KSH International IPO

It’s the third-largest maker of magnet winding wires in India by capacity, and it’s also India’s biggest exporter of these products. As of 2024, it has a 13.7% share of the domestic market, which basically puts it among the more important players in the electrical components space.

The company has grown fast, with revenue from operations rising at a CAGR (compound annual growth rate) of 35.6%, from ₹1,049.5 crore in FY23 to ₹1,928.3 crore in FY25. That’s well ahead of the peer average growth of around 16%.

It’s reduced its dependence on only India by exporting to 24 countries, including the USA and Germany. In FY25, exports brought in ₹590.36 crore, which was 33.20% of total product sales, so exports act like a second engine for growth.

Customer stickiness looks strong. In FY25, 94.54% of operating revenue came from repeat customers, meaning the same buyers came back again compared to the previous year, which is a good sign in an industrial business.

Profits have jumped even faster than revenue. Profit after tax grew at a CAGR of 59.8% over the last three years, going from ₹26.61 crore in FY23 to ₹68 crore in FY25, helped by better efficiency in operations.

It seems to squeeze a lot out of its factories. For example, the Chakan Unit 2 facility ran at 96.10% capacity utilisation (how much of the plant’s maximum output is being used) for specialized wires in FY25. With a total installed capacity of 29,045 metric tonnes, high utilisation generally means strong demand and efficient production planning.

Lately, the business hasn’t been generating cash from its day-to-day operations. It reported negative operating cash flow (cash from core operations) of ₹9.77 crore in FY25 and ₹17.23 crore in FY24, mainly because it needs a lot of working capital (money tied up in inventory and customer payments).

A big chunk of revenue comes from a small set of customers. In FY25, its top 10 customers made up 52.54% of revenue from operations (the top two contributed nearly 23%), so if even one or two major clients reduce orders or switch suppliers, total income could take a real hit.

The company is carrying meaningful debt, with total borrowings of ₹519.43 crore as of October 31, 2025. It plans to use ₹225.98 crore from the IPO proceeds specifically to repay part of these loans, which should ease pressure on the balance sheet.

It also leans on a very small group of suppliers for key raw materials like copper and aluminium. In FY25, the top 10 suppliers accounted for 98.45% of total raw material costs, which means disruptions, delays, or even price increases from these vendors could quickly squeeze margins.

Its working capital cycle (how long money stays stuck in inventory and customer dues before it returns as cash) has stretched. Net working capital days increased to 80 days in FY25 from 73 days in FY23, which usually means the business needs more funding just to keep the same level of sales running.

The business is quite dependent on the power sector. In FY25, power-related customers contributed 74.79% of operating revenue, so if the power generation or transmission space slows down (because of policy changes, lower capex, or any broader downturn), it could directly hurt sales and growth.

A clear risk lies in the US export exposure. The United States contributed 25.70% of exports, and some electrical components exported there can face combined tariffs of up to 50%. If tariffs bite harder or customers switch sourcing, export growth could slow.