Kheria Autocomp Plans 44% Capacity Rise After 93.73% Utilisation

Kheria Autocomp Limited plans to raise plastic injection-moulding capacity by 44.44%, from 5,400 metric tonnes (MT) a year in the financial year ended March 31, 2026 (FY26), to 7,800 MT after expansion. The plan follows FY26 production of 5,061.45 MT, equal to 93.73% utilisation at its existing Sanand facility.

Why is Kheria Autocomp adding a second moulding facility?

Kheria Autocomp is adding capacity because its existing plant was operating near its stated annual limit in FY26. Installed capacity rose from 4,200 MT in FY25 to 5,400 MT in FY26, while production increased from 4,154 MT to 5,061.45 MT. Although utilisation fell from 98.90% in FY25, the decline reflected the 1,200-MT capacity addition rather than lower output, as production increased by 907.45 MT.

The proposed expansion is 2,400 MT, taking stated installed capacity to 7,800 MT. That is a 44.44% increase on the FY26 base and would leave 2,738.55 MT of annual capacity beyond FY26 production if output remained unchanged. The expansion therefore depends on Kheria Autocomp converting demand from existing Tier-I suppliers and potential customers into volumes that use the added capacity.

Kheria Autocomp’s existing manufacturing unit is in Tata Vendor Park, Sanand, Gujarat, and occupies about 3 acres. It has 30 injection-moulding machines with capacities ranging from 120 tonnes to 1,700 tonnes, supported by more than 20 industrial robots. Injection moulding is the process of heating plastic resin and injecting it under pressure into a mould cavity to produce a specified component.

Where will Kheria Autocomp’s new capacity be located?

Kheria Autocomp plans to locate Plant II at GIDC Sanand-II Industrial Estate, close to its existing Tata Vendor Park plant. GIDC means Gujarat Industrial Development Corporation, the state industrial-development body. The company holds a 99-year lease from February 4, 2025 for Plot E-560 at Village Ralsupura, Sanand, covering 15,900 square metres.

Construction of the new facility has started, but the disclosure does not state a commissioning date or expected production ramp-up schedule. The 2,400-MT increase is based on a cost-vetting report dated August 18, 2026. Actual capacity availability will depend on completion of construction, installation of machinery and utilities, and operational commissioning.

Kheria Autocomp says proximity between the two Sanand-area facilities should allow it to share managerial, technical and administrative functions, allocate production flexibly and reduce inter-plant movement costs. In FY26, outward freight and carriage expense was Rs 1.97 crore, or 1.64% of revenue from operations, compared with Rs 1.64 crore, or 1.78%, in FY25.

What products and customers must support the added capacity?

Kheria Autocomp must secure continued orders from Tier-I vendors and broaden its customer base for the additional capacity to be used. A Tier-II supplier provides components to Tier-I vendors, which then supply original equipment manufacturers, or OEMs, that assemble vehicles. Kheria Autocomp produces plastic moulded interior trims, exterior parts, under-hood components and heating, ventilation and air-conditioning, or HVAC, ducts for internal-combustion and electric vehicles.

Customer concentration makes volume continuity particularly important. The top five customers contributed 97.32% of FY26 revenue, compared with 97.43% in FY25 and 98.65% in FY24. The top 10 customers generated Rs 119.96 crore in FY26, equal to 99.95% of revenue from operations of Rs 120.01 crore, so demand changes among a small group of customers could affect production planning at both plants.

Kheria Autocomp’s strategy is to increase content per vehicle, meaning the value of components or assemblies supplied for a vehicle platform. It intends to move beyond individual moulded parts into integrated sub-assemblies that may include trimming, welding, painting or fitting of inserts. It also plans electric-vehicle-specific products, including battery enclosures, charging-system housings, thermal-management parts and power-electronics protective casings, but has not disclosed customer contracts for these planned products.

How did output growth translate into Kheria Autocomp’s FY26 financial results?

Kheria Autocomp’s FY26 revenue and profit rose alongside higher production volumes and capacity utilisation. Revenue from operations increased 30.35% year on year to Rs 120.01 crore in FY26 from Rs 92.07 crore in FY25, following a 47.74% increase in FY25 from Rs 62.32 crore in FY24. The company stated a 38.77% compound annual growth rate across FY24 to FY26.

Profit after tax rose to Rs 11.42 crore in FY26 from Rs 8.24 crore in FY25 and Rs 3.31 crore in FY24. The profit-after-tax margin increased to 9.52% in FY26 from 8.95% in FY25 and 5.31% in FY24. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose to Rs 22.90 crore in FY26, while its margin increased to 19.08% from 17.58% a year earlier.

The reported figures show that FY26 output growth coincided with higher reported margins, but they do not establish what margins the new facility will generate. Kheria Autocomp reported capital work-in-progress of Rs 18.41 crore at March 31, 2026, compared with nil in FY25 and FY24, indicating that expansion-related investment was underway. Future results will depend on demand, raw-material availability, production efficiency and project-completion costs.

What operating risks could limit use of the expanded plant?

Kheria Autocomp’s principal operating risk is that capacity use depends on a concentrated customer base and customer-approved material supply. Its top customer represented 30.03% of FY26 revenue, lower than 35.19% in FY25 and 49.94% in FY24, but still a material proportion. Tier-I vendor demand is linked to OEM procurement cycles, so reduced or discontinued customer demand could result in idle capacity.

Supplier dependence is also substantial, although less concentrated than customer revenue. The top 10 suppliers accounted for 77.48% of raw materials consumed in FY26, compared with 78.64% in FY25 and 87.41% in FY24. Kheria Autocomp uses customer-approved thermoplastics including polypropylene, acrylonitrile butadiene styrene and nylon, and delays in procuring approved materials could disrupt production schedules.

Kheria Autocomp has operating infrastructure intended to support production consistency, including a 636-kilowatt rooftop solar plant and four groundwater recharge wells. Electricity expense was Rs 3.55 crore in FY26, compared with Rs 2.86 crore in FY25. The solar installation supplies only a portion of requirements, so the disclosure does not quantify its effect on energy costs or the expanded plant’s power requirement.

Conclusion

Kheria Autocomp’s proposed 2,400-MT addition is supported by an operating constraint at the existing plant: FY26 production of 5,061.45 MT used 93.73% of its 5,400-MT annual capacity. The case for the 44.44% increase is also accompanied by FY26 revenue growth to Rs 120.01 crore, but use of the new capacity will rely on order growth rather than capacity alone.

The next items to watch are completion and commissioning of Plant II, for which construction has started but no operating date has been disclosed, and whether Kheria Autocomp diversifies beyond customers that supplied 97.32% of FY26 revenue through its top five accounts. Progress in integrated assemblies, electric-vehicle-related components and additional Tier-I relationships would be relevant to filling the proposed 7,800-MT capacity.