Adroit Industries is set to launch its IPO with a total issue size of ₹150.71 crore. The offering includes a fresh issue of 98.97 lakh shares worth ₹132.62 crore, along with an offer for sale of 13.50 lakh shares amounting to ₹18.09 crore.
The IPO will be open for subscription from September 23 to September 25, 2026. The allotment is expected to be completed on September 28, while the shares are scheduled to debut on both NSE and BSE on September 30, 2026, subject to the final listing schedule.
The price band has been set at ₹126 to ₹134 per share. Each IPO lot consists of 111 shares, so retail investors applying at the upper price band will need ₹14,874. Choice Capital Advisors Pvt. Ltd. is the book-running lead manager, and Bigshare Services Pvt. Ltd. is the registrar. For complete details, investors can refer to the company’s Red Herring Prospectus.
Company Overview
Adroit Industries (India) Ltd. is a manufacturer and supplier of propeller shafts and other torque-transmission components, with more than four decades of industry experience. The company has an integrated manufacturing setup covering key processes such as forging, precision machining, heat treatment, assembly, balancing and testing. As of July 31, 2026, its product portfolio included more than 5,000 SKUs, ranging from individual torque-transmission components to complete propeller shaft assemblies.
The company serves customers across both automotive and non-automotive markets. Its automotive business is primarily focused on commercial vehicles, with limited exposure to passenger vehicles, particularly SUVs. Its non-automotive applications include defence, emergency services, heavy equipment, off-highway machinery and industrial equipment.
Adroit Industries has a strong export presence and supplied products to more than 32 countries during Fiscal 2026, including the US, Canada, Australia, Mexico, Turkey and the UK. It operates manufacturing facilities in Dewas Road, Pithampur and Sanwer in Madhya Pradesh. The company also has subsidiaries in Canada and the US to support customer engagement and after-sales services in North American markets.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 23 to 25 Sep, 2026 |
| Allotment | Mon, Sep 28, 2026 |
| Listing Date | Wed, Sep 30, 2026 |
| Face Value | ₹10 per share |
| Price Band | ₹126 to ₹134 per share |
| Lot Size | 111 Shares |
| Issue Type | Bookbuilding IPO |
| Sale Type | Fresh capital cum OFS |
| Total Issue Size | 1,12,47,000 shares (agg. up to ₹151 Cr) |
| Fresh Issue | 98,97,000 shares (agg. up to ₹133 Cr) |
| Offer for Sale | 13,50,000 shares of ₹10 (agg. up to ₹18 Cr) |
| Shareholding Pre-Issue | 3,49,11,340 shares |
| Shareholding Post-Issue | 4,48,08,340 shares |
| Listing Exchange | BSE, NSE |
(Compiled from RHP and market updates)
Industry Context
- India’s propeller shaft industry is closely linked to automotive and industrial activity, with demand spanning commercial vehicles, SUVs, off-highway equipment, railways, defence applications and industrial machinery, supporting a diversified market base.
- Rear propeller shafts account for more than 90% of India’s market, largely because of their widespread use in rear-wheel-drive and four-wheel-drive vehicles, while front and inter-axle shafts serve additional applications.
- Rising commercial vehicle production, infrastructure spending, freight movement and e-commerce logistics are supporting demand for propeller shafts, particularly across medium and heavy commercial vehicles and light commercial vehicle segments.
- Growing consumer preference for SUVs and utility vehicles is increasing demand for advanced propeller shafts designed to withstand higher strength and fatigue requirements across modern rear-wheel-drive and four-wheel-drive applications.
- India’s established auto-component ecosystem, skilled workforce, forging and machining capabilities, and export-oriented supplier base support its position as a sourcing hub, although raw-material volatility and technological changes remain industry challenges.
Business Strengths
- Adroit Industries offers more than 5,000 SKUs across propeller shafts and other torque-transmission components, enabling it to serve varied customer requirements across automotive and non-automotive applications with customised products.
- The company operates an integrated manufacturing setup across three facilities in Madhya Pradesh, covering key processes such as forging, machining, heat treatment, assembly and balancing, supporting greater control over production.
- Adroit Industries serves a diversified customer base through distributors, Tier-1 driveline component suppliers and direct OEM relationships. Its established customer relationships also contribute to repeat business and continued orders.
- The company has an established export presence, supplying propeller shafts and torque-transmission components to international customers across multiple geographies through distributors, Tier-1 suppliers and direct OEM relationships.
- Adroit Industries recorded growth in revenue, EBITDA and PAT between Fiscal 2024 and Fiscal 2026, with revenue increasing from ₹124.53 crore to ₹139.94 crore and PAT rising from ₹14.53 crore to ₹26.16 crore.
Business Risks
- Adroit Industries has a high dependence on export markets, with overseas revenue accounting for 95.39% of product sales in Fiscal 2026. Any changes in US demand, tariffs, trade policies or currency movements could affect performance.
- Revenue is concentrated among a limited group of customers. The top 10 customers contributed 60.86% of revenue from product sales in Fiscal 2026, making the company sensitive to any reduction, modification or loss of major customer orders.
- Manufacturing operations are concentrated across three facilities in Madhya Pradesh. Any disruption caused by natural events, equipment failures, labour issues, utility shortages or transportation problems could interrupt production and affect deliveries.
- The company relies significantly on its subsidiary, Adroit Driveshafts Private Limited, for downstream manufacturing activities. Its financial and operational dependence on the subsidiary could affect consolidated operations if the subsidiary faces business or cash flow challenges.
- With most product revenue generated from overseas customers, the company remains exposed to foreign exchange movements. The absence of a hedging policy could increase the impact of currency fluctuations on financial performance and cash flows.
Financial Performance
Adroit Industries (India) Ltd. – Financials (₹ in Million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 1,399.43 | 1,338.94 | 1,245.28 |
| EBITDA | 387.10 | 310.19 | 296.85 |
| EBITDA Margin (%) | 27.66% | 23.17% | 23.84% |
| Profit / (Loss) After Tax (PAT) | 261.58 | 181.44 | 145.27 |
| PAT Margin (%) | 18.69% | 13.55% | 11.67% |
| Net Worth | 1,286.27 | 1,035.28 | 878.22 |
| Return on Capital Employed (%) | 19.01% | 15.76% | 15.07% |
(Source: RHP)
Key Ratios & Metrics
| KPI (Mar 31, 2026) | Value |
|---|---|
| Return on Equity (ROE) | 22.54% |
| Return on Capital Employed (ROCE) | 19.01% |
| Debt-to-Equity Ratio | 0.41 |
| Return on Net Worth (RoNW) | 22.51% |
| PAT Margin | 18.69% |
| EBITDA Margin | 27.66% |
| Net Asset Value (NAV per share) | ₹36.84 |
(Source: RHP)
Objects of the Issue
The company plans to deploy the net proceeds from the IPO for the following purposes:
- Capital expenditure at Dewas Facility: ₹199.07 million will be used to purchase machinery and equipment to enhance operations at the Dewas Facility. A portion will also support the purchase of a vehicle for transporting goods between manufacturing facilities.
- Investment in subsidiary for expansion: ₹439.56 million will be invested in Adroit Driveshafts Private Limited through debt, equity or a combination of both. The funds will support machinery and equipment purchases at the Pithampur Facility and transportation requirements.
- Repayment or prepayment of borrowings: ₹241.19 million will be invested in Adroit Driveshafts Private Limited through debt, equity or a combination thereof to repay or partially prepay certain outstanding borrowings.
- General corporate purposes: A portion of the net proceeds will be allocated towards general corporate requirements. The company may use these funds for purposes permitted under applicable laws and regulations.
Conclusion
Adroit Industries IPO offers investors an opportunity to look at a company operating in the propeller shaft and torque-transmission component industry. Its more than 5,000 SKUs, integrated manufacturing capabilities, export presence and improving financial performance are notable aspects of the business. At the same time, the company faces risks linked to export market concentration, dependence on key customers, foreign exchange movements and geographically concentrated manufacturing operations.
The IPO proceeds are planned towards capacity enhancement, investments in its subsidiary, debt repayment and general corporate purposes. Investors should review the company’s financials, business model, risk factors and the Red Herring Prospectus carefully before making any investment decision.
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.
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