K M C Aluminium Limited IPO

01At a glance

What the company does: heats aluminium billets and pushes them through shaped steel dies to make long aluminium sections (profiles, tubes, pipes, bars and hollow sections), and casts many of its own billets, from one leased plant in the SIPCOT Industrial Park, Irungattukottai, Sriperumbudur (DRHP p.119, DRHP p.123, DRHP p.144).

Who pays it: 312 customers in FY26, among them vehicle and component makers, solar and wind equipment makers, elevator makers and builders; none is named (DRHP p.119, DRHP p.24). The largest customer brought 7.82% of FY26 revenue, the top five 28.25% and the top ten 45.36% (DRHP p.24).

Why it is raising money: up to ₹19.1 crore of the fresh issue is to repay Axis Bank loans and up to ₹14.0 crore to pay for two extrusion presses and a solar frame line for the existing plant (DRHP p.80). There is no offer for sale (DRHP p.1).

How fast it has grown: revenue from ₹101.8 crore in FY24 to ₹135.3 crore in FY26, about 15.3% a year, and profit attributable to shareholders from ₹3.4 crore to ₹8.3 crore, about 55.7% a year (our arithmetic, DRHP p.51).

The one thing to understand: money flows between the company and its promoters. At March 31, 2026 the company had ₹12.1 crore of loans and advances out to related parties: ₹3.9 crore to Sanjay Kumar Agarwal, ₹0.41 crore to Nidhi Agarwal and ₹7.8 crore to Altis Properties Private Limited, a promoter group company (DRHP p.207, DRHP p.174). The company has applied for adjudication of a breach of Section 185 of the Companies Act over such loans (DRHP p.28).

02The business, in plain words

What K M C Aluminium does

K M C Aluminium makes aluminium extrusion profiles and value-added aluminium products (DRHP p.119). Extrusion means a heated aluminium billet is forced through a die so that it comes out with the same cross-section along its whole length, like toothpaste from a tube (DRHP p.119). The steps the company does itself (DRHP p.119, DRHP p.128, DRHP p.132):

• Billets: it melts aluminium ingots, alloys and its own process scrap and casts them into billets on a hot-top casting machine, and also uses billets bought from suppliers (DRHP p.132).
• Dies: it designs, makes, hardens and refurbishes extrusion dies in its own tool room (DRHP p.132).
• Extrusion: on three extrusion presses (DRHP p.119, DRHP p.138).
• Finishing: stretching, cutting, ageing, machining and fabrication; anodizing and powder coating are sent to outside processors (DRHP p.132, DRHP p.134).

Products are grouped as other profiles (77.98% of FY26 revenue), tubes and pipes (14.53%), bars and rods (3.98%) and hollow profiles (3.50%) (DRHP p.127). Uses named include solar panel frames, wind turbine parts, bus bodies, car heat sinks and guide rails, lift pillars, doors and HVAC systems (DRHP p.119, DRHP p.124, DRHP p.125).

A maker sends a drawing and a purchase order → the company makes a die for that profile, casts billets or takes them from suppliers, extrudes, cuts and finishes the profile → it dispatches the profile → it is paid on a metal price plus a conversion charge, with aluminium price moves largely passed on to the customer after a time lag (DRHP p.130, DRHP p.137).

The company was incorporated on October 14, 2004 as K M C Aluminium Private Limited and became a public company with a fresh certificate dated December 31, 2024 (DRHP p.58). The plant covers about 1,22,840 sq. ft. on land leased from SIPCOT until December 9, 2103 (DRHP p.122, DRHP p.144). It holds IATF 16949 and ISO 9001:2015 certificates and BIS licences under IS 5082 and IS 733 (DRHP p.264). It also owns a solar power plant in Virudhunagar district and a windmill in Tiruppur district for part of its own power (DRHP p.120). It had 152 employees at August 31, 2026 (DRHP p.132).

Two subsidiaries are consolidated: KMC Petrochemicals Private Limited (formerly K M C Metals Private Limited, 91.07% held), whose stated objects include pyrolysis oil from plastic waste, and K M C Energy Private Limited (90.00% held), formed in December 2024 to build a solar plant (DRHP p.155, DRHP p.178, DRHP p.179).

Earnings equation: Revenue = tonnes of profiles sold × (aluminium price + conversion charge per tonne). The document gives tonnes produced, not tonnes sold, and no prices (DRHP p.142, DRHP p.137).

03Where the money comes from

By the industry the customer serves (₹ crore):

Source: DRHP p.127, converted from ₹ lakh. "Others" is interiors, electrical suppliers, electrical motor makers and general traders (DRHP p.127). Renewable energy was 24.73% of FY26 revenue, automotive 24.30%, elevators 20.85% and infrastructure 15.22% (DRHP p.127).

By place: Tamil Nadu brought 78.37% of FY26 revenue, Karnataka 7.47% and Madhya Pradesh 4.04% (DRHP p.127). Exports were ₹0.41 crore, 0.30% of FY26 revenue, all to Sri Lanka (DRHP p.128).

K M C Aluminium customers: how concentrated the revenue is

Source: DRHP p.24. Revenue does not rest on one customer: the largest brought ₹10.6 crore of FY26 revenue (DRHP p.24). Customers are not named, for confidentiality and for want of their consent (DRHP p.24). Supplies are on purchase orders, with no long-term contracts (DRHP p.24). The business chapter prints the FY25 top ten at 46.64% (DRHP p.119). Of 312 customers in FY26, 209 had bought before, 66.99%, against 79.78% in FY24 (DRHP p.137).

Read from the filing: the fourth largest FY26 customer brought ₹5.46 crore, the same figure as all FY26 revenue from Madhya Pradesh, and the second largest FY25 customer ₹10.0 crore, the same as FY25 Madhya Pradesh revenue (DRHP p.136, DRHP p.127).

On the supply side, the concentration is high: the largest supplier was 40.10% of FY26 procurement, the top three 80.0% and the top ten 92.22% (DRHP p.137, our arithmetic for the top three).

04The growth record

K M C Aluminium financials: revenue, profit and margins

Source: DRHP p.50, DRHP p.51, DRHP p.52, DRHP p.95, converted from ₹ lakh. Revenue went from ₹101.8 crore in FY24 to ₹135.3 crore in FY26 and profit attributable to shareholders from ₹3.4 crore to ₹8.3 crore (DRHP p.51). The company's EBITDA margin is worked on total income, including other income (DRHP p.95).

Our arithmetic over FY24 to FY26: revenue grew about 15.3% a year and profit about 55.7% a year (our arithmetic, DRHP p.51); EBITDA grew about 35.9% a year (our arithmetic, DRHP p.95). EBITDA margin moved from 7.98% to 11.16%, up 318 basis points, so from 8.0% to 11.2% rounded (DRHP p.95). Revenue rose 23.07% in FY25 and 8.02% in FY26 (DRHP p.95).

Net worth here includes capital reserves of ₹18.4 crore that arose on consolidating the subsidiaries; net worth without them was ₹19.6 crore, ₹28.1 crore and ₹36.4 crore, and return on that base 17.87%, 30.34% and 22.80% (DRHP p.200, DRHP p.93, DRHP p.219). The year ends on March 31 throughout. FY24 also carries a share of loss of ₹0.05 crore from KMC Petrochemicals as an associate, before it became a subsidiary (DRHP p.51, DRHP p.227).

What sits around the record:

• Cash: operating cash flow was ₹14.3 crore in FY26, ₹0.39 crore in FY25 and −₹6.8 crore in FY24 (DRHP p.52). In FY26 ₹6.9 crore came back from long-term loans and advances, while inventory took ₹7.8 crore (DRHP p.52).
• Other income was ₹1.35 crore in FY26, 11.87% of profit before tax, so 11.9% rounded; it was 29.64% in FY24 (DRHP p.210).
• Debt: borrowings were ₹34.7 crore at March 31, 2026, debt to equity 0.63 times, so 0.6× (DRHP p.50, DRHP p.95), and net of ₹0.14 crore of cash about 2.3× FY26 EBITDA (our arithmetic, DRHP p.50, DRHP p.95). Return on capital employed was 14.36%, so 14.4% rounded (DRHP p.95).
• Customers and suppliers: the largest customer was 7.82% of FY26 revenue, so 7.8% rounded, the top five 28.25%, so 28.3%, and the top ten 45.36%, so 45.4% (DRHP p.24); the largest supplier was 40.10% of FY26 procurement, so 40.1%, and the top ten 92.22%, so 92.2% (DRHP p.137). Revenue from Tamil Nadu was 78.37% of FY26 revenue, so 78.4% (DRHP p.127).
• Related parties: loans and advances to related parties were ₹12.1 crore at March 31, 2026 (DRHP p.207). Related-party purchases were ₹0.10 crore in FY26 (DRHP p.55).
• Guarantee: the company guarantees a ₹24.0 crore Axis Bank term loan to its subsidiary K M C Energy Private Limited, ₹18.0 crore of it outstanding at March 31, 2026, and charges no fee for it (DRHP p.54).
• Capacity: utilisation was 92% of effective capacity in FY26 (DRHP p.142).
• Use of the issue: up to ₹19.1 crore of the fresh issue is for debt repayment and up to ₹14.0 crore for expansion of the plant (DRHP p.80).
• Cases: the promoters face 4 tax demands and no criminal cases (DRHP p.30).

05What the growth is made of

Revenue rose ₹33.5 crore from FY24 to FY26 (our arithmetic, DRHP p.51). By the industry served (our arithmetic, DRHP p.127):

• Renewable energy: up ₹15.7 crore, from ₹17.8 crore to ₹33.5 crore.
• Elevators: up ₹14.8 crore, from ₹13.4 crore to ₹28.2 crore.
• Automotive: up ₹11.4 crore, from ₹21.5 crore to ₹32.9 crore.
• Infrastructure: down ₹1.9 crore, from ₹22.5 crore to ₹20.6 crore.
• Others: down ₹6.7 crore, from ₹25.7 crore to ₹19.0 crore.

Volume: production went from 3,655 tonnes in FY24 to 3,953 tonnes in FY25 and 3,940 tonnes in FY26, about 7.8% more over two years (DRHP p.142; our arithmetic).

Realisation, read from production: revenue per tonne produced was about ₹2.79 lakh in FY24, ₹3.17 lakh in FY25 and ₹3.44 lakh in FY26 (our arithmetic, DRHP p.51, DRHP p.142). Tonnes produced are not tonnes sold, and finished goods stock rose from ₹3.8 crore to ₹8.2 crore over the period (DRHP p.208), so this arithmetic does not separate price, aluminium cost and product mix.

The document gives no quantities sold and no prices, so the increase cannot be split into volume and price. That is the finding. The management discussion puts FY25 and FY26 growth down to "higher order volumes" across its end-use industries (DRHP p.252, DRHP p.253), and states that revenue increases are linked to volume and price realisation (DRHP p.256).

06Earnings quality

The item that needs explaining is the gap between profit and cash. Long-term loans and advances, mostly to related parties, took ₹11.1 crore in FY24 and ₹2.9 crore in FY25, and returned ₹6.9 crore in FY26 (DRHP p.52). The advance account with Sanjay Kumar Agarwal shows ₹13.5 crore given and ₹6.4 crore recovered in FY24, ₹8.2 crore given and ₹5.0 crore recovered in FY25, and ₹7.0 crore given and ₹13.4 crore recovered in FY26 (DRHP p.56). These loans are interest free (DRHP p.207).

On the cost side, directors' remuneration was ₹1.03 crore in FY25 and ₹0.04 crore in FY26; Sanjay Kumar Agarwal was paid ₹0.87 crore in FY25 and nothing in FY26 (DRHP p.55). The shareholders approved remuneration of up to 17% of net profits for the managing director from February 7, 2025 (DRHP p.159). Interest on late payment of taxes was ₹0.26 crore in FY26 (DRHP p.212). Gross margin, revenue less materials and the change in stock, was about 18.7% in FY24 and 20.9% in FY26 (our arithmetic, DRHP p.51).

07The balance sheet

At March 31, 2026 total assets were ₹104.8 crore: property, plant and equipment ₹27.1 crore, capital work in progress ₹19.7 crore (the solar plant), long-term loans and advances ₹12.5 crore (₹12.1 crore of it to related parties), inventories ₹22.0 crore, trade receivables ₹13.8 crore, short-term loans and advances ₹7.3 crore, investments in corporate bonds ₹2.0 crore and cash ₹0.14 crore (DRHP p.50, DRHP p.207).

Against them: long-term borrowings ₹20.2 crore, short-term borrowings ₹14.4 crore, trade payables ₹6.0 crore, other current liabilities and provisions ₹4.9 crore, minority interest ₹2.1 crore and net worth ₹54.8 crore (DRHP p.50).

Borrowings of ₹34.7 crore at March 2026 were: the subsidiary's Axis Bank solar term loan ₹18.0 crore at repo plus 2.75%, the Axis Bank overdraft ₹9.9 crore against a ₹15.0 crore limit, an Axis Bank solar term loan ₹2.2 crore, an Axis Bank working capital term loan ₹0.87 crore, HDFC Bank and Axis Bank vehicle loans ₹3.6 crore and a loan from Anamika Agarwal of ₹0.01 crore (DRHP p.220 to DRHP p.222). The vehicle loans include a Land Rover Range Rover financed by HDFC Bank (DRHP p.220). Security includes a commercial building in Bangalore owned by Sanjay Kumar Agarwal (DRHP p.220).

Source: DRHP p.80, DRHP p.230. The capitalisation statement leaves the post-issue column blank (DRHP p.230). The loans picked for repayment had ₹19.1 crore outstanding at September 15, 2026, including the Axis Bank cash credit at ₹14.7 crore and a ₹2.2 crore working capital term loan disbursed on July 3, 2026, after the latest balance sheet (DRHP p.88). The subsidiary's ₹18.0 crore solar loan is not among them (DRHP p.88).

08What the money is for

K M C Aluminium IPO objects: what the money is for

Source: DRHP p.80, DRHP p.81. The rupee size of the fresh issue depends on a price not yet set, so the share of each object cannot be worked out (DRHP p.80).

Plant expansion, ₹14.0 crore: two 1480MT aluminium extrusion presses from Foshan Nanhai Mingsheng Machine Manufacture Co., Ltd for ₹7.2 crore; a handling table, three-head puller and hot saw, a solar frame production line with a corner cutting saw, and a sand blasting machine from two other Chinese suppliers for ₹3.4 crore; and freight, insurance and customs duty of ₹3.4 crore (DRHP p.83 to DRHP p.85). Installed capacity is to go from 5,340 to 10,000 tonnes a year (DRHP p.82). Quotations date from September 2026; no orders have been placed (DRHP p.83, DRHP p.85). The unit is to be operational by March 2027 (DRHP p.82).

Debt repayment, ₹19.1 crore: four Axis Bank facilities, with ₹19.1 crore outstanding at September 15, 2026, the largest the cash credit at ₹14.7 crore (DRHP p.88). One of them, a term loan for a 1.3 MW captive solar plant, carries a 2% prepayment charge (DRHP p.88).

The deployment schedule puts all of it in FY27 (DRHP p.81). The objects have not been appraised, and no monitoring agency will be appointed because the issue is below ₹50 crore (DRHP p.91). The strategy also names an anodizing plant, which the objects do not fund (DRHP p.120, DRHP p.134).

Into the business the fresh issue of up to 60,00,000 shares, at a price not yet set (DRHP p.80). To selling shareholders nothing: there is no offer for sale (DRHP p.1).

09Who is selling

K M C Aluminium IPO offer for sale: who is selling

Nobody. The whole issue is a fresh issue of up to 60,00,000 shares of ₹10, and the document marks the offer for sale "NOT APPLICABLE AS THE ENTIRE ISSUE CONSTITUTES FRESH ISSUE OF EQUITY SHARES" (DRHP p.1). The promoters and the promoter group will not take part in the issue (DRHP p.79).

10Promoters

The promoters are Sanjay Kumar Agarwal, Anamika Agarwal and Nidhi Agarwal (DRHP p.170, DRHP p.171). The document states that Sanjay Kumar Agarwal is the father of Nidhi Agarwal and the husband of Anamika Agarwal (DRHP p.159). Together they hold 1,28,25,000 shares, 85.93% of the company (DRHP p.170).

Sanjay Kumar Agarwal, 56, is Chairman and Managing Director, a director since incorporation, with over 22 years in the company's line of business (DRHP p.156, DRHP p.158). Nidhi Agarwal, 27, is Whole Time Director, on the board since April 23, 2019, with a BBA from Pace University (DRHP p.156, DRHP p.158). Anamika Agarwal, 54, is a Non-Executive Director since July 29, 2009 (DRHP p.157, DRHP p.158).

Pay: directors' remuneration was ₹0.16 crore in FY24, ₹1.03 crore in FY25 and ₹0.04 crore in FY26 (DRHP p.55). The company also paid ₹0.36 crore a year in rent to Sanjay Kumar Agarwal and Anamika Agarwal for staff quarters (DRHP p.56).

Loans: interest-free loans and advances to Sanjay Kumar Agarwal stood at ₹7.1 crore at March 2024, ₹10.3 crore at March 2025 and ₹3.9 crore at March 2026; to Nidhi Agarwal ₹0.41 crore throughout; and to Altis Properties Private Limited ₹6.6 crore, ₹7.2 crore and ₹7.8 crore (DRHP p.207). The auditor reports that the company did not comply with Section 185 of the Companies Act in FY23 to FY25 because it extended loans to related parties (DRHP p.188).

Other businesses: all three promoters are directors and shareholders of the two subsidiaries (DRHP p.171). The promoter group includes Altis Properties Private Limited, Altis Power Private Limited, Agarwal Legacy Group LLP, Karnataka Metals Company, Tulive Developers Limited and others (DRHP p.174). K M C Glass & Aluminium Private Limited, a group company, has aluminium extrusion among its objects and is said to be in the same line of business; there is no non-compete agreement (DRHP p.175, DRHP p.177, DRHP p.27).

Guarantees: Sanjay Kumar Agarwal and Anamika Agarwal guarantee the company's and the subsidiary's bank loans, ₹31.0 crore of them at March 2026 (DRHP p.172, DRHP p.222). No promoter shares are pledged (DRHP p.77).

Cases: 4 tax demands against the promoters of ₹0.19 crore in all, and no criminal or regulatory cases (DRHP p.30, DRHP p.173).

Promoter economics: the average cost of the promoters' shares is ₹0.67 for Sanjay Kumar Agarwal and Anamika Agarwal and ₹0.00 for Nidhi Agarwal (DRHP p.38). Sanjay Kumar Agarwal's holding was built from allotments at ₹10 in 2004, 2006 and 2010, purchases at ₹10 on April 1, 2023 of 30,000 shares from Ajay Agarwal, 5,000 from Puspa Devi Agarwal and 4,70,000 from KMC Metals Private Limited, the company's own subsidiary, and 1,03,60,000 bonus shares in February 2025 (DRHP p.74, DRHP p.75). Nidhi Agarwal received 5,000 shares as a gift from Anamika Agarwal in January 2024 (DRHP p.75).

11Who already owns it

K M C Aluminium promoter holding before and after the IPO

Source: DRHP p.73, DRHP p.75; the after-issue column is our arithmetic. There are 1,49,25,000 shares of ₹10 before the issue and seven shareholders (DRHP p.47, DRHP p.75); the seventh, Savitha R., received 69,650 bonus shares (DRHP p.70). If all 60,00,000 new shares are issued the total becomes 2,09,25,000 shares (our arithmetic, DRHP p.47), and the promoters' 85.93% becomes about 61.3%, so 85.9% → 61.3% (our arithmetic, DRHP p.75). Promoters and promoter group together go from 86.50% to about 61.7% (our arithmetic, DRHP p.75). The document leaves the after-issue percentages blank (DRHP p.75).

Read from the filing: Sanjay Kumar Agarwal HUF held 1,40,000 shares, 14.07%, at March 31, 2024 and 85,125 at March 31, 2025, while Yash Jashbir Oberoi and Rupal Mehta held none at March 31, 2024 and 9,70,125 each at March 31, 2025 (DRHP p.199). The document does not give the date or price at which they came in; the basis for issue price says there were no primary or secondary transactions in the three years before filing (DRHP p.99). No fund holds shares. Up to 41,17,400 promoter shares are to be locked in for three years as the minimum promoters' contribution (DRHP p.76).

12What changed just before the IPO

• Revenue and profit: revenue went from ₹101.8 crore in FY24 to ₹135.3 crore in FY26 and profit attributable to shareholders from ₹3.4 crore to ₹8.3 crore (DRHP p.51).
• Receivables: 36 days in FY24 and 37 days in FY26 (DRHP p.40).
• Directors' pay: ₹0.16 crore in FY24 and ₹0.04 crore in FY26 (DRHP p.55).
• Public company: converted from a private company, with a fresh certificate dated December 31, 2024, so December 2024 (DRHP p.58).
• Bonus issue: 14:1, 1,39,30,000 shares allotted on February 11, 2025, so 14:1, February 2025 (DRHP p.70). The bonus is also the last allotment before the IPO; the last allotment for cash was 4,70,000 shares at ₹200 in March 2010 (DRHP p.70).
• Pre-IPO placement: none; no shares were issued other than the bonus in the 18 months before filing (DRHP p.98).
• Auditor: Abhay U Jain & Associates resigned on August 2, 2024; IPRS and Company was appointed in 2024 and resigned on January 21, 2026; VSS & Co. was appointed on March 3, 2026, so Abhay U Jain & Associates to IPRS and Company, 2024; IPRS and Company to VSS & Co., 2026 (DRHP p.62).
• Board and officers: Chellasamy Rajendran joined as independent director on December 2, 2024; Srinivasan Rajabather joined on February 7, 2025 and left on June 25, 2026; Anantharaman Sundaram joined on July 2, 2026; a CFO and company secretary were appointed in November and October 2024 (DRHP p.161, DRHP p.169).
• Solar subsidiary: K M C Energy Private Limited was incorporated on December 12, 2024; its solar plant was ₹19.7 crore of capital work in progress at March 2026, against a total cost of ₹24.8 crore (DRHP p.179, DRHP p.54).
• New debt: borrowings rose from ₹21.7 crore at March 2025 to ₹34.7 crore at March 2026 (DRHP p.50); a ₹15.0 crore cash credit was sanctioned on December 22, 2025 and a ₹2.95 crore working capital term loan on June 24, 2026 (DRHP p.88).
• GST demands: ₹36.6 crore of GST claims shown as contingent at March 2025 were set aside or cut after Madras High Court remand orders of February 5, 2026 (DRHP p.53).
• Company law matters: CSR shortfall for FY25, delays in cost audit, loans covered by Section 185, and charge filings; compounding and adjudication applications were filed in September 2026 (DRHP p.27, DRHP p.28).
• Subsidiary renamed: K M C Metals Private Limited became KMC Petrochemicals Private Limited (DRHP p.178).
• Dividend: none in the last three financial years (DRHP p.181).

13Capacity and expansion

Source: DRHP p.142, DRHP p.82. The document reduces installed capacity by 20% for the age of machinery bought in 2005 and 2010, and works utilisation on the reduced figure: 85% in FY24, 92% in FY25 and 92% in FY26 (DRHP p.142). The strategy section prints FY26 utilisation as 82% (DRHP p.133). The figures come from a report by Diwakar & Associates dated July 9, 2026 (DRHP p.142).

The issue-funded presses are to raise installed capacity to 10,000 tonnes a year, with operations from March 2027 (DRHP p.82). The company says solar frames are supplied in higher volumes and at lower realisation per tonne than its automotive and engineering profiles (DRHP p.133). The step from capacity to revenue cannot be made from the filing.

14Market size and industry structure

K M C Aluminium industry: market size and growth

As claimed: the company did not commission an industry report. The chapter says its information "has been extracted from various websites and publicly available documents" and that no one connected with the issue has verified it (DRHP p.105). It quotes the IMF's April 2026 World Economic Outlook, IBEF, Fortune Business Insights, IMARC Group and a BigMint report for the Aluminium Extrusion Manufacturers Association (DRHP p.108, DRHP p.113, DRHP p.115, DRHP p.118).

At the widest level, Fortune Business Insights values the global aluminium market at US$265.13 billion in 2025 and projects US$454.84 billion by 2034, 6.20% a year, with Asia Pacific at 65.10% of it (DRHP p.112, DRHP p.113). IMARC values the global aluminium extrusion market at US$104.6 billion in 2025 and projects US$192.8 billion by 2034, 6.82% a year (DRHP p.113).

The part that is addressable: the company sells extruded profiles inside India, 78.37% of them in Tamil Nadu (DRHP p.127). IMARC puts the India aluminium extrusion market at 11,20,046 tons in 2025 and projects 15,80,869 tons by 2034, 3.57% a year (DRHP p.116). The chapter says the southern region holds about 25% of India's extrusion capacity and output, the western region about 35%, the north and centre about 30% and the east about 10% (DRHP p.117). It gives no size for Tamil Nadu, for solar frames, or for profiles sold to lift makers.

What the company is today: 3,940 tonnes produced in FY26 and revenue of ₹135.3 crore (DRHP p.142, DRHP p.51). Against the 2025 India extrusion tonnage the chapter quotes, that output is about 0.35% (our arithmetic, DRHP p.116, DRHP p.142); the years differ and the figure is production, not sales.

Size over time: India's aluminium market was 2.36 million tons in 2024, and IMARC projects 3.40 million tons by 2033, 4.10% a year (DRHP p.115). India's extrusion production was 1.08 million tonnes in 2024, worth about US$1.9 billion (DRHP p.117). India's real GDP is estimated to grow 7.6% in FY 2025-26 (DRHP p.108).

Segments: IMARC divides the extrusion market by end use: building and construction, transportation, machinery, consumer durables, electrical and others; building and construction held 61.4% in 2025 (DRHP p.115). The BigMint report names building and construction as the largest user, followed by electrical and electronics and transportation (DRHP p.118). The company's largest end markets are renewable energy, automotive and elevators (DRHP p.127).

What drives demand: the chapter names urban building, solar installations that use 6000 series alloy profiles for panel frames and mounting, lighter vehicles and electric vehicle battery enclosures, and power sector bus bars (DRHP p.116, DRHP p.117, DRHP p.118). It quotes Rio Tinto's estimate of aluminium use per light vehicle rising from 177 kg in 2015 to 227 kg by 2025 (DRHP p.113). The business chapter says India added about 24.5 GW of solar power in 2024 and that part of the demand for solar frames is met by imports from China, Malaysia and South East Asia (DRHP p.133).

Structure: the chapter names Hindalco, Global Aluminium and Jindal Aluminium as leading producers (DRHP p.117). The business chapter describes a few large integrated producers, mid-sized organised extruders and many unorganised units, and says the company competes mainly with organised extruders of similar size in South India and with OEMs' own operations (DRHP p.145, DRHP p.146).

Inputs and trade: aluminium billets and ingots are the main raw material, priced off exchange-linked aluminium prices, and the company passes metal moves on to customers with a lag (DRHP p.26, DRHP p.137). The chapter notes rising recycling and secondary aluminium production in India (DRHP p.116).

Rules: aluminium products must meet the Aluminium and Aluminium Alloy Products (Quality Control) Order, 2026, under BIS licence (DRHP p.148). The company holds BIS licences under IS 5082 and IS 733, a factory licence, pollution consents to March 2028 and a fire NOC to January 2028 (DRHP p.263, DRHP p.264). An application for consent to establish the expansion is pending with the Tamil Nadu Pollution Control Board (DRHP p.31).

What the chapter says can go wrong: the chapter speaks of a construction slowdown that cut extrusion demand in recent years (DRHP p.118). The risk factors add aluminium price swings, power and water shortages, and dependence on Tamil Nadu (DRHP p.26, DRHP p.39, DRHP p.23). The chapter does not discuss pricing, imports of profiles or competition in solar frames.

15Competitive position

K M C Aluminium competitors

Source: DRHP p.95, DRHP p.97, DRHP p.98, converted from ₹ lakh. Century Extrusions' revenue is about 3.5 times the company's and Maan Aluminium's about 6.0 times (our arithmetic, DRHP p.97, DRHP p.98). Both peers are shown standalone and the company consolidated (DRHP p.96).

What the company puts forward: in-house billet casting and tool room, IATF 16949 certification, a plant in the Sriperumbudur and Oragadam automotive belt, a lease running to 2103, and a broad customer base (DRHP p.120, DRHP p.132). Against that: one plant, 78.37% of sales from one state, 92.22% of procurement from ten suppliers, no long-term customer or supply contracts, and group companies in a similar line without a non-compete (DRHP p.127, DRHP p.137, DRHP p.24, DRHP p.27).

16Peers the company named

Peers named in the offer document: Century Extrusions Limited and Maan Aluminium Limited (DRHP p.94).

Both make aluminium extrusions and are several times the company's size with thinner margins (DRHP p.97, DRHP p.98). The document gives their P/E as 13.55 and 42.72 on September 25, 2026, an average of 28.14 (DRHP p.93, DRHP p.94). The company's FY26 EPS is ₹5.56 on ₹10 shares (DRHP p.92). With no price band, no P/E for the company can be stated.

17Risks, in plain words

K M C Aluminium IPO risks

Promoters: related-party loans: the company lent to Sanjay Kumar Agarwal, Nidhi Agarwal and Altis Properties Private Limited without interest (DRHP p.207) → the money is not working in the business, and Section 185 breaches are under adjudication (DRHP p.28) → ₹12.1 crore outstanding at March 31, 2026 (DRHP p.207).

Business: one region: the plant and most customers are in Tamil Nadu (DRHP p.23) → a local disruption would hit both supply and sales → 78.37% of FY26 revenue came from Tamil Nadu (DRHP p.24).

Suppliers: there are no long-term supply contracts (DRHP p.25) → a lost supplier or a metal price spike could stop the presses → the top ten suppliers were 92.22% of FY26 purchases, the largest 40.10% (DRHP p.25, DRHP p.137).

Financial: debt and guarantee: borrowings rose and the company guarantees its subsidiary's solar loan (DRHP p.50, DRHP p.54) → repayments and the guarantee fall on the group's cash → ₹34.7 crore of borrowings and a ₹24.0 crore guarantee at March 2026, against ₹0.14 crore of cash (DRHP p.50, DRHP p.54).

Business: capacity: the plant runs near its usable limit and its machines date from 2005 and 2010 (DRHP p.142) → growth depends on the new presses arriving on time → no orders placed for ₹14.0 crore of equipment (DRHP p.36, DRHP p.82).

Regulation: company law: CSR, cost audit, Section 185 and charge filing lapses were found (DRHP p.27, DRHP p.28) → penalties may follow → compounding and adjudication applications were filed in September 2026 (DRHP p.28).

Legal: tax: 7 tax proceedings against the company (DRHP p.30) → adverse orders mean payments → ₹0.10 crore involved (DRHP p.30).

Issue-specific: people: attrition was 29.01% in FY26 and no director has served on a listed board (DRHP p.141, DRHP p.35) → the business relies on a small skilled team → 152 employees at August 2026 (DRHP p.132).

18Litigation and regulatory matters

Cases against K M C Aluminium and its promoters

Criminal: none against the company, subsidiaries, promoters, directors or key managers (DRHP p.30, DRHP p.258, DRHP p.259). Regulatory: no actions by statutory or regulatory authorities and no SEBI or exchange action against the promoters (DRHP p.30, DRHP p.257). GST: demands of ₹36.6 crore shown as contingent at March 2025 were set aside or cut after High Court remand orders of February 5, 2026;

₹0.11 crore of claims remained contingent at March 2026 (DRHP p.53). Company law: compounding and adjudication applications for CSR, cost audit and Section 185 matters were filed with the Registrar of Companies in September 2026 (DRHP p.28). Creditors: two material creditors were owed ₹5.0 crore at March 31, 2026 (DRHP p.260).

19Related-party transactions

Source: DRHP p.55, DRHP p.56, converted from ₹ lakh. Purchases from these two firms were ₹0.13 crore in FY24 and ₹0.10 crore in FY26 (DRHP p.55). Balances at March 31, 2026: advances to Sanjay Kumar Agarwal ₹3.9 crore, to Altis Properties ₹7.8 crore and to Nidhi Agarwal ₹0.41 crore; borrowings from Anamika Agarwal ₹0.01 crore (DRHP p.57).

What appeared or changed in the two years before filing: sales to K M C Glass & Aluminium fell from ₹1.2 crore in FY24 to nothing in FY26, purchases from it began in FY26, the advance to Sanjay Kumar Agarwal was cut from ₹10.3 crore to ₹3.9 crore during FY26, and the company stopped paying Sanjay Kumar Agarwal remuneration in FY26 (DRHP p.55, DRHP p.207). The company says these transactions were at arm's length (DRHP p.41).

20What the offer document does not say

Customers and suppliers are not named. Quantities sold and selling prices are not given, so growth cannot be split into volume and price. Margins by product or industry are not given. No order book is disclosed. Why the company lends interest free to Sanjay Kumar Agarwal and Altis Properties, and when those loans will be repaid, is not stated (DRHP p.207).

The date and price at which Yash Jashbir Oberoi, Rupal Mehta and Savitha R. acquired their shares are not given (DRHP p.199). The cost and timing of the anodizing plant named in the strategy are not given (DRHP p.134). What KMC Petrochemicals, with net assets of ₹21.3 crore, does today is not described beyond its objects (DRHP p.178, DRHP p.227).

The issue size in rupees, the price band, general corporate purposes and issue expenses are blank (DRHP p.80). The after-issue shareholding is blank (DRHP p.75).

Some inconsistencies are recorded as document matters, not business ones: FY26 utilisation is 92% in the business chapter and 82% in the strategy section (DRHP p.142, DRHP p.133); the FY25 top ten customer share is 45.64% in one place and 46.64% in another (DRHP p.24, DRHP p.119); Tamil Nadu's FY26 share is 78.37% in one place and 79.37% in another (DRHP p.127, DRHP p.134);

the FY25 top ten supplier share is 88.74% in one place and 89.74% in another (DRHP p.138, DRHP p.137); the management chapter says the promoters have not guaranteed the company's loans while the promoter chapter and the borrowing note say they have (DRHP p.161, DRHP p.172, DRHP p.222); a risk factor calls FY26 operating cash flow negative while the cash flow statement shows ₹14.3 crore in (DRHP p.32, DRHP p.52);

KMC Petrochemicals' renaming is dated May 23, 2026 in one place and May 23, 2025 in another (DRHP p.178, DRHP p.264); and the subsidiary's holding is 91.07% in one table and 91.02% in another (DRHP p.155, DRHP p.178).

21Five questions for management

1. What tonnes of profiles were sold, and at what average conversion charge per tonne, in FY24, FY25 and FY26?
2. On what terms were ₹12.1 crore of interest-free loans and advances made to Sanjay Kumar Agarwal, Nidhi Agarwal and Altis Properties, and by when will they be repaid?
3. When and at what price did Yash Jashbir Oberoi, Rupal Mehta and Savitha R. acquire their shares from Sanjay Kumar Agarwal HUF?
4. How will K M C Energy's ₹18.0 crore solar loan be serviced, and how much of the plant's power will the company itself use?
5. What will the anodizing plant cost, how will it be paid for, and what does KMC Petrochemicals do with its ₹21.3 crore of net assets?

1Sources and cited facts

This study was read from 1 document the company filed. The 178 figures it cites are listed under the document each came from, with the page and the sentence as printed.