Adroit Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Subscription
- Qualified institutionalQIB
- 195.04×
- Big non-institutionalbNII · above ₹10 lakh
- 345.97×
- Small non-institutionalsNII · ₹2–10 lakh
- 302.09×
- Retail individualRII · up to ₹2 lakh
- 95.09×
Grey market premium
Unofficial and indicative — not a forecast
Day-wise premium · 13 observations
| Date | GMP | % | Sauda | Est. listing | Gain / lot |
|---|---|---|---|---|---|
| 30 Sep 2026 | ₹55 | — | ₹4,600 | ₹189 | ₹6,105 |
| 29 Sep 2026 | ₹55 | — | ₹4,600 | ₹189 | ₹6,105 |
| 28 Sep 2026 | ₹58 | — | ₹4,900 | ₹192 | ₹6,438 |
| 27 Sep 2026 | ₹58 | — | ₹4,900 | ₹192 | ₹6,438 |
| 26 Sep 2026 | ₹53.50 | — | ₹4,500 | ₹187.50 | ₹5,938.50 |
| 25 Sep 2026 | ₹47 | — | ₹4,000 | ₹181 | ₹5,217 |
| 24 Sep 2026 | ₹37 | — | ₹3,100 | ₹171 | ₹4,107 |
| 23 Sep 2026 | ₹34 | — | ₹2,900 | ₹168 | ₹3,774 |
| 22 Sep 2026 | ₹34 | — | ₹2,900 | ₹168 | ₹3,774 |
| 21 Sep 2026 | ₹32 | — | ₹2,700 | ₹166 | ₹3,552 |
| 20 Sep 2026 | ₹32 | — | ₹2,700 | ₹166 | ₹3,552 |
| 19 Sep 2026 | ₹35 | — | ₹3,000 | ₹169 | ₹3,885 |
| 18 Sep 2026 | ₹37 | — | ₹3,100 | ₹171 | ₹4,107 |
Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.
Bids received
The demand behind each multiple — what was offered, what was bid for, and what those bids are worth
| Category | Shares offered | Shares bid for | Bids (₹ Cr) | Times |
|---|---|---|---|---|
| Qualified institutional | 22,49,400 | 43,87,19,397 | ₹5,879 Cr | 195.04× |
| Non-institutional | 16,87,050 | 56,06,83,422 | ₹7,513 Cr | 332.35× |
| Big non-institutionalwithin NII | 11,24,700 | 38,91,15,939 | ₹5,214 Cr | 345.97× |
| Small non-institutionalwithin NII | 5,62,350 | 17,15,67,483 | ₹2,299 Cr | 305.09× |
| Retail individual | 39,36,450 | 39,28,91,604 | ₹5,265 Cr | 99.81× |
| Total | 78,72,900 | 1,39,22,94,423 | ₹18,657 Cr | 176.85× |
Times subscribed is the figure published for each category, not shares bid for divided by shares offered — a category's multiple is struck against its own allottable base, which is not always the offered count shown beside it. Observed 25 Sept, 05:30 pm IST; the registrar publishes the final basis of allotment.
Issue details
- IPO date
- 23 Sep 2026 – 25 Sep 2026
- Listing date
- 30 Sep 2026
- Face value
- ₹10 per share
- Price band
- ₹126 – ₹134
- Lot size
- 111 shares
- Sale type
- Fresh capital cum OFS
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹151 Cr
- Fresh issue
- ₹133 Cr 98,97,000 shares
- Offer for sale
- ₹18.09 Cr 13,50,000 shares
- Market cap at offer price
- ₹600 Cr
- Promoter holding
- 96.10% → 71.86% pre-issue → post-issue
- ISIN
- INE505M01015
- CIN
- U74999MH1995PLC084474
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Choice Capital Advisors Pvt.Ltd.
- Registered office
- Gala No. 02, Building No. A-2, Gr. Floor, Print World Industrial Complex, Survey No. 15/1, Mankoli Road, Vehele, Shastrinagar, Bhiwandi, Thane – 421 302, Maharashtra, India
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| QIB | 22,49,400 | 28.57% | 28.57% |
| Anchor investor · within QIB | 33,74,100 | — | 42.86% |
| NII (HNI) | 16,87,050 | 21.43% | 21.43% |
| bNII > ₹10L · within NII | 11,24,700 | — | 14.29% |
| sNII < ₹10L · within NII | 5,62,350 | — | 7.14% |
| Retail (RII) | 39,36,450 | 50.00% | 50.00% |
| Employee | 0 | — | 0.00% |
| Market maker | 0 | — | 0.00% |
| Total issue | 78,72,900 | — | 100.00% |
Net offer to the public of 78,72,900 shares, out of a total issue of 78,72,900. Indented rows sit inside the category above them and are not added to it.
Application size
Minimum 111 shares per lot, in multiples, at ₹134
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 111 | ₹14,874 |
| Retail (max) | 13 | 1,443 | ₹1,93,362 |
| S-HNI (min) | 14 | 1,554 | ₹2,08,236 |
| S-HNI (max) | 67 | 7,437 | ₹9,96,558 |
| B-HNI (min) | 68 | 7,548 | ₹10,11,432 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
₹134 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.49 | 5.84 |
| P/E (×) | 17.89 | 22.95 |
| Price to book (×) | 3.64 | — |
| Market cap | — | ₹600 Cr |
Key performance indicators
Latest reported period, consolidated
- Return on net worth
- 22.51%
- ROCE
- 22.00%
- Debt / equity
- 0.41
- PAT margin
- 18.69%
- EBITDA margin
- 27.66%
- NAV per share
- ₹36.84
- Price to book
- 3.64
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
Company financials
Consolidated ·₹ crore unless a row shows % or ×, as reported in the offer document
| Period ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 143.04 | 136.61 | 125.1 |
| Revenue from operations | 139.94 | 133.89 | 124.53 |
| Other income | 3.1 | 2.72 | 0.57 |
| Total expenses | 110.14 | 113.79 | 107.14 |
| Operating profit | 32.9 | 22.82 | 17.96 |
| Operating margin | 23.00% | 16.70% | 14.36% |
| Profit before tax | 32.9 | 22.82 | 17.96 |
| Profit after tax | 26.16 | 18.14 | 14.53 |
| PAT margin | 18.29% | 13.28% | 11.61% |
| Balance sheet | |||
| Total assets | 212.74 | 187.01 | 199.38 |
| Current assets | 119.99 | 104.07 | 108.79 |
| Current liabilities | 78.3 | 72.04 | 92.35 |
| Total liabilities | 84.13 | 83.52 | 111.62 |
| Net worth | 128.62 | 103.49 | 87.76 |
| Current ratio | 1.53× | 1.44× | 1.18× |
| Return on equity | 20.34% | 17.53% | 16.56% |
| Cash flow | |||
| Operating cash flow | 29.41 | 20.31 | 19.94 |
| Investing cash flow | -12.09 | 3.21 | -0.46 |
| Financing cash flow | -16.99 | -23.52 | -19.66 |
| Net cash flow | 0.33 | 0 | -0.18 |
Objects of the issue
Stated use of the net proceeds— open a row for the issuer's full explanation
1 Funding Capital Expenditure at Dewas Facility ₹19.91 Cr
The company intends to fund capital expenditure towards procurement of machinery and equipment for enhancement of operations at the Dewas Facility, along with a transportation vehicle for local transportation of goods between the Manufacturing Facilities.
2 Investment in Subsidiary for Capital Expenditure at Pithampur Facility ₹43.96 Cr
The company plans to invest in its subsidiary, Adroit Driveshafts Private Limited, in the form of equity, to fund capital expenditure towards procurement of machinery and equipment for enhancement of operations at the Pithampur Facility, along with a transportation vehicle for inter-facility goods movement.
3 Investment in Subsidiary for Loan Repayment ₹24.12 Cr
The company intends to invest in its subsidiary, Adroit Driveshafts Private Limited, in the form of equity, to facilitate repayment or pre-payment, in full or in part, of certain borrowings availed by the subsidiary, thereby reducing its outstanding indebtedness and improving its debt-equity profile.
4 General Corporate Purposes —
The company proposes to deploy a portion of the Net Proceeds towards general corporate purposes, including meeting ongoing corporate exigencies, strengthening marketing capabilities, supporting business development initiatives, and funding employee welfare activities, subject to applicable regulatory limits.
1 of 4 objects carry no stated amount — typically general corporate purposes, funded from whatever remains — so the total above is the quantified portion only, not the whole issue.
About Adroit Industries
Adroit Industries (India) Limited is an integrated manufacturer and supplier of propeller shafts and related torque-transmission components for automotive and industrial applications. Originally formed as a partnership firm in 1966 and converted to a public limited company in 1995, the company operates three manufacturing facilities in Madhya Pradesh: the Dewas Facility for upstream processes (forging, heat treatment, shot-blasting), the Pithampur Facility (via subsidiary ADPL) for downstream operations (machining, assembly, balancing), and the Sanwer Facility for finishing operations. The company generates revenue primarily through export sales to customers across multiple international markets including the United States, Colombia, Canada, Australia, and Mexico, with export revenue representing 95.39% of its revenue from sale of products in Fiscal 2026. Domestic revenue contributes 4.61% of product sales.
Management
Saurabh Sangla
MD
B.R. Patidar
CFO
Mukesh Sangla
Director
Surabhi Agrawal
Director
Anirudha Chauhan
Director
Narendra Kumar Maheshwari
Director
Garima Shukla
Director of Operations
Anirudha Arya
VP of Marketing
Milan Jade
COO
Rahul Laad
Director
Rohidas Dhone
Director of Operations
Strengths
As stated in the offer document
Offering over 5,000 SKUs of torque-transmission components and assemblies forming part of driveline systems
The company offers over 5,250 SKUs (as of July 31, 2026) across categories including propeller shafts, yoke components, shaft components, flange components, joint components, and other driveline parts, with SKUs growing from 3,821 in Fiscal 2024 to 5,250 in Fiscal 2026, supported by integrated manufacturing capabilities across forging, machining, heat treatment, assembly, and balancing.
Vertically integrated manufacturing operations with end-to-end control across forging, machining and assembly operations
The company operates three manufacturing facilities in Madhya Pradesh — Dewas Facility (~15,095.50 sq. m.), Pithampur Facility (~27,535 sq. m.), and Sanwer Facility (~8,918.69 sq. m.) — enabling in-house control over upstream forging and downstream machining, assembly, and finishing, reducing reliance on third-party vendors and supporting process consistency.
Established relationships with diversified customer base and high degree of repeat business
The company served 185 customers in Fiscal 2026, with repeat customers contributing 90.26% of revenue from sale of products (₹1,147.23 million); customers associated for more than 3 years contributed ₹914.01 million (71.91%) in Fiscal 2026, reflecting strong continuity across distributors, Tier-1 suppliers, and OEMs in both automotive and non-automotive sectors.
Entry barriers supported by established validation and advanced engineering capabilities
The company has been qualified by Tier-1 driveline component suppliers and OEMs through rigorous validation processes spanning 12–18 months, and its facilities are equipped with CNC machining infrastructure, forging equipment, induction billet heating, heat treatment, balancing equipment, and quality certifications including IATF 16949, ISO 9001, ISO 14001, and ISO 45001.
Strong export presence with diversified international customer base
The company derived 95.39% of its revenue from sale of products from exports in Fiscal 2026 (₹1,212.44 million), supplying to over 32 countries across North America, Europe, Latin America, the Middle East, Africa, and Asia-Pacific, with subsidiaries established in Canada (Adroit Driveshafts Canada Limited) and the USA (Adroit Driveshafts USA LLC) to support international operations.
Experienced Promoters and competent management team
The company is led by Promoter and Chairman cum Managing Director Saurabh Sangla, with over 18 years of experience in the torque-transmission industry, and Non-Executive Director Mukesh Sangla, with over four decades of cross-sector experience; the management team includes senior personnel with long tenures in export marketing, engineering, business development, and production operations.
Healthy financial performance with improving profitability
The company's revenue from operations grew from ₹1,245.28 million in Fiscal 2024 to ₹1,399.43 million in Fiscal 2026; PAT improved from ₹145.27 million (PAT margin 11.67%) to ₹261.58 million (PAT margin 18.69%); RoCE increased from 15.07% to 19.01%; and the debt-to-equity ratio reduced from 0.94 to 0.41 over the same period.
Risk factors
As stated in the offer document
Heavy Dependence on Export Sales and U.S. Market Concentration
The company derives 95.39%, 96.27%, and 94.56% of its revenue from Sale of Products from export sales in Fiscals 2026, 2025, and 2024 respectively, with the U.S. alone accounting for 53.76% of export revenue in Fiscal 2026. An additional 25% Section 232 tariff applies to its U.S. exports, and the proposed preferential TRQ framework remains unoperationalized, exposing the company to significant trade policy and tariff risks.
Significant Customer Concentration Risk
Revenue from the top 10 customers aggregated to ₹773.60 million, ₹798.84 million, and ₹758.00 million for Fiscals 2026, 2025, and 2024 respectively, representing 60.86%, 65.91%, and 68.61% of revenue from Sale of Products. The company operates without long-term supply commitments, making it highly vulnerable to order reductions, modifications, or terminations by key customers.
Unhedged Foreign Currency Exposure
The company has no hedging policy in place, leaving substantially all foreign currency exposure unhedged across Fiscals 2026, 2025, and 2024, resulting in net foreign exchange losses of ₹38.15 million and ₹53.78 million in Fiscals 2025 and 2024 respectively. With 95%+ of revenue denominated in foreign currencies, adverse exchange rate movements directly impact revenue realizations, profitability, and cash flows.
Multiple Statutory Filing Delays and Regulatory Non-Compliances
The company has experienced 46+ instances of delayed statutory filings with the Registrar of Companies, with delays extending up to 3,771 days, as well as non-compliances under the Companies Act, 2013, FEMA, and other applicable laws. Pending suo motu adjudication applications and non-compoundable charge-related filing defaults expose the company to potential penalties, regulatory actions, and reputational harm.
Manufacturing Concentration and Operational Dependency on Subsidiary (ADPL)
All three manufacturing facilities are located in Madhya Pradesh, creating geographic concentration risk, while downstream operations are entirely dependent on subsidiary Adroit Driveshafts Private Limited (ADPL). As of March 31, 2026, outstanding loans to ADPL were ₹143.87 million and corporate guarantees on its behalf totaled ₹669.90 million, representing approximately 52% of the company's net worth.
Supplier Concentration and Raw Material Price Volatility
The top 10 suppliers accounted for 75.97%, 90.41%, and 88.09% of total purchase costs in Fiscals 2026, 2025, and 2024 respectively, with procurement conducted on a purchase-order basis without long-term contracts. Steel price volatility, safeguard duties on steel imports, and geopolitical supply chain disruptions pose significant risks to procurement costs and margins.
Negative Cash Flows and Working Capital Intensity
The company has experienced negative cash flows from investing and financing activities across multiple periods, including consolidated financing outflows of ₹169.87 million, ₹235.17 million, and ₹196.58 million in Fiscals 2026, 2025, and 2024 respectively. Net working capital days remained elevated at approximately 237 days, with inventory constituting ~46% of current assets and receivable turnover days increasing to 111 days in Fiscal 2026.
Credit Rating Downgrades and 'Issuer Not Cooperating' Classification
The company's credit rating from Brickwork Ratings was downgraded from BWR BBB/Stable in Fiscal 2022 to BWR BB-/Stable in Fiscal 2025, with ratings categorized as 'Issuer Not Cooperating' since Fiscal 2023. Outstanding borrowings of ₹689.76 million as of July 31, 2026 are subject to variable interest rates and restrictive covenants, and any further adverse rating perception may increase borrowing costs or restrict access to financing.
Exposure to Automotive Sector Disruption and EV Transition Risk
Automotive applications contributed 74.54% of revenue from Sale of Products in Fiscal 2026, making the company highly exposed to sector-wide downturns and structural shifts toward electric vehicles. EV architectures that eliminate conventional propeller shaft requirements could reduce long-term demand for the company's core products, requiring significant R&D and product adaptation investment.
Outstanding Legal Proceedings and Promoter-Level Litigation
The company faces 25 tax proceedings with aggregate amounts of ₹19.95 million, while its Promoter Mukesh Sangla is subject to 5 criminal proceedings and 8 tax proceedings aggregating ₹50.64 million, including a ₹37.75 million income tax penalty appeal and central excise duty evasion allegations. Adverse outcomes could result in financial liabilities, reputational damage, and disruption to business operations.
Company Analysis
from RHPAdroit Industries manufactures and exports propeller shafts and driveline components to automotive OEMs, Tier-1 suppliers, and distributors across international and domestic markets.
Adroit Industries (India) Limited is an integrated manufacturer and supplier of propeller shafts and related torque-transmission components for automotive and industrial applications. Originally formed as a partnership firm in 1966 and converted to a public limited company in 1995, the company operates three manufacturing facilities in Madhya Pradesh: the Dewas Facility for upstream processes (forging, heat treatment, shot-blasting), the Pithampur Facility (via subsidiary ADPL) for downstream operations (machining, assembly, balancing), and the Sanwer Facility for finishing operations. The company generates revenue primarily through export sales to customers across multiple international markets including the United States, Colombia, Canada, Australia, and Mexico, with export revenue representing 95.39% of its revenue from sale of products in Fiscal 2026. Domestic revenue contributes 4.61% of product sales.
Objects of the Issue
- Not disclosed in this section p.114
- Funding capital expenditure by our Company towards procurement of (i) machinery and equipment for enhancement of operations at Dewas Facility; and (ii) transportation vehicle for local transportation of goods between the Manufacturing Facilities ₹199.07 million p.188
- Investment in our Subsidiary, Adroit Driveshafts Private Limited, in the form of equity, for funding capital expenditure towards procurement of (i) machinery and equipment for enhancement of operations at Pithampur Facility; and (ii) transportation vehicle for local transportation of goods between the Manufacturing Facilities ₹439.56 million p.188
- Investment in our Subsidiary, Adroit Driveshafts Private Limited, in the form of equity, for re-payment or pre-payment, in full or in part, of certain borrowings availed by our Subsidiary ₹241.19 million p.188
- General Corporate Purposes p.188
- Expansion of manufacturing capabilities through installation of additional machinery and equipment at Dewas Facility and Pithampur Facility, including new forging press line and CNC machining equipment p.310
Issue Structure
- Total Issue
- Up to 11,247,000 Equity Shares aggregating up to ₹[●] million
- Fresh Issue
- Up to 9,897,000 Equity Shares of face value of ₹10 each aggregating up to ₹[●] million
- Offer for Sale
- Up to 1,350,000 Equity Shares of face value of ₹10 each aggregating up to ₹[●] million by Mukesh Sangla HUF
- Price Band
- ₹[●] to ₹[●] per Equity Share (Price Band to be decided and advertised at least two Working Days prior to Bid/Offer Opening Date)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
The company manufactures propeller shafts and driveline components through vertically integrated operations spanning forging, heat treatment, machining, assembly, and balancing. It generates revenue through order-based sales to distributors, Tier-1 driveline component suppliers, and OEMs, with approximately 62.45% of revenue from distributors, 23.10% from OEMs and approximately 14.45% from Tier-1 suppliers as indicated in the risk factors section. The company operates on a largely order-based procurement model without long-term supply contracts.
Business Segments
SWOT Analysis
- • Distributor-led model enables access to wider customer base and international markets(p.55)
- • Established relationships with multiple distributors and Tier-1 customers with continuity in business(p.55)
- • Vertically integrated manufacturing with downstream operations through subsidiary(p.71)
- • Export revenue contribution of 95.39% in Fiscal 2026 demonstrates strong international market presence(p.55)
- • Repeat customers constitute 59.46% of total customers in Fiscal 2026(p.89)
- • Over 5,000 SKUs of torque-transmission components with vertically integrated manufacturing(p.215)
- • Established repeat customer base with 90.26% of revenue from repeat customers(p.215)
- • Strong export presence across 32+ countries(p.215)
- • High-capacity utilization at manufacturing facilities (87.87% at Dewas, 74.70% at Pithampur)(p.191)
- • Improving financial performance with growing revenue and profitability(p.216)
- • Entry barriers supported by advanced engineering capabilities and customer validation(p.215)
- • Diversified product portfolio of over 5,000 SKUs across multiple driveline component categories(p.312)
- • Vertically integrated manufacturing with end-to-end control across forging, machining, and assembly operations(p.313)
- • High customer retention with 90.26% revenue from repeat customers(p.315)
- • Strong export presence with sales to 32+ countries and 95.39% revenue from outside India(p.317)
- • Improved financial performance with PAT margin expanding from 11.67% to 18.69% and debt-to-equity reducing from 0.94 to 0.41(p.318)
- • Experienced promoters with 18+ years in the torque-transmission industry(p.318)
- • Entry barriers supported by stringent OEM/Tier-1 supplier qualification requirements spanning 12-18 months(p.316)
- • Quality management certifications and in-house testing capabilities aligned with IATF 16949, ISO 9001, ISO 14001, ISO 45001(p.310)
- • Strong profitability growth with PAT margin expansion(p.368)
- • Exceptional return metrics on capital and net worth(p.368)
- • Improved current ratio indicating better liquidity position(p.368)
- • Experienced promoter with extensive industry background(p.372)
- • Established board composition compliant with governance requirements(p.370)
- • Significant export revenue concentration (95.39% from outside India) with high dependency on US market (51.28% of total product sales)(p.35)
- • Revenue concentration among limited customers (top 10 customers represent 60.86% of revenue)(p.39)
- • Manufacturing operations geographically concentrated in Madhya Pradesh(p.40)
- • Significant dependence on subsidiary ADPL for downstream operations and consolidated cash flows(p.41)
- • No hedging policy in place to manage foreign currency exposure despite 95%+ export revenue(p.37)
- • Multiple instances of delays in statutory filings and regulatory non-compliances(p.43)
- • Concentration of supplier base with top 10 suppliers accounting for 75.97% of purchases(p.52)
- • Heavy dependence on distributor-led sales channels (62.45% of revenue from distributors)(p.54)
- • Limited direct visibility over end-use demand trends due to distributor-led model(p.55)
- • High dependence on few customer segments with 74.54% revenue from automotive in Fiscal 2026(p.57)
- • Elevated trade receivable turnover days of 111 days in Fiscal 2026 indicating working capital stress(p.56)
- • Export receivables not secured through export credit insurance or formal credit risk mitigation(p.56)
- • No long-term agreements with customers; sales are purchase order-based with no minimum commitments(p.69)
- • Trademark and logo not yet registered; pending trademark applications only(p.88)
- • Significant contingent liabilities of ₹43.92 million relating to income tax and customs duty disputes(p.80)
- • Credit rating downgraded to BWR BB-/Stable and categorized as 'Issuer Not Cooperating'(p.81)
- • Accounting standard differences may obscure true financial position(p.107)
- • Heavy dependence on related party transactions for significant revenue(p.126)
- • Contingent liabilities from tax and customs disputes(p.123)
- • High dependence on subsidiary (ADPL) for revenue generation(p.199)
- • Significant debt levels in subsidiary requiring repayment from IPO proceeds(p.207)
- • History of compliance weaknesses and delays in statutory filings(p.187)
- • High working capital requirements (237 days)(p.218)
- • High concentration of revenue with top 10 customers representing 60.86% of sales(p.339)
- • Significant dependence on distributor-led sales with 62.45% of revenue from distributors(p.339)
- • Concentration among top 5 distributors representing 41.55% of distributor revenue(p.339)
- • High supplier concentration with top 10 suppliers representing 75.97% of purchases(p.342)
- • Significant reliance on contract labour (213 as of July 31, 2026) with workforce attrition rate of 24%(p.346)
- • Low domestic revenue representing only 4.61% of product sales(p.317)
- • Limited long-term purchase agreements with customers; sales primarily purchase order-based(p.339)
- • Declining capacity utilization at Sanwer Facility from 65.97% to 33.45% due to facility reorganization(p.331)
- • High dependence on personal guarantees from promoters(p.393)
- • Significant outstanding debt obligations requiring servicing(p.405)
- • Key promoter concentration and family-controlled structure(p.375)
- • Incomplete disclosure of promoter group members(p.395)
- • Frequent changes in key managerial personnel(p.386)
- • Significant dependence on top customers for revenue(p.490)
- • Multiple criminal litigations involving promoter Mukesh Sangla(p.492)
- • Income tax penalty dispute involving promoter(p.494)
- • Central Excise duty evasion allegations involving promoter(p.495)
- • Wage and allowance payment disputes with employees(p.494)
- • Contingent tax liabilities and customs duty demands(p.487)
- • Commercial vehicle segment showing strong growth with 1,079,871 units in Fiscal 2026(p.57)
- • Electric commercial vehicle market expanding with 20,155 units and 1.85% penetration in Fiscal 2026(p.57)
- • Expansion plans include installation of additional machinery for enhanced production capabilities(p.66)
- • Non-automotive applications represent 25.46% of revenue with potential for diversification(p.57)
- • OEM capacity expansions and new vehicle platforms supporting demand for auto components(p.57)
- • Aluminium driveline components introduced to address evolving customer requirements(p.59)
- • Capacity expansion at Dewas Facility from 3,000 MT to 5,500 MT(p.193)
- • Capacity expansion at Pithampur Facility from 900,000 to 1,800,000 units(p.201)
- • Growing global propeller shaft market with 6% CAGR through 2030(p.246)
- • India positioned as fastest-growing major economy with 6.4% projected growth for 2026(p.233)
- • Improving operational efficiency through process automation and de-bottlenecking(p.192)
- • Global propeller shaft market projected to grow from USD 32 billion in 2026 to USD 39 billion by 2030 at 6% CAGR(p.307)
- • Indian propeller shaft market projected to grow from USD 2.3 billion in 2025 to USD 3.3 billion by 2030(p.307)
- • Expansion of manufacturing capabilities through new forging press line and CNC machining equipment at Dewas and Pithampur facilities(p.319)
- • Product portfolio expansion into aluminum driveline components and hybrid/electric vehicle architectures(p.319)
- • Strengthening international presence through subsidiaries in Canada (established 2022) and USA (established 2026)(p.320)
- • Digital transformation and automation initiatives including ERP systems, IoT, and collaborative robots across manufacturing(p.322)
- • Expansion into non-automotive sectors including defence, emergency services, heavy equipment and off-highway machinery(p.307)
- • Geographic diversification with growing sales from emerging markets like Colombia, Peru, Argentina, and Poland(p.317)
- • Expansion into North American market through USA subsidiary(p.368)
- • Strategic business development and global business expansion(p.384)
- • Revenue growth momentum with increasing sales trajectory(p.406)
- • Capacity expansion through capital investments and subsidy support(p.407)
- • Additional 25% US tariff on propeller shafts and automotive components under Section 232(p.36)
- • Exposure to adverse macroeconomic developments in US market affecting demand(p.37)
- • Currency appreciation risk with Indian Rupee affecting export realisations(p.37)
- • Rising commodity prices, particularly steel, affecting manufacturing costs(p.53)
- • Geopolitical tensions affecting global supply chains and shipping routes(p.38)
- • Emerging macroeconomic and credit challenges in Colombia (now second-largest export market)(p.38)
- • Interest rate volatility affecting debt servicing costs(p.49)
- • Outstanding litigation against Promoters potentially affecting company reputation(p.50)
- • Electric vehicle adoption reducing demand for conventional propeller shafts in passenger vehicles(p.57)
- • EV penetration in passenger vehicles reached 4.30% in Fiscal 2026, potentially accelerating structural decline(p.58)
- • Geopolitical tensions and trade restrictions affecting export operations and global shipping(p.65)
- • US aftermarket auto-parts distributors reporting revenue moderation in 2025(p.55)
- • Tariff-related cost pressures and inflationary trends in US aftermarket sector affecting procurement(p.56)
- • Foreign exchange fluctuation risks with export revenue constituting 95.39% of product sales(p.75)
- • Stringent vendor qualification and quality control requirements from customers(p.67)
- • Intense competition from domestic and international manufacturers with economies of scale(p.96)
- • Dependence on third-party logistics and transportation for raw materials and finished goods(p.90)
- • Manufacturing facilities concentration in Madhya Pradesh with operational and regulatory risks(p.86)
- • Inflation eroding operating margins and pricing power(p.107)
- • Competition Act enforcement and merger control scrutiny(p.108)
- • Foreign exchange volatility impacting returns for overseas investors(p.111)
- • Foreign investment restrictions limiting capital inflow(p.112)
- • Regulatory changes to tax regime affecting shareholder returns(p.110)
- • Stock price volatility and lack of established trading liquidity post-IPO(p.113)
- • US tariff uncertainties affecting export competitiveness to major markets(p.242)
- • Geopolitical tensions in Middle East affecting energy and logistics costs(p.234)
- • Below-normal monsoon and potential El Niño impacting agricultural output and inflation(p.234)
- • Commodity price volatility affecting input costs and margins(p.242)
- • Exposure to cyclical automotive industry demand(p.246)
- • Significant exposure to US market representing 53.76% of export revenue creates currency and economic cycle risk(p.317)
- • High dependence on third-party sales agents and distributors with non-exclusive arrangements subject to annual renewal(p.320)
- • Raw material price volatility with steel billets and bars as primary inputs with no long-term supply agreements(p.341)
- • Industry entry barriers are capital-intensive and technologically demanding, creating potential competitive pressure(p.316)
- • Cyclical nature of automotive industry affecting commercial vehicle demand(p.307)
- • Risk of disruption in distributor relationships and customer procurement decisions due to indirect sales model(p.339)
- • Regulatory compliance risks across multiple jurisdictions including India, North America, and other export markets(p.351)
- • Exposure to foreign exchange volatility with 95.39% of revenue from outside India(p.317)
- • Regulatory risks related to group company trading suspension(p.393)
- • Inability to secure required information from extended promoter group(p.395)
- • Exposure to foreign currency fluctuations through international operations(p.406)
- • Dividend payment restrictions from financing arrangements(p.400)
- • No guarantee of future dividend payments despite profitability(p.400)
- • Exposure to foreign exchange rate fluctuations(p.488)
- • Exposure to interest rate risk on borrowings(p.488)
- • Customer credit risk and doubtful receivables(p.488)
- • Intensifying industry competition(p.490)
- • Inflationary pressures on material and labor costs(p.489)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Saurabh Sangla | Promoter | — | — |
| Mukesh Sangla | Promoter | — | — |
| Monika Sangla | Promoter | — | — |
| Shubhangi Trust | Promoter | — | — |
| Shreya Trust | Promoter | — | — |
| Swan Irrigation LLP | Promoter | — | — |
| Mukesh Sangla HUF | Promoter Group Selling Shareholder | — | — |
| Mukesh Sangla | Promoter | — | — |
| Saurabh Sangla | Promoter | — | — |
| Monika Sangla | Promoter | — | — |
| Shubhangi Trust | Promoter Group | — | — |
| Shreya Trust | Promoter Group | — | — |
| Swan Irrigation LLP | Promoter Group | — | — |
| Mukesh Sangla HUF | Promoter/Selling Shareholder | — | — |
| Saurabh Sangla | Promoter | 2.97% | — |
| Mukesh Sangla | Promoter | 6.74% | — |
| Monika Sangla | Promoter | 3.33% | — |
| Swan Irrigation LLP | Promoter Group | 5.43% | — |
| Shubhangi Trust | Promoter Group | 9.99% | — |
| Shreya Trust | Promoter Group | 20.23% | — |
| Mukesh Sangla HUF | Promoter Group Selling Shareholder | 7.11% | — |
| Mukesh Sangla | Promoter and Non-Executive Director | — | — |
| Saurabh Sangla | Promoter and Chairman cum Managing Director | — | — |
| Mukesh Sangla | Promoter | — | — |
| Saurabh Sangla | Promoter | — | — |
| Mukesh Sangla | Promoter Director | — | — |
| Saurabh Sangla | Promoter Director | — | — |
| Mukesh Sangla HUF | Promoter Group Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Peer comparison
The comparable listed companies named in the offer document, as on 31 Mar 2026
| Company | EPS | NAV | P/E | P/BV | RoNW |
|---|---|---|---|---|---|
| Adroit Industries (India) Ltd. THIS ISSUE | 7.48 | 36.84 | 22.95, computed at the offer price | 3.64, computed at the offer price | 22.51% |
| 55.92 | 250.24 | 12.98 | 2.90 | 25.00% | |
| 57.34 | 359.20 | 10.70 | 1.71 | 17.32% | |
| 27.24 | 233.89 | 20.85 | 2.43 | 12.28% |
Blank cells are figures the offer document does not publish. This issue is unlisted, so it has no market price and the document publishes no multiple for it — its P/E and P/BV here are computed at the offer price, on the post-issue share count, and are comparable to a listed peer's.