How the latest billionaire of India spreads its business

Copyright © HT Digital Streams Limit all rights reserved. From auto parts to commodity trade – India’s latest billionaire hedges his bets Ayaan Kartik 4 min read 24 Sept 2025, 07:36 pm ist Shrikant Badve, MD of Belrise Industries Ltd. In summary, it is rare for a car -shared manufacturer to be involved in commodity trading. However, for Belrise Industries, the business has been more than tripled to more than a fifth of its total income since 2022. A rare boom in the debut – 67% since the listing in May – recorded Belrise Industries Ltd’s promoter Shikant Badve in the Dollar Billionaires’ Club on Tuesday. Yet the bet that has driven the growth of the Pune-headed car-shared maker-an aggressive pressure to commodity trading-also that makes analysts restless, given the volatility of the global market, geopolitical risks and the uncertainties linked to lithium-ion batteries, the lifeline of the electrical vehicle (EV). Belrise is also trading steel, coils and some electronic products. Indeed, it is rare that a manufacturer of auto parts is involved in commodity industry. However, for Belrise Industries, the business has been more than tripled to more than a fifth of its total income since 2022. A commodity industry involves the purchase of goods from a supplier and then sells it to different buyers at an increased price, which earns margins from the arbitrage. Along with its core business of component manufacturing, which exports Belrise through 17 facilities in ten cities across the country, it has expanded to commodity trading companies, which do so through a Dubai-based subsidiary Badve Engineering Trading Fze. The company focuses on two regions, West Asia and Asia-Pacific. This business earns an income of £ 1,697 crore in the financial year 2025 (FY25), and grew by 17% compared to the 9% growth recorded in the manufacturing business. The commodity industry has a 21% share in the total turnover of the firm, which grew in about 9% of turnover, or £ 501Crore, in FY22. According to the company’s revelations, it gets an operating profit margin of about 6% of commodity trading, much lower than the total profit margin of 12%. Analysts had the commodity industry with a red flame, with one broker even saying that the decline of the unit could increase the company’s valuation in the stock markets. LKP Securities, a brokerage firm, said in a remark of September 23 that the margins of 6% are significantly lower than the typical 14% coming from the manufacturing business, which harms the profitability of the business. The company’s net profit in FY25 was 13% higher than £ 355. “We are careful with Belrise’s trade arm: It dilates the margins and extends further than core operations. A gradual scale would, in our opinion, support group margins and the valuation of a meaningful support,” Ashwin Patil and Rahul Deshmukh of LKP Securities wrote. A request for comments from Belrise remained unanswered until purple time. Despite concerns about the side business that acts as a trance on its profitability, PhillipCapital India analysts wrote in a July 17 note that management expects it to grow in the coming years, although in a high single digit, rather than the double-digit growth seen over the past few years. The trading business conducted by the business is a low profitability, and low growth in this business will affect the total profitability of the business, said Dhiral Shah of PhillipCapital. Analysts’ concerns about the company’s trade arm have not yet transferred to shareholders. On Tuesday, Badve’s shareholding of almost 60% in the component firm crossed the $ 1 billion valuation, adding it to the list of promoters whose stake in their businesses crossed the $ 1 billion point. Founded in 1988, Belrise considers itself a tiger-1 supplier of components such as chassis systems, polymer components, battery holders and suspension system, including top companies, including Bajaj Auto, Tata Motors, Jaguar Land Rover, Hero Motocorp and Royal Enfield, among others. ‘We trade in commodities such as high-at-tile steel, different degrees coils, some lithium-ion batteries, and so on, and so on. And the trading margins we have, of course, are lower than manufacturing business, near a 6% ebitda (earnings before interest, tax, aging and amortization) margin, ‘Swastid Badve, COP or staff (management director), said at the company’s June. August. Swastid is the son of the founder and managing director of Shikant Badve. Some analysts also claim that the company’s exposure to the international commodity markets is good for diversification. Analysts at Sunidhi Research wrote in a note on August 26 that the business model of commodity trading involves goods in bulk and then sells in smaller lots that enable a business to avoid significant stock possession and reduce exposure to price volatility. “All trading revenue is derived from third-party transactions, without reversing businesses, which ensure a clear segregation of other group enterprises. This setup allows the business to explore international commodity markets effectively while maintaining operational synergies and risk converting,” said Saurabh Jain of Sunidhi. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #Belrise Industries Read Next Story