Thank you. Ladies and gentlemen, we will now begin with the question and answer session. We take first question from the line of Nitij Mangal from Jefferies.

Firstly, congratulations on getting approvals for the merger of the promoter entities and I must say it's coming at pretty attractive valuations. My first question is on the core business where we have seen some dip in two-wheeler revenues as well as passenger vehicle revenues on a Y-o-Y basis. Could you explain what is leading to this and how do you see the trend in these businesses going forward?

Firstly, on the two-wheeler bit, I would like to talk about the outcome. So, in terms of revenues, the company's two -wheeler revenues remain largely flat on a sequential basis. So, we were around INR15,085 million in Q2 FY26 and right now we're at around INR15,041 million in Q2 FY26. So, if you even look at the volumes of our customers in the two -wheeler segment, their volumes have largely remained flat on a sequential basis. Hence, if you would have asked me at the start of October about where we would see volumes, this would largely have been an expected outcome for us. Secondly, I think if you look at the larger trend for Tier 1, December usually is a slow month for the industry. So, OEMs usually have a planned maintenance shutdown for at least a few days and perhaps what you're also seeing is a bit of a lag between perhaps the numbers of the Tier 1 players' report and what the OEMs operate at. Maybe a bit of timing gap is seen over here and that's what we're probably seeing in this quarter. However, one thing I would like to point out is, in terms of our two-wheeler growth in the nine months, we're still outperforming the industry. We're still up 12% on a Y-o-Y basis if we compare the nine months of this year as compar ed to the nine months of last year and we see absolutely no issue in terms of us continuing to outperform the industry. Of course, in the coming quarter, I think we'll get a lot of help of the upcoming facilities - the one in Chennai for the leading EV platform for a two-wheeler OEM, the Bhiwadi facility where we're supplying to a premium Japanese two -wheeler OEM, as well as the Haridwar facility for a leading two-wheeler OEM. So, all three of these facilities will come into play in this quarter and in that sense, we see absolutely no issue in continuing to outperform the industry and doing well going forward.

Secondly, I mean, I do see you're winning quite a number of orders in the new components like suspensions, steering columns, high tensile products, etcetera over the last one, one and a half years. How do you see the se business scaling up, over the next few years and how much can these components start to contribute to the top line in a few years?

Right. So, firstly, I will talk about these components that you mentioned, including suspensions or steering columns or high tensile components. So, firstly, these are, as you mentioned, largely proprietary parts. So, they require a fair amount of investme nt that goes into the IP itself. And because they are parts that have IP and require R&D, usually OEMs have a very long gestation period to onboard these parts. Anytime they have to onboard any of these parts, they actually go through at least 9 to 12 months of testing, if not more, to kind of get to a stage like this. So, I think what we've really achieved so far is really penetration or entry amongst multiple OEMs. So, in suspensions, we started the year supplying to only 2 O EMs. Now, we're supplying to 4 OEMs. These are all really large OEMs that we're working with. In steering columns, we're again working with all of the Indian OEMs as well as a marquee foreign OEMs and also in high tensile components. Now, we're working with almost all of the Japanese OEMs as well as speaking to a couple of Indian OEMs. So, across all of these segments, we have now entered multiple OEMs. The entry and the broad -basing of OEMs has been the critical part so far. Now, the real key will be penet rating and gaining wallet share amongst all of these OEMs. I think the tougher part, if you ask me, is the entry itself. Because once a technology is established, to take it to an inflection point is not as tough as entering in the first place. Now that we are in all of these OEMs, the purchase side, R&D side, production side is convinced of the benefits we're getting from this technology. Now, all we have to do is continue to win new programs and grow this business. In terms of where we want this business to be, we feel each of these three verticals, so suspension, steering columns and high tensile components, each of them can be a growth vertical of its own. I think it would be pretty fair to say that each of them going forward can be multi-hundred crore businesses. And this way we're talking about a medium-term perspective in the next two to three years. So that's where we want our ambition to be and we think we have the building blocks in place to achieve that.

I have one more question.

I'm sorry to interrupt you, Nitij. If you could please join back the queue for follow-up questions. We take the next question from the line of Vijay Pandey from Nuvama.

Good that you completed the acquisition, the related party acquisition. It was one of the key points which you highlighted at the time of IPO. So coming on to the Q3 numbers, generally, the other suppliers which have reported the numbers, they have seen a good level of growth, especially for the two-wheeler segment? Even Bajaj Auto, their sales was up around 7% in third quarter. So I'm a bit confused at where our underperformance is coming from. Is it like any particular model or how is it? Because I'm just not able to get that sense of why we have underperformed, even if I compare it with Bajaj Auto's number?

So while we don't comment on particular OEMs, you'd appreciate that our growth is based across multiple OEMs. I think we answered on why we think two -wheeler numbers have been fairly stagnant as compared to last year. Of course, there can be a bit of impact of mix. But that being said, it's not like we're losing any programs. We're continuing to get more RFQs, win more programs. Of course, different OEMs grow in different segments. It's not straight sailing for each of them. There can be certain models that do well, certain models that don't do well. So we, of course, don't inform OEM strategy in that sense. What we can talk about is what we're hearing from the OEMs and the plan that we're setting up for them means that we are well on track to achieve the numbers that we've guided for, not only the two-wheeler segment, but also as a larger company.

How do you see currently the demand looking like for the fourth quarter? Do you expect it to be like positive mid single-digit growth going into the fourth quarter or should we expect a flattish growth?

We won't be commenting on quarterly guidance. We have an annual guidance that we give to all analysts and investors, and we maintain that going forward. Of course, the GST rate cut has been positive. I think the numbers for January should be out soon, and they show quite a positive trend.

A follow-up to the same question. Just want to check. So how is the inventory situation at the OEMs level? Because some of the OEMs have guided that the inventory level is within a single digits?

We take the next question from the line of Jeemit Shah from Motilal Oswal Financial Services Limited.

Just a couple of questions. So one of the key growth strategies for us was taking the CPV for the number one and number two OEMs from INR12,500 to INR17,300. Now it would go to INR20,500 with the inclusion. And for number three, number four to go to INR12,500 first. So where have you been in that journey? Is there traction from the OEMs? Any update on that?

Right. So I can talk about maybe one of our marquee OEMs - one of the larger OEMs that w e work with. We've already gone from INR12,500 to INR14,000 with the addition of steering columns. And with this acquisition, with the same OEM, we've gone close to INR17,000 and as we speak, we're also in discussions with them for two new products, which we think can take it from INR17,000 to upwards of INR18,000 over this fiscal year. So with one OEM, we've already seen that journey from INR12,500 to INR18,000, which is close to 45% increase and that is something that has happened over the past few months . One thing I would like to point out is usually when you enter a new product, of course, you'll not get a lion's share of the wallet share immediately. OEMs usually introduce you to one model and then based on performance, there is broad base of growth amongst different models. So I think the entries are important and those are things that are happening as we speak. Now we'll continue to grow them. In terms of the second question on taking our third and fourth largest OEMs to high levels. So I can talk about one of the larger two-wheeler and three-wheeler OEMs, which is in that category and with them now, we've started on two different things. One, we are supplying to them for their premium segment. So by supplying to them in their premium segment, our con tent for vehicle has gone up by around 1.8 to 2 times, specifically for them. Secondly, for the same OEM, we have now entered the plastic commodity segment and by entering the plastic commodity segment, we are now supplying a wide variety of products, including fenders, cowl covers, dashboards, visors, all relevant plastic parts, which can result in increase in content for vehicle around INR2,000. And maybe with another premium two -wheeler OEM, we are basically doing more of the suspension part. So suspension entry has just happened recently and that will also lead to a content for vehicle increase of around INR1,500. So just to summarize, our top OEM, we're kind of growing quite fast increased contribution by 45%. And let's say, our third, fourth, fifth top OEMs, there's a continued increase of new commodities that we're selling to them.

Yes, thanks for the detailed answer. Secondly, on the overall business side of things, on the core business, so two-wheeler OEMs have been very gung-ho with the demand going ahead. So Q4 numbers are expected to be very strong for all two -wheeler, three -wheeler OEMs. And a relatively low base of H1 for the next year also, both for the industry growth. So is there any ramp-up of schedules from the OEMs tha t you've seen or anything on the demand front that you're expecting?

So in general, we don't comment on the schedules that we get from OEMs. I think the numbers are out for everyone to see in terms of the January production numbers for OEMs. I think, as you mentioned correctly, the numbers seem positive and seem to be going in the right trajectory. We maintain our guidance about outperforming the industry in two -wheelers substantially and also kind of maintaining that mid-teens kind of revenue growth going forward.

We take the next question from the line of Shubham Jain from Investec.

Hi, thanks for the opportunity. My first question was on defense and aerospace growth prospects. How do we see this business scaling up over the next few years? And the second question was a bookkeeping question. The tax rate this quarter seems to be high at about 29%. What should be the tax rate number that we should work with here? Yes, that's all.

I can take the first one. Yes, from a defense perspective, I think as we mentioned on the call, fundamentally we started working with six new OEMs. There is very positive traction from domestic as well as international OEMs. I want to supplement that with saying not just defense, but defense and aerospace. Aerospace is an area for us that we're looking at very keenly. We have already entered supply chain of two of the largest players in that space. And as I'm sure you must have seen in the news over the past few months of the year , the largest OEMs in the aerospace industry, in the aviation industry are looking at India very seriously. They're looking to source more from India and also manufacture in India. We want to capitalize on that positive trajectory. While the French acquis ition is an entry mechanism for us to start very close engagement with the European counterparts, with the European OEMs, we want to fundamentally set up manufacturing facilities in India for the aerospace and defense vertical, which is currently in the works. Largely in the medium term, we see this as a very positive and meaningful contributor to our revenues going forward. I unfortunately cannot comment on the specific numbers, but it'll be a meaningful contributor in a short time.

And to answer your second question on the tax rate, I think over the course of the year, we've seen this normalize to around 20% to 24% of corporate tax rate.

We take the next question from the line of Viraj Sanghvi from Ambit Capital.

So my first question is on the four -wheeler part. We've mentioned in the merger presentation that the post-merger exposure to four-wheelers is rising sharply than what we have currently. So can you provide more color as to what is the customer profile over h ere? Is it largely e-four- wheeler OEM and what are the kind of products and what is the change in CPV on the four - wheeler side post-merger?

So just to shed some light on that, we'll be adding close to INR1,000 crores of revenue or INR10,000 million of revenue post-merger. And around 34% of this would be geared towards passenger vehicles as well as commercial vehicles. I think two major parts of what we'll be supplying to passenger vehicles and commercial vehicles, number one would be the copper bus bars, which are extremely important from a battery and battery management perspective, since it's a critical part that rules conductivity in a system. And secondly, these companies also have a decent exposure in the plastic segment to supplying a lot of different parts like dashboards, tire covers, tire wheels, and interior infotainment parts for marquee passenger vehicle OEM. So in terms of mix, we actually also work with a 4-wheeler Indian domestic OEM for the bus bars and for the plastic part, there's a wide variety of OEMs, including a couple of European OEMs as well as a couple of domestic OEMs. Some of which is direct and some of which is through a Tier 1, given that a lot of these parts go into infotainment systems, which are managed by particularly Tier 1s. I think the content per vehicle increase that we can see in four -wheelers would be slightly higher, would be close to INR5,000 that we'll be able to see.

Thanks. Secondly, from this quarter's perspective, we've seen a decline in the PV revenues as well. So could you shed some details on how the two-wheeler performed, but any color on why the decline was there on the PV side?

So on the PV side, a couple of factors coming together contribute to it. So firstly, in this quarter, there were some supply chain issues with one of our largest Europe-based four-wheeler OEMs, which is a premium automaker. And in fact, this OEM i s also our largest four -wheeler OEM, and as there are several volumes, of course, that have had a negative impact on our revenues. Second was, as we announced last time, we are setting up a facility in Bhiwadi for plastic moulding for one of the largest J apanese OEMs. This plant was being shifted from another location. So during the shifting, of course, there was a bit of loss of production. However, that is transitional, and you will see it getting recovered in the fourth quarter of FY26. Another important point I'd like to highlight is H-One and Belrise both also work a lot in the tooling and dyes industry, where we supply tooling to a lot of marquee Japanese as well as Indian passenger vehicle OEMs. This is being categorized in the others category. So w hile these sales are indeed happening to a passenger vehicle OEM, we have technically classified them as others because it's a kind of different product category. And just totally on a broader perspective, if you look at our passenger vehicle numbers, we're still up 24% on a year-on-year basis if you compare nine months against nine months. And hence, we again don't see any change in our guidance, which is to double our four -wheeler and commercial vehicle revenue in the next two years as compared to FY25 numbers. So I think we can definitely achieve that, and there's no reason why that should not happen.

We take the next question from the line of Navin Matta from Mahindra Manulife, Investment Management Private Limited.

Yes, thanks for the opportunity. Just another kind of follow-up on the two-wheeler growth being lower for us in this quarter. I just wanted a bit more understanding when we look at your mixes, two-wheeler plus three-wheeler is about 64%. Is it possible for you to split this between two - wheeler and three-wheeler, or what would be the composition of this?

Thank you, Navin Ji, for the question. So this would largely be two-wheeler. While I don't have the exact number in front of me, I think it would be close to 60% two-wheelers, probably 3% or 4% three-wheelers.

Okay. Because when I look at your largest customer's production growth, Y -o-Y, it looks like two-wheelers is about 3 %-4% growth and three -wheelers is about 30% growth, which is why the question that, if we have lesser saliency in the three-wheeler mix, is that the reason why our number is kind of trending status with our largest customer? Is that the explanation, or do you think there's another way of look at this?

I think that that's also a fair way to look at it. I think another important point that I would like to highlight here is that our penetration in the three -wheeler sector is going up. So for our largest customer or for a couple of our largest customers, we have won orders with them across their upcoming chassis systems for their upcoming three-wheeler platforms, both across ICE and EV. We've also won additional orders from them for suspensions, both in ICE and EV. So you're right, right now the presence in three -wheelers per se is lower, but I think that is also going up in the future.

Fair enough. That's it from us. Thank you.

Thank you. We take the next question from the line of Radha from B&K Securities. Please go ahead.

Hi sir, thank you for the opportunity. So my first question is, I wanted to understand how big is the market size of plastic components in two -wheelers and three -wheelers and four -wheelers separately in India, and is this business entirely outsourced by OEs in India, or is there a captive market share also?

I would probably have the two -wheeler numbers handy on me right now. That market for a limited set of products, if I just consider three products, which is a fender, cowl, and cover, that would be close to INR500 to INR600 crores market. Of course, if you add the dashboard and the visor and the helmet accessories, I think my best guess would be this would be close to INR2000 crores market on a console basis in the two-wheeler segment. I unfortunately don't have the numbers handy on me for passenger vehicles. And whether this is all outsourced, yes, I don't think any OEM does a lot of plastic manufacturing in India. It is usually outsourced to Tier-1 suppliers like us.

And what is the maximum content per vehicle that can be reached in these products in two- wheelers and four -wheelers separately? So this would help us understand how big can this business becomes for us?

So one thing, I'd like to point out is when it comes to plastic moulding or say fabrication, I think the process largely remains the same. So we can manufacture almost all components that go into a two-wheeler or four -wheeler using a similar plastic injection mo ulding process. So in two - wheelers, I think the vehicle that we have guided for is around INR2000 that is there currently. And of course, that going up with assemblies which have a bit of plastic as well as a bit of metal. So that can go from INR2000 to around INR3000. In four-wheelers, it's tough to comment on a content per vehicle amount because there's a very wide va riety of products that go into a four - wheeler. And usually each of them are managed by system integrators. So it depends a lot on which system integrators you're working with. If you get an entry with a system integrator or become a system integrator yourself, that's a very lumpy type of growth that you get in four-wheelers.

Yes, just to add to that, in the four -wheelers, especially it's more complex because like system integrators and these are much larg er assemblies that they supply , the Tier-1s especially. You know, a lot of it also includes a part of the system - it includes the side panels. So all of this comes pretty much well -furbished and just ready to fit. So apart from plastic, there are other parts also which get into it. So it's real ly very difficult to analyze as to what would be the total content when you look at such kind of assemblies being supplied to four-wheelers.

Thank you. And all the best.

Thank you.

We take the next question from the line of Raman KV from Sequent Investments. Please go ahead.

Yes, my first question is with respect to the merger of the promoter-owned entities. So together, this Badve Autocomp and Eximius Infra, they did around INR2,100 crores of revenue in FY’25. I just want to understand how they performed in the current nine-month period for the financial year FY’26 and what do you expect the growth of these two entities to be in the next one or two years? One is that. And as you mentioned, this will reduce the relat ed party transaction by INR1,100- INR1,200 crores, which will basically add around INR1000 crores to the revenue of Belrise. So I just want to understand by when this will be finalized by FY’26 or FY’27?

Right. So I think to answer your second question, this is, of course, subject to a lot of regulatory approvals, because we'll have to get the approval from the exchanges as well as the NCL T for the merger to be finalized. And I think the timeline that we've indicated in our presentation is anywhere between 10 to 12 months. So you can assume that this happens within FY’25 itself (55 00). And sorry, what was your second question?

My first question was the growth with respect to the Badve Autocomps and Eximius Infra.

Right. So in general, we'll not be commenting on the growth for these companies as of now. Once there is a clarity of when and how these companies are emerging, we'll speak more about it then.

So, of course, when your RPT revenues are getting netted off and EBITDA is being added in. So I think if you look at the EBIT DA margins of these two entities, they stay close to 12 % to 13%. So fairly in line with what Belrise EBITDA margins are. So imagine that the revenue is getting netted off, but the EBITDA is getting added in. So in that sense, of course, it should be EBITDA accretive as well as PAT accretive.

Understood, sir. Just a follow up. I just want to understand the debt and cash in both the entities.

So I think that's part of the presentation. You can just take a quick look at it.

Okay. Thank you, sir.

Thank you. We take the next question from the line of Ashwin Patil from LKP Securities Limited. Please go ahead . Since there is no response, ladies and gentlemen, due to time constraint, we take that as the last question and we conclude the question and answer session. I now hand the conference over to the management for their closing comments.

Thank you, everyone, for your time, interest and questions. I hope we have been able to address most of your queries. We r emain confident in our growth trajectory, both near term and long term, driven by strategic investments and our commitment to advancing products and technologies. For any further queries, please reach out to us or Strategic Growth Advisors, our IR partners.

On behalf of Belrise Industries Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.