The Indian primary market has witnessed an unprecedented rush of initial public offerings (IPOs) in FY26. According to Prime Database, 72 companies raised approximately ₹105,325 crore in the first seven months of the fiscal year. Amid this flurry of activity, Belrise Industries has emerged as a standout performer, capturing investor attention after raising ₹2,150 crore through its public issue in May 2025.
Post-IPO Performance and Market Position
Belrise Industries made a strong market debut, listing at ₹100 per share on 28 May 2025 – an 11.1% premium to its IPO price of ₹90. The stock has since delivered an impressive 60% return, climbing to ₹160 levels. This remarkable performance comes despite the company trading at a significant valuation discount compared to industry peers.
The auto components manufacturer set its IPO price band between ₹85-90 per equity share, with a lot size of 166 shares. A substantial portion of the ₹2,150 crore raised – specifically ₹1,618 crore – was allocated toward debt repayment, signaling a strategic balance-sheet reset as the company entered the listed space.
Business Model and Growth Drivers
Belrise operates with a powertrain agnostic business model, manufacturing safety-critical systems and engineering solutions for two-wheelers, three-wheelers, four-wheelers, and commercial and agricultural vehicles. This flexibility allows the company to serve both electric vehicle (EV) and internal combustion engine (ICE) markets, positioning it well for industry transitions.
The company's revenue streams are divided between manufacturing (79.5% of FY25 revenue) and non-core trading operations (20.5%). Within manufacturing, the sheet metal division dominates with a 75.5% revenue share, while the company holds market leadership with a 24% revenue share in India's two-wheeler metal components segment.
Belrise serves over 31 global original equipment manufacturers (OEMs), including long-standing relationships with Bajaj Auto (15 years), Honda Motorcycle (12 years), Royal Enfield (14 years), and Hero Motocorp (6 years). However, revenue concentration remains a concern, with the top 10 clients accounting for 63.8% of revenue as of December 2024.
Strategic Expansion and Diversification
The company is actively working to reduce customer concentration by strengthening its presence in the four-wheeler segment. As part of this strategy, Belrise acquired H-One in 2024, a move that has already increased four-wheeler content per vehicle by 60% to approximately ₹15,000, with plans to scale this to ₹45,000.
Management expects H-One revenue to scale from ₹60 crore in Q2 FY26 to about ₹450 crore over the next two years without major capital expenditure. Simultaneously, the company aims to increase two-wheeler content per vehicle from ₹12,500 currently to ₹17,300 within 18-24 months through new components like steering columns, filters, and brakes.
Belrise is also transitioning from a Tier-1 component supplier to a Tier-0.5 supplier, focusing more on sub-systems and full-system assemblies. This strategic shift enhances business stickiness and increases content value per vehicle.
Financial Performance and Valuation
Belrise has demonstrated solid financial growth, with revenue increasing at a 15% CAGR over three years, reaching ₹8,291 crore in FY25 from ₹5,397 crore in FY22. The momentum continued into H1 FY26, with revenue growing 20% year-on-year to ₹4,615 crore.
Profit after tax surged 69% year-on-year to ₹245 crore in H1 FY26, supported by a 25% reduction in interest costs to ₹95 crore. The company maintains healthy return ratios, with return on average capital employed at 15% and return on average equity at 14%.
At the current price of ₹161 per share, Belrise trades at a price-to-earnings multiple of 31.6 times, representing a substantial discount to peers: Uno Minda (68.6x), Endurance Tech (43.3x), and Minda Corp (54.3x).
Future Outlook and Brokerage Views
Brokerages remain optimistic about Belrise's prospects. Investec values the stock at ₹185, LKP Research at ₹192, and Sunidhi Securities at ₹197. The positive sentiment is driven by multiple growth catalysts, including ongoing capacity expansion, rising content per vehicle, premiumization trends, and diversification into defense and renewable energy sectors.
The company has begun supplying solar structures to a global solar tracker manufacturer and secured additional orders for an Indian Defense OEM's armored vehicle program. To meet rising demand, Belrise plans to invest ₹800 crore over the next two years, with ₹260 crore already deployed in H1 FY26.
Several new facilities have commenced operations, including plants in Chennai, Pune, and Bhiwadi, with another Chennai facility dedicated to supplying chassis systems for a leading two-wheeler EV platform expected to start production in Q3 FY26.
While Belrise faces risks including sector slowdown, customer concentration, and execution delays, the company's strategic initiatives and valuation discount suggest potential for further re-rating if growth targets are achieved. The narrowing valuation gap with peers could deliver additional upside for investors willing to bet on Belrise's execution capabilities.
