Kheria Autocomp Top Five Customers Account for 97% Revenue

Kheria Autocomp Limited derived 97.32% of revenue from operations from its top five customers in the financial year ended March 31, 2026. The share was 97.43% in fiscal 2025 and 98.65% in fiscal 2024, leaving Kheria Autocomp dependent on a narrow group of automotive supply-chain customers and original equipment manufacturer procurement cycles.

How concentrated is Kheria Autocomp's customer revenue?

Kheria Autocomp's top five customers accounted for more than 97% of revenue from operations in each of the three reported financial years. In fiscal 2026, the top five accounted for 97.32%, while the top 10 accounted for 99.95%, meaning customers outside the top 10 represented 0.05% of revenue from operations.

Dependence on the single largest customer declined, but dependence on the broader leading group remained nearly unchanged. The largest customer's share fell by 18.95 percentage points, from 49.94% in fiscal 2024 to 30.99% in fiscal 2026, whereas the top-five share declined by only 1.33 percentage points over the same period.

The reported revenue from Kheria Autocomp's top 10 customers increased from Rs 62.30 crore in fiscal 2024 to Rs 92.07 crore in fiscal 2025 and Rs 119.96 crore in fiscal 2026. The disclosed figures show that revenue growth occurred while virtually all sales continued to come from 10 customers, rather than from a substantially broader customer base.

Why do Tier-I vendors and OEM procurement cycles matter to Kheria Autocomp?

Kheria Autocomp's revenue depends on automotive production because its orders are linked to demand from Tier-I vendors and, ultimately, original equipment manufacturers, or OEMs. Kheria Autocomp manufactures plastic injection-moulding sub-assemblies primarily for the automotive sector and says products are made to designs and specifications supplied by Tier-I vendors, which in turn supply directly to OEMs.

This arrangement can transmit a reduction in OEM production schedules to Kheria Autocomp's order flow. The company identifies automotive cyclicality, regulatory restrictions on vehicle categories, delayed adoption of technologies and fluctuations in consumer demand as factors that may reduce OEM volumes and Tier-I purchases. It says reduced purchases could result in lower capacity utilisation, inventory build-up and pressure on margins.

The prospectus cites OEM-linked auto-component sales of Rs 3.00 lakh crore in the first half of fiscal 2026, compared with Rs 2.84 lakh crore in the first half of fiscal 2025, an increase of 7.3%. It also cites aftermarket turnover of Rs 53,160 crore in the first half of fiscal 2026, but says Kheria Autocomp has limited participation in that market, leaving its operations predominantly exposed to OEM-linked demand.

What could cause Kheria Autocomp's customers to cut orders?

Kheria Autocomp says customers may reduce or discontinue purchases if Tier-I vendors rationalise suppliers, make components in-house, face financial stress, or experience lower demand from OEMs. The company also identifies pricing pressure and customer cost-reduction initiatives as potential causes of lower purchases from its concentrated customer base.

Vendor rationalisation could affect a significant part of sales because the top five customers represented 97.32% of fiscal 2026 revenue from operations. To maintain that revenue concentration, Kheria Autocomp would need its leading customer relationships to continue generating orders consistent with their procurement requirements and the production schedules of OEMs.

Technology and regulation may also change the components required by customers. Kheria Autocomp identifies shifts between internal-combustion-engine vehicles and electric vehicles as a risk, while its automotive-sector disclosure also cites accelerated electric-vehicle adoption, changes in safety or emission norms, and greater supply-chain localisation. The company says it may be affected if it cannot adapt its operations and product portfolio to such changes.

Does Gujarat concentration add to Kheria Autocomp's customer risk?

Kheria Autocomp's customer revenue is concentrated both by buyer and geography, with Gujarat-based customers generating 99.96% of revenue from operations in fiscal 2026. The corresponding shares were 99.92% in fiscal 2025 and 99.88% in fiscal 2024, leaving customers in all other states collectively responsible for less than 1% in each year.

Kheria Autocomp attributes this concentration to the location of key customers, including automotive OEMs and major Tier-I suppliers, in Gujarat's automotive manufacturing and supplier cluster. The company says proximity supports logistics, just-in-time delivery and customer-specific production schedules. Just-in-time delivery means supplying parts close to the time they are required in production.

A regional disruption could therefore affect a large portion of Kheria Autocomp's sales at the same time. The company identifies state industrial-policy changes, localised slowdowns, logistics and supply-chain disruptions, labour unrest and natural calamities in Gujarat as possible risks. It says an inability to diversify customers outside Gujarat, or lower demand from Gujarat-based customers, could adversely affect its business and results of operations.

How can supply constraints compound Kheria Autocomp's customer concentration?

Kheria Autocomp's ability to fulfil orders also depends on customer-approved raw-material vendors, limiting its flexibility during a supply disruption. Customers determine specifications for plastic resins and other inputs, and Kheria Autocomp says it procures materials only from vendors approved by those customers. It also maintains raw-material batch records used in customer production.

Supplier concentration was lower than customer concentration, although the top five suppliers still provided 58.51% of raw materials consumed in fiscal 2026. Their purchases were Rs 47.54 crore in fiscal 2026, compared with Rs 34.17 crore and 55.30% of raw materials consumed in fiscal 2025, and Rs 28.19 crore and 70.98% in fiscal 2024.

Raw-material cost represented 67.70% of Kheria Autocomp's revenue from operations in fiscal 2026, compared with 67.10% in fiscal 2025 and 63.74% in fiscal 2024. The company says pricing arrangements generally factor in raw-material price changes, but shortages, transport delays or off-specification materials could still disrupt production, cause idle machine time and delay deliveries to its limited customer base.

Conclusion

Kheria Autocomp's principal operational exposure is the combination of customer, automotive-sector and Gujarat concentration. Its largest customer's revenue share fell to 30.99% in fiscal 2026 from 49.94% in fiscal 2024, but the top five still accounted for 97.32% and the top 10 for 99.95% of revenue from operations. Growth in top-10 customer revenue to Rs 119.96 crore in fiscal 2026 remained tied to a narrow Tier-I and OEM-linked base.

The next development to watch is whether Kheria Autocomp can maintain, diversify or expand customer relationships while pursuing its proposed Sanand manufacturing facility. The company has received Gujarat Industrial Development Corporation drawing approval and Gujarat Pollution Control Board consent to establish, but had not yet applied for approvals including a factory licence, consent to operate, fire no-objection certificate and stability certificate. Delays in approvals, machinery procurement or installation could delay commercial production within the envisaged timeline.