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Belrise Industries Approves Incorporation Of Subsidiary For Defence, Space And Aerospace Sector

Written by: Team Angel OneUpdated on: 12 Aug 2025, 5:46 pm IST
Belrise Industries share price steady as company approves new subsidiary for defence, space and aerospace sector alongside strong Q1 FY26 performance.
Belrise Industries Approves Incorporation Of Subsidiary For Defence, Space And Aerospace Sector
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Belrise Industries Limited (BIL), a leading integrated automotive component manufacturer, has announced that its Board has approved the incorporation of a wholly owned subsidiary (WOS) in India, focusing on the defence, space, aerospace, and allied industries. 

Incorporation Of Wholly Owned Subsidiary

The proposed WOS will engage in engineering and technology-related activities involving mechanical, optical, electrical, electronic, software, and other solutions for the defence, space, aerospace, and allied sectors. The business will be closely aligned with Belrise’s existing operations and will leverage its strong engineering and manufacturing expertise.

The authorised and paid-up share capital for the WOS will be ₹15 lakh, divided into 1,50,000 equity shares of ₹10 each. The incorporation is subject to approvals from the Ministry of Corporate Affairs (MCA) and other relevant statutory authorities. Belrise will hold 100% ownership in the new entity, which will be funded through cash consideration.

Belrise Industries Q1 FY26 Earnings Results

For the quarter ended June 30, 2025, Belrise Industries reported consolidated revenue of ₹22,622.1 million, marking a 27% year-on-year growth. Manufacturing revenue rose 29% to ₹18,323 million, contributing 81% of total revenue.

EBITDA stood at ₹2,805.2 million with a margin of 12.4%, while Profit After Tax (PAT) grew 56% year-on-year to ₹1,116.8 million. The company’s net debt reduced significantly to ₹7,698 million following repayment of ₹15,960 million from IPO proceeds, bringing the Net Debt/Equity ratio down from 0.98x to 0.16x.

Operational Milestones

During Q1 FY26, Belrise commenced supplies from its new Chennai plant, catering to both a leading premium two-wheeler OEM and a prominent commercial vehicle OEM. Additionally, the company entered the Medium & Heavy Commercial Vehicle segment and secured new orders from Indian and Israeli defence OEMs.

Read More: ONGC Plans ₹4,600 Crore Investment to Drill New Wells and Build Infrastructure in KG Basin

Belrise Industries Share Price Performance

As of 11:07 AM on August 12, 2025, Belrise Industries’ share price was trading up by 1% at ₹135 on the NSE.

Conclusion

With this move into defence, space, and aerospace, Belrise aims to strengthen its presence in high-growth and technologically advanced sectors, building on its established position in automotive components. The company’s expanding manufacturing footprint and deepening OEM relationships position it to benefit from upcoming opportunities in both domestic and international markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Aug 12, 2025, 12:16 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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