German automotive component maker Webasto is preparing a $400-500 million IPO for its Indian subsidiary by 2027. The company aims to capitalize on rising demand for sunroofs, with an expected valuation of $2 billion. This move follows a strong financial turnaround in FY25, where the unit reported a net profit of ₹31.4 crore.
Webasto, a global player in openable roof systems, is planning to take its Indian subsidiary, Webasto Roofsystems India, public by 2027. The company is eyeing a fundraise between $400 million and $500 million, targeting a total valuation of approximately $2 billion for the local unit. Axis Capital and JM Financial have been appointed to manage the potential public offering.
Scaling Production in Haryana
To support its growth plans, the company is actively expanding its manufacturing footprint. Beyond its established presence in Pune and Chennai, Webasto is building a new facility in Haryana, located between Manesar and Kharkhoda. The plant is expected to begin operations in the fourth quarter of this year. Once fully functional, the site is designed to reach an annual production capacity of about 500,000 units. This expansion is central to the company’s goal of meeting the rising demand for sunroofs in passenger vehicles across India.
Financial Recovery and Growth
Webasto Roofsystems India has shown a clear improvement in its financial health. In the fiscal year 2025, the company recorded a revenue of ₹946.5 crore, marking a 31% increase from the ₹720 crore reported in FY24. More importantly, the company transitioned to profitability, reporting a net profit of ₹31.4 crore compared to a net loss of ₹9.1 crore in the previous year. Operational efficiency helped drive this turnaround, with EBITDA increasing to ₹102 crore, up significantly from ₹36 crore in the prior fiscal period.
Investment Strategy and Global Standing
Since 2019, Webasto has invested over €110 million in India and has earmarked an additional €174 million for the country by 2030. Globally, the parent group reported €4 billion in revenue for FY25, a decrease of 7.4%. The roof systems segment remains the company's primary business, accounting for 79% of global revenue, or about €3 billion. While the Asia Pacific region's contribution to group revenue has grown to 19%, the planned Indian IPO highlights the region's increasing importance to the group's long-term strategy.
Sector Context for Investors
Webasto's plan comes during a period of increased interest in the Indian automotive component sector. Several suppliers have looked to public markets to fund growth as domestic vehicle sales rise and demand for premium features like sunroofs becomes more common in mass-market vehicles. While the company has shown a positive trend in profit margins and revenue, investors will likely monitor how well the new Haryana facility manages its production ramp-up. The final success of the IPO will depend on broader market sentiment toward the auto component sector, raw material price stability, and the company's ability to sustain its improved profit margins against potential competition.