Adroit Industries plan lifts Dewas to 5,500 MT, doubles Pithampur

Adroit Industries plans to commit Rs 63.863 crore of fresh-issue proceeds to coordinated expansion at its Dewas and Pithampur facilities. The plan would lift Dewas installed forging capacity from 3,000 metric tonnes (MT) to 5,500 MT and raise Pithampur installed capacity from 9,00,000 units to 18,00,000 units after machinery is installed and commissioned.

How does Adroit Industries’ IPO capex change plant capacity?

Adroit’s IPO capex plan funds expansion at both stages of its integrated manufacturing chain. The company has earmarked Rs 19.907 crore for Dewas machinery and a transport vehicle, and Rs 43.956 crore to invest as equity in Adroit Driveshafts Private Limited for Pithampur machinery and a vehicle. A further Rs 24.119 crore is earmarked separately for repayment or prepayment of subsidiary borrowings and carries no stated production-capacity increase.

The capacity measures differ because the plants perform different operations. Dewas installed capacity would rise by 2,500 MT, or 83.3%, from 3,000 MT to 5,500 MT. Pithampur installed capacity would rise by 9,00,000 units, or 100%, from 9,00,000 units to 18,00,000 units.

The stated capacity outcome depends on net-proceeds deployment, equipment delivery, installation and commissioning. As of July 31, 2026, neither Dewas nor Pithampur had received funds for the proposed capital expenditure. Adroit has obtained consent to establish from the Madhya Pradesh Pollution Control Board for both capacity changes, while consent to operate and other approvals will be sought when required.

Why are Dewas and Pithampur expanded together?

Dewas and Pithampur are linked because Dewas is the upstream forging site and Pithampur is the downstream machining, assembly and balancing site. Dewas performs die-making, raw-material testing, forging, heat treatment and shot-blasting. The forged components then become intermediate inputs at Pithampur, where Adroit Driveshafts processes them into propeller shafts and related torque-transmission products.

Dewas reported relatively high utilisation over Fiscal 2024 to Fiscal 2026. Its actual production was 2,210 MT in Fiscal 2026 against effective capacity of 2,515 MT, producing utilisation of 87.87%. This compared with 89.71% in Fiscal 2025, when production was 2,153 MT against 2,400 MT of effective capacity, and 87.29% in Fiscal 2024, when production was 2,095 MT.

The Fiscal 2026 Dewas figure is not directly based on the 3,000-MT year-end installed capacity. Installed capacity increased from 2,400 MT to 3,000 MT on January 21, 2026, so Fiscal 2026 effective capacity was calculated on a pro-rata basis at 2,515 MT. The proposed 5,500-MT figure is installed capacity after commissioning, whereas historical utilisation reflects capacity available during each fiscal year.

Pithampur had utilisation of 74.70% in Fiscal 2026, with 6,72,324 units produced against effective capacity of 9,00,000 units. That compared with 72.69% in Fiscal 2025 and 74.65% in Fiscal 2024, both on 9,00,000 units of effective capacity. Adroit Driveshafts generated Rs 127.822 crore of revenue in Fiscal 2026, representing 91.34% of Adroit’s consolidated revenue from operations, compared with 92.56% in Fiscal 2025 and 90.55% in Fiscal 2024.

What will the Rs 63.863 crore buy?

The Dewas allocation covers machinery, equipment and one truck, with no land, civil-work or site-development spending planned. The Dewas facility occupies about 15,095.50 square metres, including about 11,133.86 square metres of available area, and is on a long-term lease expiring September 26, 2097. Adroit says the existing site can accommodate the proposed equipment and vehicle.

The Dewas list includes a 1,600-tonne electric screw forging press, a 200-tonne forging press, induction billet heating equipment, 10 conveyors, two cylindrical saws and heat-treatment equipment. It also includes 50 die blocks and a truck estimated at Rs 0.338 crore. The equipment is intended to support forging, heating, material handling, surface cleaning and heat treatment, which are the plant’s upstream processes.

The Pithampur allocation also contains no land or civil-work budget and includes a truck. The Pithampur site spans about 27,535 square metres, including about 9,896.10 square metres of available area, under a lease expiring October 18, 2119. Adroit Driveshafts owned no transport vehicle for local transfers as of the prospectus date, while Adroit owned one truck in each of Fiscal 2024, Fiscal 2025 and Fiscal 2026.

The Pithampur equipment list includes six horizontal machining centres, 29 computer numerical control, or CNC, lathes across four models, two centreless grinding machines and two propeller balancers. It also includes two automated sleeve-yoke machining cells, broaching machines and tooling, a torque-fatigue testing system, a coordinate measuring machine and a painting plant. These additions address machining, balancing, testing, material handling and component finishing.

When does Adroit plan to deploy the expansion funds?

Adroit plans to deploy Rs 2.895 crore of the Dewas allocation in Fiscal 2027 and Rs 17.012 crore in Fiscal 2028. Some Dewas purchase orders are scheduled from October 2026, while the 1,600-tonne forging press is scheduled for completion in November 2027. In the prospectus, implementation means the expected purchase-order period, while completion means installation, commissioning and testing.

The Pithampur allocation is scheduled at Rs 27.607 crore in Fiscal 2027 and Rs 16.349 crore in Fiscal 2028. Several machining centres and lathes are scheduled for completion in January 2027, while certain grinding machines, balancing equipment and automated cells have completion dates between October and December 2027. The boards of Adroit and Adroit Driveshafts approved the capital expenditure on September 4, 2026.

The plan remains subject to vendor supply and completion conditions. Vendor quotations were valid as of the red herring prospectus date, but Adroit has not entered definitive supply agreements and says quoted prices exclude freight, insurance, forwarding, packaging and installation charges. Those additional charges are to be funded from internal accruals, and no second-hand or used machinery is proposed to be bought from net proceeds.

What could alter the spending plan or completion dates?

Adroit states that the Rs 63.863 crore expansion estimate is based on management assessments, prevailing market conditions and vendor quotations, rather than an appraisal by a bank or financial institution. Equipment pricing, specifications and quantities may change because of vendor availability, technology changes, commercial considerations, foreign-exchange movements or policy changes. Completion also depends on the offer being completed, net proceeds being received and required approvals being available.

If an object costs more than budgeted, Adroit may use internal accruals, additional debt facilities or equity arrangements. If an object costs less, the unutilised balance may be used for general corporate purposes, subject to the Securities and Exchange Board of India limit that such use cannot exceed 25% of gross proceeds. These alternatives mean the stated plant budgets and schedules are plans rather than fixed contracts.

The Rs 24.119 crore subsidiary debt-repayment allocation is separate from machinery funding but is intended to reduce borrowings. Adroit Driveshafts had aggregate outstanding borrowings of Rs 57.464 crore as of July 31, 2026, and its debt-to-equity ratio, defined as total debt divided by total equity, was 1.07 in Fiscal 2026, compared with 2.16 in Fiscal 2025 and 3.66 in Fiscal 2024. The repayment amount is capped at Rs 24.119 crore of net proceeds and may be applied to selected borrowings according to commercial considerations.

Conclusion

Adroit’s disclosed plan combines upstream and downstream capacity additions rather than replacing equipment at one facility. Dewas is intended to supply more forged inputs after its installed capacity rises to 5,500 MT, while Pithampur is intended to double installed machining, assembly and balancing capacity to 18,00,000 units. The downstream emphasis is material because Adroit Driveshafts contributed 91.34% of consolidated revenue from operations in Fiscal 2026.

The next milestones are deployment of Rs 30.502 crore in Fiscal 2027 across the two capital-expenditure objects, equipment completion scheduled through December 2027 and the required consent to operate. ACER Credit Rating Private Limited will monitor gross-proceeds use quarterly until fully utilised, while Adroit’s audit committee must review the use of proceeds and disclose deviations or category-wise variations to stock exchanges.