Kheria Autocomp Limited targets January 2027 plant start

Kheria Autocomp Limited is targeting a January 2027 production start at its planned Sanand-II unit after its existing 5,400-metric-ton annual facility reached 98.9% utilisation in H1 FY27. Management said the project involves investment of over Rs 65 crore and would add 2,400 metric tons of annual capacity, taking total installed capacity to 7,800 metric tons.

Why is Kheria Autocomp building the Sanand-II plant?

Kheria Autocomp is building Sanand-II because its Tata Vendor Park, Sanand facility operated at 98.9% capacity utilisation in H1 FY27. Production for the half year ended September 30, 2026, was 2,673 metric tons, against the plant's installed annual capacity of 5,400 metric tons.

Utilisation at the existing facility was 93.73% in FY26, when production was 5,061 metric tons. Production had increased from 3,215 metric tons in FY24 to 5,061 metric tons in FY26. Management said the original site is almost at its optimum level because available space becomes a bottleneck; changing the product mix may provide some additional output, but it does not expect to add machines there.

What capacity will Kheria Autocomp add at Sanand-II?

Kheria Autocomp plans to add 2,400 metric tons of annual capacity at Sanand-II, lifting total installed capacity from 5,400 metric tons to 7,800 metric tons. The proposed addition equals 44.4% of the existing plant's capacity and is planned for GIDC Sanand-II, Gujarat.

The expansion relates to Kheria Autocomp's plastic injection-moulded automobile components and sub-assemblies. The current site has 30 injection-moulding machines with capacities ranging from 120 tons to 1,700 tons and 20 industrial robots. Kheria Autocomp operates as a Tier-II supplier to Tier-I vendors serving passenger-vehicle original equipment manufacturers across internal-combustion-engine and electric-vehicle platforms.

Is Kheria Autocomp on track for a January 2027 start?

Kheria Autocomp said it was hopeful of bringing Sanand-II capacity online in January 2027, with four machines targeted for delivery in November 2026 and seven expected in December 2026. Management said the first set of licences, including consent to establish, and the first factory licence had been received when it spoke on November 2, 2026.

The January 2027 date remains a management target rather than a completed commissioning. When asked about possible delays, management said there was nothing wrong with the plan at that stage and that work was progressing as planned. The remaining milestones include the scheduled machine deliveries and completion of other activities in the project pipeline.

Kheria Autocomp did not identify customers backing the second plant, but management said it had sufficient orders and that orders were not an issue. It also said it began manufacturing parts during calendar 2026 for two new car models from two major original equipment manufacturers in Gujarat, while declining to name the models because the relevant disclosure had not been signed.

How will Kheria Autocomp fund and ramp Sanand-II?

Kheria Autocomp said it plans to complete 100% of capital expenditure for the project in FY27, with no spending earmarked for FY28. The project involves proposed investment of over Rs 65 crore. In response to an analyst's question, management agreed that about Rs 35 crore to Rs 40 crore of the total was involved.

Management expects utilisation at Sanand-II to increase during its first, second and third years. It said the first three months would not be treated as a full year and expressed hope that the new facility would use more than 90% of its capacity in FY28. Management did not provide an exact margin forecast for the facility.

Kheria Autocomp also discussed a possible capacity increase in FY29, but did not quantify it. Management said it was not planning to raise debt for that later expansion and would use internal accruals, adding that any plan would be disclosed through the National Stock Exchange. The defined project remains the 2,400-metric-ton Sanand-II addition.

What does H1 FY27 performance indicate about capacity demand?

Kheria Autocomp reported revenue from operations of Rs 72.27 crore in H1 FY27, up 31.38% from Rs 55.01 crore in H1 FY26. Earnings before interest, tax, depreciation and amortisation rose 31.45% to Rs 12.75 crore from Rs 9.57 crore, while the margin was nearly unchanged at 17.60% versus 17.59%.

Profit after tax increased 38.58% to Rs 6.28 crore in H1 FY27 from Rs 4.53 crore a year earlier. The profit-after-tax margin rose to 8.67% from 8.20%. On plastic input costs, management said its customer contracts require raw-material price changes to be passed on, meaning it does not expect crude-price movements to affect the business through those inputs.

Conclusion

Kheria Autocomp has linked a proposed investment of over Rs 65 crore and 2,400 metric tons of annual new capacity to an existing plant that reached 98.9% utilisation in H1 FY27. Revenue grew 31.38% year on year to Rs 72.27 crore, while the space constraint at the current site limits the scope for additional machines there.

The next disclosed milestones are delivery of four machines in November 2026 and seven in December 2026, followed by management's January 2027 production target. The subsequent measures are whether capital expenditure is completed in FY27, whether the plant reaches management's hoped-for utilisation above 90% in FY28, and whether Kheria Autocomp discloses a quantified FY29 expansion plan.