IPO closes on 25 Sep'26
Adroit Industries (India) Limited
Minimum Investment
₹ 14,874 / 111 shares
Our Verdict:
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- Adroit Industries runs a genuinely strong balance sheet and return profile for a component manufacturer — FY26 RoE of 20.3%, RoCE of 20.7% and debt-to-equity of just 0.4x — with PAT growing from ₹14.53cr (FY24) to ₹26.16cr (FY26) on revenue up from ₹125.10cr to ₹143.04cr.
- Revenue growth (~7% in FY26) has been notably slower than the profit growth, meaning margin expansion is currently doing more work than volume growth — worth tracking whether that pace of expansion is sustainable or a one-off.
- The business is heavily export-oriented, with roughly 95% of product revenue coming from exports, concentrating the company's fortunes in US demand, tariff policy, currency movements and the global auto replacement/OEM cycle rather than the domestic Indian market.
About the company
Founded in
1 Jan'95
Managing director
Saurabh Sangla
- Adroit Industries (India) Limited is a vertically integrated manufacturer and supplier of propeller shafts and torque-transmission components, with roots in power-transmission component manufacturing going back to 1966.
- The company serves commercial vehicles, SUVs, defense and industrial applications, with a customer base spanning 32+ countries and a heavy tilt toward export markets.
- It is majority-owned by the Signet Group, a diversified business group founded in 1985, alongside the founding promoter family.
- Promoters: Saurabh Sangla, Mukesh Sangla, Monika Sangla, Shubhangi Trust, Shreya Trust and Swan Irrigation LLP
STRENGTHS
- Strong Return Ratios: FY26 RoE of 20.3% and RoCE of 20.7% indicate efficient use of capital relative to many industrial-manufacturing peers.
- Low Leverage: Debt-to-equity of just 0.4x as of FY26 gives the company balance-sheet flexibility relative to more leveraged component manufacturers.
- Vertically Integrated, Niche Manufacturing: Focused specifically on propeller shafts and torque-transmission components, a specialized segment within the broader auto-components industry.
- Long Operating History: Traces its manufacturing roots to 1966, giving it a multi-decade track record in power-transmission component production.
- Global Customer Reach: Serves customers across 32+ countries, reflecting an established export distribution and quality-certification track record.
RISK FACTORS
- Heavy Export Concentration: Approximately 95% of product revenue comes from exports, concentrating the business's fortunes in US demand, tariff policy and currency movements rather than a diversified geographic base.
- Slower Revenue Growth Than Profit Growth: FY26 revenue grew only modestly (~7%) versus a much sharper rise in PAT, meaning recent profit growth has leaned more on margin expansion than on volume growth, which may not repeat every year.
- Global Auto-Cycle Dependency: As a supplier into commercial vehicle and auto-component supply chains, demand is tied to global automotive production and replacement cycles, which can be cyclical.
- Currency and Tariff Exposure: With exports forming the bulk of revenue, changes in currency rates or trade/tariff policy in key export markets can directly affect realizations and competitiveness.
- First Public Issue — No Prior Trading History: This is the company's first public issue, so there is no existing market for the shares and no trading history to gauge post-listing price behavior.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ 150.71 crore
Fresh Issue
₹ 132.62 crore
OFS
₹ 18.09 crore
Price range
₹ 126 - 134
Lot size
111 shares
Issue Objective
- Net proceeds from the Fresh Issue of ₹132.62 crore are proposed to be used per the Objects of the Issue set out in the RHP, which typically cover capital expenditure, working capital and general corporate purposes for a company of this profile. The Offer for Sale of ₹18.09 crore accrues to the selling shareholders, not the company.
Dates
Bidding open
23 Sep'26
Bidding close
25 Sep'26
Allotment date
28 Sep'26
Refund date
29 Sep'26
Listing
30 Sep'26
IPO Reservations
Qualified institutional buyers
50%
Non-institutional investors
15%
Retail individual investors
35%
Read the Offer Document (PDF)
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