Adroit Industries India Ltd IPO

Offering over 5,000 SKUs of torque-transmission components and assemblies forming part of driveline systems

Vertically integrated manufacturing operations with end-to-end control across forging, machining and assembly operations.

Established relationships with diversified customer base and high degree of repeat business.

Entry barriers supported by established validation and advanced engineering capabilities.

Strong export presence with diversified international customer base.

Experienced Promoters and competent management team.

Consistent Financial Performance with Improving Profitability and Capital Efficiency.

Major portion of our 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 our revenue from Sale of Products for the respective periods. Any adverse developments affecting our 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 our business, financial condition, results of operations, cash flows and prospects.

Our revenue from operations is significantly concentrated among a limited number of customers. Revenue from our top 10 customers aggregated to Rs.773.60 miilion, 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 our revenue from Sale of Products for the respective periods. We are dependent on such customers for a substantial portion of our revenue and any reduction, modification or termination of business by such customers could materially and adversely affect our business, financial condition, results of operations, cash flows and prospects.

Our manufacturing operations are concentrated at facilities located in the state of Madhya Pradesh, India. Any disruption, slowdown or shutdown at any of such facilities may materially and adversely affect our business, financial condition, results of operations, cash flows and prospects.

Our downstream operational activities are undertaken through our Subsidiary, Adroit Driveshafts Private Limited (ADPL), and we are dependent on the operating income, manufacturing operations and cash flows generated by our Subsidiary.

Our business is significantly exposed to foreign currency exchange rate fluctuations, and our Company does not have a hedging policy in place and hence, we may not be able to hedge our risk exposures particularly during volatile foreign currency exchange rates, which may adversely affect our results of operations, cash flows and financial condition.

There have been mulitple instances of delays in statutory filings and non-compliances with respect to corporate and regulatory reporting obligations in the past, which may reflect certain weaknesses in our compliance monitoring and internal control processes and may expose us to regulatory actions, penalties and reputational risk.

Our Company and our Subsidairy, ADPL experienced negative cash flows from certain activities in the past on a consolidated as well as a standalone basis and may continue to do so in the future, which could adversely affect our business, results of operations, cash flows and financial condition

We have made investments and extended inter-corporate loans and advances to certain entities. Any delay in recovery, default, impairment or diminution in value of such exposures may adversely affect our liquidity, cash flows, working capital and financial condition.

We are subject to risks arising from interest rate fluctuations, which could reduce our profitability and adversely affect our business, cash flows, financial condition and results of operations.

There are outstanding legal proceedings involving our Company, our Directors and our Promoters. Any adverse outcome in such proceedings may adversely affect our reputation, business, results of operations, cash flows and financial condition.