The propeller-shaft manufacturer has a four-decade operating history, an integrated production setup and improving profits.
Adroit Industries (India) Ltd is raising ₹150.71 crore through a mainboard IPO that opens on September 23, 2026.
Adroit Industries is an integrated manufacturer of propeller shafts, forged components and precision-machined torque-transmission parts.
A propeller shaft transfers rotational power from a vehicle’s engine or transmission to its axle or differential. The component must handle high torque and rotational speeds while adjusting to movement in the suspension and drivetrain.
Because a failure can affect vehicle safety and performance, customers generally follow lengthy vendor-approval and product-validation processes.
Adroit handles several production stages internally, including:
- Forging
- Precision machining
- Heat treatment
- Assembly
- Dynamic balancing
- Product testing
This integrated model gives the company greater control over manufacturing quality, production schedules and component availability.
As of July 31, 2026, Adroit had more than 5,000 stock-keeping units across components and complete propeller-shaft assemblies.
The company sells through distributors and Tier-1 component suppliers, besides supplying some
Adroit Industries IPO details
| Details | |
|---|---|
| IPO opens | September 23, 2026 |
| IPO closes | September 25, 2026 |
| Basis of allotment | September 28, 2026 |
| Refunds and demat credit | September 29, 2026 |
| Listing date | September 30, 2026 |
| Listing exchanges | BSE and NSE |
| Price band | ₹126–₹134 |
| Face value | ₹10 |
| Total issue size | ₹150.71 crore |
| Fresh issue | ₹132.62 crore |
| Offer for sale | ₹18.09 crore |
| Total shares offered | 1.12 crore |
| Lot size | 111 shares |
| Minimum retail investment | ₹14,874 |
| Post-issue market capitalisation | About ₹600.43 crore |
| Lead manager | Choice Capital Advisors |
| Registrar | Bigshare Services |
The IPO consists of a fresh issue of 98.97 lakh shares and an offer for sale of 13.50 lakh shares.
Adroit will receive the money raised through the fresh issue, while the proceeds from the offer for sale will go to the selling shareholders.
The IPO represents approximately 25.10% of the company’s post-issue equity capital. Paid-up capital will increase from ₹34.91 crore to ₹44.81 crore after the issue.
Adroit plans to use ₹19.91 crore to buy machinery, equipment and vehicles for its own manufacturing operations.
Another ₹43.96 crore will be invested in its subsidiary, Adroit Driveshafts Pvt Ltd, for machinery, equipment and other expansion requirements.
The company will also invest ₹24.12 crore in the subsidiary to repay or prepay borrowings. The remaining proceeds will be used for general corporate purposes.
This means a substantial portion of the fresh capital will support additional manufacturing capacity, while another part will reduce debt at the subsidiary level.
Commercial vehicles form the main automotive application for its products. The company also has limited exposure to SUVs and supplies components for defence, emergency vehicles, heavy equipment, off-highway machinery and industrial systems.
As of July 31, 2026, Adroit had 367 permanent employees and 213 contract workers.
Financial performance
| Particulars | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total income | ₹125.10 crore | ₹136.61 crore | ₹143.04 crore |
| Net profit | ₹14.53 crore | ₹18.14 crore | ₹26.16 crore |
| PAT margin | 11.67% | 13.55% | 18.69% |
| RoCE | 15.07% | 15.76% | 19.01% |
Adroit’s revenue grew by 9.2% in FY25 and 4.7% in FY26. The company has therefore maintained top-line growth, but the pace has slowed.
Profit rose much faster than revenue. Net profit increased by 24.8% in FY25 and another 44.2% in FY26.
The PAT margin expanded from 11.67% in FY24 to 18.69% in FY26. Return on capital employed also improved, reaching 19.01% in FY26.
The company’s plants operated at an average capacity utilisation of about 88% during the past three financial years. High utilisation can support margins, but it also limits the scope for volume growth without fresh investment.
Adroit had contingent liabilities of ₹4.39 crore as of March 31, 2026.
Price-band analysis
At the upper price of ₹134, Adroit Industries is seeking a post-issue market capitalisation of approximately ₹600.43 crore.
Based on FY26 profit and the enlarged post-IPO equity base, earnings per share work out to approximately ₹5.84. This values the IPO at a P/E of around 22.95 times.
The IPO is priced at 3.64 times the March 2026 pre-issue net asset value of ₹36.84 per share. Based on the estimated post-issue NAV of ₹58.30, the price-to-book ratio falls to about 2.30 times.
Comparison with peers
Adroit has named Hindustan Hardy, Talbros Engineering and GNA Axles as its listed peers.
| Company | Indicative P/E |
|---|---|
| Adroit Industries | 22.95 |
| Hindustan Hardy | 17.2 |
| Talbros Engineering | 10.5 |
| GNA Axles | 18.1 |
Adroit is asking for a higher earnings multiple than all three listed peers.
GMP
The Adroit Industries IPO GMP stood at approximately ₹32 per share on September 22, 2026.
GMP is unofficial, unregulated and can change sharply with subscription demand and wider market conditions.
Risks to consider
The FY26 post-issue P/E of 22.95 is higher than the multiples of the listed peers disclosed in the offer document.
A large part of the investment case rests on the sharp rise in profitability during FY26. A return to earlier margin levels would make the IPO valuation look substantially more expensive.
Revenue grew by only 4.7% in FY26. The company will need faster sales growth to support its higher post-IPO valuation.
The auto-component and engineering markets include large organised manufacturers as well as smaller regional suppliers. Pricing pressure and customer negotiations can affect margins.
Average capacity use has been about 88%. This helps operating efficiency but means meaningful volume growth requires additional equipment and timely execution of expansion plans.
The company’s automotive products are primarily linked to commercial vehicles. A downturn in vehicle production or replacement demand could affect orders.
Changes in vehicle architecture, including the shift towards electric vehicles, may alter the demand for conventional driveline components in some vehicle categories. Adroit will need to keep adapting its product portfolio.
Automotive and safety-sensitive components require lengthy testing and approval. Delays in customer validation can slow revenue from new products or expanded capacity.
