Adroit Industries (India) IPO

Strengths · 8

• 01The company has a very long record, having been incorporated in 1966, which is about 60 years.
• 02Profit has grown strongly, from Rs 6.42 crore in FY2023 to Rs 14.53 crore in FY2024 and Rs 18.14 crore in FY2025.
• 03Sales have grown steadily over the same period, from Rs 104.49 crore to Rs 136.61 crore.
• 04The margin is good for an auto component maker, with a PAT margin of 13.55% and an EBITDA margin of 23.17%.
• 05The company has cut its debt sharply, from Rs 30.44 crore in FY2023 to Rs 8.32 crore in FY2025 and Rs 5.11 crore as on 30 September 2025.
• 06Being fully integrated from forging through to testing is a real advantage in drive line parts, where quality failures are costly.
• 07The customer list is reputed and spread across sectors, including Godrej & Boyce, BEML, VE Commercial Vehicles and Sandvik Mining and Rock Technology.
• 08It exports to more than 25 countries and supplies defence and heavy equipment alongside commercial vehicles, so it is not tied to one end market.

Risks · 8

• 01The issue is priced at about 28.21 times earnings on an EPS of Rs 4.75, which is full for an auto component maker.
• 02Promoter holding is already low at 51.3% before the issue and falls to 36.96% after it, leaving the promoters with barely a third of the company.
• 03The latest column in the offer document is a half year ending 30 September 2025, so the most recent data is about a year old.
• 04Total assets have barely moved in three years, from Rs 185.15 crore in FY2023 to Rs 205.69 crore as on 30 September 2025, so capacity has not grown much.
• 05Demand follows the commercial vehicle and capital goods cycle, and a slowdown in truck or equipment sales passes straight through to a component supplier.
• 06Steel and forging input costs move sharply and cannot always be passed on where OEM prices are fixed annually.
• 07The manufacturing is concentrated in Madhya Pradesh, so there is location risk.
• 08This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.

Adroit Industries (India) Ltd was incorporated in 1966. It manufactures propeller shafts and torque transmission components. A propeller shaft is the rotating tube that carries power from the gearbox to the wheels, so these parts sit in the drive line of a vehicle or in industrial machinery.

The company runs a fully integrated setup, handling forging, machining, assembly and testing in house. Doing all of it under one roof helps it control both quality and cost rather than depending on outside job workers for the critical steps.

It offers more than 5,000 products and sells to distributors, to large component manufacturers and directly to original equipment makers. Its parts go mainly into commercial vehicles, defence, heavy equipment and industrial machinery. Its manufacturing facilities are in Madhya Pradesh. Its customers include Godrej & Boyce Manufacturing, BEML, VE Commercial Vehicles, Sandvik Mining and Rock Technology India and Oilgear India. It exports to more than 25 countries across North America, Europe and the Asia Pacific region.

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