Belrise Industries Ltd Management Discussions

GLOBAL ECONOMY

The global economy is estimated to grow by 3.0% in calendar year 2026, moderating from an average of 3.5% recorded over CY2024-25, and is projected to accelerate to 3.4% in CY2027, as per the IMFs World Economic Outlook Update. The moderation reflects two counterbalancing forces: the ongoing Middle East and weighed on energy-importing and vulnerable economies, and a strong surge in technology and artificial intelligence (AI)-related capital investment, which is lifting growth in economies well integrated into global technology value chains. Notably, the IMF observed that the world economy has absorbed the impact of the Middle East war more effectively than anticipated, aided by inventory drawdowns, higher non-Gulf oil production, demand-moderation policies and the rising share of renewables in the global energy mix.

Global headline inflation in CY2026 — an upward revision of 30 basis points from the IMFs April 2026 estimate before easing to 3.9% in CY2027, indicating that global disinflation stalled. Among major economies, the United States 2023 and fiscal is projected to grow at 2.3% in CY2026, the Euro area outlook was trimmed to 0.9% amid soft domestic demand, and Chinas growth2026, driven by resilient forecast was revised upward to 4.6%, supported by resilient exports even as domestic consumption remains muted.

Elevated global trade-policy uncertainty, led by US tariff actions, remains a key downside risk to the outlook. Economies and supply chains more exposed to US tariffs including Mexico, South Korea and parts of the European auto value chain face headwinds to export competitiveness, while countries pursuing trade diversification and new bilateral agreements, such as Indias Free Trade Agreement with the United Kingdom,standtobenefit of global supply chains, including a broader China+1 shift in manufacturing sourcing.

Against this backdrop, India continues to be flagged by the IMF and other multilateral agencies as a structural growth outperformer: it is anticipated to overtake the United Kingdom and Japan to become the worlds fourth-largest economy, even as near-term rupee depreciationwhich has disrupted energy has led to a downward markets revision in its dollar-denominated GDP ranking.

Sources

• https://www.imf.org/en/publications/weo/ issues/2026/07/08/world-economic-outlook-update-july-2026

• https://www.imf.org/en/publications/weo/ issues/2026/04/14/world-economic-outlook-april-2026

• CRISIL Intelligence

INDIAN ECONOMY is estimated to average 4.7% India remains the fastest-growing major economy in the world. Real GDP grew at a 7.3% CAGR between fiscal 2026, supported by healthy private consumption and fixed investment. As per the National Statistical Offices (NSO) estimates, Indias real GDP grew 7.6% in fiscal private consumption, fiscal support in the form of income-tax cuts, GST rate cuts and lower interest rates, alongside easing sentiment in private capex led by emerging sectors such as green hydrogen, semiconductors, battery manufacturing and data centers.

GDP at constant (FY 2022-23) prices rose to 2026 from approximately INR 323 trillion in fiscal INR 300 trillion in fiscal 2025; nominal GDP growth, however, moderated to 8.6% in fiscal in fiscal 2025.

GDP TREND AND OUTLOOK

Fiscal	GDP, INR trillion (constant FY 2022-23 prices)	Real GDP growth, y-o-y
FY 2023-24	280	7.2%
FY 2024-25	300	7.1%
FY 2025-26E	323	7.7%
FY 2026-27E	340-350	6.6%
FY 2030-31P	440-450	CAGR FY 2025-26 to FY 2030-31: 6.0-7.0%

Source: National Statistical Office (NSO), IMF, RBI, CRISIL Intelligence estimates.

E: estimated; P: projected. A new national accounts series with FY 2022-23 as base year (superseding the FY 2011-12 series) underlies FY 2022-23 onward figures.

Looking ahead, CRISIL projects real GDP growth of 6.6% for fiscal 2027 broadly in line with Indias estimated potential growth rate of ~7% per the Economic Survey FY 2025-26 supported by robust private consumption and a mild pick-up in private investment. The Reserve Bank of India (RBI), in its monetary policy review, raised its FY 2026-27 GDP growth forecast slightly to 6.7%, while holding the repo rate unchanged at 5.25% and maintaining a neutral policy stance amid heightened global conflic uncertainty, particularly the Middle East CRISIL expects CPI inflation to average around 5.1% in fiscal 2027, driven by rupee depreciation adding to import and input costs, elevated crude oil prices linked to the West Asia conflict, and upside risk from a potentially below-normal south-west monsoon.

Growth continues to be underpinned by structural reforms and government initiatives spanning infrastructure, green growth, financial inclusion and the phased opening of sectors such as retail, e-commerce, defense, railways and insurance. Furthermore, the Goods and Services Tax (GST) restructuring is expected to boost consumption through lower prices across categories, including automobiles.

Industrial output picked up pace over the year, aided by supportive policy measures and growing investment 7.9% in FY 2025-26, pointing to a shift toward higher-value production. Medium- and high-technology manufacturing made up 46.3% of total manufacturing value added, underscoring advances in technological sophistication. Production-Linked Incentive (PLI) schemes drew in investments surpassing INR 2.0 lac crores, fueling capacity expansion across industries.

Sources

• https://www.mospi.gov.in

• https://www.indiainfoline.com/news/economy/rbi-policy-update-august-2026-repo-rate-unchanged-at-5-25-fy27-gdp-growth-raised-to-6-7-inflation-cut

• https://www.imf.org/en/publications/weo/ issues/2026/04/14/world-economic-outlook-april-2026

• CRISIL Intelligence

• National Statistical Office (NSO)

GLOBAL AUTOMOTIVE INDUSTRY

The global automotive industry sold an estimated 96.5 million vehicles in CY 2025, up approximately 5% year-on-year. For CY 2026, S&P Global Mobility forecasts broadly flat light-vehicle sales of approximately 91.9 million units (+0.2% y-o-y), reflecting persistent headwinds from tariffs, elevated interest rates in parts of the developed world and affordability pressures, even as select regions continue to show resilience.

China remains the largest and most consequential automotive market globally, accounting for a record 35.6% share of worldwide vehicle sales in CY2025. Among developed markets, US light-vehicle sales are projected to moderate to approximately 15.9 million units in 2026 from 16.3 million units in 2025, while Europes larger markets Germany and the UK are expected to see modest gains supported by CO 2compliance targets and fleet renewal, and Japan is expected to stay broadly flat at approximately 4.55 million units. Elevated global trade-policy uncertainty including US tariffs affecting Mexico-built vehicles and South Korean exports along with geopolitical risk tied to the Middle East conflict, continues to weigh on demand visibility and cost structures across several emerging markets.

GLOBAL EV INDUSTRY

Global electrification continued . Manufacturing GVA rose by FY 2025-26. Electric car sales rose 20% year-on-year to exceed 20 million units in CY 2025, taking EVs to roughly one-quarter of all new car sales globally, per the International Energy Agencys (IEA) Global EV

Outlook 2026.

Beyond electrification, the industrys key structural themes include the rapid rise of software-defined vehicles and ultra-fast charging technology (sub-10-minute charge times on select models), continuing semiconductor and battery supply-chain realignment favoring diversified, lower-cost manufacturing hubs, and rising displacement of oil demand by EVs (an - estimated 1.7 million barrels per day in 2025). These supply-chain shifts, together with the broader China+1 sourcing strategy being adopted by global OEMs and Tier-1 suppliers, are increasingly positioning

India as a preferred alternative manufacturing and component-sourcing base, a theme explored further in the next section. 2026), though scooters have steadily

Sources

• https://www.mobilityglobal.com/en-us/automotive-insights/blog/2025-automotive-sales-data-global-trends

• https://www.mobilityglobal.com/en-us/automotive-insights/blog/2026-light-vehicle-production-forecast • https://www.iea.org/reports/global-ev-outlook-2026/ executive-summary • https://carnewschina.com/2026/02/05/china-accounted-for-35-6-of-the-global-automotive-market-in-2025-a-new-record-high/

INDIAN AUTOMOTIVE INDUSTRY Industry Overview

Indias automotive industry comprising two-wheelers (2W), three-wheelers (3W), passenger vehicles (PV) and commercial vehicles (CV) sold 2026, registering a 4.6% 28.2millionvehicles in fiscal a period distorted by the CAGRover fiscal pandemic-led contraction of fiscals 2020-21. Two-wheelers continue to dominate the industry with a ~77% volume share, followed by PVs (~16%), CVs (~4%) and three-wheelers (~3%). By value, however, PVs and CVs command a considerably higher share given their higher per-unit realizations. Passenger vehicles logged the highest CAGR among segments at 8.6% over fiscal 2020-26, followed by CVs (7.3%), three wheelers (3.6%, on a combined domestic + export basis) and two-wheelers (4.4%). 2020-26 to 271 thousand units, Indias auto component sector kept up a solid pace of expansion through FY 2025-26, riding on strong domestic vehicle output, steady replacement-parts demand, and continued headway on localization efforts. ACMA data puts the industrys turnover at INR 7.6 lac crores for the year, a 12.7% rise from the year before, with the trade body expecting that pace to hold at 8-10% growth in FY 2026-27.

Two-Wheelers (2W)

The two-wheeler industry grew at a 4.4% CAGR 2020-26 between fiscal 2020 and fiscal 2026 to reach 27.2 million units, with domestic sales over 80% of total volumes growing at a 4.0% CAGR. Fiscal 2026 domestic salesrose asharp 12.4%y-o-y to22.0million 2026, at the expense of hatchbacks units, aided by GST 2.0-led price rationalization, an improving macroeconomic backdrop and continued rural demand recovery. Motorcycles continue to dominate the segment (~59% of domestic sales in fiscal share. The market remains an oligopoly, even as newer entrants have captured some share riding the

EV wave.

EV Two-Wheelers

EV penetration in the two-wheeler segment rose from just 0.2% in fiscal electric two-wheeler retail volumes growing at a 93% CAGR over the period to touch ~1.4 million units. CRISIL projects EV penetration to expand meaningfully to 20-25% by fiscal 2031, with e-2W volumes growing at a 33-38% CAGR to 6.0-6.5 million units, even as overall industry volumes grow more moderately at a 5-7% CAGR to 28-30 million units by fiscal 2031.

Three-Wheelers (3W)

India is the largest three-wheeler market globally. Following a pandemic-led contraction, domestic 3W sales rebounded strongly, growing at a 31.7% to reach CAGRbetween fiscal 2021 and fiscal 799 thousand units up 17% y-o-y in fiscal 2026. Passenger carriers dominate with an 82% share of domestic sales, while goods carriers buoyed by e-commerce and last-mile delivery demand have grown faster (17% CAGR over fiscal 2021-26).

EV Three-Wheelers

The electric three-wheeler (E-Auto/L5) segment has been among the fastest-electrifying categories in Indian automotive, growing at a 128% CAGR taking overfiscal EV penetration to 33.4% in fiscal 2026 from a negligible base in fiscal 2020. CRISIL expects the electric three-wheeler segment to grow to 600-650 thousand units by fiscal2031, taking EV penetration to 45-50%, with overall domestic 3W sales (ICE + EV) reaching 950-1,050 thousand units at a 4-6% CAGR over fiscal 2026-31.

Passenger Vehicles (PV)

Indias domestic PV industry recorded a historic high of 4.64 million units in fiscal 2026, up 7.3% the growing at an 8.9% CAGR over fiscal fastest among all vehicle segments. Growth has been driven by a structural shift toward SUVs, whose share 2019 of the PV mix expanded from 23.2% in fiscal to 65% in fiscal (down from 46.9% to 29% over the same period).

Electrification in PV

EV penetration in the PV segment, though still nascent, rose sharply from 0.08% in fiscal 2020 to 4.8% in fiscal 2026 (221.9 thousand units), aided by expanding model portfolios, rising environmental awareness, government incentives and improving charging infrastructure. CRISIL Intelligence projects domestic PV sales to grow at a 5-7% CAGR to 5.5-6.5 million units by fiscal 2031, with EV penetration rising to 12-17% (EV sales of 1.0-1.2 million units, a 32-37% CAGR) as scrappage-led replacement demand, premiumization and shorter ownership cycles support the broader industry.

Commercial Vehicles (CV)

Domestic CV salesgrewat fiscal 7%CAGRover 2020-26 to reach 1,079.8 thousand units in fiscal 2026 (up 12.9% y-o-y), having already recovered to 96% of pre-pandemic(fiscal2019) levels by fiscal 2023. Growth has been driven by pent-up replacement demand, improving transporter

-mile delivery demand and a pick-up in capex-linked mining and infrastructure activity. Light commercial vehicles (LCVs) contributed 2026, more than doubling revenue over the 55% of fiscal 2026 volumes, medium & heavy commercial vehicles (MHCVs) 33%, and buses 12%.

Electrification in early stage relative Electrification to 2W and 3W, given high upfront costs and limited charging infrastructure, but is gathering pace — overall CV EV penetration rose from 0.1% in fiscal lead CV electrification, to1.87%infiscal with penetration of ~6% in fiscal 2026 (up from 0.6% in fiscal 2020), supported by the governments PM eBus Sewa scheme, which targets 10,000 e-buses via a public-private partnership model at an estimated cost of INR 57,613 crores (of which INR 20,000 crores is central government support). CRISIL expects overall domestic CV sales to grow at a 4-6% CAGR to 1,350-1,400 thousand units by fiscal 2031 (LCV: 3-5% CAGR; IMHCV: 5-7% CAGR; buses: 4-6% CAGR), with EV penetration in buses and LCVs rising to 15-20% and 10-15% respectively by fiscal 2031.

POLICY BACKDROP AND THE AUTO COMPONENTS INDUSTRY

A series of policy interventions continue to shape the industry outlook. The GST rate rationalization effective September 2025 restructured rates into a two-slab structure and is estimated to have improved fiscal 2026 volume growth by roughly 200 basis points for 2W and 3W, and similarly aided PV demand. The PM E-DRIVE scheme and an enhanced Production Linked

Incentive (PLI) allocation for automobiles and auto components continue to support the EV transition and domestic manufacturing, even as the reduction in per-kWh e-2W subsidies signals a gradual tapering of demand-side incentives as the market matures.

On the trade front, the India-UK Free Trade Agreement (signed July 2025) and evolving US tariff actions are expected to have a mixed impact: the former offers Indian auto-component makers and EV firms improved, phased access to UK markets, while US tariffs given that Indias auto-component exports to North America and Europe together account for the bulk of the ~17% of production that is exported pose a modest headwind to component export growth in fiscal 2027-28.

The domestic auto components industry which supplies the demand underpinning Belrise Industries product portfolio grew at a 13% CAGR over fiscal 2020-26 to an estimated INR 9,000-10,000 billion in fiscal period. Growth was driven by resilient domestic demand, rising exports, increasing content per vehicle and enhanced value addition. CRISIL Intelligence projects the industry to grow at a faster 9-11% CAGR to INR 15,000-16,000 billion by fiscal 2031, driven by rising electronics content per vehicle, accelerating electrification, growing localization under the Make in India initiative, and robust export demand from 2020 North America and Europe (which together account for 60-65% of Indias component export demand).

Sources

• CRISIL Intelligence

• Society of Indian Automobile Manufacturers (SIAM) https://www.siam.in • https://aninews.in/news/business/indias-auto-component-sector-grows-127-in-fy26-but-imports-outpace-exports-acma20260707141416/

• VAHAN Dashboard, Ministry of Road Transport & Highways, Government of India https://vahan. parivahan.gov.in

• Automotive Component Manufacturers Association of India (ACMA) — https://www.acma.in

COMPANY OVERVIEW

Belrise Industries Limited (Belrise, BIL or the Company) is a leading integrated precision engineering company headquartered in India, with a diversified emerging global engineering sectors. The Company offers a comprehensive portfolio of safety-critical systems and engineering solutions catering to two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and agri-vehicles, and has strategically expanded into aerospace, space, and defense applications through recent international acquisitions. Its product portfolio includes metal chassis systems, exhaust systems, polymer components, suspension systems, body-in-white components, braking systems, steering columns, battery containers, as well as aerospace and defense precision components and solar panel structures.

Notably, a significant powertrain-agnostic, enabling seamless participation across both internal combustion engine (ICE) and electric vehicle (EV) platforms, thereby ensuring long-term relevance amid industry transitions.

Established in 1996, Belrise has evolved into one of Indias prominent players in precision sheet metal pressing and fabrication, with an estimated 24% market share in the Indian two-wheeler metal components segment as of 31 st March , 2026. The

Company has demonstrated consistent growth, delivering a revenue CAGR of 12.72% over the past three financial years, supported precision engineering by increasing content per vehicle, product diversification, strong customer relationships. Today, Belrise serves automotive diversified and aerospace segments, including leading global manufacturers, reflecting its strong market positioning and customer trust.

The Company operates a robust manufacturing network comprising 22 facilities across 11 cities in nine Indian states, along with two international facilities in

Europe. These include Belrise SDM in Lille, France its first overseas facility focused on aerospace, space, and defense precision engineering applications such as aerostructures, aero-engine components, and robotics parts, and Chester Hall Precision Engineering in the United Kingdom, which specializes in high-precision machining for aerostructures, aero-engine, and satellite components. This global footprint enables Belrise to participate in international supply chains while maintaining proximity to customers for just-in-time delivery and collaborative product development.

Belrises operating model is anchored in deep customer integration, with end-to-end capabilities spanning presence spanning design, engineering, prototyping, validation, and mass automotive and production. Its dedicated design, engineering, and new product development team—comprising over 160 professionals—focuses on product simulation, prototyping, and testing, enabling the Company to deliver complex, high-value solutions. The Company has also developed proprietary capabilities, including patented suspension systems and high-precision steering columns, reinforcing its transition toward an engineering-led business model.

To meet evolving industry requirements, Belrise continues to invest in advanced manufacturing technologies, including robotics, automation, and digitalof BILssystems.offeringsWithis over 890 robots deployed across its facilities, semi-automated production lines for complex subsystems, and IoT-enabled real-time monitoring, the Company ensures high levels of precision, efficiency, and quality consistency. Concurrently, it is advancing R&D initiatives in emerging areas such as EV components including motors, controllers, and chargers—further enhancing its value proposition and content per vehicle.

Beyond automotive, Belrise is steadily building capabilities in adjacent sectors such as renewable energy, aerospace, defense, and space, positioning player. itself as a diversified The Companys and strategic expansion into these sectors reflects its long-term vision of leveraging core manufacturing and engineering strengths across high-growth, high-entry-barrier industries.

Belrise is equally committed to fostering an inclusive, people-centric workplace and upholding strong environmental, social, and governance

(ESG) standards. Its sustainability initiatives focus on renewable energy adoption, carbon footprint reduction, and responsible manufacturing practices, alongside meaningful contributions to community development.

With a strong foundation in manufacturing excellence, a growing emphasis on engineering and innovation, and an expanding global footprint, Belrise Industries Limited is well-positioned to deliver sustainable growth and create long-term value across multiple industries.

FINANCIAL OVERVIEW

Revenue

For FY 2025-26, Belrise Industries Limited reported revenue from operations of INR 95,091.02 million, registering a strong year-on-year growth of 14.69% compared to INR 82,908.16 million in FY 2024-25. Over the past three years, the Company has delivered a healthy revenue CAGR of 12.72%, reflecting consistent business expansion and execution strength. Manufacturing revenue, which remains the core of the business, grew by 17.30% to INR 77,346.29 million in FY 2025-26 from INR 65,938.07 million in the previous year, while trading revenue increased by 4.56% to INR 17,744.73 million.

The robust revenue performance was driven by a combination of strategic and operational initiatives.

The Company successfully ramped up capacities across its Chennai, Bhiwadi, and Pune facilities, achieving higher utilization levels supported by steady demand in the two-wheeler segment and increasing traction in the four-wheeler segment. This scale-up was complemented by a favorable shift in product mix toward premium motorcycles and reflect higher-margin four-wheeler components, resulting in improved realizations.

Additionally, the continued increase in content per vehicle and the seamless integration of H-One India contributed to broad-based growth and product portfolio diversification. investments in automation, digital manufacturing, and process excellence enhanced throughput, productivity, and quality consistency. These initiatives enabled Belrise to benefit from operating leverage, reinforcing its ability to scale efficiently while maintaining strong growth momentum.

During FY 2025-26, Belrise secured several strategic order wins that further strengthened its position across core and emerging segments, while deepening relationships with marquee OEMs. The Company received a large, multi-product order from one of the fastest-growing two- and three-wheeler OEMs in India, covering steering columns, suspension systems, exhaust systems, and fuel tanks for one of its highest-selling models highlighting its ability to scale engagements from single components to integrated systems.

In addition, Belrise secured a significant a leading Japanese two-wheeler OEM for exhaust systems and multiple components, reinforcing its credibility as a reliable partner capable of delivering at speed and scale. The Company also expanded its presence in the passenger and commercial vehicle segments by winning chassis business for new marquee model launches at key customer plants in Pune and Sambhajinagar. This was complemented by orders from an emerging EV player for components such as chassis and battery trays, reflecting growing participation in new-age mobility platforms.

Further strengthening its position in the premium segment, Belrise secured a single-source order for a 650cc motorcycle platform from an Italian OEM catering to export markets demonstrating its capability to meet high-precision and technologically demanding requirements. Additionally, the Company received an order from a leading medium and heavy commercial vehicle OEM for high-tensile long members, underlining its expanding footprint in structurally complex and high-value components.

Collectively, increasing these wins content per vehicle, strong execution capabilities, and its evolution into a multi-product, engineering-led partner for global OEMs.

Revenue - Vehicle Type-Wise

The Companys revenue mix in FY 2025-26 continued to be anchored by the two-wheeler segment, which contributed 78.81% of revenue from operations and grew by 13.74% year-on-year, supported by steady demand and deeper wallet share with key OEMs. The three-wheeler segment accounted for 3.16% of manufacturing revenue, registering moderate growth of 4.47%. Importantly, consistent with the Companys strategic focus on diversifying beyond its core two-wheeler base, the four-wheeler segment delivered strong momentum during the year. Revenue from passenger vehicles grew by 37.04%, contributing 5.17% to manufacturing revenue, while the commercial vehicle segment expanded by 34.60%, accounting for 8.34%. This sharp growth in four-wheeler segments reflects increasing penetration with OEMs, a broader product portfolio, and higher-value content per vehicle, positioning the Company well to achieve its stated objective of scaling up its presence across passenger and commercial vehicle segments over the medium term.

The Companys product portfolio continues to demonstrate strong resilience to evolving power train technologies, with a significant power train-agnostic. In FY 2025-26, revenue from such products stood at INR 56,764.26 million, accounting for 73.39% of manufacturing revenue, compared to INR 48,266.69 million (73.20%) in FY 2024-25. This consistent share underscores Belrises strategic positioning to serve both electric and internal combustion engine platforms without disruption, while enabling sustained growth across vehicle categories.

Export revenue increased by 11.35% year-on-year to INR 4,235.20 million in FY 2025-26 from INR 3,803.51 million in FY 2024-25. However, as a proportion of manufacturing revenue, exports remained largely flat at 5.48%, impacted by geopolitical tensions and a cyber-attack affecting one of the Companys key export OEM customers. Despite these temporary headwinds, the Company remains focused on strengthening its global footprint over the mediumer tax. term.

The Companys trading business, operated through its wholly owned subsidiary Badve Engineering Trading FZE (BIL FZE) in Ras Al Khaimah, UAE, continues to provide strategic sourcing and supply chain advantages. Focused on commodities such as steel and other ferrous and non-ferrous metals, this entity supports both internal requirements and external opportunities. In FY 2025-26, trading operations contributed 18.66% to consolidated revenue, with revenue growing by 4.56% from INR 16,970.10 million in FY 2024-25 to INR 17,744.73 million in FY 2025-26, reflecting stable performance in a dynamic commodity environment.

Profitability

In line with its stated guidance, Belrise delivered a strong and resilient FY 2025-26, maintaining stable EBITDA and PAT margins of 12.13% and 5.23%, respectively. The Company reported a robust 39.79% growth in profit after tax, driven in part by the strategic repayment of debt using IPO proceeds, which significantly reduced finance costs and enhanced overall profitability.

Operationally, Belrise successfully ramped up capacity across its Chennai, Bhiwadi, and Pune facilities, achieving high utilization levels supported by sustained demand in the two-wheeler segment and increasing traction in the four-wheeler space. This scale-up, coupled with a favorable shift in product mixmajorityremaining toward premium motorcycles and higher-margin four-wheeler components, led to improved realizations.

Additionally, higher content per vehicle and the seamless integration of H-One India contributed to broad-based revenue growth and portfolio diversification. Continued digital manufacturing, and process excellence further strengthened operational efficiency enhancing throughput, productivity, and quality consistency. These initiatives enabled the Company to benefit from operating leverage while maintaining cost discipline.

Collectively, these efforts ensured margin resilience during a phase of rapid expansion, while the financ e reduction costs post-listing further amplified profitability, resulting in strong growth in profit

PERFORMANCE VEHICLE TYPE Two-Wheeler and 3-Wheeler Segments Two-Wheeler Segment

Over the years, Belrise Industries Limited has established itself as one of the largest players in Indias two-wheeler segment, particularly in the sheet metal space with 24% market share. In FY 2025-26, the two-wheeler segment remained the Companys largest revenue driver, contributing 78.81% of manufacturing revenue and 64.10% of consolidated revenue from operations.

(Source: CRISIL Report)

Segment revenues grew 13.74% year-on-year to INR 60,953.93 million (from INR 53,590.17 million in FY 2024-25), driven by new order wins, increased content per vehicle, ramp up of new facilities and deeper customer penetration.

BIL continues to serve a comprehensive product portfolio for the two-wheeler market, including sheet metal components, polymer components and braking systems alongside proprietary products like steering columns, suspensions and high-tensile products. During the year, content per vehicle in our two-wheeler segment increased by approximately 65-70%. Growth in this division is supported by an expanding market presence, strong OEM relationships, and a sustained focus on technological innovation.

Key Developments and Growth Strategies

Belrises growth trajectory in FY 2025-26 has been underpinned by a combination of capacity creation, product innovation, deeper OEM engagement, and a focused shift toward premium segments.

The commissioning of the Chennai facility, ramp-up at Bhiwadi, and development of the Haridwar plant collectively expansion strategy. These investments position the Company to effectively capture future demand across segments, customers, and geographies, while also supporting a strong pipeline of new business wins.

A key pillar of this transformation has been the continued expansion of the Companys proprietary product portfolio. During the year, Belrise made significant progress in segments systems, steering columns, and braking systems, onboarding multiple marquee customers. These offerings not only enhance the Companys value proposition but also deepen customer engagement and reduce dependence on build-to-print businesses, reinforcing its transition toward an engineering-led model.

Enhancing content per vehicle remains a core strategic lever for value creation. In FY 2025-26, content per vehicle in the two-wheeler segment increased by approximately 65-70%, reflecting the Companys ability to deepen product penetration and offer a wider suite of solutions to OEMs. This has strengthened long-term customer relationships while driving higher realizations.

In parallel, Belrise continues to build capabilities in high-value and niche segments. This is exemplified by a single-source order for a 650cc premium motorcycle platform from an Italian OEM catering to export markets. While such programs may have relatively lower volumes, they demonstrate the Companys ability to deliver complex, high-precision components and reinforce its positioning in premium and global platforms. A favorable shift in product mix toward premium motorcycle components is also expected to further enhance overall realizations going forward.

Three-Wheeler Segment

BILs three-wheeler segment continues to play a meaningful role in supporting the Companys growth trajectory while enhancing diversification across vehicle categories. In FY 2025-26, the segment contributed INR 2,447.42 million, accounting for 3.16% of manufacturing revenue. This performance was underpinned by BILs established leadership in chassis and body-in-white (BIW) components, supported by robust domestic demand and its technological edge in robotic fabrication.

The Company has also made steady progress in strengthening its position within this segment through targeted strategic initiatives. A key focus area has been portfolio expansion, with the in-house development of proprietary products such as steering columns and suspension systems. These additions have enabled BIL to move up the value chain and deepen engagement with OEMs, as reflected in recent order wins—including a large order from one of the fastest-growing three-wheeler OEMs spanning steering columns to suspension systems.

Importantly, BILs three-wheeler portfolio remains largely powertrain-agnostic, positioning the Companytobenefit transition toward electric vehicles in this segment. By leveraging its strong market position, technological capabilities, and expanding product suite, BIL is well placed to capture a larger share of future opportunities and drive sustained growth in the three-wheeler business.

4-Wheeler Passenger Cars

The four-wheeler passenger vehicle segment has emerged as a key strategic focus area for BIL and continues to gain scale and relevance within the overall business mix. In FY 2025-26, the segment contributed INR 3,999.11 million, accounting for 5.17% of manufacturing revenue. A significant this contribution is driven by a premium European OEM, to which BIL supplies a wide portfolio of over 250 components,reflecting deep integration and strong customer engagement.

The Company remains committed to scaling this segment into a more meaningful contributor to overall revenues, and FY 2025-26 marked strong progress in this direction. The passenger vehicle business recorded robust growth of 70% in Q4 and 37% for the full year, supported by new program ramp-ups and increasing content per vehicle.

4-Wheeler Commercial Segment

The four-wheeler commercial vehicle segment has remained a steady and increasingly important contributor to BILs manufacturing revenue. portion of In FY 2025-26, the segment recorded revenue of INR 6,447.31 million, accounting for 8.34% of manufacturing revenue and year-on-year growth of 34.60%. This performance was driven by multiple strategic and operational developments, including new order wins for high-tensile long members, supported by the commissioning of a dedicated manufacturing facility in Pune.

Additionally, the Company witnessed increased supply of chassis systems to one of the largest light

A key milestone during the year was the successful integration and scaling of H-One India Private Limited, which has significantly strengthened BILs capabilities in high-tensile components. This is particularly relevant as OEMs increasingly focus on lightweighting, safety, and fuel efficiency. With enhanced engineering expertise and manufacturing capabilities, BIL is now well positioned to deliver complex, high-strength structural components across a wide range of passenger vehicle platforms.

Today, BIL supplies to all leading passenger vehicle OEMs in India, including the largest player in the segment. This broad customer base, combined with its expanding product portfolio and engineering-led capabilities, positions the Company strongly to drive sustained growth and increase its share in the passenger vehicle segment going forward.

commercial vehicle OEMs, where BIL operates as a single-source supplier demonstrating deep customer trust and integration. The Company also expanded its presence within key platforms by securing orders for critical components such as cross car beams from marquee OEMs, further strengthening its product portfolio in this segment.

In line with its growth strategy, BIL has also entered into a Business Transfer Agreement (BTA) to acquire the tipper body business from Hyva India Private Limited. This acquisition is expected to further enhance the Companys offerings in the commercial vehicle space and create new avenues for growth.

Beyond its direct revenue contribution, the four-wheeler commercial vehicle segment plays a vital strategic role by enhancing BILs diversificationacross vehicle categories. It also provides a natural hedge against the cyclical nature of the automotive industry, thereby supporting greater stability and resilience in the Companys overall business performance.

EXPENSES Cost of Goods Sold

Cost of materials (comprising cost of materials consumed and changes in inventories of finished goods, stock-in-trade, and work-in-progress) increased by 17.74% to INR 60,537.60 million in FY 2025-26, compared to INR 51,414.69 million in FY 2024-25. This increase was primarily driven by higher raw material consumption in line with increased production volumes and growth in revenue from operations during the year. The rise in material costs reflects the expansion of manufacturing activities and higher sales volumes across key product categories.

As a percentage of total income, cost of materials stood at 62.94% in FY 2025-26, compared to 61.56% in FY 2024-25. While the ratio witnessed a marginal increase, the Company continued to benefit from improved material cost efficiency and effective inventory management practices, enabling it to maintain overall cost discipline amid business growth.

Purchases of Stock-in-Trade

Purchase of stock-in-trade increased marginally by 0.75% to INR 16,217.43 million in FY 2025-26, compared to INR 16,096.66 million in FY 2024-25. This increase was primarily attributable to higher trading activity at the Companys subsidiary, Badve Engineering Trading FZE (BIL FZE), which continues to support the Groups overall supply chain and commodity sourcing requirements. The stable growth in trading purchases reflects a measured expansion of trading operations in line with business needs.

Employee Costs

Employee benefitsexpense increased by 15.90% to INR 3,405.26 million in FY 2025-26, compared to INR 2,938.10 million in FY 2024-25. This increase was primarily driven by a rise in salaries, wages, and bonus, which grew to INR 3,134.85 million from INR 2,756.35 million in the previous year. The overall increase was further supported by higher contributions to provident and other funds, which rose to INR 128.14 million from INR 98.37 million, along with an increase in staff welfare expenses to INR 142.28 million from INR 83.39 million during the same period.

The growth in employee-related costs reflects annual salary increments, performance-linked compensation, and strategic hiring undertaken to support IPO readiness and business expansion. As of 31 st March, 2026, the Company had a workforce of 2,003 employees, compared to 2,144 employees as of 31 st March, 2025. The employee base continues to comprise skilled, experienced, and professional personnel aligned with the Companys operational and growth requirements.

Other Expenses

Other expenses increased by 26.74% to INR 3,349.23 million in FY 2025-26, compared to INR 2,642.62 million in FY 2024-25, primarily driven by higher operational activity and business growth during the year. This increase was largely attributable to a rise in manufacturing, administrative, and selling expenses.

Manufacturing expenses grew by 40.62% to INR 1,460.68 million from INR 1,038.74 million in FY 2024-25, mainly due to higher repairs and maintenance costs for plant and machinery, which increased to INR 370.65 million from INR 286.82 million, and a rise in power and fuel expenses to INR 814.17 million from INR 589.11 million, in line with increased production volumes. These increases were partially offset by a reduction in research and development expenses, which declined to INR 65.88 million from INR 75.87 million.

Office and administrative expenses increased by 22.94% to INR 1,087.22 million from INR 884.46 million in FY 2024-25. This was primarily driven by higher office and miscellaneous expenses, travel costs, legal and professional fees, expected credit loss allowance, and corporate social responsibility (CSR) expenditure. These increases were partially offset by lower rates ial and taxes, as well as reduced insurance charges during the year.

Selling and distribution expenses rose by 11.37% to INR 801.23 million from INR 719.42 million in FY 2024-25, mainly due to higher freight charges and other selling expenses, reflecting increased sales volumes and overall business expansion.

Overall, the increase in other expenses is aligned with the Companys growth in operations, capacity expansion, and continued investments in supporting infrastructure and capabilities.

Depreciation and Amortization

Depreciation and amortization expenses increased by 9.46% to INR 3,609.50 million in FY 2025-26, compared to INR 3,297.56 million in FY 2024-25. This increase was primarily driven by higher depreciation expense, which rose to INR 3,227.07 million from INR 2,979.42 million, reflecting the capitalization and continued utilization of property, plant, and equipment commissioned in recent years.

The increase was further supported by higher amortization of right-of-use assets, which grew to

INR 380.08 million in FY 2025-26 from INR 316.90 million in FY 2024-25. This arrangements and the recognition of right-of-use assets in line with the Companys operational and expansion requirements.

Finance Costs

Finance costs decreased by 24.64% to INR 2,316.72 million in FY 2025-26, compared to INR 3,074.39 million in FY 2024-25. This reduction was primarily driven by a decline in interest expenses on cash credit facilities and bill discounting arrangements, which decreased to INR 1,273.71 million from INR 1,662.98 million, largely due to the repayment of working capital facilities using IPO proceeds.

The decrease was further supported by lower interest costs on term loans and vehicle loans, which declined significantly to INR 325.29 million from INR 901.46 million, reflecting both the repayment of borrowings through IPO proceeds and regular debt servicing during the year.

These reductions were partially offset by an increase in loan processing and bank charges, which rose to INR 156.12 million from INR 113.40 million. Overall, the decline in finance costs highlights the Companys finance strength then balance sheet and improved efficiency following its deleveraging initiatives.

Tax Expenses

Total tax expenses increased by 87.40% to INR 1,689.08 million in FY 2025-26, compared to INR 901.33 million in FY 2024-25. This increase was primarily driven by higher current tax expenses, reflecting the Companys improved during the year. The rise in profit before tax resulted in higher taxable income, leading to a corresponding increase in the overall tax charge.

Consequently, the effective tax rate increased to 25.37% in FY 2025-26 from 20.23% in FY 2024-25, in line with the higher earnings profile of the Company.

Exceptional Item

Exceptional items for FY 2025-26 amounted to INR 51.36 million, compared to nil in FY 2024-25. This expense primarily arose from the recognition of additional employee-related obligations following changes in the provisions of the new Labour Codes.

Accordingly, the Company recorded the related incremental costs as an exceptional item during the year.

CASH FLOWS

Particulars	FY 2025-26	FY 2024-25
Net Cash Flow Generated from Operating Activities	8,756.01	7,043.95
Net Cash Flow Used in Investing Activities	(4,747.89)	(9,811.41)
Net Cash Flow Generated from Financing Activities	3,278.67	1,685.36
Net Increase/(Decrease) in Cash and Cash Equivalents	7,286.78	(1,082.11)

Operating Activities

Net cash generated from operating activities stood at INR 8,756.01 million in FY 2025-26, compared to INR 7,043.95 million in FY 2024-25, operational performance and improved In FY 2025-26, profit before tax of INR 6,657.68 million was adjusted for non-cash and finance-related items, including depreciation and amortization of INR 3,609.50 million, million, and other non-cash adjustments of INR 138.45 million. These were partially offset by interest, rent, and dividend income of INR 461.18 million.

The operating cash flow was further impacted by changes in working capital. Key movements included increases in inventories, trade receivables, and other current assets, along with a decrease in other current financial liabilities. These were partially offset by increases in trade payables, other liabilities, and provisions, as well as a decrease in other non-current generated from operations before tax amounted to INR 10,362.01 million, and after payment of income tax of INR 1,606.00 million, net cash from operating activities stood at INR 8,756.01 million.

In comparison, FY 2024-25 operating cash flows were supported by a profit before tax of INR 4,455.76 million, adjusted for depreciation and amortization and finance costs, partially offset by other income and non-cash items. Working capital changes during FY 2024-25 included increases in inventories, receivables, and other assets, offset by higher payables and liabilities. This resulted in cash generated from operations before tax of INR 8,023.85 million and net operating cash flow of INR 7,043.95 million after tax payments.

Overall, the improvement in operating cash flows in FY 2025-26 reflects stronger earnings generation and continued focus on efficient working capital management.

Investing Activities

Net cash used in investing activities stood at INR 4,747.89 million in FY 2025-26, compared to INR 9,811.41 strong million in FY 2024-25, indicating a profitability. calibrated approach to capital deployment during the year. In FY 2025-26, the outflow was primarily driven by capital expenditure of INR 6,177.96 million toward property, plant and equipment, right-of-useassets,andcapitalwork-in-progress, reflecting costs of INR 2,316.72 continued investments in capacity expansion and infrastructure development.

These outflows interest, rent, and dividend income of INR 461.18 million, recovery of loans and advances amounting to INR 1,014.19 million, and proceeds from investments of INR 42.18 million.

In comparison, FY 2024-25 witnessed higher investing outflows, largely on account of capital expenditure of INR 8,677.16 million toward property, plant and equipment and right-of-use assets. These assets. Consequently, cash were partially offset by proceeds from disposal of investments, realization of long-term loans and advances, and income from interest, rent, and dividends.

Overall, the reduction in net cash outflow from investing activities in FY 2025-26 reflects a more balanced capital allocation approach, following significant investments undertaken year, while continuing to support future growth through targeted capital expenditure.

Financing Activities

Net cash generated from financing activities stood at INR 3,278.37 million in FY 2025-26, compared to INR 1,685.36 million in FY 2024-25. The inflows during FY 2025-26 were primarily driven by net IPO proceeds (net of expenses) amounting to INR 20,736.09 million, along with proceeds from unsecured loans of INR 849.66 million and an increase in lease liabilities of INR 177.30 million.

These inflows were significantly offset by deleveraging initiatives undertaken during the year, including a reduction in long-term borrowings of INR 12,346.59 million and short-term borrowings of INR 3,108.91 million. Additional outflows included payment of finance costs of INR 2,316.72 million, dividend payout of INR 489.43 million, and payments toward goodwill and other equity of INR 222.71 million.

In comparison, FY 2024-25 financing cash flows were primarily driven by proceeds from short-term and long-term borrowings, which were partially offset by finance cost payments and scheduled repayments of borrowings and lease liabilities.

Overall, FY 2025-26 reflects a significant Companys financing profile, with strong equity inflows from the IPO enabling substantial debt reduction, strengthening the balance sheet, and enhancing financial.

Capital Expenditure

The Companys historical capital expenditure has been primarily directed toward strengthening its manufacturing capabilities and supporting long-term growth. Key areas of investment include development of new manufacturing facilities, acquisition of land for future expansion, upgradation of existing plant and equipment, enabling product diversification, advancing technological initiatives.

In line with this strategy, capital expenditure stood at INR 5,650.09 million in FY 2025-26, compared to This positions INR 7,382.15 million in FY 2024-25 and INR 4,372.18 million in FY 2023-24. The elevated spending in FY 2024-25 reflects a phase of accelerated capacity creation, while FY 2025-26 represents a more calibrated investment cycle focused on optimizing and leveraging the recently commissioned capacities.

Financial Indebtedness

As of 31 st March, 2026, the Companys outstanding borrowings (both current and non-current) stood at INR 14,390.88 million. These primarily comprised term loans, interest-free VAT loans, cash credit facilities, bill discounting arrangements, and current maturities of long-term debt. The composition of borrowings reflects a balanced mix of long-term funding for capital investments shift the and short-term facilities to support working capital requirements.

The Company maintains a structured repayment with contractual maturities aligned to its profile, cash flow generation and business requirements. The disclosed maturity schedule of financial liabilities is based on undiscounted cash flows, including both principal and interest obligations, and reflects the earliest contractual repayment timelines. This provides a transparent view of the Companys liquidity position and its ability to meet financial commitments over time. and Following the IPO and subsequent debt repayment, the Company has significantly strengthened its balance sheet, reducing leverage and improving its well to meet overallliquidity profile. future obligations while retaining financial flexibility to support growth initiatives.

Holdings Levels

Particulars	FY 2025-26	FY 2024-25
Trade Receivables/Debtors (Days)	64.19	62.05
Inventories (Days)	50.88	48.89
Loans & Other Financial Assets (Days)	9.20	10.51
Other Current Assets (Days)	38.34	39.12
Trade Payables/Creditors (Days)	71.82	66.35
Other Financial Liabilities (Days)	10.18	11.53
Other Current Liabilities Provisions and Current Tax Liabilities (Net) (Days)	13.59	11.43

Trade Receivables/ Debtors

Trade receivables for FY 2025-26 and FY 2024-25 reflected average holding periods of 64.19 days and 62.05 days, respectively. The Company extends credit terms to its OEM customers based on individual arrangements, typically ranging between 30 to 90 days.

Receivable days are influenced by the revenue mix across OEMs, as variations in customer contribution each with different credit terms—impact the overall collection cycle. Despite these fluctuations, the Company has maintained a stable receivables profile, with average collection periods consistently in the range of 60 to 70 days.

Inventories

The inventory holding period stood at 50.88 days in FY 2025-26, compared to 48.89 days in FY 2024-25. The inventory levels are primarily driven by the Companys operating model, supply chain dynamics, and recent scale-up in business operations.

Given the nature of BILs product portfolio—which involves a wide range of steel grades, alloys, and precision-engineered components, many of which are customized to OEM specifications the Company maintains adequate inventory levels to ensure uninterrupted production and timely delivery to customers.

Historically, the Company has maintained an average inventory holding period in the range of 40 to 50 days. The current levels, therefore, reflect efficient inventory management despite business expansion, supported by improved planning, procurement strategies, and supply chain optimization.

Trade Payables

Trade payable days stood at 71.82 days in FY 2025-26, compared to 66.35 days in FY 2024-25. The payable cycle is primarily influenced by credit terms negotiated with suppliers, particularly for key raw materials. The increase in FY 2025-26 reflects the scale-up in operations and procurement aligned with higher production volumes.

Other Financial Assets

Other financial assets reflected holding periods of 9.20 days in FY 2025-26, compared to 10.51 days in FY 2024-25. These primarily comprise deposits with government authorities and interest accrued on fixed deposits.

Other Current Assets

Other current assets stood at INR 11,074.96 million in FY 2025-26, compared to INR 8,902.18 million in FY 2024-25. This represented 38.34 days and 39.12 days of annualised sales, respectively, indicating a gradual improvement in asset efficiency over the period.

These assets primarily comprise advances paid to suppliers and balances with government authorities, including excise duty, service tax, customs duty, GST credits, income tax refunds, and duty drawback receivables. The relatively elevated levels in prior periods were largely attributable to advance payments made to secure critical raw materials and the accumulation of input tax credits under GST, given the input-intensive nature of the Companys operations.

The moderation in holding period reflects improved working capital management and better alignment of advances and statutory receivables with the scale of operations.

Other Current Liabilities

Other current liabilities stood at 6.32 days in FY 2025-26, compared to 5.38 days in FY 2024-25. These liabilities primarily comprise advances received from customers, outstanding expenses, and other statutory or accrual-based obligations.

The movement in holding periods reflects normal fluctuations in business operations and accrual cycles. Overall, the levels remain stable, indicating disciplined management of short-term obligations while supporting ongoing operational requirements.

Key Ratios

Particulars (INR in million)	FY 2025-26	FY 2024-25
Current Ratio	1.97	1.34
Net Debt-Equity Ratio	0.11	1.01
ROACE (%)	12.92%	13.31%
ROAE (%)	12.52%	14.08%