continue to prioritize cost control, quality and disciplined capital deployment to sustain margins as we scale. Our focus remains on value creation for all stakeholders. I hope we have been able to respond to most of your questions adequately. For any further queries or questions, you may reach out to us or to HDFC or our partners. Thank you once again for joining the call and looking forward to speaking again. Thank you.
Thank you. On behalf of Belrise Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.