Kheria Autocomp Limited

Kheria Autocomp Limited is an auto ancillary enterprise engaged in precision plastic injection moulding and sub-assembly operations. The company specializes in manufacturing custom-moulded plastic components primarily for the automotive passenger vehicle sector, serving both internal combustion engine (ICE) and electric vehicle (EV) platforms. Its core value proposition centers on delivering high-precision interior cabin trims, exterior body components, under-hood parts, and heating, ventilation, and air-conditioning (HVAC) ducts produced strictly in accordance with client specifications. Operating as a Tier-II supplier under a B2B business model, the company manufactures components that are supplied to established Tier-I automotive component vendors, who subsequently integrate them into larger systems for leading Original Equipment Manufacturers (OEMs).

The company's primary target customer segment consists of major Tier-I automotive suppliers located within key industrial manufacturing clusters. Geographically, Kheria Autocomp Limited's revenue is heavily concentrated in Gujarat, which accounted for 99.96% (₹11,997.03 Lakhs / ₹119.97 Cr) of total operational revenue in Fiscal 2026, while Maharashtra and West Bengal contributed the remaining balance. Customer concentration is high, with the top 10 customers generating 99.95% (₹11,995.56 Lakhs) of total revenue from operations in Fiscal 2026. This geographic and client alignment allows the company to support Just-in-Time (JIT) manufacturing schedules for passenger vehicle production.

Manufacturing operations are currently centralized at a single facility (Plant I) situated on 3 acres of leased land within the Tata Vendor Park, Revenue Survey No. 1, Village Northkotpura, Sanand, Gujarat. The plant is equipped with 30 plastic injection moulding machines with clamping forces ranging from 120 tons to 1,700 tons, majorly supplied by Milacron India Private Limited. According to the independent Chartered Engineer certificate in the RHP, installed manufacturing capacity and actual capacity utilization figures were as follows:

Fiscal 2024: Installed Capacity of 4,200 MTPA; Actual Production of 3,215.00 MT; Capacity Utilization of 76.55%.

Fiscal 2025: Installed Capacity of 4,200 MTPA; Actual Production of 4,154.00 MT; Capacity Utilization of 98.90%.

Fiscal 2026: Installed Capacity of 5,400 MTPA; Actual Production of 5,061.45 MT; Capacity Utilization of 93.73%.

To overcome capacity constraints at the existing plant, the company is deploying IPO fresh issue proceeds to construct a new manufacturing unit (Plant II) on 15,900 square meters of leased industrial land at Plot E-560, GIDC Sanand-II Industrial Estate, Rasulpura, Sanand. This project will add an estimated 2,400 MTPA of injection moulding capacity, expanding total operational capacity to 7,800 MTPA.

Operational capabilities are supported by progressive process automation, including multi-axis robotic systems on injection moulding lines, microprocessor controls, vision measuring equipment for dimensional verification, and SAP software for real-time inventory and production tracking. The facility holds IATF 16949, ISO 14001:2015, and ISO 45001:2018 quality, environmental, and occupational safety certifications. Environmental sustainability highlights include an operational 636 kW on-grid rooftop solar power system at Plant I that reduces reliance on conventional grid electricity. As of March 31, 2026, the company employed a workforce of 119 personnel.

Financially, Kheria Autocomp Limited has posted total income / net profits of ₹62.40 Cr / ₹3.31 Cr (FY24), ₹92.31 Cr / ₹8.24 Cr (FY25), and ₹120.30 Cr / ₹11.42 Cr (FY26). The company has demonstrated robust top-line and bottom-line expansion with a 3-year revenue CAGR of 38.77% and PAT CAGR of 85.87%, while total debt increased from ₹18.83 Cr in FY24 to ₹30.90 Cr in FY25, standing at ₹35.03 Cr in FY26. The company has an average EPS of ₹8.01 and an average RoNW of 31.26% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 2.88 as per an NAV of ₹35.13 on March 31, 2026. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.86. Attributing the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, the asking price is at a Post-Issue P/E of around 48.41, 19.41, and 14.01 respectively. As per the RHP, a comparison between listed peers are shown in above table.

SMC Capitals Limited is the Book Running Lead Manager (BRLM), having handled 2 public issues to date. Both issues listed at or above the offer price on listing day, though both are currently trading below their issue prices over the medium term. (As on 13.09.26)

• 1 Tara Chand Kheria
• 2 Vinay Kheria
• 3 Sushma Kheria
• 4 Santosh Devi Kheria