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Belrise Industries Limited. Longstanding relationships with existing customers and new customer a...

Posted: 12 Sep 2025

Belrise Industries Limited. Longstanding relationships with existing customers and new customer addition: The group has an established and diversified clientele and longstanding relationships with its key customers, which include top auto OEMs. The group is the key supplier of auto components to Bajaj Auto Ltd (BAL), Honda Motorcycle and Scooter India Pvt Ltd (HMSIL), Hero MotoCorp Ltd (�Crisil AAA/Stable/Crisil A1+�), Tata Motors Ltd (�Crisil AA+/Stable/Crisil A1+�), Exide Industries Ltd, LG Electronics India Pvt Ltd, Piaggio Vehicles Pvt Ltd and Jaguar Land Rover Ltd. The group has been continuously adding new customers to its portfolio and diversifying its geographical presence. In fiscal 2025, the group added three new customers from domestic as well as international markets. Geographically diverse capacities and presence: The group has 17 manufacturing facilities across 10 cities in India, which enables it to cater to geographically diverse customers. These facilities are in close proximity to top industry players, allowing the group easy access to customers, with much shorter duration and lower transportation cost and hence achieve operational efficiency and better supply chain management. Strong financial risk profile: Networth improved to Rs 2,710 crore as on March 31, 2025, and has improved significantly in fiscal 2026 driven by funds raised through the IPO of Rs 2,150 crore in May 2025. The proceeds from the debt have been used towards prepayment of debt as well as reduced reliance on working capital debt to support the working capital cycle. This will result in significant improvement in the capital structure, with gearing and total outside liabilities to adjusted networth ratio estimated to reduce to 0.2-0.3 time and 0.5-0.6 time, respectively, as on March 31, 2026 (1.1 times and 1.7 times, respectively, as on March 31, 2025). The capital structure will remain strong supported by controlled reliance on external debt amid annual capital expenditure (capex) of around Rs 400 crores. Gearing is expected to be maintained below 0.5 times over the medium term, as per management articulation. Debt protection metrics will improve in fiscal 2026 driven by reduced interest expenses. Consequently, interest coverage and net cash accrual to adjusted debt ratios are expected to improve to more than 5.5 times and 0.6 time, respectively, in fiscal 2026, from 3.5 times and 0.2 time, respectively, in fiscal 2025. The financial risk profile will likely remain strong over the medium term.