Source: Company website | Photo Credit: SRI

Indo-MIM manufactures precision engineering components using metal injection molding (MIM) technology. The company supplies components to automotive, defence, medical, consumer and aerospace industries. The IPO will be open till July 27. It comprises a fresh issue of ₹500 crore and OFS of ₹3,312 crore at the upper end of the price band; at this price, the company is valued at around ₹24,000 crore (44.6 times FY26 earnings).

The company has reported a revenue of ₹4,193 crore in FY26 and a PAT of ₹533 crore with a strong growth of 21 per cent/37 per cent CAGR in FY24-26 owing to the expanding scope of MIM-molded parts in end-user industries. It is likely to sustain good growth in the medium term as well. But with premium valuations factoring in the high growth and macroeconomic uncertainty at elevated levels, we recommend investors skip the IPO and wait for a better entry point post listing.    

Business description

MIM is the process used to produce metal components which are high on complexity and volume required. This is in comparison to forging or stamping (high volume, low complexity), or machining (low volume, high complexity), or casting which is midway on complexity. The MIM process involves using thermoplastic binder and metal powders as feedstock. The feedstock is heated under high pressure and injected into a component mold. The binder is removed in a controlled manner, and the component further undergoes sintering for further processing.

The MIM process scores over other methods on account of high geometric complexity, high volumes and low wastage. But it is limited to small components (less than 100 gram), which is a limiting factor.

As per the RHP, the company has a global market share of 6.8 per cent in CY25 and is a market leader in MIM technology. It served 1,100 customers across the reported segments in FY26, of which around 90 per cent are repeat customers. In FY26, 77 per cent of revenues are from exports. The company has 15 plants, of which six are in India, six are in the US, two are in the UK and one in Mexico.

Growth drivers

As stated, with revenue CAGR of 21 per cent in the last two years, Indo-MIM should be able to sustain the strong growth as it is driven by new customer and existing customer expansion. The company generates nearly 10 per cent of revenues every year from new customers. As per the company, the new customers’ revenue contribution grows as the portfolio expands and through the years. The company reported supplying 6,400 components in FY26, which is twice the supply in FY21-22, as per the company.

Indo-MIM’s ability to convert a higher number of components to MIM platform from others (forging, machining or casting) is gaining traction and will be the primary driver for the company. It also offers casting, machining and 3D-printing. These are services to complement the MIM platform. The 3D-printing platform is gaining traction, as this allows the company to reduce the pre-validation time (usually three-six months for a new component) to just a week. The company has acquired the 3D-printing infrastructure, which also involves de-binding and sintering, common to MIM platform and relies on company expertise.

Consumer products account for 11 per cent of FY26 revenues, and with Indo-MIM exploring relationships with Chinese electronics companies, it could be a strong driver for the company to access the industry.

Margin performance

Indo-MIM reported strong EBITDA margins of 25 per cent in FY26, which declined 140 bps from the previous two-year average (FY24-25). This was owing to product mix changes and raw material cost inflation. The company has a capacity utilisation of 30-40 per cent across its 15 plants. As it improves the volume of operations, the scope for margin expansion also improves, driven by the operating leverage.

The other lever for margin improvement is backward integration. The company manufactures steel powder that it uses along with the binder in the MIM process. It will also be manufacturing iron powder, which is also a raw material for binders. This should increase the use of raw materials developed in-house from 40 per cent to 60-70 per cent and support margins.

Indo-MIM has a net-debt to EBITDA of 0.6 times in March 2026 or net debt of ₹620 crore. From the fresh proceeds of ₹500 crore, the company plans to repay ₹400 crore of debt, which will lower the interest cost, post-IPO.

Indo-MIM has also completed the three minor acquisitions (acquisition price of $10-15 million) in the last three years to expand the customer profile (aerospace, medical devices and 3D-printing).

In conclusion, the company offers a strong long-term growth story, supported by the increasing adoption of MIM technology, customer expansion, operating leverage and backward integration. However, at around 45 times trailing earnings, much of this growth appears to be already reflected in the valuation. Given the premium pricing and continued volatility in the business and macroeconomic environment, investors may be better served waiting for a more attractive entry point with a greater margin of safety.

Published on July 25, 2026