Kanishk Aluminium India IPO Analysis

As India's infra & solar boom drives aluminium extrusion demand, Kanishk Aluminium specialises in custom profiles & premium door-window systems for construction, automotive, and renewables.

Let’s explore this upcoming IPO further:

Kanishk Aluminium India's share price will be finalised post-allotment, while grey market cues through Kanishk Aluminium India’s IPO GMP will likely reflect market sentiment closer to listing. 

The Industry Backdrop: India’s Precision Engineering Market

India's aluminium extrusion industry is expanding rapidly, with annual usage at 3.73 lakh tonnes (10% of total aluminium consumption) and projected to reach 8.5 lakh tonnes by 2030 at a 5% CAGR. Currently, in India, the Installed capacity stands at 6 lakh tonnes, led by construction (>50% share) and electrical/electronics (15%), with rising demand from transportation for lightweighting.

India ranks 3rd globally in aluminium production & consumption, yet imports 58% despite ample domestic capacity. The per capita use is low at around 2.5 kg (vs. global 8-12kg), signalling strong growth potential fuelled by infrastructure, EVs, solar, and construction. Southern states like Telangana drive new investments, but challenges include cheap imports and raw material volatility.

India's Aluminium Extrusion market size was valued at $19.45 B in 2025 and is projected to grow at a CAGR of 8% from 2025 to 2032.

Overall, India's aluminium extrusion industry has huge growth potential as Indians use just 2.8kg per person (vs much higher globally). Plus, massive infra spending and aluminium's eco-friendly recycling (95% less emissions) fit perfectly with India's net-zero 2070 climate goal.

Incorporated in 2018 in Jodhpur, Rajasthan—the extrusion hub of India, Kanishk Aluminium specialize in manufacturing a comprehensive range of aluminium extrusion products, including solid & hollow section profiles, solar profiles, railings, heatsinks and sliding/fixed windows and doors profiles. The products serve a diverse array of industries, such as electronics, automotive, mechanical, solar, furniture, transport, electrical, and architecture.

In November 2024, the company launched their brand, “Baari by Kanishk”, focusing on aluminium system doors and windows. Under this brand, Kanishk designs and manufactures a wide range of doors and window systems, including sliding doors, casement series, slide-and-fold doors, lift-and-slide doors, fixed panels, etc.

Capacity: How Much Can Kanishk Aluminium Really Make

Kanishk Aluminium's capacity utilisation has climbed moderately from 56.9% in FY23 to 63.8% in 5M FY25, having a fixed 4,200 MT capacity. The trend indicates that the company does not require any major expansions yet.

The company has an ideal time for its IPO to pay down debt rather than expand capacity immediately. The slower growth in capacity utilization however, reflects slow demand pickup in infrastructure, solar, and automotive extrusions. 

What is the Customer & Supplier Concentration?

In terms of the top 1 customer, Kanishk is moderately concentrated over the years at around 30%. While the concentration level at the top 5 & top 10 does not seem to possess much risk.

Similarly, coming to the supplier base, the company is at a fair position with around 31% of supply coming from the top 1 supplier. While the supply % from top5 & top 10 suppliers stands at 74% and 90% respectively.

The top line has given a negligible growth of 0.5% CAGR from FY23 to FY25. While the growth in FY25 has been at 0.84%. The revenue, as per 5MFY26, also does not seem to be convincing in terms of annualised growth. 

Margins have improved significantly, with EBITDA margins expanding from to 6.9% in FY23 to 11.1% in FY25. The PAT margins have risen from 3.0% in Fy23 to 5.1% in Fy25. 

The management has claimed inclusion of higher margin products by the newly launched brand, ‘Baari’ and higher capacity utilisation as the reason for the margin increase.

The CFO has remained negative over the past years, with currently at (1.8) Cr in FY25. 

Coming to the cash conversion cycle, being at 184 days in Fy25, has substantially increased over the years. The Management has cited the extension of the credit terms & strategic inventory stocking as the primary reason for this increase. 

Kanishk Aluminium has significantly improved its debt level, with the yearly D/E ratio trend being reduced, currently at 1.4 in Fy25. 

ROE and ROCE stand at 20.2% and 14.6%, placing Shayona Engineering above the listed peers. The company has witnessed an increase in the current ratio over the years, currently at 1.4X in FY25.

Kanishk Aluminium India Limited's promoters—Mr. Parmanand Agarwal, Mr Ashish Agarwal, and Mrs Khushboo Agarwal—collectively bring extensive industrial expertise, anchored by Mr Parmanand Agarwal’s 40+ years of experience in the aluminium manufacturing sector. 

The promoters guide the company through hands-on expertise in precision aluminium extrusion, in-house custom die development, and specialised alloy preparation for diverse industries, including automotive, electronics, and solar energy.

While three out of six board members are independent directors, governance ensures quality, as independent directors lead the audit and remuneration committees. 

From a control standpoint, the promoters hold a dominant 99.9% stake pre-issue. Post-IPO, this stake will dilute to 70.2%, but promoter influence will remain firmly intact, given their high base ownership and board control.

Peer Analysis (FY25)

On the basis of peer analysis, it can be said that Kanishk Aluminium has slightly better financials. The EBITDA & PAT margins stand at 11.1% and 5.1%, respectively, being on the higher side relative to the peers.  

The return ratios are also higher than the industrial range, with ROE & ROCE at 20.2% & 14.6%, respectively.

In terms of valuation, Kanishk Aluminium lies in the fair range, with a post-issue P/E ratio at 19x. The EV/EBITDA is also fair currently at around 27.5x. 

Coming to the borrowings, the company carry higher debt in its balance sheet, with a D/E ratio currently at 1.4.

Overall, in terms of margins and valuation, when compared to peers, it can be said that the company has better financials relative to its peers. 

The company will be using the proceeds for:

Debt repayment (₹1,950 lakhs): Repayment/pre-payment of certain borrowings to reduce debt burden and strengthen balance sheet liquidity at manufacturing facilities (Boranada, Jodhpur).

Branding & promotion (₹79.75 lakhs): Launch and marketing of premium aluminium system doors/windows under "Baari by Kanishk" brand targeting architects, builders, and B2C via digital/print campaigns.

General corporate purposes (₹431.80 lakhs): Strategic initiatives, marketing enhancement, working capital support, and other permissible expenses (≤15% gross proceeds or ₹10 Cr max) per SEBI ICDR Regulations.

Overall, the issue aims to deleverage operations, establish premium brand positioning in aluminium extrusions/doors-windows, and fuel growth targeting automotive, solar, and construction demand.

Final Words

At Alpha Venture X Fund, we assess opportunities through our LMVT framework — Leadership, Moat, Valuation, and Tailwinds — enabling us to identify scalable businesses with durable fundamentals.

Leadership: Founder-led with strong industrial experience and equity retention, ensuring aligned execution and focus on scaling the brass components business.

Moat: Despite having in-house manufacturing, the company lacks a moat since aluminium extrusion products fall in the commoditised business category. Putting it at risk in terms of expansion. 

Tailwinds: Rise in the infra boom, along with low per-capita aluminium usage in India.

Valuation: The company is valued at a fair range, with P/E being at 19x; the EV/EBITDA ratio is also in the industrial range, currently around 27.5x. 

Bottom Line: Kanishk has given negligible revenue growth with <1% CAGR. The industry is backed by intense competition from both organised and unorganised players. The company also has substantially increased its cash conversion & lacks a moat, making Kanishk Aluminium India not a buy for investment purposes.