Adroit Industries (India) Ltd Share Price

Adroit Industries (India)

• Adroit Industries (India) is coming out with a 100% book building; initial public offering (IPO) of 1,12,47,000 shares of face value Rs 10 each in a price band Rs 126-134 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 23, 2026 and will close on September 25, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 10 and is priced 12.60 times of its face value on the lower side and 13.40 on the higher side.
• Book running lead manager to the issue is Choice Capital Advisors.
• Compliance officer for the issue is Garima Shukla. 

Profile of the company

With over four decades of operational experience, Adroit Industries (India) is a vertically integrated manufacturer and supplier of propeller shafts (also known as a drive shaft or cardan shaft) and related torque-transmission components, with in-house capabilities across forging, precision machining, heat treatment, assembly, balancing and testing. As on July 31, 2026, the company offers over 5,000 SKUs of torque-transmission components and assemblies forming part of driveline systems.

The company’s product portfolio primarily comprises precision-machined torque-transmission components and complete propeller shaft assemblies. As part of its integrated manufacturing operations, it also manufactures forged components which are primarily used as intermediate inputs for further machining and assembly within its manufacturing operations. These forgings form part of its vertically integrated production process and support the manufacture of precision-machined torque-transmission components and finished propeller shaft assemblies.

The company’s product portfolio supports end-use applications across the automotive and non-automotive sectors. Within the automotive sector, its products are largely aligned with commercial vehicle applications, while also catering, to a limited extent, to the passenger vehicle segment, primarily SUVs. Its non-automotive applications include sectors such as defence and emergency services, heavy equipment and off-highway machinery, industrial equipment and other torque-transmission related applications.

Proceed is being used for: 

• Funding capital expenditure by the 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 
• Investment in its 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 
• Investment in its 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 its Subsidiary 
• General corporate purposes

Industry overview

The Indian propeller shaft industry forms a critical part of the broader automotive and industrial drivetrain component ecosystem. Propeller shafts are essential torque-transmission components used to transfer rotational power from the engine or gearbox to the axles, thereby enabling vehicle movement and efficient machinery operation. In India, demand for propeller shafts is primarily driven by the automotive sector, particularly commercial vehicles, passenger vehicles with rear-wheel-drive and all-wheel-drive configurations, and off-highway vehicles such as tractors, construction equipment, and mining machinery. In addition to automotive applications, propeller shafts are also used across railways, defence vehicles, industrial equipment, and infrastructure-related systems, reflecting their importance across multiple sectors of the economy.

The Indian propeller shaft industry is primarily driven by the automobile sector, as India ranks among the top five global manufacturers of passenger and commercial vehicles. Across various automotive segments, the country remains one of the world’s leading markets. Key growth drivers for the Indian automobile industry include rising household incomes, a young demographic profile, expanding R&D capabilities, and supportive government initiatives. Moreover, India’s liberal FDI policy permitting 100% foreign investment under the automatic route, coupled with its cost-effective manufacturing base and skilled workforce, has attracted several global OEMs to set up operations locally. This, in turn, is significantly boosting demand for propeller shafts in the country.

The demand for propeller shafts is expected to witness steady growth across other sectors such as railways, real estate, shipping, defence, and mining. In railways, modernization initiatives like National Rail Plan (NRP) 2030, Dedicated Freight Corridor (DFC) Project amid rising freight movement are driving the need for durable, high-performance shafts. The real estate and construction sectors are generating consistent demand through increased infrastructure projects requiring heavy machinery. In the shipping industry, expanding global trade and ongoing fleet modernization are driving the demand for marine-grade shafts. Additionally, government initiatives such as the ‘Sagarmala Programme’ and ‘Maritime India Vision 2030’ are expected to further strengthen the sector by enhancing port capacity and maritime activity, thereby increasing shaft requirements.

Pros and strengths 

Diversified product portfolio with integrated manufacturing capabilities: As on July 31, 2026, the company offers over 5,000 SKUs of torque-transmission components and assemblies that form part of driveline systems. The product range addresses customer requirements across automotive and non-automotive applications. It has expanded its product portfolio in response to customer requirements. The expansion has been supported by its integrated manufacturing capabilities, which include forging, machining, heat treatment, assembly and balancing operations. These capabilities facilitate the production of driveline components and the development of SKUs for customer applications and platforms.

Vertically integrated manufacturing infrastructure: The company’s manufacturing operations are supported by a vertically integrated production framework that enables it to undertake key stages of the manufacturing process in-house. Currently, it operates three manufacturing facilities located in Madhya Pradesh, India comprising: (i) the Dewas Facility; (ii) the Pithampur Facility; and (iii) the Sanwer Facility. These facilities collectively support its upstream forging operations and downstream machining, assembly and finishing operations required for the manufacture of propeller shafts and related torque-transmission components.

Diversified customer base and distribution network: The company supplies its products primarily through a network of distributors, including Tier-1 driveline component suppliers, and also undertake direct sales to OEMs in accordance with customer-specific technical specifications and requirements. The company’s product portfolio supports end-use applications across the automotive and non-automotive sectors. Automotive sector applications primarily include passenger vehicles and commercial vehicles, while non-automotive applications include sectors such as defence and emergency services, heavy equipment and off-highway machinery, industrial equipment and other torque-transmission related applications.

Strong international presence with diversified export markets: A significant portion of its revenue from operations is derived from export sales, reflecting its presence in international markets for propeller shafts and related torque-transmission components. It supplies its products to customers located outside India primarily through distributors, Tier-1 driveline component suppliers and also directly to OEM customers across multiple geographies. Its export sales are geographically diversified and during the Fiscal 2026 it exported products to over 32 countries across North America, Europe, Latin America, the Middle East, Africa and Asia-Pacific regions.

Risks and concerns

Significant revenue concentration in export markets: Major portion of the company’s revenue from Sale of Products is derived from export sales and a significant portion of such export sales is concentrated in the United States. Revenue from outside India aggregated to Rs 1,212.44 million, Rs 1,166.83 million and Rs 1,044.75 million for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively, representing 95.39%, 96.27% and 94.56% of its revenue from Sale of Products for the respective periods. Any adverse developments affecting its export markets, particularly the United States, including recessionary conditions, tariff revisions, changes in trade policy, trade remedy actions, foreign exchange fluctuations or delays in collection of export receivables, could materially and adversely affect its business, financial condition, results of operations, cash flows and prospects.

Dependence on a limited number of key customers: The company’s revenue from operations is significantly concentrated among a limited number of customers. Revenue from its top 10 customers aggregated to Rs 773.60 million, Rs 798.84 million and Rs 758.00 million for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively, representing 60.86%, 65.91% and 68.61% of its revenue from Sale of Products for the respective periods. It is dependent on such customers for a substantial portion of its revenue and any reduction, modification or termination of business by such customers could materially and adversely affect its business, financial condition, results of operations, cash flows and prospects.

Geographic concentration of manufacturing facilities: The company’s manufacturing operations are carried out through three facilities located in Madhya Pradesh, namely the Dewas Facility, and the Sanwer Facility as well as the Pithampur Facility operated by its Subsidiary, Adroit Driveshafts Private Limited. The company’s manufacturing facilities are therefore geographically concentrated in a single state, and its operations are exposed to risks arising from localized events such as natural disasters, fire, flood, accidents, labour unrest, power shortages, transportation bottlenecks, civil disturbances, equipment failures, public health emergencies, breakdown of utilities, interruption in supply of raw materials or disruptions in regional infrastructure.

High dependence on key domestic suppliers: The company depends on a limited number of domestic suppliers for the procurement of its key raw materials and its top ten suppliers accounted for purchases aggregating to Rs 306.58 million, Rs 337.75 million, and Rs 325.06 million representing 75.97%, 90.41% and 88.09% respectively, of its total purchase cost in Fiscal 2026, 2025 and 2024 respectively. Any disruption in supply, increase in prices or inability to procure such materials on commercially acceptable terms may adversely affect its business, results of operations, cash flows and financial condition.

Outlook

Adroit Industries (India) is a vertically integrated manufacturer and supplier of propeller shafts and torque-transmission components used in driveline systems. The company offers a portfolio of over 5,000 SKUs comprising precision-machined torque-transmission components, complete propeller shaft assemblies and forged components. The company has diversified international customer base. It has strong engineering and validation capabilities coupled with vertically integrated manufacturing operations. On the concern side, the company’s manufacturing operations are concentrated at facilities located in the state of Madhya Pradesh. Any disruption, slowdown or shutdown at any of such facilities may materially and adversely affect its business, financial condition, results of operations, cash flows and prospects. Moreover, the company’s downstream operational activities are undertaken through its Subsidiary, Adroit Driveshafts Private Limited (ADPL), and it is dependent on the operating income, manufacturing operations and cash flows generated by its Subsidiary.

The issue has been offering 1,12,47,000 shares in a price band of Rs 126-134 per equity share. The aggregate size of the offer is around Rs 141.71 crore to Rs 150.71 crore based on lower and upper price band respectively. Minimum application is to be made for 111 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operations increased by 4.52% from Rs 1,338.94 million in Fiscal 2025 to Rs 1,399.43 million in Fiscal 2026. Moreover, the company’s profit after tax surged 44.17% to Rs 261.58 million in Fiscal 2026 from Rs 181.44 million in Fiscal 2025.

Meanwhile, the company intends to strengthen its manufacturing capabilities through the installation of additional machinery and equipment at its existing Dewas Facility and Pithampur Facility in Madhya Pradesh. The proposed expansion is expected to enhance both its upstream forging operations and downstream machining and assembly capabilities for driveline components. At the Dewas Facility, it proposes to increase its forging capabilities through the installation of a new forging press line, comprising key equipment such as an electric screw forging press, induction billet heating equipment and associated automation systems. This investment is expected to augment its forging capacity and improve productivity and operational efficiency in its upstream manufacturing processes.