India’s automotive components landscape is shifting gears, and investors are keenly watching Belrise Industries’ upcoming IPO — a public issue worth up to INR 2,150 crore in fresh equity. As a deeply entrenched auto-component manufacturer with a diversified portfolio, robust financial growth, and a growing presence in EV-compatible systems, Belrise Industries could become a notable name on Indian bourses.
But what makes this IPO tick, and should investors take the wheel? Let’s take a detailed look from an investor’s lens.
Table of Contents
Belrise IPO: A Veteran in Metal, Polymer, and Innovation
Founded in 1996, Belrise Industries has grown into a leading manufacturer of safety-critical automotive components. We have over 1000+ products across chassis systems, exhausts, polymer parts, battery containers, steering columns, and suspensions – for 2 wheelers, 3 wheelers, 4 wheelers, commercial vehicles and agri-vehicles.
What truly sets Belrise apart is its powertrain-agnostic product lineup. Whether it’s electric or internal combustion engine (ICE) vehicles, Belrise’s components serve both domains. In FY 2024, 74.22% of our revenue was from powertrain agnostic products. Revenue from EV specific products has grown sharply, growing at 24.60% CAGR from FY 2022 INR 152.57 crore to FY 2024 INR 236.88 crore.
This is critical in today’s auto landscape.
Belrise IPO: Strong Financial Performance
Over the last three fiscal years, Belrise’s top-line performance has been strong, reflecting both volume expansion and value addition.
| FY 2022 | FY 2023 | FY 2024 | Q1 FY 2025 | |
| Revenue | 5,396.85 | 6,582.50 | 7,484.24 | 1,780.97 |
| Expenses | 5,103.44 | 6,264.08 | 7,171.38 | 1,702.75 |
| Net income | 261.85 | 313.66 | 310.88 | 71.58 |
| Margin (%) | 4.85 | 4.77 | 4.15 | 4.02 |
| ROCE (%) | 14.86 | 17.46 | 16.72 | 17.70 |
| EBITDA (%) | 14.15 | 13.64 | 12.54 | 13.52 |
| Debt/Equity | 1.48 | 1.06 | 0.97 | 1.01 |
With 18.17% CAGR in revenue from FY 2022 to FY 2024 and consistent EBITDA margins, Belrise Industries is financially healthy as we scale up capacity and capabilities. Return on average equity was 14.18% in FY 2024, indicating healthy capital efficiency.
Belrise IPO: Wide OEM Base and Global Reach
As of 30 June 2024, Belrise Industries served 27 global OEMs including Bajaj Auto, Honda Motorcycle & Scooter India, Jaguar Land Rover, Hero MotoCorp, Royal Enfield, and Tata Motors.
- 77.09% of total revenue INR 5,769.91 crore was from India and 22.91% INR 1,714.34 crore was exports.
- The company exports directly to Austria, Slovakia, UK, Japan, and Thailand, and indirectly through Indian OEMs.
Its customer diversification is increasing — top three clients contributed 44.20% of revenue in FY 2022, declining to 31.91% in FY 2024, indicating reduced customer concentration risk.
Belrise IPO: Precision Engineering with Technological Edge
Belrise’s manufacturing backbone is built on technology-led production.
- 15 plants across 9 cities in 8 Indian states
- Annual processing capacity of 60,000 tonnes of steel
- Over 700 robots in fabrication; 450 press machines up to 1,200 MT
- IoT systems, CNC machines, and automated welding systems ensure “first-time right” fitment
They were also the first to install cathodic electro-deposition plating for Bajaj Auto, integrated with real-time IoT monitoring.
In polymer processing, the company uses gas-assisted injection molding, vibration welding, and robotic automation across 100+ injection molding machines up to 1,800T.
Their engineering team, 151-strong as of June 2024, has developed proprietary high-precision steering columns and patented suspension systems, marking a transition from commoditized parts to differentiated offerings.
Belrise IPO: Vertical Integration and EV Play
Belrise Industries is investing in vertical integration — from tool design and tube bending to system assembly, enabling greater value capture per vehicle. It also intends to shift from a tier-1 to a tier-0.5 supplier, offering integrated systems rather than just components.
It’s doubling down on electric mobility:
- New Pune-V facility (to be operational by Q1 FY 2026) will produce hub motors and chargers
- Already filed five patents in EV control units and motor tech
- Working with Chinese EV component manufacturers for licensing agreements
The electric vehicle ecosystem is expected to surge. According to CRISIL, electric two-wheeler sales are projected to grow 40-45% to 1.35 million units in FY 2025, while EV penetration in three-wheelers may exceed 30% by 2029. Belrise is well-positioned to ride this trend.
Belrise IPO Structure and Use of Proceeds
The IPO is a fresh issue of up to INR 2,150 crore, with no Offer for Sale component — a positive signal that existing promoters are not diluting their stakes.
Utilization of Proceeds:
- INR 1,618.08 crore earmarked for debt repayment/pre-payment
- The rest towards general corporate purposes
This deleveraging will strengthen the balance sheet and improve future cash flows.
Belrise IPO: Comparison With Listed Peers
| Revenue (INR Cr) | P/E (x) | RoNW (%) | NAV (INR) | |
| Belrise | 7,484.24 | NA | 13.33 | 35.94 |
| Bharat Forge | 15,682.07 | 65.02 | 13.84 | 153.90 |
| Uno Minda | 13,910.36 | 65.01 | 21.68 | 91.71 |
| JBM Auto | 4,723.19 | 96.35 | 22.21 | 98.75 |
| Motherson Sumi | 8,321.36 | 42.31 | 42.45 | 3.79 |
Although Belrise’s profit margins and RoNW trail its peers slightly, its valuations will likely be more attractive given its early growth phase, especially as it increases EV integration and proprietary product lines.
Risks Associated With Belrise IPO
- Revenue from products for internal combustion engine (ICE) vehicles declined from 29.70% of total revenue in FY 2022 to 21.53% in FY 2024. The company is vulnerable to the electric vehicle (EV) transition.
- Despite generating INR 4,191.39 crore in FY 2024 from products used in both ICE and EVs, the company does not have proven expertise in exclusive EV components and may not be able to fully benefit from the EV growth.
- The company has invested in proprietary EV components like motors and chargers; however, the uncertainty of customer adoption and realization of these investments is a significant financial and operational risk.
- An investigation by the Assistant Commissioner of State Tax, Pune resulted in a tax liability of INR 4.49 crore which has been paid by the company; however, there is ongoing exposure to potential future penalties or tax scrutiny. The investigation is closed as per the letter dated 28 August 2023.
- The company’s future business operations may be adversely affected if it fails to meet statutory dues on time, although it reported zero unpaid liabilities across INR 1,402.22 crore in dues in Financial Year 2024.
- Past has seen negative cash flows from investing activities (361.64 cr in FY 2024) and financing activities (141.34 cr in FY 2024) as capex increases.
- Cash and cash equivalents decreased by 140.28 cr in Q2FY 2024 partly due to investments in new Pune-V EV manufacturing facility which will continue to strain cash flows going forward.
- As of 30th June 2024, the company and its promoters are involved in 74 legal proceedings (tax, regulatory and civil matters) with a quantifiable exposure of 38.89 cr which can impact reputation and finances.
- Several historical corporate records, including share allotment forms and board appointment filings, are untraceable. While no legal proceedings are currently pending, the risk of future regulatory scrutiny or penalties remains. Notably, intimation regarding missing filings was sent to the RoC on 19 November 2024.
- Unprovided contingent liabilities of INR 15.42 crore and capital commitments of INR 22.40 crore as of 30 June 2024 if materialized may impact the financials.
- As of 30 September 2024 unsecured borrowings of INR 170.55 crore which can be called by lenders any time and if funds are not available immediately may pose refinancing and repayment risk.
Final Words for Belris IPO
From an investor’s perspective, Belrise ticks several strategic boxes:
✅ A diversified product portfolio across metal, polymer, and suspension systems
✅ Strong export footprint and marquee global clients
✅ Clear roadmap into electric vehicle and renewable energy segments
✅ Steady financial performance with 18.17% revenue CAGR
✅ Investment in vertical integration and proprietary products
While valuation details will be key to determine the IPO is worthy or not, long-term investors seeking exposure to India’s automotive transformation, especially EV evolution, may find Belrise a compelling play.