Financial Performance
Adroit Industries recorded total income of Rs. 136.61 crore in FY 2025, compared with Rs. 125.10 crore in FY 2024 and Rs. 104.49 crore in FY 2023. Profit after tax increased to Rs. 18.14 crore from Rs. 14.53 crore and Rs. 6.42 crore, respectively.
For the six months ended September 2025, total income stood at Rs. 71.45 crore and profit after tax reached Rs. 10.64 crore. EBITDA was Rs. 15.24 crore. If this momentum continues, FY 2026 earnings could surpass the previous year, although investors should not annualise half-year figures without considering seasonality.
Margins and Balance Sheet
The company reported a PAT margin of 13.55% and EBITDA margin of 23.17% in FY 2025. ROE was 18.97%, ROCE stood at 17.06%, and return on net worth was 18.94%.
Borrowings declined from Rs. 30.44 crore in FY 2023 to Rs. 16.29 crore in FY 2024, Rs. 8.32 crore in FY 2025 and Rs. 5.11 crore by September 2025. Meanwhile, net worth increased to Rs. 114.96 crore, indicating a steadily improving balance sheet.
IPO Proceeds and Expansion
Adroit Industries plans to spend Rs. 16.77 crore on machinery, equipment and a transportation vehicle for its Dewas facility. Another Rs. 36.96 crore will be invested in subsidiary Adroit Driveshafts for machinery and transportation equipment at the Pithampur facility.
The company will invest Rs. 20.27 crore in the subsidiary for repayment or prepayment of borrowings. Remaining proceeds will support general corporate purposes. These investments may enhance capacity and efficiency, but benefits will depend on timely commissioning and demand utilisation.
Valuation Assessment
At Rs. 134, the post-issue market capitalisation is Rs. 600.43 crore. Based on post-issue EPS of Rs. 4.75, the issue is valued at 28.21 times earnings. The price-to-book ratio is 4.52.
This valuation demands consistent growth and margin stability. Investors should compare Adroit with listed auto-component and industrial-product peers before applying.
Final Investment View
Adroit Industries offers an established manufacturing platform, export diversification, healthy margins, falling debt and capacity-expansion plans. Concerns include valuation, cyclical demand, export exposure and reduced promoter ownership. Execution discipline and customer retention will remain important drivers of future returns.
Listing-gain investors should monitor GMP and subscription demand. Long-term investors may consider a selective application if institutional participation is healthy and peer comparison supports the pricing. Conservative investors can wait for post-listing performance and evidence that new machinery translates into higher revenue and sustainable earnings.