CMR Green Technologies IPO

The company operates at a massive scale, with production capacity nearly four times larger than its closest Indian competitor. In the automotive cast alloy segment, it holds around 42-45% market share, giving it strong pricing power and a stable position in the industry.

A large part of the business comes from repeat customers, contributing around 96-97% of total revenue. Many relationships with automobile companies have continued for 16-19 years, which helps the company maintain steady and predictable demand.

The company directly supplies hot liquid aluminium to customers located within a 25-kilometer radius. This gives it a major edge because customers save around 6-7% in costs by avoiding the need to remelt the metal. It also helps reduce carbon emissions by nearly 528 kilograms per metric tonne.

To reduce supply risk, the company sources scrap from 198 suppliers across 73 countries. Even its top 10 suppliers contribute only around 38% of total purchases, which lowers dependence on any single supplier and supports smoother operations.

The company has joint ventures with well-known Japanese players like Nikkei MC Aluminium and Toyota Tsusho. These partnerships give it access to advanced technologies, including green aluminium products, while also improving product quality and expanding its market reach.

The company relies heavily on a small group of buyers. Its top 10 customers contribute around 50% of total revenue. On top of that, nearly 79% of sales come from the automobile sector, which means any slowdown in the auto industry can directly hurt the business.

Total borrowings increased to around ₹1,303 crore by December 2025. Because of this, its debt-service coverage ratio, which measures how comfortably a company can repay debt, fell to 1.53. This leaves very little room to handle economic stress or weak business conditions.

The business has been struggling to generate cash from operations. It reported a negative operating cash flow of ₹92 crore in FY25, which later worsened to nearly ₹387.7 crore negative as of December 2025. If this continues, the company may need to borrow even more money to run operations.

A large part of the company’s raw material comes from imports, with 49.81% sourced from the United States alone. Since raw material costs already make up almost 87.96% of revenue, any currency fluctuations or global shipping disruptions can quickly impact profit margins.

The company reported a huge loss of ₹838.6 crore in FY24, mainly because of a large goodwill write-off, which is basically an accounting adjustment related to past acquisitions. As a result, its net worth dropped sharply from ₹1,195 crore to just ₹317 crore.

Even after investing heavily across 13 facilities, the company is operating at only around 67.67% capacity utilization. In simple terms, a big part of its manufacturing capacity is still unused, which can increase fixed costs and hurt overall efficiency.