Belrise manufacturing revenue rises 23% as H1 margins narrow

Belrise Industries reported H1 FY27 manufacturing revenue of Rs 4,542.02 crore, up 23% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined 70 basis points to 11.8%. Manufacturing growth outweighed a 19% reduction in revenue from trading of goods.

Why did Belrise's manufacturing revenue rise in H1 FY27?

Belrise's manufacturing revenue increased by Rs 849.70 crore, from Rs 3,692.32 crore in H1 FY26 to Rs 4,542.02 crore in H1 FY27, a 23% rise. The company defines manufacturing revenue as revenue excluding trading revenue but including other operating revenue. Revenue from operations increased 15% to Rs 5,292.85 crore, despite lower trading revenue.

Revenue from trading of goods declined by Rs 172.60 crore, from Rs 923.43 crore in H1 FY26 to Rs 750.83 crore in H1 FY27. The presentation reports a 19% fall but provides no reason for the change. Manufacturing revenue was therefore a larger component of the Rs 5,292.85 crore revenue-from-operations total than in H1 FY26, when revenue from operations was Rs 4,615.75 crore.

What happened to Belrise's profitability in H1 FY27?

Belrise's EBITDA rose 8% to Rs 623.87 crore in H1 FY27, but its EBITDA margin declined to 11.8% from 12.5% in H1 FY26. The 70-basis-point decline came even as gross profit increased 20% to Rs 1,067.57 crore and gross profit margin widened by 90 basis points to 20.2%. A basis point is one-hundredth of a percentage point.

Employee cost rose to Rs 237.55 crore in H1 FY27 from Rs 164.64 crore a year earlier, while other expenses increased to Rs 206.14 crore from Rs 149.94 crore. Gross profit rose by Rs 176.28 crore over the period, compared with a Rs 47.16 crore rise in EBITDA. Depreciation increased from Rs 176.55 crore to Rs 201.53 crore, and earnings before interest and tax margin declined 90 basis points to 9.0%.

Belrise reported profit after tax of Rs 288.21 crore for H1 FY27, up 18% from Rs 244.66 crore. Adjusted profit after tax was Rs 287.92 crore because it excluded a Rs 29 lakh exceptional gain from reversal of a provision in Belrise SDM. The adjusted profit-after-tax margin increased 10 basis points to 5.4%.

Which vehicle segments drove Belrise's manufacturing growth?

Belrise's 2W and 3W segment remained its largest manufacturing business, with H1 FY27 revenue rising 21% to Rs 3,656.50 crore. Its share of manufacturing revenue declined to 80.5% from 81.9% in H1 FY26. The 4W passenger segment grew 32% to Rs 228.60 crore, increasing its manufacturing-revenue share from 4.7% to 5.0%.

Commercial-vehicle revenue increased 31% to Rs 412.80 crore and represented 9.1% of manufacturing revenue, compared with 8.5% a year earlier. Revenue in the other vehicle category rose 37% to Rs 244.10 crore. The 4W passenger and commercial segments both grew faster than the 21% rate in 2W and 3W, although the latter remained the largest reported vehicle type.

By powertrain, internal-combustion-engine revenue increased 13% to Rs 1,081.40 crore, while powertrain-agnostic revenue rose 20% to Rs 3,216.50 crore. The powertrain-agnostic share declined to 70.8% from 72.4%, while the internal-combustion-engine share fell to 23.8% from 25.9%. The presentation says subsidies were regrouped to others in FY27, affecting comparison of the 287% increase in the powertrain other category to Rs 244.10 crore.

The Q2 FY27 mix showed a similar pattern. Passenger-vehicle revenue rose 41% to Rs 127.40 crore and commercial-vehicle revenue rose 47% to Rs 225.40 crore, exceeding 24% growth in 2W and 3W revenue to Rs 1,867.80 crore. Commercial vehicles increased their manufacturing-revenue share to 9.6% from 8.3%, while passenger vehicles increased theirs to 5.4% from 4.9%.

What disclosed orders and facilities could affect Belrise's next growth phase?

Belrise has scheduled start of production, or SOP, in Q1 FY28 for complete body and chassis assemblies at Sambhajinagar for a high-selling three-wheeler model and for complete chassis assemblies at Dharwad for heavy commercial-vehicle platforms. These programmes correspond with its largest 2W and 3W segment, which generated Rs 3,656.50 crore in H1 FY27, and its commercial-vehicle segment, which generated Rs 412.80 crore.

Before the Q1 FY28 projects, Belrise lists a Q3 FY27 SOP for a sixth suspensions original equipment manufacturer, described as a leading premium two-wheeler maker in South India. Additional suspension orders from a 2W and 3W original equipment manufacturer are scheduled for Q4 FY27. Belrise also secured sheet-metal orders from a Japanese passenger-vehicle original equipment manufacturer and a European passenger-vehicle original equipment manufacturer, but disclosed neither order values nor a revenue timetable.

Belrise's Bangalore brownfield facility is scheduled to begin production in Q3 FY27 for exhaust systems and fuel tanks. Its Bhiwadi brownfield facility is scheduled for Q1 FY28 to make exhaust systems and body-in-white parts. The presentation also cites a maiden consumer-electronics computer numerical control fixtures order and an additional aircraft track-beams order, without providing revenue values or production dates for either award.

Conclusion

Belrise's H1 FY27 result combined a Rs 849.70 crore increase in manufacturing revenue with a Rs 172.60 crore decline in trading revenue, resulting in a 15% increase in revenue from operations to Rs 5,292.85 crore. Profit after tax rose 18% to Rs 288.21 crore, but EBITDA grew 8%, slower than revenue, and the EBITDA margin declined to 11.8% from 12.5%.

The disclosed milestones to watch are the Q3 FY27 Bangalore facility and suspension programme SOPs, followed by Sambhajinagar, Dharwad and Bhiwadi launches in Q1 FY28. Belrise reported return on average capital employed of 15.3% in H1 FY27, calculated after excluding about Rs 1,200 crore of unutilised qualified institutional placement cash from Rs 1,700 crore raised, which management says will be used in coming quarters.