Kheria Autocomp IPO DRHP: ₹39.96 crore fresh issue; revenue CAGR at 38.77%
- Kheria Autocomp files DRHP for ₹39.96 crore fresh issue to fund new Sanand facility
- Revenue CAGR stands at 38.77%, with FY26 revenue reaching ₹120.01 crore
- PAT grew to ₹11.42 crore in FY26 from ₹3.31 crore in FY24
- Top five customers contribute 97.32% of revenue, posing concentration risk
- IPO opens on September 17, 2026, with listing scheduled for September 24
*this image is generated using AI for illustrative purposes only.
Kheria Autocomp Limited, a Gujarat-based Tier-II auto ancillary manufacturer specializing in plastic injection moulding, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The company plans to raise ₹39.96 crore through a fresh issue to fund the establishment of a new manufacturing facility at GIDC Sanand-II Industrial Estate.
About the Company
Incorporated in 2009, Kheria Autocomp operates as a Tier-II supplier in the automotive supply chain, manufacturing moulded plastic components per Tier-I vendor specifications for Original Equipment Manufacturers (OEMs). Its product portfolio includes interior cabin trims, exterior plastic parts, under-hood components, and HVAC ducts for both Internal Combustion Engine (ICE) and Electric Vehicles (EVs).
The company’s primary facility is located at Tata Vendor Park in Sanand, Gujarat, a major automotive hub. It utilizes 30 injection moulding machines with capacities ranging from 120 tons to 1,700 tons and over 20 industrial robots for production. Additionally, the company operates a 636 kW rooftop solar power plant to support sustainability and cost efficiency.
Financial Performance
Kheria Autocomp has demonstrated strong growth over the past three years. Revenue from operations grew from ₹62.32 crore in FY24 to ₹120.01 crore in FY26, reflecting a Compound Annual Growth Rate (CAGR) of 38.77%. Profit After Tax (PAT) increased from ₹3.31 crore in FY24 to ₹11.42 crore in FY26, a CAGR of approximately 85.67%.
| Metric | FY2024 (₹ Cr) | FY2025 (₹ Cr) | FY2026 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 62.32 | 92.07 | 120.01 |
| Total Expenses | 57.27 | 81.87 | 104.67 |
| Profit Before Tax (PBT) | 5.13 | 10.44 | 15.63 |
| Profit After Tax (PAT) | 3.31 | 8.24 | 11.42 |
| Total Assets | 53.14 | 81.79 | 106.23 |
| Total Equity | 20.00 | 28.24 | 39.52 |
Operating cash flows improved significantly to ₹26.03 crore in FY26 compared to ₹8.40 crore in FY25. However, the current ratio stood at 0.82x in FY26, indicating that current liabilities exceeded current assets. Outstanding secured debt as of March 31, 2026, stood at ₹31.02 crore.
Why the Company Is Raising Funds
The entire proceeds of ₹39.96 crore from the fresh issue are intended for part-funding the capital expenditure required to set up a new manufacturing facility for plastic moulded auto components at Plot E-560, GIDC Sanand-II Industrial Estate. This expansion aims to increase overall capacity and achieve economies of scale. General Corporate Purposes are also listed as an object of the issue, though no specific amount is allocated.
Business Strengths
- Strategic Location: Situated at Tata Vendor Park, Sanand, reducing freight expenses to 1.64% of revenue in FY26 due to proximity to suppliers and customers.
- Technology-Enabled Manufacturing: Utilization of over 20 industrial robots installed since 2020 enables complex moulding techniques for both ICE and EV platforms.
- Sustainability Initiatives: Operation of a 636 kW rooftop solar power plant and four groundwater recharge wells supports environmental goals.
- Quality Control: Dedicated quality assurance facilities maintain quality-related costs below 1% of revenue.
Key Risks
- Customer Concentration: The top five customers contributed 97.32% of total revenue in FY26, with the single largest customer accounting for 31–50% of revenue. Any reduction in demand from these key Tier-I vendors could severely impact operations.
- Geographic Concentration: Between 99.88% and 99.96% of revenues are derived from Gujarat-based customers, exposing the business to regional economic or regulatory risks.
- Raw Material Dependency: Raw materials represent 67–68% of revenue, with top ten suppliers accounting for 77–87% of consumption. Customer-approved supplier restrictions limit sourcing flexibility.
- Single Facility Risk: The company currently operates from a single manufacturing unit, making it vulnerable to operational disruptions or equipment failures.
- Debt Obligations: The company has outstanding secured debt of ₹31.02 crore and a prior One-Time Settlement history with Omkara Asset Reconstruction, which may affect its credit profile.
Important IPO Dates
- IPO Open Date: 17-Sep-2026
- IPO Close Date: 21-Sep-2026
- Allotment Date: 22-Sep-2026
- Listing Date: 24-Sep-2026
Offer Details
- Issue Size: ₹39.96 Crore (Fresh Issue)
- Offer for Sale: Not Available
- Price Band: Not Available
- Lot Size: Not Available
Bottom Line
Kheria Autocomp is leveraging its strong revenue growth and strategic location in Sanand to expand capacity through a ₹39.96 crore fresh issue. While the company benefits from improving profitability and automation, high concentration of revenue among a few customers and within the Gujarat region presents material risks.
How will the new Sanand-II facility alter Kheria Autocomp's current customer concentration risk, and are there plans to diversify its client base beyond the top five Tier-I vendors?
Given the current ratio of 0.82x and existing secured debt of ₹31.02 crore, how will the IPO proceeds impact the company's liquidity position and debt servicing capabilities in the short term?
With raw materials constituting nearly 68% of revenue, what hedging strategies or supplier diversification plans does the company have to mitigate volatility in plastic resin prices?
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