CRISIL Ratings has reaffirmed its ratings for Belrise Industries Limited (BIL), maintaining ‘Crisil AA-/Stable’ for long-term facilities and ‘Crisil A1+’ for short-term instruments. The agency also assigned new ratings to recently issued Non-Convertible Debentures (NCDs) and Commercial Paper (CP). The ratings reflect BIL’s strong market position in auto components, diversified clientele, and robust financial profile post-IPO.
Credit Rating Actions Summary
CRISIL Ratings Limited has reaffirmed the existing ratings for Belrise Industries Limited (BIL) on its bank facilities and non-convertible debentures. Furthermore, new ratings have been assigned to newly issued debt instruments. The total bank loan facilities rated amount to Rs. 3211 Crore.
The current rating status is as follows:
- Long Term Rating: ‘Crisil AA-/Stable’ (Reaffirmed)
- Short Term Rating: ‘Crisil A1+’ (Reaffirmed)
- Rs. 130 Crore NCDs: ‘Crisil AA-/Stable’ (Assigned)
- Rs. 50 Crore NCDs: ‘Crisil AA-/Stable’ (Assigned)
- Rs. 100 Crore Commercial Paper: ‘Crisil A1+’ (Assigned)
- Rs. 40 Crore Convertible Debentures (Reduced from Rs. 140 Crore): ‘Crisil AA-/Stable’ (Reaffirmed)
Key Strengths Driving Ratings
The ratings are supported by the BIL group’s established market leadership in the two- and three-wheeler automotive component sector, built over three decades. The group supplies over 100 products across segments like sheet metal, plastics, suspension, and e-mobility.
Key strengths include:
- Clientele and Diversity: Longstanding relationships with top OEMs including Bajaj Auto Ltd (BAL), Honda Motorcycle and Scooter India Pvt Ltd, and Hero MotoCorp Ltd. The group added three new customers in Fiscal 2025 across domestic and international markets.
- Revenue Growth: Revenue increased to Rs 8,312 crore in fiscal 2025 from Rs 6,578 crore in fiscal 2023, with revenues reaching Rs 6956 crore in the first nine months of fiscal 2026.
- Geographic Reach: The group operates 17 manufacturing facilities across 10 cities in India, ensuring proximity to major industry players.
- Financial Profile: Net worth significantly improved following the Rs 2,150 crore IPO in May 2025, leading to an estimated net worth of around Rs 4971 crore as on September 30, 2025. Gearing is projected to reduce significantly to 0.2-0.3 times by March 31, 2026.
- Liquidity: Expected cash accruals of Rs 800-900 crore per annum in fiscals 2026 and 2027 provide strong debt servicing capacity.
Key Areas of Moderation
The group’s performance remains vulnerable due to concentration risks and industry cyclicality:
- Customer Concentration: Over 55-60% of revenue is generated from three major customers (BAL, HMSIL, and Hero MotoCorp Ltd).
- Industry Exposure: The entire revenue stream is exposed to the cyclical nature of the domestic auto industry and macroeconomic volatility.
Amalgamation Update
The company is proceeding with the board-approved amalgamation scheme involving Badve Autocomp Private Limited (BAPL) and Eximius Infra Tech Solutions Private Limited (EITSPL). This move is expected to result in a simplified group structure and generate operational and financial synergies, with no major expected impact on the overall risk profiles.
Outlook and Rating Sensitivity
The outlook is maintained at Stable. The rating could move upward with steady revenue growth leading to operating profitability between 12.5-13.5% and sustained strong financial risk metrics. Downward pressure could arise if operating profitability falls below 9% or if there is large, debt-funded capital expenditure.
Source: BSE
