Webasto Targets $2 Billion Valuation in IPO as Sunroof Maker Eyes Massive India Listing

Webasto Targets $2 Billion Valuation in IPO as Sunroof Maker Eyes Massive India Listing​

German automotive components giant Webasto is planning a major initial public offering (IPO) of its Indian unit, potentially valuing the company at approximately $2 billion. This proposed listing targets an issue size between $400 million and $500 million by 2027, according to those familiar with the matter. Axis Capital and JM Financial have been appointed as the investment banks managing this significant corporate action.

The planned IPO comes amidst a period of aggressive expansion for Webasto Roofsystems India in the rapidly growing Indian market. The company supplies critical roof systems to major automakers including Tata Motors, Hyundai Motor India, Mahindra & Mahindra, and Kia India. This move highlights the increasing scale and profitability of the automotive component sector in India.

Financial Turnaround and Profitability Surge​

The financial performance of Webasto Roofsystems India has seen a significant positive shift. Revenue for FY25 rose 31 percent, reaching Rs 946.5 crore from Rs 720 crore in the preceding year. Furthermore, the company recorded a net profit of Rs 31.4 crore in FY25.

This profit marks a dramatic turnaround compared to FY24, when the Indian unit reported a loss of Rs 9.1 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also saw strong growth, jumping from Rs 36 crore to Rs 102 crore. These figures underscore the operational efficiency gained in India over the last two fiscal years.

Capacity Expansion Drives Market Dominance​

To meet rising demand for specialized roof systems, Webasto is actively expanding its manufacturing footprint across India. The company currently operates facilities in Pune and Chennai. A crucial addition is a third plant scheduled between Manesar and Kharkhoda in Haryana.

This new facility is slated to begin operations in the December quarter of 2026 and will possess an annual capacity of about 500,000 roof systems. With this expansion, Webasto’s total production capability in India is set to increase substantially, reaching approximately two million roofs per year.

Strategic Investment and Global Context​

Webasto has committed substantial capital to its Indian operations since 2019, having invested more than €110 million. The company plans to elevate this cumulative investment to €174 million by the end of 2030. This commitment demonstrates a long-term strategic belief in the Indian market's potential.

Globally, Webasto Group reported a 7.4 percent decline in revenue, reaching €4 billion in 2025. However, Asia-Pacific contributed significantly to group growth, rising four percentage points to become 19 percent of total revenue, driven partly by the strong performance of the Indian unit.

Market Context for Automotive Components Listing​

The roof systems business remains the largest segment within the Webasto Group, generating about €3 billion or 79 percent of its total revenue. The company’s other segments include battery systems (contributing 8 percent) and thermal-management products (accounted for 13 percent).

Webasto's potential listing adds weight to India's pipeline of specialized automotive component IPOs. This comes following notable listings in the sector, such as Belrise Industries raising Rs 2,150 crore via an IPO in 2025, and transmission/axle maker Carraro India that listed in 2024.