The company said its pricing model is designed to absorb fluctuations in input costs and allows it to largely pass on the impact to customers, although with a slight lag.
The management’s commentary in the analyst call post it sfirst quarter earnings, pointed to a more favourable margin trajectory ahead. While cost movements can continue to create some volatility in the near term, Belrise expects the lag in pass-through to normalise and said it should be able to maintain its EBITDA margin at FY26 levels, with scope for margins to move higher over the coming quarters.
Alongside the margin commentary, the management highlighted several new business opportunities. The company is in advanced discussions for high-volume manufacturing of aero-engine components in India, signalling its intent to build a meaningful presence in aerospace. It is also working with one of the largest solar-tracker manufacturers in the US. Production is expected to start in the fourth quarter of this fiscal, with the business potentially generating more than ₹150 crore of annual revenue at peak volumes.
It has also secured an order from a Vietnamese two-wheeler manufacturer entering India. The company will supply suspension and braking systems for the upcoming models, with supplies expected to begin in the March quarter this fiscal.
On the usage of recent fund raise processed, the company said, a significant portion of the ₹1,700 crore fund raise will be deployed towards inorganic opportunities, particularly in aerospace, four-wheelers and commercial vehicles. However, the company has set a clear discipline around acquisitions: any deal it pursues must be EPS and ROCE accretive from day one. This suggests that acquisitions are expected to complement the organic growth strategy rather than simply increase scale.
Belrise also concluded a technology collaboration with H-One Japan during the quarter, adding another element to its strategy of strengthening technology and product capabilities.
In the first quarter, the company’s revenue grew 13% to to ₹2,546 crore, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 5% to ₹293 crore. EBITDA margin, however, moderated to 11.5% from 12.4% in the year-ago period, reflecting the cost pressures that the management now expects to ease.
The stock is under pressure, as it declined as much as 7.4% to ₹236.40 on Monday, August 17.
Jefferies on Belrise Industries
Jefferies maintained its ‘Buy’ rating on Belrise Industries with a target price of ₹250. However, the target is around 2.1% below Friday’s closing price of ₹255.35.
The brokerage described Belrise’s first-quarter performance as steady, noting that EBITDA grew 5% from last year and came in 4% above its estimate, helped by better-than-expected margins.
Profit after tax rose 9% year-on-year but was 6% below Jefferies’ estimate, mainly due to lower financial income and a higher tax rate.
Revenue increased 13% year-on-year to ₹2,546 crore, with growth of 16-22% across the two-wheeler, passenger vehicle and commercial vehicle segments, according to the brokerage.
It noted that despite higher commodity prices, the company’s EBITDA margin improved marginally by 20 basis points sequentially, although it was down 90 basis points year-on-year.
Jefferies said the company secured multiple new orders across two-wheelers and four-wheelers and is also expanding its presence beyond the automotive sector, including through a new renewable energy order.
The brokerage expects Belrise to maintain its mid-teens revenue growth outlook for FY27.
According to Bloomberg ANR data, nine of the 10 analysts tracking the stock rated it ‘Buy’ with one “Hold” recommendation. The 12-month consensus target price stands at ₹252.78, which is around 1% below Friday’s close of ₹255.35.
Stock reacts to Q1 results
Shares of Belrise Industries dropped as much as 7.4% to ₹236.40 on Monday following the June-quarter results announcement and were trading 6.64% lower at ₹238.40 as of 12.11 pm.
The stock has gained more than 31% in 2026, so far and nearly 72% over the past year. It stands more than 10% below its 52-week high of ₹268.20.
Also read: India’s earnings growth cycle has begun, Nifty EPS could hit ₹1,450 in FY28: Raamdeo Agrawal
