KSH International Ltd

Overview

• Standalone BRSR for FY2025-26; magnet winding wire manufacturing.
• 4 manufacturing plants and 1 warehouse in Maharashtra; total 7 sites.
• Exports ~27% of turnover; markets across 15 Indian states and 24 countries.
• Reporting boundary: standalone; BRSR Core assurance not obtained.

Key ESG Risks & Opportunities

• Energy efficiency: cost and emissions reduction via rooftop solar and upgrades.
• Water efficiency: conservation, recycling, and rainwater harvesting bolster resilience.
• Waste management: opportunities from higher recycling and material recovery.
• Safety/Health & Well-being: stronger safety culture reduces incidents and boosts productivity.
• Labour/Employment Practices: skill retention and compliant practices present opportunities and risks.
• Supply Chain Sustainability: due diligence mitigates disruptions and reputational risk.
• Quality, Sustainable Products: strengthens customer relationships and long-term value.
• Ethics & Transparency: governance and disclosures attract investors and customers.
• Cyber Security: data privacy risk necessitates stronger controls and response.

Governance & Policy Highlights

• Board oversight of sustainability; senior management reviews ESG metrics with escalation as needed.
• Policies: AML/anti-bribery, Employee Code of Conduct; whistleblower/grievance mechanisms.
• Assurance: BRSR Core assurance not mandatory; report is standalone.
• No penalties or fines for corruption or conflicts of interest in FY2025-26.
• ESG governance framework to be strengthened; solar project and LCA studies initiated.

Social Responsibility & Workforce

• Total employees 183; permanent 183 (172 male, 11 female); workers 570 (43 permanent, 527 others).
• Board women representation 25%; KMP women 0%.
• LTIFR and fatalities: 0; ISO 45001 implemented across two facilities.
• Training hours increased from 14 to 20; Employee Satisfaction up 1%.
• CSR focus: at least 20% of CSR to education; multiple community initiatives.

Environmental Performance

• Total energy 110,526.7 GJ; renewables 3,927.2 GJ; non-renewables 106,599.5 GJ.
• Energy intensity: 0.67 tCO2e per MT; 0.0000006 tCO2e per rupee turnover.
• Scope 1: 957.39 tCO2e; Scope 2: 18,659.76 tCO2e.
• Solar project of 3.2 MW under installation; commissioning targeted May 2026.
• Total waste 3,594.49 MT; reuse: 904.66 MT; wooden drums/pallets largely reused.
• Waste streams: plastic 12.34 MT; E-waste 0.66 MT; hazardous waste 91.03 MT.
• ISO 9001/14001/45001 and IATF 16949 certifications; EPR aligned with MPCB; Zero liquid discharge at new facility.

Stakeholder Engagement & Complaints

• Stakeholders: shareholders, employees, communities, customers, suppliers, government, banks.
• Engagement channels: AGM, investor calls, surveys, community meetings, direct communications.
• Complaints filed in 2025-26: 0 across categories; no unresolved community or employee complaints.
• No direct public policy lobbying; active participation in industry associations.

Other Notable Metrics

• SCOE: >90% of raw materials from SCOE-compliant suppliers; 1.22% MSME direct procurement; 67.63% Indian sourcing.
• Related party purchases: 0.03% of total purchases; related party sales 0%.
• Cybersecurity: policy in place; no data breaches in 2025-26; MFA and firewall controls implemented.
• Affiliations: 6 trade/industry chambers; no direct advocacy with government; policy input via associations.
• CSR beneficiaries include 550-people schooling programs, 31 differently-abled beneficiaries, and 12+ other initiatives.

Financial highlights

• Revenue from operations: ₹31,069.71 million, up 61.13% YoY.
• EBITDA: ₹1,904.84 million, up 55.46% YoY.
• EBITDA margin: 6.13% of revenue.
• PAT: ₹1,101.26 million, up 61.98%.
• EPS: ₹18.38.
• Export revenue: ₹8,234 million; ~27% of total revenue.
• Volume sold: 28,168 MT; +21% YoY.
• Supa capacity expanded to 43,445 MTPA; Phase II to 59,045 MTPA by 2026-27.
• Debt-to-equity improved to 0.39x; net debt ₹2,258.34 million.
• IPO proceeds raised ₹4,200 million; ₹3,498.92 utilized; ₹701.08 unutilised.
• Equity capital up to ₹338.78 million; 6,77,55,700 shares post-IPO.

Capacity and production

• Supa Phase I commissioned Sept 2025; added 14,400 MTPA.
• Total installed capacity: 43,445 MTPA as of Mar 31, 2026.
• Phase II machinery orders planned to reach 59,045 MTPA by 2026-27.
• Blended plant utilization around 67% in FY2025-26.

Exports and global reach

• Exports to 24 countries across 5 continents; established OEM relationships.
• Export revenue rose 39.5% YoY to ₹8,234 million.
• Key OEMs: Hitachi Energy, GE Vernova, Siemens Energy, Toshiba.
• HVDC and renewables driving sustained export demand.

IPO and capital structure

• IPO completed; listed on BSE/NSE on Dec 23, 2025.
• Equity share capital risen to ₹338.78 million (6,77,55,700 shares).
• IPO net proceeds: ₹3,987.79 million after expenses; utilisation tracked.
• Debt prepayment of ₹2,259.77 million; remaining IPO funds allocated to capex and general purposes.
• Unutilised IPO proceeds ₹701.08 million held in fixed deposits.

Governance and ESG

• Board comprises 8 directors; two women; independent oversight.
• First-year ESG reporting; rooftop solar project at Supa (3.2 MW).
• LTIFR: 0; no fatalities; ISO/IATF certifications held.
• Waste and water management: closed-loop cooling; copper scrap recycling; supplier ethics.

Risks and outlook

• Copper price pass-through mitigates absolute margin exposure.
• Top 10 customers contributed ~51% of revenue; diversification pursued.
• FX exposure managed via hedging; USD/EUR/SEK movements monitored.
• Capacity expansions and HVDC/EV focus balance near-term risk and opportunity.

Dividend and shareholder info

• Dividends for FY2025-26: not recommended.
• AGM date to be announced; FY2025-26 highlights included; one-class equity share.

AGM Details

• AGM: Forty-Seventh AGM on Sep 15, 2026 at 11:30 IST, physical venue in Pune.
• Record date for voting rights: Aug 14, 2026.
• Remote e-voting: Sep 12–14, 2026; cutoff Sep 8, 2026.
• Notice/Annual Report available on the company website.

Resolutions at AGM

• Ordinary: adopt audited financial statements for year ended Mar 31, 2026.
• Ordinary: re-appoint Rakhi Shetty, retiring by rotation.
• Ordinary: re-appoint Rohit Kushal Hegde, retiring by rotation.
• Ordinary: appoint M/s KANJ & Co. LLP as Secretarial Auditor for five years; remuneration 4,05,000 for 2026-27.
• Ordinary: ratify remuneration to M/s Joshi Apte & Associates as Cost Auditor for 2026-27.
• Ordinary: approve profit-linked commission to Independent Directors for 2025-26; four directors at 12,00,000 each.

Dividend

• Dividend: no dividend proposed for year ended Mar 31, 2026.

Director/Management Changes

• Rohit Kushal Hegde moved from Joint MD to Non-Executive Non-Independent Director from Jan 1, 2026.
• Sandesh Bhagwat resigned as CEO, effective Mar 31, 2026.
• Hukumchand Lakhotiya appointed CEO, effective Apr 2, 2026.
• Nakul Shivaji Patil appointed Company Secretary & Compliance Officer, effective Apr 1, 2026.
• Sarthak Arun Malvadkar ceased as Company Secretary/CO, effective Mar 31, 2026.

Auditors and Secretarial/Cost

• Statutory Auditors: M/s Kirtane & Pandit LLP; five-year term aligned to AGM cycle.
• Secretarial Auditor: M/s KANJ & Co. LLP; five-year term proposed for 2026-31.
• Cost Auditor: M/s Joshi Apte & Associates; remuneration for 2026-27 fixed at 2.35 million.

Related Party Transactions

• RPTs for 2025-26 were in ordinary course and on arm's length basis; no material RPT.

Other Material Approvals

• ESOP 2025 ratified by postal ballot on 5-Jul-2026; 1,07,413 options granted; expense 18.10 million.
• IPO net proceeds of 3,987.79 million; 2,259.77 million utilised for debt prepayment; remaining 701.08 million parked.
• IPO-related approvals included increase in NRIs/OCIs investment limits at May 6, 2025 EGM.

Meeting Details

• Date: August 11, 2026; Q1 FY27 earnings call
• Type/Mode: Group virtual conference call hosted by Axis Capital Limited
• Time: Not disclosed in filing

Participants

• Key company participants: Managing Director, CFO, Head of Investor Relations, Company Secretary and Compliance Officer
• Moderator: Axis Capital Limited

Purpose

• Discuss Q1 FY27 unaudited results for quarter ended June 30, 2026
• Provide updates on Supa Phase 2 expansion and Hitachi Energy framework
• Review EBITDA per ton, capacity utilization, and export performance

Additional Notes

• Transcript of the earnings call posted on the company's investor relations site
• Audio recording submission acknowledged; transcript available on website

Meeting Details

• Date and time: August 11, 2026 at 11:00 IST.
• Type and mode: Earnings conference call; virtual audio meeting.
• Organiser: KSH International Limited.
• Recording: audio recording of the call will be available.

Participants

• Key company participants by role not disclosed.

Purpose

• Discuss unaudited quarterly results for quarter ended June 30, 2026.

Additional Notes

• Audio recording available on the company's website.

Issue Overview

• IPO of equity shares in public issue; initial size Rs 420 crore; undersubscribed; final allotment issued.
• Main use objectives: prepayment of borrowings, capex, rooftop solar plant, general corporate purposes, and issue-related expenses.
• Undersubscription led to revised proceeds and altered allocation; final allotment issued beyond initial plan.

Utilisation of Proceeds

• Utilisation not fully per offer disclosures; board approvals extended timelines for two objects.
• Prepayment/repayment of borrowings: fully utilised; no delay.
• Funding capex: partially utilised; remaining funds unutilised.
• Rooftop solar plant: partially utilised; ongoing; unutilised Rs 1.15 crore.
• General corporate purposes: partially utilised; end unutilised Rs 5.16 crore.
• Issue related expenses: fully utilised.
• Total unutilised proceeds: Rs 52.10 crore; held in fixed deposits and ICICI accounts.
• Unutilised funds: FD Rs 45.00 crore; monitoring account Rs 7.33 crore; interest Rs 1.02 crore.
• GCP: revised deployment timeline approved; partial utilisation aligned with board resolution.
• Notes: Timeline extensions approved; further changes governed by board approvals.

Governance and Compliance

• Board approvals obtained for revised timelines; shareholder approvals not applicable for deviations.
• Delays may affect viability of objects; no other material events reported.
• Regulatory/compliance: monitoring certificate; no conflicts of interest disclosed.

GCP

• GCP usage: Rs 3.70 crore utilised in Q1 FY27 for offer-related expenses.
• Total GCP utilised to date: Rs 71.80 crore; unutilised balance Rs 5.16 crore.
• Board resolution Feb 7, 2026 approved revised GCP allocation.
• Remaining unutilised GCP to be deployed as per revised plan.

Auditor appointments

• KANJ & Co. LLP named Aug 10, 2026 as Secretarial Auditor for five-year (2026-31), subject to AGM approval.
• Joshi Apte & Associates appointed Aug 10, 2026 as Cost Auditor for FY 2026-27.
• KANJ & Co. LLP: Practising Company Secretaries with 25+ years' compliance experience.
• Joshi Apte & Associates: pan-India cost accounting firm with diverse industry experience.

Business Overview

• Specialised magnet winding wires form ~75% of revenue; standard wires ~25%.
• HVDC transformers and high-voltage components are key growth areas.
• Largest Indian exporter of winding wires to 24 countries; exports ~30% of revenue.
• Serves 120+ OEMs; long-standing relationships and global framework with leading OEMs.

Capacity Expansion & Footprint

• Capacity to 59,045 MT by March 2027; June 2026 capacity 43,445 MT.
• Phase-I+ completion of fourth unit at Supa; Phase II on track for Q2 online.
• Plants at Taloja, Chakan (two), Supa near JNPT; logistic efficiencies gained.
• Location proximity supports cost efficiencies and closer customer access.

Customers & Market Position

• Diversified end-use across Railways, Data Centers, EVs, Power, Renewables, Industrials.
• Blue-chip OEMs include Hitachi Energy, CG Power, BHEL, GE Vernova, Siemens Energy.
• Export footprint spans 24 countries; exports contribute ~30% of revenue.
• HVDC advantage: sole Indian supplier approved for HVDC transformers; first awards won.

Financial Performance (Q1 FY27)

• Revenue from operations: INR 11,642 Mn; YoY growth 108.4%.
• EBITDA INR 744 Mn; EBITDA margin 6.39%.
• PAT INR 422 Mn; PAT margin 3.63%.
• Gross margin 9.99%; Total debt INR 4,810 Mn; Debt/Equity 0.57.

Historical Trends & Profitability

• FY24-FY26 revenue grew to INR 31,070 Mn; 3-year CAGR 43.6%.
• EBITDA rose to INR 1,921 Mn; margins ~6.2%.
• PAT rose to INR 1,101 Mn; margins ~3.5%.
• ROE 19.9%, ROCE 16.2%; EBITDA per ton INR 67,625.
• PAT CAGR 60.6%.

Copper Pass-Through & Pricing

• Copper-linked revenue model: revenue = copper price pass-through plus value-add.
• Copper rise: revenue up, EBITDA margin contracts; EBITDA per ton remains stable.
• Copper fall: revenue down, EBITDA margin improves; EBITDA per ton remains stable.
• Management notes strong demand and capacity expansion supporting profitability.

Strategic Outlook & Risks

• Robust demand environment supports expansion to 59,045 MT by 2027.
• HVDC awards strengthen competitive position; long-term OEM framework reduces risk.
• Export-led growth with ~30% revenue from exports; geographic diversification.
• Risks: copper price volatility; long qualification cycles; mitigants include pass-through and OEM partnerships.

Governance & Leadership

• MD Rajesh K. Hegde comments on Q1 performance and capacity expansion.
• No board changes disclosed; updates stem from management commentary.