Milestone Gears IPO

Manufacturer of high-precision, complex engineered transmission components supplied to Indian and international original equipment manufacturers. Products serve tractors, construction equipment, electric vehicles, locomotives, windmills and other heavy industries.

IPO status: upcoming
IPO type: Mainboard
Exchange: NSE/BSE
Face value: 2

About Milestone Gears

Milestone Gears IPO dates and issue details

Issue opening: To be announced; closing: To be announced; basis of allotment: To be announced; expected listing: To be announced.

Published IPO research

01 overview

Company Name: Milestone Gears Limited
Ipo Category: Mainboard
Ipo Status: DRHP filed – draft stage
Industry: Precision engineering / auto components
Business Tagline: Manufacturer of high-precision, complex engineered transmission components supplied to Indian and international original equipment manufacturers. Products serve tractors, construction equipment, electric vehicles, locomotives, windmills and other heavy industries.
Issue Type: Fresh issue and offer for sale
Face Value: 2
Issue Size Total: 1,100
Fresh Issue Amount: 800
Ofs Amount: 300
Listing Exchange: BSE, NSE

02 company

Company Description: Manufacturer of high-precision, complex engineered transmission components supplied to Indian and international original equipment manufacturers. Products serve tractors, construction equipment, electric vehicles, locomotives, windmills and other heavy industries.
Incorporation Date: 1984-04-27
Corporate History: date or year: 1984; event: Incorporated as Milestone Gears Private Limited.; source pages: 233, date or year: 2009; event: Entered the construction equipment segment.; source pages: 234, date or year: 2019; event: Entered the electric vehicle component segment.; source pages: 234, date or year: 2021; event: Commissioned Unit IX, a greenfield facility primarily dedicated to EV drivetrain components.; source pages: 234, date or year: 2022; event: Entered windmill and heavy-industry applications.; source pages: 234, date or year: 2024; event: Entered the locomotive component segment.; source pages: 234, date or year: 2025-10-07; event: Converted to a public limited company and renamed Milestone Gears Limited.; source pages: 1
Business Model: B2B manufacturing and supply of precision transmission components to OEM customers. The company describes an end-to-end manufacturing model covering forging, machining and heat treatment, with fungible production equipment across product categories.
Products Services: Bull gears, Transmission gears and transmission shafts, Rear axles, Spindles, Internal ring gears, Rock shafts and induction-hardened shafts, Cut bevel gears, Ground gears and shafts
Industry Segments: name: Tractors; revenue share fy2025 percent: 82.7; source pages: 234, name: Construction equipment; revenue share fy2025 percent: 11.32; source pages: 234, name: Electric vehicles; revenue share fy2025 percent: 4.08; source pages: 234, name: Windmills and other heavy industries; revenue share fy2025 percent: 1.89; source pages: 234, name: Locomotives; revenue share fy2025 percent: 0; source pages: 234
Geographic Presence: name: India; revenue share fy2025 percent: 90.57; source pages: 146, name: Exports; revenue share fy2025 percent: 9.43; source pages: 146
Manufacturing Facilities: description: Nine manufacturing facilities across Punjab, Haryana and Himachal Pradesh; seven of nine facilities are in Himachal Pradesh.; source pages: 235, description: Aggregate built-up area exceeds 398,000 sq. ft.; total land area exceeds 700,000 sq. ft.; source pages: 235
Installed Capacity: metric: Bull gears installed annual capacity; value: 6,60,000; unit: pieces; as of: 2025-06-30; source pages: 235, metric: Rear axles installed annual capacity; value: 5,05,200; unit: pieces; as of: 2025-06-30; source pages: 235, metric: Rockshafts and induction-hardened shafts installed annual capacity; value: 3,60,000; unit: pieces; as of: 2025-06-30; source pages: 235, metric: Internal ring gears installed annual capacity; value: 5,40,000; unit: pieces; as of: 2025-06-30; source pages: 235, metric: Transmission gears and shafts installed annual capacity; value: 26,40,000; unit: pieces; as of: 2025-06-30; source pages: 235, metric: Spindles installed annual capacity; value: 72,000; unit: pieces; as of: 2025-06-30; source pages: 235, metric: Cut bevel gears installed annual capacity; value: 9,24,000; unit: pieces; as of: 2025-06-30; source pages: 235, metric: Ground gears and shafts installed annual capacity; value: 9,57,600; unit: pieces; as of: 2025-06-30; source pages: 235
Capacity Utilisation: metric: Utilisation range across existing product categories; value: approximately 70%–95%; as of: 2025-06-30; source pages: 124
Customer Profile: description: Served more than 50 customers between 1 April 2022 and 30 June 2025.; source pages: 233, 235, description: Top 10 customers had an average relationship history of more than 18 years as of FY2025.; source pages: 235, description: No individual customer contributed more than 18.23% of product sales in FY2023, FY2024 or FY2025, as stated in the DRHP.; source pages: 235, description: Customers named in the DRHP include TAFE Motors & Tractors, Tractor & Farm Equipment, Mahindra & Mahindra, Valeo, Wabtec, Liebherr, Caterpillar and John Deere India.; source pages: 235
Customer Concentration: max single customer share fy2023 fy2025 percent: 18.23; top 10 average relationship years: >18
Competitive Advantages: Reported market share in selected Indian tractor component categories: bull gears approximately 37%, internal ring gears approximately 30%, rockshafts and other induction-hardened shafts approximately 23%, and rear axles approximately 22% by volume in FY2025., More than 40 years of manufacturing experience., More than 700 active parts and over 32 product-development engineers as of 30 June 2025., End-to-end manufacturing capability and fungible production setup.
Growth Strategy: Expand manufacturing capacity through a proposed greenfield facility in Himachal Pradesh., Increase capability for EV drivetrain components and larger-diameter gears for locomotives, windmills and heavy industry., Develop new products and deepen OEM relationships across end-use sectors.
Employee Strength: 1,417

03 financials

Revenue From Operations: period: FY2023; value: 6,129.38, period: FY2024; value: 5,333.24, period: FY2025; value: 5,301.69, period: 3M ended 2025-06-30; value: 1,680.34
Ebitda: period: FY2023; value: 768.31, period: FY2024; value: 705.62, period: FY2025; value: 963.05, period: 3M ended 2025-06-30; value: 317.67
Profit After Tax: period: FY2023; value: 140.65, period: FY2024; value: 67.2, period: FY2025; value: 220.64, period: 3M ended 2025-06-30; value: 93.61
Profit Before Tax: period: FY2023; value: 185.21, period: FY2024; value: 103.55, period: FY2025; value: 265.48, period: 3M ended 2025-06-30; value: 126.02
Cash Flow Operations: period: FY2023; value: 285.9, period: FY2024; value: 799.81, period: FY2025; value: 320.79, period: 3M ended 2025-06-30; value: 86.46
Total Borrowings: period: FY2023; value: 3,168.43, period: FY2024; value: 3,152.45, period: FY2025; value: 3,727.57, period: 3M ended 2025-06-30; value: 3,825.81
Cash Equivalents: period: FY2023; value: 8.19, period: FY2024; value: 0.26, period: FY2025; value: 0.39, period: 3M ended 2025-06-30; value: 0.39
Ebitda Margin: period: FY2023; value: 12.53, period: FY2024; value: 13.23, period: FY2025; value: 18.16, period: 3M ended 2025-06-30; value: 18.91
Pat Margin: period: FY2023; value: 2.29, period: FY2024; value: 1.26, period: FY2025; value: 4.16, period: 3M ended 2025-06-30; value: 5.57
Net Debt Equity: period: FY2023; value: 3.48, period: FY2024; value: 3.23, period: FY2025; value: 3.23, period: 3M ended 2025-06-30; value: 3.1
Cash Conversion Cycle: period: FY2023; value: 132, period: FY2024; value: 173, period: FY2025; value: 223, period: 3M ended 2025-06-30
Financial Periods: period: FY2023; period start: 2022-04-01; period end: 2023-03-31; period type: annual; annualised: Yes; source pages: 316, 317, 318, 319, period: FY2024; period start: 2023-04-01; period end: 2024-03-31; period type: annual; annualised: Yes; source pages: 316, 317, 318, 319, period: FY2025; period start: 2024-04-01; period end: 2025-03-31; period type: annual; annualised: Yes; source pages: 316, 317, 318, 319, period: 3M ended 2025-06-30; period start: 2025-04-01; period end: 2025-06-30; period type: interim; annualised: No; source pages: 316, 317, 318, 319

04 business quality

Revenue Growth Drivers: Revenue from operations declined from ₹6,129.38 million in FY2023 to ₹5,301.69 million in FY2025. The DRHP extraction does not provide a fully quantified price-versus-volume bridge.
Revenue Concentration Analysis: Tractors accounted for 82.70% of FY2025 product sales. Construction equipment contributed 11.32%, EVs 4.08%, windmills/heavy industries 1.89%, and locomotives 0%.
Profit Quality Analysis: FY2025 PAT was ₹220.64 million while operating cash flow was ₹320.79 million. Cash conversion should be assessed alongside high working-capital days and capex.
Margin Trend Analysis: EBITDA margin increased from 12.53% in FY2023 to 18.16% in FY2025. PAT margin moved from 2.29% to 4.16% over the same period.
Working Capital Analysis: Cash conversion cycle increased from 132 days in FY2023 to 223 days in FY2025, indicating a longer cash cycle and potentially greater funding needs.
Debt Quality Analysis: Borrowings increased to ₹3,727.57 million at 31 March 2025 from ₹3,152.45 million at 31 March 2024. Net debt/equity was 3.23x in FY2025.
Export Performance: FY2023 INR million: 847.27; FY2024 INR million: 602.45; FY2025 INR million: 457.19; FY2025 share percent: 9.43
New Product Contribution: 3M June 2025 INR million: 289.22; 3M June 2025 share percent: 18.37; FY2025 INR million: 498.68; FY2025 share percent: 10.28
Capacity Expansion Analysis: Proposed greenfield facility at Mohal Bated, Baddi, Solan, Himachal Pradesh. Estimated project cost ₹3,047.88 million; proposed net proceeds contribution up to ₹2,964.21 million. The facility is intended to support larger diameter gears and EV/heavy-industry components.

05 ipo objects

Objects Of Issue: object: Proposed greenfield manufacturing facility; amount crore: 296.421; source pages: 124, object: Total estimated project cost; amount crore: 304.788; source pages: 124, object: Fresh issue proceeds; amount crore: 800; notes: Up to ₹800 crore proposed fresh issue; final allocation/use of proceeds to be confirmed from RHP.; source pages: 1
Capex Amount: 296.421
Proceeds Assessment: The major identified use is the proposed greenfield facility. The final objects and allocation should be reconciled with the RHP.

06 peer comparison

Peer Selection Rationale: The DRHP identifies Bharat Forge, Sona BLW Precision Forgings, Happy Forgings, Ramkrishna Forgings and Shanthi Gears as peers.
Peer Companies: Bharat Forge Limited, Sona BLW Precision Forgings Limited, Happy Forgings Limited, Ramkrishna Forgings Limited, Shanthi Gears Limited
Comparability Notes: The DRHP notes differences in peer reporting basis; Shanthi Gears is standalone while other peer figures are largely consolidated. Confirm each peer metric's basis and period before comparison.

07 valuation

Valuation Basis: Price band and final offer price are placeholders in the DRHP; valuation is deferred until RHP.
Valuation Conclusion: Not assessable at DRHP stage: price band and final share quantities are not specified.

08 risks

Business Risks: title: End-market concentration; category: business; description: Tractors represented 82.70% of FY2025 product sales, exposing the company to tractor-industry demand and cyclicality.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication.
Industry Risks: title: Issuer-commissioned industry data; category: other; description: Some industry and market-share information is drawn from a paid report commissioned by the issuer.; severity: medium; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication.
Financial Risks: title: Leverage; category: financial; description: Net debt-to-equity was reported at 3.23 times in FY2025; borrowings were ₹3,727.57 million at 31 March 2025.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication., title: Working-capital intensity; category: financial; description: Cash conversion cycle was 223 days in FY2025, compared with 173 days in FY2024 and 132 days in FY2023.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication., title: Liquidity and low cash balance; category: financial; description: Cash and cash equivalents were ₹3.9 million at 31 March 2025 and 30 June 2025.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication.
Ipo Specific Risks: title: Greenfield project execution; category: issue_specific; description: The proposed greenfield facility involves substantial capex and execution, commissioning and utilisation risks.; severity: medium; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication.
Risk Register: title: End-market concentration; category: business; description: Tractors represented 82.70% of FY2025 product sales, exposing the company to tractor-industry demand and cyclicality.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication., title: Leverage; category: financial; description: Net debt-to-equity was reported at 3.23 times in FY2025; borrowings were ₹3,727.57 million at 31 March 2025.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication., title: Working-capital intensity; category: financial; description: Cash conversion cycle was 223 days in FY2025, compared with 173 days in FY2024 and 132 days in FY2023.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication., title: Liquidity and low cash balance; category: financial; description: Cash and cash equivalents were ₹3.9 million at 31 March 2025 and 30 June 2025.; severity: high; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication., title: Greenfield project execution; category: issue_specific; description: The proposed greenfield facility involves substantial capex and execution, commissioning and utilisation risks.; severity: medium; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication., title: Issuer-commissioned industry data; category: other; description: Some industry and market-share information is drawn from a paid report commissioned by the issuer.; severity: medium; analyst assessment: Source-derived risk summary; page-level source mapping should be completed before publication.

09 research

Score Confidence: Low – initial DRHP extraction; detailed verification pending
Business Strengths: More than 40 years of manufacturing experience., Nine manufacturing facilities across three North Indian states., More than 700 active parts as of 30 June 2025., More than 32 product-development engineers as of 30 June 2025., Reported market share in selected tractor component categories.
Key Concerns: Tractors represented 82.70% of FY2025 product sales, exposing the company to tractor-industry demand and cyclicality., Net debt-to-equity was reported at 3.23 times in FY2025; borrowings were ₹3,727.57 million at 31 March 2025., Cash conversion cycle was 223 days in FY2025, compared with 173 days in FY2024 and 132 days in FY2023., Cash and cash equivalents were ₹3.9 million at 31 March 2025 and 30 June 2025., The proposed greenfield facility involves substantial capex and execution, commissioning and utilisation risks., Some industry and market-share information is drawn from a paid report commissioned by the issuer.
Growth Opportunities: Expand manufacturing capacity through a proposed greenfield facility in Himachal Pradesh., Increase capability for EV drivetrain components and larger-diameter gears for locomotives, windmills and heavy industry., Develop new products and deepen OEM relationships across end-use sectors.
Bull Case: Potential strengths include long operating history, established OEM relationships, reported positions in selected tractor component categories and planned capacity/product expansion.
Bear Case: Key concerns include high tractor end-market concentration, leverage, low reported cash balances, longer cash conversion cycle and greenfield execution risk.
Key Monitoring Points: Diversification beyond tractors, Cash conversion cycle and receivable/inventory trends, Borrowings and interest costs, Greenfield capex, commissioning and utilisation, Margins and operating cash conversion
Overall Assessment: Preliminary DRHP-stage assessment only. Final valuation and investment view require RHP terms, verified peer metrics and completion of legal/governance disclosures.
Research Disclaimer: For information and research purposes only; not investment advice or a recommendation to subscribe.

10 management

Promoters: name: Ashok Kumar Tandon; role: Promoter; Chairman-cum-Executive Director; experience: Approximately 43 years in the auto components sector, as stated in the DRHP.; source pages: 235, name: Aman Tandon; role: Promoter; Managing Director; experience: Approximately 27 years in the auto components sector, as stated in the DRHP.; source pages: 235
Key Management: name: Pankaj Budhiraja; role: Chief Financial Officer; source pages: 316, name: Mohinder Singh; role: Company Secretary; source pages: 316
Auditor Observations Summary: detail: Restated financial information is accompanied by the auditor's report dated 12 November 2025.; source pages: 316

11 documents

Source Register: source id: DRHP-2025-11-18; source type: DRHP; title: Milestone Gears Limited Draft Red Herring Prospectus; document id: 1764232197013.pdf; publication date: 2025-11-18; retrieved at: 2026-11-13T10:30:00+05:30, source id: INDUSTRY-1LATTICE-2025-11; source type: Other; title: Gears and Precision Components Industry Report (1Lattice), November 2025; url: https://www.milestonesgroup.co.in/investors/; publication date: 2025-11-01
Document Version: DRHP dated 18 November 2025
Research Version: 2
Last Researched At: 2026-11-13
Last Updated At: 2026-11-13
Change Log: version: 2; document: DRHP; note: Initial structured extraction; update with RHP as a new revision.