KSH International Ltd IPO

The company depends on certain customers for a significant portion of the revenue from operations. Its top 10 customers contributed to 53.97%, 52.54%, 57.10% and 58.99% of the revenue from operations for the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, respectively. Any decrease in demand from such customers, the loss of such customers or its inability to diversify the customer base could have an adverse effect on its business, results of operations, financial condition and cash flows.

The company business is dependent on suppliers to procure its raw materials (top 10 suppliers contributed to 98.91%, 98.45%, 96.93% and 98.58% of the total cost of raw materials and components purchased for the three-month period ended June 30, 2025, and Fiscals 2025, 2024, and 2023, respectively). The company has not entered into long-term agreements with these suppliers, and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on the company business, financial condition, cash flows and results of operations.

Any shortfall in the supply or availability of raw materials including aluminium or copper, which are the company primary raw materials (and copper also being its principal raw material), or insulating materials, such as enamel and paper, or an increase in its such material costs, or other input costs, may adversely affect the pricing and supply of the company products and have an adverse effect on its business, results of operations and financial condition.

A significant portion of the company revenue from operations i.e. 71.73%, 74.79%, 75.17% and 79.08% of its operating revenue for the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively is attributable to the power sector (generation, transmission and distribution) industry ("Power Sector"). Any economic cyclicality coupled with reduced demand or negative trend in the Power Sector industry or other industries that its operate in, could adversely affect the company business, results of operations and financial condition.

Its derive a substantial portion of the company revenue (more than 70% in each of the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023) from the sale of specialized magnet winding wires. Any reduction in demand for the key products would have a material adverse effect on its business, financial condition, results of operations and cash flows.

Its have not yet placed orders in relation to the company capital expenditure to be incurred for certain of the proposed objects of the Offer. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the requisite equipment in a timely manner, or at all, the same may result in time and cost over-runs.

The company operations are significantly dependent on its manufacturing facilities. Any unscheduled, unplanned or prolonged disruption, slowdown or shutdown of the company manufacturing facilities could have a material adverse effect on its business, financial condition, cash flows and results of operations.

The company have encountered delays in the past and may encounter delays or time cost overruns in the completion of the construction of its manufacturing facility at Supa, Ahilyanagar (formerly Ahmednagar) in Maharashtra, which may adversely affect its business, result of operations, financial condition and cash flows.

The company is subject to strict quality requirements and any product defect issues or failure by its or the company raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or exposure to potential product liability claims.

Its export the company products to various countries and its revenue from outside India represented 30.75%, 33.20%, 39.15% and 43.93% of the company sale of products for the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, respectively. Any adverse events affecting these countries or changes in laws and duties in relation to exports could have an adverse impact on its business, revenue operations, financial condition and cash flows.