Adroit Industries (India) Limited IPO

Adroit Industries (India) Limited IPO closed on 25 Sept 2026. Allotment 28 Sept 2026, listing 30 Sept 2026. Price band ₹126–₹134, lot 111 shares, GMP +₹55 (41.04%). Track allotment on Allotly.

About Adroit Industries (India) Limited

Adroit Industries (India) Limited is a manufacturer and supplier of propeller shafts and related torque-transmission components for automotive and non-automotive applications. Its product portfolio includes precision-machined torque-transmission components, complete propeller shaft assemblies and forged components used as intermediate inputs in its manufacturing process. The company’s manufacturing capabilities cover forging, precision machining, heat treatment, assembly, balancing and testing, and it offers more than 5,000 SKUs of torque-transmission components and assemblies as of July 31, 2026. Its products are used mainly in commercial vehicles and, to a limited extent, passenger vehicles such as SUVs, as well as in defence and emergency services, heavy equipment, off-highway machinery and industrial equipment. The company supplies products through distributors, Tier-1 driveline…

Strengths

• The company offers a broad portfolio of torque-transmission components. As of July 31, 2026, it offered 5,250 SKUs across propeller shaft assemblies, yoke components, shaft components, flange components, joint components and other driveline components. The number of SKUs increased from 3,821 in FY24 to 4,452 in FY25 and then 5,250 as of July 31, 2026.
• The company has vertically integrated manufacturing operations across key production stages. It operates three manufacturing facilities in Madhya Pradesh covering forging, machining, heat treatment, assembly, finishing, and testing. The company claims that this in-house production setup reduces its reliance on third-party vendors for critical manufacturing processes.
• The company has a diversified customer base with a high share of repeat business. It served 185 customers in FY26, including 153 distributors, 13 Tier-1 driveline component suppliers, and 22 OEMs. Revenue from repeat customers accounted for 90.26% of revenue from the sale of products in FY26.
• The company has an established presence in export markets. Exports accounted for 95.39% of revenue from the sale of products in FY26, compared with 96.27% in FY25 and 94.56% in FY24. During FY26, it exported products to more than 32 countries across North America, Europe, Latin America, the Middle East, Africa, and Asia-Pacific.
• The company claims to have engineering, testing, and product-validation capabilities for driveline components. Its facilities include CNC machining, forging, heat treatment, and balancing equipment, along with testing equipment such as hardness testers, spectrometers, universal testing machines and microscopes. It also undertakes dimensional, metallurgical and flaw detection testing and dynamic balancing of propeller shafts and related components.
• The company has reported growth in revenue and profitability over the reported period. Revenue from operations increased from Rs 124.53 crore in FY4 to Rs 133.89 crore in FY25 and Rs 139.94 crore in FY26. PAT increased from Rs 14.53 crore to Rs 18.14 crore and Rs 26.16 crore over the same period, while the PAT margin increased from 11.67% to 18.69%.
• The company has reduced its leverage while improving its returns. Its debt-to-equity ratio declined from 0.94 in FY24 to 0.63 in FY25 and 0.41 in FY26. Over the same period, RoCE increased from 15.07% to 19.01%, and RoNW increased from 18.95% to 22.51%.

Risks

• The company is significantly dependent on export markets, particularly the US, for its revenue. Revenue from exports contributed Rs 121.24 crore (95.39%), Rs 116.68 crore (96.27%), and Rs 104.47 crore (94.56%) of revenue from the sale of products in FY26, FY25, and FY24, respectively. The US accounted for 53.76% of export sales in FY26, exposing the company to changes in demand, economic conditions, trade policies and customer collections in this market.
• The company’s exports to the US are exposed to tariffs that could affect its revenue and margins. Its propeller shafts and driveline components exported to the US are subject to an additional 25% tariff under Section 232 of the Trade Expansion Act of 1962. Continuation or increase in tariffs, or failure to operationalise the proposed preferential tariff framework for Indian automotive parts, could affect the competitiveness of its products and its financial performance.
• The company has substantial unhedged foreign currency exposure. It did not enter into any material derivative, forward, or other hedging contracts during FY26, FY25, or FY24, while its foreign currency exposures remained substantially unhedged. It reported a net foreign exchange loss of Rs 3.81 crore in FY25 and Rs 5.38 crore in FY24, compared with a gain of Rs 0.50 crore in FY26.
• The company’s revenue is significantly concentrated among a limited number of customers, and it does not have long-term supply commitments with them. Its top 10 customers contributed Rs 77.36 crore (60.86%), Rs 79.88 crore (65.91%), and Rs 75.80 crore (68.61%) of revenue from sale of products in FY26, FY25, and FY24, respectively, while its top customer contributed 20.92% of such revenue in FY26. Further, repeat customers accounted for 90.26% of revenue from the sale of products in FY26, and any reduction or termination of orders by key customers could materially affect its revenue and financial performance.
• The company’s manufacturing operations are geographically concentrated in Madhya Pradesh, and its facilities are interdependent. All three manufacturing facilities are located in Madhya Pradesh, with the Dewas facility undertaking upstream processes such as forging and heat treatment and the Pithampur facility undertaking downstream machining, assembly and balancing. Any disruption at a facility due to natural disasters, fire, equipment failure, labour unrest, power shortages, transportation bottlenecks, or other localised events could interrupt production, delay customer deliveries and increase operating costs.
• The company has experienced negative cash flows from financing activities and certain investing activities in the past. On a consolidated basis, cash flow from financing activities was negative at Rs 16.99 crore, Rs 23.52 crore, and Rs 19.66 crore in FY26, FY25, and FY24, respectively, primarily due to repayment of borrowings and finance costs, while investing cash flow was negative at Rs 12.09 crore in FY26 and Rs 0.46 crore in FY24, mainly due to capital expenditure on property, plant and equipment and inter-corporate loans in FY26. Continued negative cash flows or mismatches between cash inflows and outflows could increase its reliance on external funding and affect its liquidity and ability to meet operational and debt obligations.
• The company, its directors, and promoters are involved in outstanding legal proceedings. These proceedings are pending before various courts, tribunals, inquiry officers, and appellate tribunals at different stages of adjudication. Any adverse outcome in these proceedings could adversely affect the company’s reputation, business, results of operations, cash flows, and financial condition.
• The company is dependent on a limited number of suppliers for key raw materials and does not typically enter into long-term supply agreements with them. Its top 10 suppliers accounted for Rs 30.66 crore (75.97%), Rs 33.77 crore (90.41%), and Rs 32.51 crore (88.09%) of total purchases in FY26, FY25, and FY24, respectively, while its top supplier accounted for 28.36% of purchases in FY26. Any disruption in supply, inability to secure materials on acceptable terms, or increase in procurement costs could interrupt production and adversely affect its margins and financial performance.
• The company and its material subsidiary have significant outstanding borrowings, which expose them to debt servicing and liquidity risks. As of July 31, 2026, their aggregate outstanding borrowings were Rs 68.98 crore. Any inability to generate sufficient cash flows to meet repayment and finance cost obligations could adversely affect their liquidity, financial condition and operations.
• As of March 31, 2026, the company had trade receivables amounting to Rs 45.28 crore. Any delay or failure in recovering these receivables could adversely affect the company’s cash flows, liquidity, and financial condition.

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