Adroit Industries is filing a ₹151 Cr IPO on September 23, 2026. It is among the few Indian manufacturers with in-house forging capability, and exports made up 87% of its FY26 revenue, spread across more than 32 countries.
IPO Summary
| Adroit Industries IPO Details | |
|---|---|
| IPO Date | 23rd Sep to 25th Sep, 2026 |
| Sale Type | Fresh Issue + OFS |
| Tentative Listing Date | 30th Sep, 2026 |
| Price Band | ₹126 to ₹134 |
| Post Issue M. Cap at ₹134 | ₹600 Cr |
| Total Issue Size | ₹151 Cr |
Industry Overview
India’s auto-component industry makes up about 2.5% of GDP and directly employs over 1.5 million people.
It’s expected to grow 7-9% in FY26 to a USD 87-89 billion industry, on higher value addition, more R&D and rising exports.
Within this exists smaller propeller shaft market which is poised to grow from USD 2.3 billion 2025 to reach USD 3.3 billion in 2030F.
A propeller shaft (also known as a drive shaft or prop shaft) is a rotating mechanical rod that transfers power and torque from a vehicle’s engine and transmission to the differential or a vessel’s propeller.
While Adroit is largely excluded from the fast-growing passenger EV segment where e-axles eliminate the need for propeller shafts its core commercial vehicle market remains highly insulated, with EV penetration at just 2% in FY26.
Adroit Industries operates inside this space as a vertically integrated propeller shaft and driveline component manufacturer.
Business Model Explained
Adroit makes over 5,000 SKUs of torque-transmission components and propeller shaft assemblies, sold into passenger vehicles, commercial vehicles, defence & emergency services, off-highway and heavy equipment, and industrial machinery.
These products are sold through three channels: distributors, Tier-1 driveline suppliers, and direct-to-OEM.
While they service non-automotive industries as well, the automotive industry still accounts for ~75% of sale of products revenue in FY26.
The company is vertically integrated, with upstream and downstream activities split across multiple specialized facilities:
- Dewas Facility represents the upstream stage of their manufacturing operations
- These upstream forged components are subsequently transferred to the Pithampur Facility and, in certain cases, depending on customer specifications and product requirements, the components may thereafter be transferred to the Sanwer facility for further finishing operations.
They derive majority of their revenue from operations through export sales.
During FY26, they supplied products to over 32 countries, including the United States of America, Colombia, Canada, Australia, Mexico, Turkey, Peru and the United Kingdom.
Apart from their Indian facilities, they have also set up facilities in the USA and Canada!
Unit Economics
Adroit’s output is best measured per machined/assembled unit at the Pithampur Facility, the stage where forged inputs become finished or semi-finished propeller shafts.
- Revenue per unit rose 12% over FY24-26, but EBITDA per unit rose 30% and PAT per unit nearly doubled helped by lower COGS
Operating Metrics
- Capacity Utilisation: While other facilities have healthy utilisation, Sanwer’s utilisation collapsed to 33% in FY26 because the plant was mid-renovation through FY25-26, not because of weak demand. It’s now back with a finishing line.
- Revenue by Geography: Export share climbed from 84% to 87% of revenue over FY24-26.
- Customer Base: Customer count grew from 130 to 185 over FY24-26.
The Financial Stuff: From Revenue to PAT
- Revenue grew ~12% over FY24-26 at a modest pace.
- PAT margin nearly doubled, from 12% to 19%, almost entirely on cost — not revenue growth.
Peer Comparison — FY26
- Adroit’s FY26 EBITDA margin 28% and PAT margin 19% are the highest of the four companies compared.
- RONW 23% and ROCE 19% are second-best, just behind Hindustan Hardy.
- GNA Axles alone generates ~10x Adroit’s revenue. This is a scale gap, not a profitability gap.
Key Risks
- Customer and distributor concentration: Distributors made up 62% of FY26 revenue from Sale of Products. There are no long-term agreements or minimum purchase commitments; sales run on purchase orders.
- EV transition risk: Automotive applications, where EV architectures can eliminate the need for propeller shafts, already make up 75% of FY26 Sale of Products revenue and have been rising.
IPO FAQs
Q: What is Adroit Industries price band?
A: Adroit Industries has a price band of ₹126 to ₹124Q: What is Adroit Industries closing date?
A: Adroit Industries IPO closes on 25th Sep, 2026Q: What is Adroit Industries listing date?
A: Adroit Industries lists on 30th Sep, 2026, on the NSE and the BSE.
Summary
Adroit is a vertically integrated, export-heavy propeller shaft maker with in-house forging, a combination few Indian rivals fully match.
Revenue growth has been modest but margin expansion has been the real driver, taking PAT from ₹15 Cr to ₹26 Cr.
Whether recent margins holds, and how exposed this automotive-heavy, export-heavy revenue base is to the EV transition over the next few years is something that needs to be watched in the coming years.
