KSH International IPO: In-Depth Analysis & Review

KSH International’s (KSHIL) Rs 710-crore IPO is set to close for subscription today. While the company boasts strong fundamentals, the response to the issue has been somewhat muted so far. As of 1:50 PM today, on the final day of bidding, the issue has been subscribed only 0.52 times.

With the IPO closing soon, you might be wondering: Should you apply? Before you decide, explore our in-depth IPO analysis covering growth prospects, financials and potential red flags here.

KSH International IPO Details 

• Issue Details: Mainstream
• Issue Size: Rs 710 crore
• Fresh Issue: Rs 420 crore
• Offer for Sale: Rs 290 crore
• Price Band: Rs 365 – Rs 384
• Lot Size: 39 shares

KSH International: Business Overview

• KSHIL is India’s third-largest manufacturer of magnet-winding wires and the leading exporter in this segment. Their winding wires are integral to transformers, motors, alternators and generators, with key applications across sectors such as power (T&D and generation), renewables, railways, data centres, automotive and consumer durables.
• KSHIL operates 3 state-of-the-art manufacturing facilities in Maharashtra, with a combined annual installed capacity of 29,045 MT and maintains an optimal capacity utilization rate of over 80%. Its product range includes enamelled round wires, rectangular wires and Continuously Transposed Conductors (CTC), which play a crucial role in high-voltage power transmission and EV traction motors.

KSH International Key Strengths

• Robust Track Record: KSHIL has delivered solid financial performance over FY23–FY25, with operating revenue growing at a CAGR of 36%, EBITDA at 57% and net profit at 60%. This performance significantly outpaces that of comparable listed peers.
• Healthy Return Metrics: KSHIL exhibits solid return ratios, with a Return on Equity of 22.77% and a Return on Capital Employed of 16.60% in FY25, reflecting efficient capital utilisation and disciplined financial management.
• Superior Margin Profile: EBITDA margin has steadily increased from 4.75% in FY23 to 6.35% in FY25, further expanding to 7.21% by Q1FY26. Similarly, the net profit margin improved from 2.52% to 3.51% in FY25, and further to 4.03% by Q1FY26, outperforming its listed peers.
• Sticky Client Relationship: KSHIL enjoys a strong, loyal customer base, with ~95% of FY25 operating revenue generated from repeat customers, reflecting high retention. Its client base includes major players like Hitachi Energy, GE Vernova, Siemens Energy and BHEL.
• Global Reach: Unlike many domestic competitors, KSHIL generates ~30% of its revenue from exports, serving clients in 24 countries, including the US, Germany and Japan.

KSH International Risk Factors

• Client Concentration: KSHIL’s revenue remains concentrated among a limited set of customers. The top ten clients accounted for 53.97% of revenue in Q1 FY26 and 52.54% in FY25. Any loss of, or decline in business from, these key clients could materially impact revenue stability and overall financial performance.
• Supplier Dependency: KSHIL is highly dependent on a small group of suppliers for raw materials. The top ten suppliers accounted for 98.91% of total raw material and component procurement in Q1FY26 and 98.45% in FY25. The absence of long-term supply agreements exposes the firm to risks related to supplier discontinuity, delays in material availability and price volatility, which could adversely affect operations, margins and cash flows.
• Cash Flow Concerns: KSHIL reported negative cash flows from operating activities in FY24 and FY25. Sustained negative cash flows could strain liquidity, affect day-to-day operations and weaken financial flexibility.
• Raw Material Volatility: The business is highly sensitive to changes in the prices of Copper and Aluminium. Fluctuations in these metal prices can impact margins, especially if there are delays in adjusting product prices accordingly.

Final Thoughts: Should You Subscribe to KSH International’s IPO?

• KSHIL has shown impressive growth, with a revenue CAGR of 36% and net profit CAGR of 60% from FY23 to FY25. From a valuation perspective too, the IPO appears fairly priced with a P/E ratio of 32x FY25 earnings, which is well below the industry average of 45x.
• In addition to its 3 existing manufacturing facilities, the firm successfully commissioned Phase I of a new facility in Supa, Maharashtra, in September 2025, increasing capacity by 12,000 MT. Phase II, slated for completion by FY27, will add another 18,000 MT, significantly enhancing overall capacity and supporting medium-term growth.
• KSHIL has grown its market share from 11.19% to 13.70%, while competitors like Precision Wires and Ram Ratna Wires have seen a decline in their share as of FY24.
• Relative to its peers, KSHIL maintains slightly superior profit margins, largely driven by its focus on specialized and value-added products. Although the company’s balance sheet is leveraged, the planned debt repayment using IPO proceeds should enhance its financial flexibility.
• The company’s return ratios remain healthy, but its elevated working capital intensity continues to strain cash-flow conversion.
• While the valuation positions the company for potential listing gains, these gains are uncertain and heavily dependent on broader market sentiment at the time of listing. Given the current volatility in the secondary market, a cautious strategy is advisable. A better approach for long-term investors would be to wait for the stock to settle into a stable range after listing and consider accumulating on dips.

For a deep dive into other IPOs, explore: IPO Corner on Liquide