Belrise Industries Ltd (NSE: BELRISE) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Shrikant Badve — Managing Director
Unidentified Speaker
Swastid Badve — Chief of Staff
Sumedh Badve — General Manager, Head of Strategy
Rahul Ganu — Chief Financial Officer
Sunil Kulkarni — Chief Marketing Officer
Analysts:
Manish Ostwal — Analyst
Abhishek Kumar Jain — Analyst
Sheetal Keswani — Analyst
Vijay Pandey — Analyst
Shrinarayan Mishra — Analyst
Unidentified Participant
Dhiral Shah — Analyst
Bharat Gulati — Analyst
Shreya Tiwari — Analyst
Deepesh Sancheti — Analyst
Presentation:
Operator
Ladies and gentlemen. Good day and welcome to the Q1FY26 earnings conference call of well Rise Industries Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing stars than zero on a touchstone phone. Before we begin, a brief disclaimer. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guaranteed of guarantees of future performance and it may involve risk and uncertainties that are difficult to predict. With this, I now hand the conference over to Mr. Shrikant Badve, Managing Director from Bellrise Industries Limited. Thank you. And over to you, sir.
Shrikant Badve — Managing Director
Thank you and good afternoon to everyone. I extend a warm welcome to all participants in our Q1 FY26 earnings conference call. I am joined today by my sons Sumed and Swastik. Our CFO Mr. Rahul Ganu, our CMO Mr. Sankukarni and our industrialization partners. It’s been just over two months since Bill Rice was listed on the stock exchanges. And this milestone continues to be a source of pride and responsibility for all of us at bill rides. The IPO proceeds have strengthened our balance sheet enabling us to fully repay rupees 15,960 million debt in May month and giving us greater financial flexibility for growth investments. For those new to Buildrise. We are one of India’s leading integrated automotive system suppliers. Serving two builders, three wheelers, passenger vehicles, commercial vehicles and agri vehicles. Our portfolio spans safety critical products such as metal chassis systems, exhaust systems, polymer components, body and white structures.
Operator
Hello. Sir, we are not able to hear you.
Unidentified Speaker
Hello Shikantha. There’s some problem with the connection. So we can continue in the meantime.
Shrikant Badve — Managing Director
Yes sir. Am I audible?
Operator
Yes sir, you’re audible. Yes sir. Please.
Shrikant Badve — Managing Director
Yeah. We are the largest player in the Indian two wheeler component segment holding a 21% market share and have built long cycle partnerships for 30 domestic and international OEMs. Nearly one out of four two wheeler chassis on Indian roads are exported from India is manufactured by Buildrise, a testament to our precision engineering capabilities. We ended the quarter with total revenue from operations of rupees 22,622 million which is up by 25% year on year including management revenue of rupees 18,323 million which grew 29% year on year, showcasing yet again an outperformance against the industry for the company. This was supported by stable growth in two wheeler, specifically in exports and premium vehicles, increasing content per vehicle, commercialization of the new Chennai facility and successful integration of H1 India into our basket of offerings. Our EBITDA stood at rupees 2,805 million with margins at 12.4%. This is in line with our guidance for stable EBITDA margins as compared to financial year 25 where we registered an EBITDA margin of 12.3%. A significant highlight this quarter was the commissioning of our new facility in Chennai which is now supplying to Marquis Tuler OEM and a marquee commercial vehicle OEM as a single source supplier across multiple components. This adds to our ongoing capacity expansion initiative with new plants in Pune and Biwadi on track to ramp up operations in the coming quarters. Last month we declared our final dividend for FY24 25amounting to 11% of the face value of our share. This marks our first dividend distribution since transitioning to a publicly listed company. We look forward to continuing our growth journey in partnership with our shareholders and creating long term value for all stakeholders. With that, I now hand over the call to Swastik to discuss who will take you through our key order wins. Thank you very much.
Swastid Badve — Chief of Staff
Thank you all for joining the call. Coming to the operational highlights for the quarter. Number one, as my father mentioned, this quarter we commenced supplies from our newly inaugurated Chennai facility which caters to two key customers, one a leading premium, two wheeler OEM and two a leading OEM. For the two wheeler OEM, we’re now delivering 2,000 exhaust systems and 500 traffic systems per day. Volumes achieved at a rapid pace and aided by strong customer demand. In addition, we start supplying the ATS bracket to a leading commercial vehicle OEM, a product developed over 12 months and now poised for a sharp ramp up. The Chennai plant is expected to continue scaling over the next two to three quarters with a targeted annual turnover of 2,000 to 2,500 million at its peak, we’re also in discussions with a couple of other OEMs for nominations and new product supplies. Moving on to the second order win. In quarter one of FY26, we made our maiden entry into the medium and heavy commercial vehicle segment with an order win for LONG members from a leading Indian commercial vehicle oem. LONG members are an integral structural part of the catalyst system in a commercial vehicle. To cater to this business, we are setting up the dedicated plant in Pune, expected to go live by the end of Quarter 2 FY26. This facility will have a capacity of approximately 60,000 long members per year with an average content per vehicle of around 20,000 rupees per unit, translating to a peak annual turnover of close to 1500 million. We’re already in advanced discussion with other large OEMs in the space and we expect this plant to also export to support their requirements as well. The long member, just to give a brief, is a critical component of the medium and heavy commercial vehicle chassis manufactured using high tensile steel of up to 900 MPa. The bending and forming of this structured part involves proprietary processes that require extensive validation and testing. Our acquisition of H1 was instrumental in impeding the validation leveraging the global expertise in high tensile steel forming. As mentioned on the earlier call, this acquisition has enabled us to work with steel of up to 1150 megapascals, almost twice the Indian industry average of 600 MPa. The high tensile steel stem allows us to produce components with half the thickness, yet greater durability, resulting in lightweighting benefits and improve compliance with crash safety norms. Having worked on this product for over 18 months, this auto win marks a significant milestone in strengthening our presence in the commercial vehicle segment. With this win, we reaffirm our guidance to double our four wheeler and commercial vehicle revenue within the next two to two and a half years. Compared to FY25 lines third, we also signed that well purchased agreement and received a vendor code from one of the top code leading electric two wheeler OEMs in India. We’ve been engaging with this OEM on multiple RFQs for over a year now and the signing of the general purchase agreement marks the beginning of a relationship that we expect to strengthen and grow through continued collaboration. Fourthly this quarter we commenced real production of a patented combination braking system or CBS for one of India’s top four electric two wheeler OEMs. This system, designed and developed in house over the past two years marks a key milestone in our braking technology portfolio. As we scale up to this OEM we see strong potential to introduce a solution to other leading manufacturers contributing approximately 2,500 rupees who are implemented Concept of Vehicle in our portfolio. We’re currently supplying close to 5,000 braking systems per month across a couple of OEMs and we expect these numbers to go up based on increased demand from the respective OEMs. Fifth, we’ve completed the development and approval process for the chassis system of an upcoming electric three wheeler from one of India’s leading two wheeler OEMs. Production for this program is expected to commence in the second quarter of the fiscal year 6. Coming to a New Plant Our Biwadi plant is scheduled to become operational in the second quarter of FY26. This facility will cater to two leading passenger vehicle OEMs and two two wheeler OEMs. The orders for these programs were secured last year with development ongoing and as we speak the ramp up is expected to commence by the end of FY 2026 by the end of quarter two of FY 2026. This will enable revenue generation shortly thereafter and we expect this plan to contribute sensitively to our revenue going forward. Lastly, as we mentioned on our previous call we had highlighted that our capability to design complex engineering products with precision durability is highly applicable to high growth adjacent domains. In line with that in the aerospace and defense segment we received an additional order from an Indian Defense OEM for its armored vehicle platforms. We also secured our first confirmed orders from two new defense OEMs, one Israeli and one Indian for their components again in the armored vehicle programs. While the current order values are modest, they signal a growing penetration in the segment our precision engineering capability and also lay the foundation for deeper engagement ahead for the next two years. As we mentioned we have guided for CAPEX of up to 8,000 million. We ended this quarter with a total CAPEX of close to 1,050 million in line with the broad guidance for the coming 250 years. The three new facilities in Pune and Diwadi are set to enhance our footprint and support future growth. In the Pune facility we have become trial production for our pilot hub motors for electric vehicles. We are currently providing samples for customers for their validation and testing and we’ve already spoken about the progress at the Chennai and Diwari plant and expect them to bring considerable revenue. With that I now hand over the call to Sumit discuss our growth strategy and the way forward. Thank you.
Sumedh Badve — General Manager, Head of Strategy
Good afternoon everyone. Thank you for joining the call. I’m sumed here just to recharge our portfolio spans safety critical products such as metal tanking system, exhaust systems, polymer components, body and white structures and the battery engineered solutions like clock R beam suspension systems, steering column, air tanks, etc. To drive future growth we will focus on the survey road meters. Firstly, in sampling our exit field in the two wheeler segment we aim to increase content of vehicle from 12,500 rupees to 17,300 rupees driven by proprietary product offerings such as steering columns, braking systems and air filters. While we have already begun producing these components for select OEMs, our study will be to cross sell these to other OEMs in the coming quarters. We will also continue adding new logos as we did in this quarter for a top EV two wheeler playback. Secondly, on the four wheeler front we are sharpening our focus on expanding our footprint both by bringing more OEMs into our port and by deepening engagement with existing customers. This includes number one working closely with them on new model launches such as the upcoming EV CNG platform for a leading CV oem. Number two leveraging our growing design and development capabilities as demonstrated with the long member manufacturing facility in the M and SCV segment and number three steadily increasing exports as seen in our recent order win or 60 plus components for a luxury European OEM. Lastly, Beze is steadily transitioning from a Tier 1 component supplier to Tier 0.5 system supplier. This means moving from delivering individual parts to providing complete fully integrated subsystems and systems that enable OEMs to simplify their supply chains and accelerate production rollouts. While we’ve already executed this for two two reading OEM, Google OEMs and a leading CV OEM. We’re currently in discussion with a CD OEM with another CV OEM with manufacturer like we managed in house at the airline. This will not only deepen customer retention but also increase valuation for us from a macro perspective, EV2 Wheeler sales were in line with expectations for Q1 FY26. However, due to the ongoing rare earth metal and material shortage in India, we anticipate that the 2L EV OEMs will scale down production over the current and upcoming months. This is likely to result in lower sales for certain components that we supply, including motor controller casings, motor casing parts, steering columns and suspensions that largely go to the GD’s. That said, we do not expect this to have a material impact on our revenues. Next. Given the current geopolitical situation, we remain largely insulated from the US Tariff impact. Our exposure to US revenue was extremely small, resulting in a negligible impact on our overall performance. We expect our growth to remain primarily domestic, driven by strong demand from our core customers. Looking ahead, the outfit remains optimistic. The approaching festive season and improving current availability is expected to lift retail sentiment in the coming months. Against this backdrop, Belrise aims to capitalize this opportunity on the back of OEM driven outsourcing. With that, I now hand over to our CFO Mr. Raul to take you through the financial highlights Q1FY26. Thank you for your time.
Rahul Ganu — Chief Financial Officer
Yeah, thank you Sumit. And good afternoon to everyone on the call. We’ll be sharing the Q1FY26 consolidated financial highlights. Total revenue for Q1FY26 to that rupees 22,006. 22 million, up by 27% year on year from rupees 17,810 million. In Q1FY25, manufacturing revenue for Q1FY26 stood at rupees 18,323 million, up by 29% year on year from rupees 14,247 million. On the back of a stable growth in tubular, especially in exports, increasing content for vehicle commercialization of new Chennai facility and successful integration of H1 India into our basket of offerings. EBITDA stood at rupees 2,805 million, up by 17% year on year from rupees 24. 1 million. In Q1FY25, EBITDA margin stood at 12.4%. This is in line with our EBITDA margin for FY25. Manufacturing, EBITDA stood at rupees 2000536 million, up 17% year on year from Rupees 2000160 million. And Manufacturing EBITDA margin stood at 13.8%. Exports contributed 5.4% to our manufacturing revenue in Q1FY26, I.e. rupees 985 million. Net debt of 38 billion June 2025 stood at rupees 7698 million after paying off debt to the tune of rupees 15960 million from the IPO Proceeds as of 30 June 2025 ROAC stood at 14.4%. Coming to the segmental performance on the manufacturing front 2 Wheeler and 3 Wheeler contributed 82.8%. PV’s contributed 4.5%. CVS contributed 8.8% for Q1FY26 and others would be 3.9%.
With this we can open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask the question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Manish Utwal from Nirmal Gang Securities Private Limited. Please go ahead.
Manish Ostwal
Yes sir. Thank you for the opportunity and this is my first call of Bell Rise Industries. So pardon me if I’m asking the basic thing. So I just looking at slide number five of our presentation where we mentioned revenue from trading of goods around 430crores. So can you explain what exactly we are doing in trading and and I mean what are the activities we are doing in trading and what kind of trading margin we operate generally.
Sumedh Badve
So thank you for the question. I think we have covered this briefly on the last call but just to give a very quick brief on it. We trade in commodities like again high density, differentiate grade of oil, some different batteries and so on and so forth. And the trading margins that we have are the manufacturing business goes to a 6% EBITDA margin.
Manish Ostwal
Okay. The second thing on the Capex plan which you mentioned on the call, 800 crores of capex. We are in the SaaS. So how we are planning to fund that thing, can you make a comment on that? Thank you.
Sumedh Badve
So yes it is 800 crores over two years so approximately 400 crores per year. We’ll be largely funding this through internal tools.
Manish Ostwal
Okay, thank you sir. Thank you.
Sumedh Badve
Thank you.
Operator
The next question comes from the line of Abhishek Kumar Jain from Alpha Accurate. Please go ahead.
Abhishek Kumar Jain
Thanks for the opportunity and congratulations on set of numbers. My first question on the newly acquired business of H1 India. So if you can give them first quarter numbers, revenue and EBITDA of H1.
Swastid Badve
So in the first quarter H1 had a quarterly revenue of close to 35 crores. This was down in this quarter specifically because one of the largest Japanese customers had a pretty tough quarter with their volumes falling by more than 40%. That being said, for the remaining three quarters we expect revenue to ramp up sharply and we expect this company to continue having a turnover of close to 250 to 300 crores. Around 25 million to 2000 million INR in terms of the profit after tax that this entity generated, as far as I understand was close to two and a half crores.
Abhishek Kumar Jain
And how is the operating margin of this business in first quarter and how is the outlook going ahead? Portfolio FY26
Swastid Badve
So we’ll not be commenting on the outlook for this particular business specifically we have guided for stable EBITDA margins for the full business and that’s what we can commit to right now. So my question was on the first quarter EBITDA margin, is it in the same line of the existing business or it is the lower than current? It is lower and it will improve in the coming quarter. It is slightly low right now and that was due to the, you know, drastic fall seen in the main Japanese OEM that H1 supplies to. We expect this margin to become better over time.
Abhishek Kumar Jain
So despite this integration, we have seen expansion in the operating margin in this quarter. Is it because that lower trading business revenue and that’s why the mix has improved in overall ebitda?
Swastid Badve
So if you see the last fiscal year we had an EBITDA margins full business was close to 12.3% and this quarter we have 12.4%. So we’re largely in line with what we did last year. No particular increase that we can attribute
Abhishek Kumar Jain
Because ultimately I see that other expenditure and life cost has gone up. Despite that we have seen a expansion in margin. So is it because of the lower trading business?
Swastid Badve
The trading business, if you see on one of the slides, maybe slide 8 was around 19% of our solid revenue last year, I think was close to 20%. So maybe 1% revenue decline. But I think it’s there and thereabout. It’s not a material decline in terms of the trading volumes. That’s the big standards.
Abhishek Kumar Jain
Okay, and my next question on overall business in the sheet metal, you have a very strong market share of around 35%. I just wanted to understand how is the market, say in the motorcycle scooter? You have a very strong presence in the motorcycle channel, but you are gaining market share in the scooter right now.
Swastid Badve
We just wanted to understand how the market share is and how is the outlook. So you said, you said rightly where largely motorcycle player, with the majority of our revenues coming from motorcycle as compared to scooters. That’s also due to the customers we started working with initially. If you look at our large customer, they’re largely a motorcycle player. That being said, I think the parts that we make, the chassis and the exhaust system remain quite similar whether it is a motorcycle or a scooter. For us, winning business in either one of them is dependent a lot on what the OEM is. Prioritization is prioritizing. So it is not a conscious call we make of whether we want to remain in motorcycles or scooters or so on and so forth. It really depends on what the OEM wants to offer to us and what we feel is feasible. I don’t know if that answers your question, sir.
Abhishek Kumar Jain
Actually, if we see that shifting from motorcycle to scooter and just wanted to understand what are the key business you have in the scooter segment and what are your plans to gain the business in the scooter segment to just compensate or make a better mix in the coming year?
Swastid Badve
We already have a good exposure in the scooter segment. It’s not like we’re lacking in that segment in any way or form. If, say OEM wants to shift more towards scooter volume, that will be directly shown into our mix also. So just reiterating, we are not fixed on working on any of those particular segments. It is only that our OEMs were working more in motorcycles up until now and now if they move into scooters, we’ll follow suit. Maybe a chief marketing officer can handle that.
Sunil Kulkarni
Just to clarify, if you look at the largest.
Abhishek Kumar Jain
Okay, and who is your competitor, sir? Thank you, Mr. Chief matter.
Swastid Badve
So in the sheet metal space, in the listed space, it would largely be jdmortho,
Abhishek Kumar Jain
So it’s a new metal or JB model.
Swastid Badve
JBM Group.
Abhishek Kumar Jain
Okay, and my last question on that. What is our current cash position?
Swastid Badve
Current cash position as of June 24th. June 25th. I’ll have to get back to you on that. But I think we had mentioned our net debt position which is close to 750 crores. 750.
Abhishek Kumar Jain
Thank you sir. That’s all for my. Thank you.
Operator
The next question comes from the line of Sheal Keswani from Sriram Asset Management. Please go ahead.
Sheetal Keswani
Hi sir, good afternoon. Congratulations for the basement of numbers. So what I wanted to understand is in your business vertical is there an outlook that you know you have for the E Mobility business and the suspension division or is it that all of this is a part of your two combined two wheeler, four wheeler passenger vehicles and cv? How is it?
Swastid Badve
Thank you for the question. I think right now we’re largely with I would say more than 90% of our manufacturing revenue is coming from the space. We have a presence in the polymer segment which is say another 3 to 4%. Then we have another segment where we cater to renewables, defense, consumer durable and so on and so forth. And then as you mentioned correctly we’re also in the suspension space where we supply to multiple different OEMs. We not only make front forks and rear shock absorbers but we also make the steering columns that we apply to multiple OEMs. So right now to specifically answer your question in the E Mobility space the only bet that we have made is in the hub motor space where we have set up a pilot manufacturing facility line in Pune. That plan has just been set up recently. So we are as we speak doing some sample validation, investing with some key customers but no particular revenues that are MSR in this business say over the next quarter because hub motors again being critically safety product will require a fair amount of safety and testing. On the OEM side to answer your question on suspension and steering column, I think suspensions we recently won an order penetrate in the last year won an order from one of the largest singular OEM for one of their motorcycle models. And in the steering column space we’re working with four unique players. So we’re working with European players and we’re working with three of the largest two Wheeler OEMs in India. So again both cases we’ve had strong order wins in the past six months or so and thus we expect this revenue to become material for us in the next two to three years on the back of these order wins.
Sheetal Keswani
So just to understand in the next three to four years do we see the suspension and the E mobility division being at a substantial number or the sheet metal is going to be where you know as you mentioned like it’s 80, 90 of the manufacturing business followed by polymers is being like a single digit and the others is like another 3 to 4%. So yeah, the suspension division and E mobility is more is where I’m trying to understand is from the perspective of you know, having presence as in your product portfolio or will that division be contributing or that vertical will be contributing substantially going ahead even if not in about next one or two years, but probably let’s say five years.
Swastid Badve
So immobility I wouldn’t be able to comment on given that it’s too early and the has been set up. It’s a completely new area for us. Suspension is something that I can say is something with a more, more fair bit of confidence where we’ve already been working for the past two to three years. I think in the next three to five years we would expect suspension to become a considerable revenue contributor for us and I think considerable, you know, kind of getting close to a plastic or even more than that is I think where you think it can be in the, you know, three to five year period.
Sheetal Keswani
Thanks. Sir, I have one more question.
Operator
Sorry to interrupt. May I request you to join the queue for a follow up question please?
Sheetal Keswani
Okay, sure.
Operator
Thank you. Before we move to the next participant, a request to all the participants. Please limit your questions to two questions per participant and come back in the queue for a follow up question. The next question comes from the line of Vijay Pandey from Nuama. Please go ahead.
Vijay Pandey
Thank you for taking my question. I have couple of questions, one on H1 so just wanted to check H1 is mainly a supplier of passenger vehicle, commercial vehicle or two wheeler because just want to check that decline is coming from this particular OEM or trying to better an understanding of where the decline is coming from and how it is expected to move forward.
Sumedh Badve
Thank you for your question. We unfortunately cannot comment on the specific oem but Etron is largely a big player in the 4 Wheeler Pascal Commercial 4 Wheeler Pascal Space although it has contributions in the 2 Wheeler space as well and mainly working with.
Vijay Pandey
Okay, okay, sure. Thank you. The second thing was on the margin side, gross margin also has declined by and EBITDA margin also declined. Is it primarily because of the. Because we did integrate H1 and that should. That could have impacted but just want to check what is the other impact that is driving Was there any raw material impact or how and how should we see it going forward?
Sumedh Badve
Like we did 13% last year won last year. So a couple of points that I’d like to preface this by. One is that last year we had an EBITDA margin consolidated around 12.3% and quarter one we went in with 12.4% which we think is in line with the guidance that we have. And the second part is that our raw materials are on a back to back basis, which means that usually on a quarterly or say four monthly basis we get the amendments in the POS from our respective customers. Nonetheless, there always is an increase or decrease in raw materials. And so the changes in raw materials does lead to a change in the percentage per se but the absolute figures more or less remain the same.
Vijay Pandey
Just in terms of when the steel prices come down, do we get in the same quarter or we get it in the next quarter the benefit cost?
Sumedh Badve
We get the provisioning. We get the provisioning in that particular quarter itself. But if there’s a decrease then there’s a decrease in revenue also and there’s a decrease in the particular consumption cost also. So when both the numerator and denominator increase with EBIT mar of course change within the same quarter.
Vijay Pandey
Okay, okay. And lastly sir, our finance cost did go up from. So we did because we made the payment of debt. Is it like when do we expect this to flow into the lower interest cost to flow into the PNL? Will it be Q2 I got into fiscal year or is it we have taken.
Swastid Badve
Yeah, basically last year on a quarterly basis our interest cost was around 77 to 70 that has gone up to 80 crores. The main factor behind that was that for the H1 acquisition we had issued a non convertible debenture, the interest of which was not, you know, captured in quarter four, but is captured in quarter one of this fiscal year. And on your point on the IPO payment, the payments happened, say started very late May when the IPO happened and went on June. So technically, if you think about it, the impact of those payments was only for a couple of weeks due to which that effect is not seen prominently. That being said, over say the next three quarters, there will be a significant reduction in this cost going forward.
Vijay Pandey
Okay. Okay. And so what is our expectation on the manufacturing side? EBITDA margin like in the presentation we have mentioned it has come down from 15% to 14% this quarter. So just wanted to check on that.
Sumedh Badve
Marings
Vijay Pandey
Okay. Okay. Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Nirti from Bhavya Growth Advisors. Please go ahead. Please go ahead with your question. As there is no response from the participants, we’ll move to the next participant. The next question comes from the line of Sri Narayan Mishra from Barodra, BNP Paribas. Please go ahead.
Shrinarayan Mishra
Hello sir. Good evening. Congratulations to a great set of results. So my first question was on Rare Earth impact. So are we seeing our customers, you know, delaying their production plans and as a result we are getting impacted. And was it also the reason for H1 revenues to be not in line with previous year?
Sumedh Badve
So firstly on the. On the Zair impact, cannot comment on our customer there. But as we briefly mentioned on during our presentation, what we mentioned was there is a slight impact there. It will not materially impact our revenue because our contribution is relatively low. And we expect that the lending government will figure this out in the coming days because it’s an issue of national importance for us,
Shrinarayan Mishra
So then what will be our share of revenues through pure play EV OEMs?
Sumedh Badve
EV OEMs in terms of percentage of manufacturing revenue would be closer to 5 percentage.
Shrinarayan Mishra
Okay, okay. My second question was on this merger of group companies. So has there been any progress this quarter?
Sumedh Badve
No progress as of this quarter. That being said, we are working on it internally and as of when we have an update, we’ll let you know.
Shrinarayan Mishra
Okay. Okay. So even till date. So as of today there is no update. Right.
Sumedh Badve
The only update remains is that when we filed for the RHP we had acquired a 14 stake in Budget Auto account. That is the only update in that remainder. Again, there’s regulatory, you know, requirements and there’s different types of approvals that are required before we go ahead with this acquisition. We are working on it and you know, as committed, we look to complete the Budget Auto form acquisition within this subject to the regulatory.
Shrinarayan Mishra
Okay, okay. Thank you.
Shrikant Badve
To our rhp. So it is very, very clearly complete from our side and it will happen. So nothing to worry on that path.
Shrinarayan Mishra
Okay. Okay sir, thank you. Thank you sir.
Operator
Thank you. Before we move to the next participant, a reminder to all participants, you may press star and one to ask a question. The next question comes from the line of AVI from Ocean Pin West. Please go ahead.
Unidentified Participant
Good evening. Congratulations on the good set of progress. So sir, you have we have recently incorporated a new subsidiary to cater to the defense and aerospace industry. So sir, are we looking at we are seeing opportunity in this space. Like we have onboarded team who orients in this space. So are we looking for active opportunities in the defense and aerospace industry?
Shrikant Badve
So as we mentioned in our previous talk as well, and as we like to believe that we are fundamentally a process engineering company and we can make multiple different products because of our expertise in this space, we are looking at extension diversification. This is a new entry segment for us which is largely defense and aerospace. It’s a segment that requires long distance periods and approval timelines. We’re hopeful a journey has already started. On a positive note, as we mentioned with all today, w have received a couple of orders already, including export orders which are coming in. So that is a very positive sign and we are aligning our resources to work on new projects in this segment and we believe there is an opportunity that we’d like to capitalize on.
Swastid Badve
Just one point I would like to add to that is that the defense analysis segment was something we have been working on for the past two to three years. So this first order has been three years in the making. So we feel it’s a first positive step. Again reiterating that while the first order may be modest, we expect this to further grow from here based on these three new customers that we’ll now be working with.
Unidentified Participant
What are the R and D expenses we are doing on the defense and aerospace to develop products that are aerospace on different industries.
Swastid Badve
So in terms of the R D. So we are, you know, we are largely a process engineering driven company in defense specifically the designs are floated by the customers and we use our engineering capabilities to manufacture to the best possible accuracies for them. So it’s more of process engineering in which we focus more on the dies, tooling, fixtures and the lines that we create for manufacturing.
Sumedh Badve
To add to that, it’s a built to spec product, not a built to print product.
Operator
Thank you. The next question comes from the line of Dheeraj Shah from Philip Capital. Please go ahead.
Dhiral Shah
Yeah. Good afternoon sir. Thanks for the opportunity. Sir. If I look at our manufacturing level that has grown almost 29% and I can understand that our four wheeler and three wheeler contribution have grown up, you know, looking at the equation that we have done. So what kind of growth we have seen on the two wheeler side.
Swastid Badve
So we have the percentages that are there in our presentation. We don’t have them handy right now but you can just do a simple comparison based on the percentages mentioned on page basis.
Sumedh Badve
And with the exact simple number we can get back to you.
Dhiral Shah
Okay. And sir, our other expenses have grown, you know, higher than our revenue growth. So it was up 40% on a YY basis. And maybe that is the reason why our margins have lower on a YOY as compared to last year. So any particular reason for other expenses going up?
Swastid Badve
So one key reason for that was repair and maintenance expenses in quarter one were higher. I think they were higher by almost two and a half times as compared to the same time last year. And as you imagine the parent expenses are not really calibrated equally throughout the year due to which they need to second is that H1 has also been consolidated in this quarter and it was not there due to which some other expense of theirs have also been added.
Dhiral Shah
Okay, so during nature are we confident of maintaining, you know, at least 14% kind of an EBITDA margin on the manufacturing side? This is including the subsidy that we are, you know, receiving across maybe a few clients.
Swastid Badve
So to ask your question, subsidy. The subsidy will continue to receive in the quantum of 100 to 120 crores, say over the next decade. We’ll for now only comment on the consolidated EBITDA percentage which is for which we are guiding for a stable EBITDA margin.
Dhiral Shah
Okay. Okay. Thank you so much sir. Thank you.
Operator
Thank you. The next question comes from the line of Bharat Gulati from Dalal and brochure, please go ahead.
Bharat Gulati
Oh yeah, hi. Could you quantify what would be if the defense revenue has started to come in from this quarter and if not then what would be the percentage that it would be of our total revenue?
Sumedh Badve
It’s still very early stages these new orders have been achieved. At this moment we cannot comment on the on where this will go, but we’re hopeful and we look at this as a, a new growth opportunity.
Bharat Gulati
Okay, and out of the 800 crore capex that is planned over the next two years, what which segment of that revenue is it focused towards, if you can mention?
Swastid Badve
So I think of course there would be a larger indexation on Covid and commercial vehicles since we want to double our revenue in the space in the next two to two and a half years. And apart from that, I think two years also will be something that we’ll closely look at because I think as we mentioned we’re starting work with a couple of new OEMs and when you usually start working it kind of entails setting up a new facilities. In that sense I think we should stick to the 800 crores over the next two years. The mix of it will be optimistic.
Bharat Gulati
So would it be right to say that four wheeler passenger and commercial will grow faster or in like segmental revenue as compared to two wheelers? So is there some margin breakup that you can give us for that? If it’s possible.
Sumedh Badve
We don’t use segment margin breakups.
Bharat Gulati
Okay. And out of the 800 crore capex, is H1 also there in it or is it purely. I mean, what is the breakup between the H1 and our traditional.
Swastid Badve
It includes H1. And the good part about H1 and maybe Sumesh can talk more about this is that when we acquire the facility or even now, the capacitisation that we have in H1 is not even more than 40%. So there’s a huge hope to increase our revenues in H1 with the current machinery and assets. We don’t think H1 as a company or as an asset will require a lot of capex for us going forward.
Sumedh Badve
Obviously the automobile industry, the brand, commercial agents are doing products. The. And the change period is a little longer. So we expect that in the coming quarters we can possibly leverage that operational capability by leveraging our available capacities and expand that with little additional incremental.
Bharat Gulati
So when can we see H1 ramp up? I mean, when can we see the capacity utilization reaching a higher number?
Sumedh Badve
Just taken over the company. It’s been just a couple of months. We’ll continue to understand the company, integrating the company with our core operations. I think for us to come up with a definitive business plan will still take a few more months. We’ll get back to on that when we have a clear picture of it.
Bharat Gulati
Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Shreya Tiwari from VT Capital. Please go ahead.
Shreya Tiwari
Hello.
Operator
Yes, ma’. Am. Audible. Please go ahead.
Shreya Tiwari
Thank you for giving me this opportunity. So my first question is, as you mentioned in the presentation, does the company. So could you share more detail about the company?
Operator
These ma. Sorry to interrupt. Your audio is not clear. May I request you to use any handsets please?
Shreya Tiwari
Yes, yes, yes, sure. Hello,
Operator
May I. Audible. Can you just. Louder please. Ma’, am. Please go ahead.
Shreya Tiwari
Hello.
Operator
Thanks for sharing. Can’t hear you. May I request you to join the queue again? Hello ma’, am, it is not very clear. You can join the queue again please.
Shreya Tiwari
Thank you so much. Thank you.
Operator
Thanks. The next question comes from the line of Dipesh from Manya Finance. Please go ahead.
Deepesh Sancheti
Firstly my first question was regarding the debt. Only since we reduced the debt and the interest cost has remained the same. Can you just guide on what should be the expected interest cost going ahead? And since we are also planning a 800 crore capex where most of our internal accruals will go for this capex.
Swastid Badve
So the reason the repayment of debt has not affected interest box is because it happened mostly at the end of May 30 June. So there’s just a couple of weeks of interest seeing that happen. Of course it was offset by the non convertible debenture that we took for acquiring H1. That is to answer your question, is there anything additional?
Deepesh Sancheti
No, going ahead. What should be the interest cost? That is what the latter part of the question was.
Rahul Ganu
So interest cost for us should be around 9 to 9.5%.
Deepesh Sancheti
Okay, fine. And also on the CapEx which we are doing, what will we be working on a similar kind of roe or will it be a better roe?
Rahul Ganu
The endeavor and initiative to take us from say a mid teens type of ROCE company to a high keen ROC company. And lastly that will do with taking on projects which have a higher grown mixed capital. So in fact there are plants that we’re setting up in Pune for long numbers we expect to have a higher than what we have as a company and the higher capacitation that we endeavor to continue to get. So today we’re around 65% capacity. We want to get to a 70% capacity over the next two years. So we also feel that will bring in some advantage and will lead to higher roc.
Deepesh Sancheti
Right. And when we mentioned that there is a transition from a tier one supplier. Your point by supplier. Now can you just stress how is this going to be beneficial and exactly what will be a system supplier? Do we set up factories at our OEM factories also? Is that kind of working? We are doing.
Swastid Badve
To answer your question, if you look at the parts that we manufacture, they are from a weight perspective and volume perspective, they’re very big. So traditionally we’ve been setting up our factory very close to our OEMs. Now regarding Tier 1 to Tier 0.5, the advantages are very clear because when we are, when we talk About a tier 0.5 concept, we are doing sub assemblies. That means apart from the parts that we do like chassis or frames, we also add on a lot of other bought out parts on the chassis and which is then supplied to the, directly supplied online to the oem. This has helped us to increase our stickiness with the OEMs. We become their preferred supplier whenever any new programs come up because of the kind of investments that we’ve done for them and the confidence that we’ve built over the past many years by supplying almost, you know, a very large sub assembly to them which goes defectory, which goes as per their requirements. And we have not had any issues until now. So there are inherent advantages that we get.
Deepesh Sancheti
Okay, great. Thank you so much guys. Always.
Operator
Thank you. Ladies and gentlemen, we’ll take this as the last question for today. I will now hand the conference over to the management for closing comments.
Sumedh Badve
I would like to thank everyone for their time, interest and questions I hope we’ve been able to address. We remain confident in our growth strategy both near term and long term, driven by strategic investments and a commitment to advancing products and economy. With any further credit, please reach out to us all, our advisors, our IR partners, Strategic Growth Advisors. Thank you once again for joining.
Operator
Thank you on behalf of Bell Rise Industries Ltd. That concludes this conference. Thank you all for joining us and you may now disconnect your line. Thank you.