This Company Is Winning EV Orders, Building Aerostructures in France and Supplying Solar Trackers to the US

EBITDA margin beat estimates by 70 basis points, new 4W EV program won, aerospace facility live in Lille, solar tracker expansion underway 

Auto components companies rarely get credit for the diversification happening beneath the surface of their quarterly P&L. Belrise Industries is a case in point. The Q1FY27 headline numbers — revenue slightly below estimate due to a trading business decline, PAT 9% below on lower other income — do not capture what the company is actually building. EBITDA margins beat JM Financial’s estimate by 70 basis points.

New EV assembly orders were won from a leading Indian four-wheeler OEM. An aerospace facility in Lille, France commenced production. And a renewable energy manufacturing programme for a leading US solar tracker OEM is ramping toward a peak annual revenue potential of Rs 1.5 billion. JM Financial raises its target price to Rs 285 from Rs 250 — a 14% increase — and maintains BUY, implying 21% upside from the current market price of Rs 236.

The Quarter 

Revenue of Rs 25.5 billion grew 12.6% year-on-year but came in 4% below JM Financial’s estimate — and the reason is important. The shortfall was entirely driven by a 19% year-on-year decline in the trading business, which is the lower-margin component of Belrise’s revenue mix.

The core manufacturing business performed in line. EBITDA margin of 11.5% — while contracting 90 basis points year-on-year — beat JM Financial’s estimate by 70 basis points, precisely because the lower-margin trading business contributed less to the mix. “Margin outperformance was led by lower contribution from the lower margin trading business,” JM Financial notes — a quality of beat that is meaningfully better than a headline number miss implies.

EBITDA grew 4.5% year-on-year to Rs 2.9 billion. PAT of Rs 1.2 billion grew 9% year-on-year but was 9% below estimate due to lower-than-expected other income — a timing effect rather than an operational concern. Management has guided for EBITDA margins to remain stable at FY26 levels of approximately 12.1%, supported by raw material and logistics cost pass-through.

The EV Order 

The most strategically significant order win of Q1FY27 is the program from a leading Indian four-wheeler OEM — comprising 59 assemblies for a high-selling EV platform, along with tooling, fixtures and automation programs primarily from the H-One plant. The scope of this win — 59 distinct assemblies for a single EV platform — illustrates the depth of integration that Belrise is achieving with its automotive customers, moving far beyond commodity stampings into complex, multi-component supply relationships that are harder to displace.

Additional 2W and 3W wins add further order book depth. An additional order from one of the fastest-growing domestic two-wheeler and three-wheeler OEMs — worth Rs 2 billion — has start-of-production starting in Q2FY27 for earlier orders and Q4FY27 for recent orders. A new chassis order for an existing model of a leading Indian two-wheeler OEM — worth Rs 500 million per annum — starts production in Q4FY27. JM Financial builds in revenue growth of approximately 16.5% and 17.5% for FY27 and FY28 respectively, underpinned by these wins and the deepening of customer relationships across the portfolio.

Aerospace — Lille Facility Live

The aerospace diversification at Belrise is progressing from acquisition into active production — a meaningful milestone. The first international facility in Lille, France commenced production in Q4FY26, manufacturing aerostructures, aeroengine components and aircraft robotics parts for global aircraft and combat aircraft OEMs. This facility complements the earlier acquisition of SDM France and the more recent takeover of UK-based Chester Hall Precision Engineering in Q4FY26 — which strengthened Belrise’s aerospace and defence manufacturing capabilities with a UK footprint alongside the French operations.

“Management expects aerospace to contribute approximately 10% of revenue over the long term,” JM Financial notes — a target that, from a base where aerospace is nascent, represents a multi-year compounding opportunity. The recent QIP fundraise of Rs 1.7 billion is earmarked for further acquisitions in new product segments across aerospace and autos — signalling that the inorganic growth strategy is not complete.

Solar Trackers 

The third growth vector is renewable energy manufacturing — a brownfield setup for a leading US solar tracker OEM. Belrise will supply sheet-metal assemblies for 2.5 gigawatts of solar tracker capacity annually, with start-of-production expected in Q4FY27 and gradual ramp thereafter. Peak annual revenue potential is Rs 1.5 billion — small relative to the auto business today, but representative of the diversification philosophy that is steadily reducing Belrise’s dependence on any single end-market.

Belrise’s sheet-metal manufacturing capabilities are directly transferable to solar tracker components, and the US customer relationship — for a product tied to the massive renewable energy buildout in that country — provides a durable long-term demand anchor with currency diversification benefits given the dollar-denominated revenue.

The Valuation — SOTP 

JM Financial has moved to a sum-of-parts valuation to reflect the emerging diversification — assigning 26x June 2028 EV/EBITDA to the core business, Rs 21 per share to the BAPL and EITSPL subsidiaries, and Rs 17 per share to cash from the QIP — yielding a revised target of Rs 285. The move from a single-multiple to SOTP is itself a signal that JM Financial is beginning to value Belrise’s non-auto businesses as distinct value contributors rather than rounding errors.