Kheria Autocomp Limited, a Gujarat-based auto ancillary manufacturer specializing in plastic injection moulding components, 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 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%.

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.

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.

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.

Important IPO Dates

• IPO Open Date: 17-Sep-2026
• IPO Close Date: 21-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, investors should note the high concentration of revenue among a few customers and within the Gujarat region.