Metalic Technoforge Limited

1. Overview

Metalic Technoforge Limited ("Metalic" or "the Company") is a Rajkot, Gujarat-based manufacturer of closed-die forged and precision-machined components, incorporated in 2016. The Company's product range covers a wide spread of complex, safety-critical forged and machined parts — including big rings, small rings, ball studs, gear blanks, gears and coupling assemblies — supplied to both domestic and international original equipment manufacturers (OEMs) across automotive and non-automotive end-markets.

The Company's customer base spans automotive OEMs (automobiles, tractors, commercial vehicles) and non-automotive OEMs serving agricultural equipment, hydraulic equipment, construction machinery and general engineering applications. Operations are vertically integrated across die manufacturing, forging, heat treatment, shot blasting, precision machining and quality testing, supported by internationally recognized certifications including IATF 16949, ISO 14001:2015, ISO 45001:2018, PED-2014/68/EU & AD 2000 W0 and the ZED Bronze MSME sustainability certificate.

Metalic operates a four-unit manufacturing facility in Rajkot, Gujarat, spanning approximately 5,968.51 square meters, of which three units are fully operational and the fourth (Unit IV) is presently vacant land earmarked for expansion under the Objects of the Issue. The facility is supported by a captive 1 MW solar power plant that meets an estimated 40–60% of the Company's energy requirements. Geographically, the Company's revenue is concentrated in Gujarat, Maharashtra and Uttar Pradesh domestically, with export sales to Germany, Finland, the United States, Italy, China and Turkey, among other markets. For FY 2025-26, the Company reported revenue from operations of ₹95.55 Crore and PAT of ₹12.36 Crore, workforce strength of 191 employees, and a confirmed order book of ₹27.61 Crore as of June 30, 2026.

2. Business Model and Revenue Streams

Revenue by End-Use Industry (FY 2025-26)

*Others includes industrial equipment, round bar and waste scrap sales.

Revenue by Geography (FY 2025-26)

Within exports, Germany (20.61%) is the largest single-country contributor to total revenue, followed by the United States (5.33%) and Finland (4.48%).

Pricing Strategy and Contract Model

Metalic operates on a purchase-order driven, transactional sales model rather than long-term supply agreements. Customers issue purchase orders specifying quantities, pricing and delivery schedules; the Company does not have assured repeat-business arrangements, which exposes revenue to order-by-order renegotiation and potential customer attrition. This is partially offset by a demonstrated pattern of repeat business: 102 repeat customers contributed 89.10% of FY 2025-26 revenue (₹85.13 Cr), versus 79 new customers contributing the balance.

Client and Vendor Concentration

Both customer and supplier bases carry meaningful concentration risk, though the trend has been improving — top-10-customer concentration declined from 79.76% in FY 2023-24 to 64.61% in FY 2025-26 as the Company diversified its book.

Manufacturing Capacity and Utilization

3. Products and Service Portfolio

Metalic's product portfolio is organized into four principal segments, each manufactured through an integrated forging → heat treatment → precision machining → quality inspection workflow.

Revenue by Product Segment (FY 2025-26)

Gears and Transmission Components is the primary revenue driver (46.23% of FY26 revenue), comprising spur gears, helical gears, transmission shafts, gear blanks and customized gear components used in automotive driveline systems, industrial gearboxes and construction-equipment transmissions — with in-house capability up to DIN-5 gear class. General Engineering Components is the fastest-growing segment, having nearly tripled its revenue share from 11.13% in FY 2023-24 to 31.82% in FY 2025-26, reflecting the Company's diversification beyond its original gear/farm-equipment base. Hydraulic Application Components and Construction Machinery Components represent smaller but stable value-added lines serving cylinder, valve and structural/load-bearing component needs.

Key Operational Data

Forged component weight range: 250 grams to 16 kg

Confirmed order book (as on June 30, 2026): ₹27.61 Crore, typical execution cycle of 1–3 months

Quality systems: coordinate measuring machines (CMM), contour inspection systems, gear profile testers; 3.1 material certificates provided to customers

4. Key Business Strengths

• Integrated, expanding manufacturing base: A four-unit, ~5,968.51 sq. m. facility in Rajkot covering forging, heat treatment, machining and gear-cutting in-house, backed by a captive 1 MW solar plant supplying up to 60% of energy needs.
• Diversified product portfolio: Revenue spread across gears, construction machinery, hydraulic and general engineering components serving both automotive and non-automotive OEMs, reducing single-segment dependence.
• Certified quality assurance framework: IATF 16949, ISO 14001:2015, ISO 45001:2018 and ZED Bronze certifications, supported by an in-house metallurgical and metrological testing laboratory.
• Healthy, growing order book: A confirmed ₹27.61 Crore order book as of June 30, 2026, with typical 1–3 month execution cycles across domestic and export customers.
• High customer retention: Repeat customers contributed 89.10% of FY 2025-26 revenue, reflecting sustained relationships across automotive, farm-equipment, hydraulic and general engineering clients.

5. Future Growth Strategy

• Capacity expansion via Unit IV: Deploying ₹30.81 Crore of Net Proceeds toward a new forging facility (including a 400-Ton servo-operated screw press) that will lift installed forging capacity from 6,800 MT to 8,800 MT per annum, alongside upgradation of Units I–III to reduce third-party outsourcing.
• Deleveraging the balance sheet: Applying ₹6.72 Crore of Net Proceeds to repay/prepay secured borrowings, targeting a lower Debt-to-Equity ratio (0.95x as of FY26) and reduced finance costs.
• Brand and quality visibility: Continued investment in brand recognition and consistent product quality to strengthen positioning with existing and prospective OEM clients.
• Geographic and customer diversification: Deepening penetration in existing strongholds (Gujarat, Maharashtra, Uttar Pradesh) while expanding export relationships beyond current markets such as Germany, Finland and the United States.