Kay Jay Forgings Limited IPO

The company's business is dependent on certain key customers, with its top 10 customers contributing 91.51%, 90.00%, 88.82% and 89.32% of the company's revenue from operations for the six month period ended September 30, 2025, and in Fiscals 2025, 2024 and 2023, respectively. The loss of, or a significant reduction in orders from, any of these customers could materially and adversely affect its business, financial condition, results of operations and cash flows.

The company does not have any long-term agreements with its customers to purchase or place orders with the company. If its customers choose not to source their requirements from the company's or reduce purchase volumes, there may be a material adverse effect on its business, results of operations, financial condition and cash flows.

A significant portion of its raw material procurement is carried out without long-term binding agreements, which exposes the company to uncertainties regarding continuous supply and timely delivery. Any interruption in the availability of raw materials or any disruption, breakdown or shutdown of its suppliers or any instability of the company's supplier base could adversely impact its operations.

The company's business is heavily dependent on the performance of the automotive sector, which contributed 93.80%, 93.52%, 94.02% and 93.95% of its revenue from operations in the six month period ended September 30, 2025, and Fiscals 2025, 2024 and 2023, respectively. Any cyclical downturn or regulatory shift in this industry could disproportionately impact its sales volume.

The company's inability to improve operational efficiency, reduce costs, or effectively pass on increases in raw material prices to the company's customers could adversely affect its business, financial condition, and results of operations.

The company's manufacturing operations are geographically concentrated in two regions, Ludhiana (Punjab) and Hosur (Tamil Nadu). Any region-specific disruptions, including social unrest, political instability, or natural disasters in these two regions, could critically interrupt its entire production cycle.

The company's business performance and profitability rely heavily on the availability and cost of steel, the company's primary raw material. The cost of raw materials and components consumed by us represented 52.61%, 53.68%, 56.44% and 58.24% of its total revenue from operations during the six month period ended September 30, 2025, and in Fiscals 2025, 2024 and 2023, respectively. Any volatility in steel prices, shortages arising from external factors, or disruptions in the timely and sufficient supply of raw materials could adversely affect the company's operations. Such developments may negatively impact its revenues, margins, financial condition and cash flows.

The company is dependent on its OEM customers for a significant portion of revenues from sale of products for the six month period ended September 30, 2025, and in Fiscals 2025, 2024 and 2023. If one or more such customers choose not to source their requirements from the company or terminate their purchase orders, the company's business, financial condition, results of operations and cash flows may be adversely affected.

The company's business is capital intensive and the company has incurred significant capital expenditure in the past and may require additional capital and financing in the future. If the company is unable to generate adequate returns on its capital expenditure, or if the company's expanded capacities are under-utilized or if the company is unable to obtain the required additional capital and financing, the company's business, growth prospects, results of operations, financial condition and cash flows could be materially and adversely affected.

The company derives a substantial portion of its revenue from the sale of crankshafts and crankshaft assemblies, and any loss of sales due to a reduction in demand for crankshafts, particularly due to the shift towards EVs, could structurally impact the company's long-term revenue growth.