Adroit Industries (India) Limited

Adroit Industries (India) Limited is a specialized engineering enterprise engaged in the design, development, manufacturing, and export of drive shafts, propeller shafts, universal joints, and custom driveline components for commercial vehicles, off-highway equipment, industrial machinery, and agricultural applications. The company operates an integrated business model encompassing hot/warm forging, precision machining, heat treatment, spline rolling, dynamic balancing, and final assembly. Its core value proposition lies in providing high-precision, safety-critical torque transmission solutions customized to meet the stringent technical specifications of global original equipment manufacturers (OEMs) and aftermarket distributors.

The company serves a diverse client base across two primary channels: global OEM manufacturers and international aftermarket distributors. Geographically, Adroit Industries is heavily export-oriented, generating 95.39% of its total product sales from international markets in FY26. Its primary target demographics and geographical markets span North America (with the United States contributing 51.3% of total product sales), South America, Europe, and Asia. Export distribution across the Americas is supported by its wholly-owned Canadian subsidiary, Adroit Driveshafts Inc. (ADCL), which maintains a local warehouse to facilitate off-the-shelf delivery and localized customer support.

Adroit Industries operates manufacturing facilities in Madhya Pradesh, India. This comprises its primary plant at Dewas and an advanced manufacturing facility operated through its material subsidiary, Adroit Driveshafts Private Limited (ADPL), at Pithampur. The manufacturing infrastructure features closed-die forging presses, CNC machining centers, induction hardening units, spline rolling machines, and computerized dynamic balancing rigs. For FY26, the company's installed capacity for drive shafts and driveline components stood at 600,000 units per annum, operating at a capacity utilization rate of 74.5% across its production lines.

Operational excellence and product quality are backed by an in-house Research, Development, and Testing laboratory equipped with metallurgical testing equipment, coordinate measuring machines (CMM), dynamic fatigue testing rigs, and torque testing apparatus. The company holds ISO 9001:2015 and IATF 16949:2016 quality certifications. With an active product portfolio of over 5,250 SKUs, Adroit Industries leverages flexible manufacturing capabilities to handle both high-volume OEM orders and low-volume, high-mix custom components, ensuring rapid prototyping and reduced lead times for international buyers.

Based on its historical financial data, Adroit Industries (India) Limited posted total income and net profits of ₹125.10 Cr / ₹14.53 Cr in FY24, ₹136.61 Cr / ₹18.14 Cr in FY25, and ₹143.04 Cr / ₹26.16 Cr in FY26. The company has shown steady top-line and bottom-line growth alongside active debt reduction, cutting total borrowings from ₹82.53 Cr in FY24 to ₹52.40 Cr in FY26. It boasts an average EPS of ₹6.16 and an average RoNW of 20.73% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 3.64 against a NAV of ₹36.84 (as of March 31, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.30. Attributing the latest earnings to the expanded post-issue equity base, the asking price translates to a Post-Issue P/E of approximately 41.33x (FY24), 33.09x (FY25), and 22.95x (FY26). According to the RHP, a comparison shows that listed competitors like Hindustan Hardy Limited (17.20x P/E), Talbros Engineering Limited (10.70x P/E), and GNA Axles Limited (18.10x P/E) trade at slightly lower earnings multiples; however, Adroit Industries commands this valuation by delivering superior PAT margins (18.69% in FY26) and a strong return profile.

On the Book Running Lead Manager (BRLM) front, the issue is managed by Choice Capital Advisors Private Limited, which has handled 3 public issues over the last three fiscal years. Bigshare Services Private Limited is acting as the Registrar to the Issue.

• 1 Saurabh Sangla
• 2 Mukesh Sangla
• 3 Monika Sangla
• 4 Swan Irrigation LLP
• 5 Shubhangi Trust
• 6 Shreya Trust