OHV Parts Maker With 88% Market Share Set To Launch IPO Amid Surging EV & Tractor Demand

Himachal Pradesh-based precision transmission element producer Milestone Gears has filed DRHP with the Securities and Exchange Board of India (SEBI) to boost INR 1,100 crore by means of an IPO.

Milstone Gears IPO consists of an INR 800 crore recent concern and an INR 300 crore OFS by the promoters and members of the promoter group. JM Financial, Axis Capital, and Motilal Oswal are appearing as lead managers, whereas KFin Technologies is the registrar of the difficulty.

Milestone Gears IPO: Company Overview

Founded in 1984 by Ashok Kumar Tandon, Milestone Gears has turn into one of many main producers of high-precision transmission and drivetrain parts in India. The firm provides tractors, development tools, electrical autos (EVs), locomotives, windmills with over 700 lively SKUs and long-standing relationships with marquee OEMs like Mahindra & Mahindra, TAFE, Escorts, CNH Industrial, John Deere, JCB.

From its 9 crops throughout Himachal Pradesh, Punjab and Haryana, Milestone has constructed a vertically built-in manufacturing chain of forging, machining, warmth remedy and equipment ending—a uncommon full spectrum functionality amongst mid sized Indian element producers..

💰 Use of Funds: Debt Reduction and EV Expansion

According to the DRHP, Milestone Gears IPO proceeds can be primarily utilised for:

The proposed Greenfield undertaking will improve Milestone’s capability for superior gear assemblies focused at electrical drivetrains and locomotive functions, aligning with international shifts towards sustainable mobility.

📊 Financials in Motion: Margins Rebound, Profitability Accelerates

Milestone Gears’ monetary trajectory displays operational self-discipline amid cyclic market dynamics.

After a muted FY24, profitability surged sharply in FY25, pushed by higher capability utilisation, improved product combine, and value rationalisation. EBITDA margins touched 18%, signaling a transition from a volume-driven to a margin-driven development mannequin.

Post-IPO, debt reimbursement is predicted to materially scale back leverage (internet debt/fairness of three.23x in FY25), liberating up steadiness sheet capability for future growth.

⚙️ Engineering Advantage: High Utilization and Technology Depth

Milestone Gears’ operations are characterised by environment friendly asset deployment and excessive plant utilisation—with over 85% common capability use throughout main product classes comparable to bull gears, axles, and transmission shafts.

Its manufacturing sophistication—together with German scudding and Reishauer grinding programs—permits DIN Class-4 precision, a high quality stage demanded by international tractor and EV OEMs.

“The company’s technological edge and strong OEM linkages make it a Tier-1 candidate for new-generation driveline components, particularly as 4WD and EV segments expand,” stated a Mumbai-based analyst with a home brokerage.

👥 People Power

As of June 2025, Milestone employed 1,417 everlasting and 2,038 contractual employees. Of the everlasting workers, over 1,000 are engineers or machinists, reflecting the corporate’s technical depth. Importantly, no unionisation or main work stoppages have been reported, underscoring environment friendly HR administration.

🌍 Global and Domestic Market Tailwinds

Global Off-Highway Vehicle (OHV) Market

The international OHV trade—agricultural and development equipment—grew from USD 211.6 billion (~INR 18.7 lakh crore) in 2019 to USD 293.1 billion (~INR 25.9 lakh crore) in 2024 and is predicted to succeed in USD 409.9 billion (~INR 36.2 lakh crore) by 2029 at a 6.9% CAGR.

• Tractors account for ~68% of OHV quantity (26 lakh models in 2024).
• Construction equipment provides one other 12 lakh models.
• Growth is pushed by mechanisation, infrastructure spending and electrification.

India: The Tractor Capital of the World

India is the world’s largest tractor market, accounting for ~40% of worldwide volumes.

• Sales grew from 8.72 lakh models in FY19 to 10.4 lakh models in FY25 and is predicted to succeed in 15.4 lakh models by FY30 (CAGR 8.2%).
• Within this, 4WD tractors are gaining traction—anticipated to develop from 23% share in FY25 to 42% by FY30—a phase the place Milestone is creating driveline programs.

The home off-highway market can be rising quickly—from INR 1.2 lakh crore in FY19 to INR 2.17 lakh crore in FY25 and is predicted to succeed in INR 3.83 lakh crore by FY30 (CAGR 12%) pushed by the PM Gati Shakti and National Infrastructure Pipeline programmes.

🔩 Industry Linkages: Trusted by Global Leaders

Milestone Gears provides to all seven tractor OEMs in India—Mahindra, Swaraj, Sonalika, TAFE, Escorts, Kubota, John Deere and CNH Industrial—masking virtually 88% of the home market. It can be an permitted vendor to international leaders like Deere, CNH, AGCO and Kubota, which collectively command over 50% of the worldwide agri-equipment market by worth.

🌱 Macro Themes: Electrification, Localisation, and the China+1 Shift

Industry analysts observe that the IPO comes at a time when OEMs worldwide are diversifying provide chains below the “China+1” technique, creating tailwinds for Indian precision element producers.

“Milestone’s focus on high-tolerance gear assemblies, localisation, and upcoming EV product lines places it strategically to benefit from this shift,” stated a sector skilled.

Government schemes comparable to Make in India, PLI for Auto Components, and FAME-II are additional enabling suppliers like Milestone to combine into international electrical drivetrain ecosystems.

🧭 The Road Ahead

With a robust foothold in tractors and development tools—and rising publicity to EVs and locomotives—Milestone Gears embodies the brand new wave of “industrial India” tales bridging legacy manufacturing with superior mobility.

If executed properly, its post-IPO journey might mirror the transformation seen in firms like Craftsman Automation—leveraging India’s manufacturing resurgence, localisation traits, and the rising international demand for clear, clever equipment.

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