Kheria Autocomp Ltd.

A substantial portion of our revenue is derived from customers located in the state of Gujarat. Any adverse developments in this region may materially and adversely affect our business and results of operations.(Geographic Concentration)

We are dependent on Tier-I vendors, whose demand is directly linked to OEM procurement cycles. Any reduction or discontinuance of their demand may adversely affect our business, financial condition and results of operations.(Customer Concentration)

For our proposed new manufacturing facility, we are required to obtain certain statutory approvals, clearances, and permissions from the relevant authorities in connection with the planned capital expenditure. If we are unable to obtain such approvals in a timely manner, or at all, our proposed expansion may be delayed, which could adversely affect our business, results of operations, cash flows, and financial condition.(Regulatory Approvals)

A significant portion of the Net Proceeds is proposed to be utilized towards funding our capital expenditure requirements including purchase of plant and machinery for our new manufacturing facility, for which certain orders have been placed. Any delay in procurement, delivery or installation of plant and machinery for our new manufacturing facility, including machinery for which purchase orders have been placed, may delay implementation, result in cost overruns and adversely affect our business operations and growth strategy.(Capital Expenditure Execution)

Our operations are subject to various statutory and regulatory approvals, licences, registrations, and permits required under applicable laws. These include approvals relating to environmental, labour, factory operations, fire safety, stability certificates, and other local authority clearances. In relation to our proposed capacity expansion at Sanand, we have received approval from GIDC Drawing Approval, the Gujarat Pollution Control Board (GPCB) consent to establish. However, we are yet to apply for certain other approvals, including the factory licence, the Gujarat Pollution Control Board (GPCB) consent to operate, fire no-objection certificate (NOC), stability certificate etc. If we are unable to obtain these approvals, or if there is a delay in obtaining them, our capacity expansion project may be delayed, which could adversely impact our ability to commence commercial production within the envisaged timelines.(Regulatory Approvals)

The extent of our customer concentration during these periods is presented below: Revenue from Top Customer(s) as a percentage (%) of Revenues from Operations Particulars March 31, 2026 March 31, 2025 March 31, 2024 From Top 1 Customer 30.99 35.19 49.94 From Top 5 Customers 97.32 97.43 98.65 From Top 10 Customers 99.95 99.99 99.96 This concentration exposes us to significant risk in the event that these Tier-I vendors reduce, delay, or discontinue their purchases from us due to factors such as: a slowdown in the production schedules of OEMs; vendor rationalization to reduce cost related to procurement from multiple vendors or in-house production of components; pricing pressures and cost-reduction initiatives passed down through the supply chain; financial stress or insolvency of Tier-I vendors; or technological or regulatory changes (for example, shifts between internal combustion engine and electric vehicles).(Customer Concentration)

While we have expanded our customer base and product range over the years, the risk of dependence on a limited number of Tier-I vendors, coupled with the concentration of revenue from these customers, remains significant. Any inability to maintain, diversify, or expand our existing customer relationships could materially and adversely affect our business, financial condition, and results of operations.(Customer Concentration)

Any such increase in the cost of plant and machinery may result in a shortfall in the Net Proceeds allocated for the proposed capital expenditure.(Capital Expenditure Execution)