OPERATION
You should read the following discussion of our financial condition and results of operations together with our Restated Financial Information which have been included in this Red Herring Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Restated Consolidated Financial Information for the Fiscals 2026, 2025 and 2024 including the related notes and reports, included in this Red Herring Prospectus prepared in accordance with requirements of the Companies Act and restated in accordance with the SEBI (ICDR) Regulations 2018, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our special purpose audited consolidated financial statements for the respective period and years. Accordingly, the degree to which our Restated Consolidated Financial Information will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the reader s level of familiarity with Ind AS,
Companies Act, SEBI Regulations and other relevant accounting practices in India.
This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under Risk Factors and Forward Looking Statements on pages 28 and 27 respectively, and elsewhere in this Red Herring Prospectus.
Our Fiscal ends on March 31 of each year. Accordingly, all references to a particular Fiscal are to the 12 months ended March 31 of that year.
Business Overview
With over four decades of operational experience, we are a vertically integrated manufacturer and supplier of propeller shafts and related torque-transmission components, with in-house capabilities across forging, precision machining, heat treatment, assembly, balancing and testing. As on July 31, 2026, we offer over 5,000 SKUs of torque-transmission components and assemblies forming part of driveline systems.
Our product portfolio primarily comprises precision-machined torque-transmission components and complete propeller shaft assemblies. As part of our integrated manufacturing operations, we also manufacture forged components which are primarily used as intermediate inputs for further machining and assembly within our manufacturing operations. These forgings form part of our vertically integrated production process and support the manufacture of precision-machined torque-transmission components and finished propeller shaft assemblies.
Key Performance Indicators and Non-GAAP Measures
In addition to our financial results determined in accordance with Ind AS, we consider and use those certain non-GAAP financial measures and key performance indicators that are presented below as supplemental measures to review and assess our operating performance. Our management does not consider these non-GAAP financial measures and key performance indicators in isolation or as an alternative to the Restated Financial Information. We present these non-GAAP financial measures and key performance indicators because we believe they are useful to our Company in assessing and evaluating our operating performance, and for internal planning and forecasting purposes. We believe these non-GAAP financial measures and key performance indicators, when taken collectively with the Restated Financial Information, prepared in accordance with Ind AS, may be helpful to investors as an additional tool to evaluate our ongoing operating results and trends and to compare our financial results to prior periods.
Non-GAAP financial information is not recognized under Ind AS and do not have standardized meanings prescribed by Ind AS. In addition, non-GAAP financial measures and key performance indicators used by us may differ from similarly titled non-GAAP measures used by other companies. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by Ind AS to be recorded in our financial statements, as further detailed below. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors are encouraged to review the related Ind AS financial measures to their most directly comparable Ind AS financial measures included below and to not rely on any single financial measure to evaluate our business. Other companies may calculate non-GAAP metrics differently from the way we calculate these metrics.
For risk relating to our non-GAAP measures, see Risk Factors This Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance indicators and other industry measures related to our operations and financial performance. The Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Propeller Shafts and, therefore, may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies. on page 95.
Set forth below are certain non-GAAP measures derived from our Restated Consolidated Financial Information for the Fiscals 2026, 2025 and 2024.
| Key Performance Indicators (KPIs) | Unit | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Financial KPIs* | ||||
| GAAP-Measures | ||||
| Revenue from operations (1) | in million | 1,399.43 | 1,338.94 | 1,245.28 |
| Net Profit after tax (PAT) (4) | in million | 261.58 | 181.44 | 145.27 |
| Non-GAAP Measures | ||||
| EBITDA (2) | in million | 387.10 | 310.19 | 296.85 |
| EBITDA margin (3) | % | 27.66 | 23.17 | 23.84 |
| Net Profit after tax (PAT) (4) | in million | 261.58 | 181.44 | 145.27 |
| PAT margin (5) | % | 18.69 | 13.55 | 11.67 |
| Net Worth (6) | in million | 1286.27 | 1,035.28 | 878.22 |
| Return on net worth (RoNW) (7) | % | 22.51 | 18.94 | 18.95 |
| Return on capital employed (RoCE) (8) | % | 19.01 | 15.76 | 15.07 |
| Debt/Equity (9) | Ratio | 0.41 | 0.63 | 0.94 |
| Current Ratio (10) | Ratio | 1.53 | 1.44 | 1.18 |
| OPERATIONAL KPIs | ||||
| Total number of customers served (11) | In number | 185 | 151 | 130 |
| Repeat customers (count) (12) | In number | 110 | 101 | 83 |
| Repeat customers (% of total) (13) | % | 59.46 | 66.89 | 63.85 |
| Domestic Revenue (14) | in million | 58.65 | 45.26 | 60.07 |
| Export Revenue (15) | in million | 1212.44 | 1,166.83 | 1,044.75 |
| Net Working Capital Days (16) | Days | 237 | 238 | 237 |
| Inventory Days (17) | Days | 135 | 137 | 131 |
| Debtor Days (18) | Days | 111 | 98 | 103 |
| Creditor Days (19) | Days | 42 | 37 | 51 |
Note: As certified by our Statutory Auditors vide certificate dated September 17, 2026
Notes:
(1) Revenue from operations means the Revenue from operations as appearing in the Restated Consolidated Financial Information.
(2) EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit/ (loss) before exceptional items and tax for the fiscal and adding back finance costs, depreciation, and amortization expense and subtracting the other income.
(3) EBITDA Margin is calculated as EBITDA as a percentage of Revenue from Operations.
(4) PAT represents the restated profits of our Company after deducting all expenses.
(5) PAT Margin is calculated as restated Net Profit after Tax for the fiscal divided by Revenue from Operations for that fiscal.
(6) Net Worth means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation in accordance with Regulation 2(1)(hh) of the SEBI ICDR Regulations. Accordingly, Net Worth is calculated as aggregate of the equity share capital, instruments entirely equity in nature, share pending issuance, share based payment reserves, securities premium and retained earnings and excludes non-controlling interest.
(7) Return on Net Worth (%) is calculated as Net Profit after Tax attributable to owner of the company, as restated for the end of the fiscal divided by average Net worth as at the end of the fiscal. Average net worth means the average of the net worth of current and previous fiscal. Net worth means the aggregate value of the paid-up share capital and other equity (excluding non-controlling interest).
(8) Return on Capital Employed (ROCE) = Earnings Before Interest and Taxes (EBIT) divided by Capital Employed, where Capital Employed is computed as the sum of Total Equity (including paid-up share capital, other equity, and non-controlling interest) and Total Debt (including borrowings and lease liabilities).
(9) Debt to Equity Ratio = Debt- Equity Ratio is calculated by dividing total debt by total equity. Total debt represents long term and short-term borrowings, including lease liabilities. Total equity includes the aggregate value of the paid-up share capital and other equity (including non-controlling interest).
(10) Current ratio = Current Ratio is calculated by dividing Current assets by Current Liabilities for the fiscal.
(11) Total number of customers served represents the total number of customers to whom the Company has supplied products during the relevant fiscal.
(12) Repeat customers represents the number of customers during the relevant fiscal who had also transacted with the Company in the immediately preceding fiscal.
(13) Repeat customers (% of total) represents repeat customers as a percentage of the total number of customers served during the relevant fiscal.
(14) Domestic Revenue represents Sale of Products generated from customers located within India during the relevant fiscal.
(15) Export Revenue represents Sale of Products generated from customers located outside India during the relevant fiscal.
(16) Net Working Capital Days is arrived at by dividing working capital (current assets excluding cash and cash equivalents less current liabilities excluding short term borrowings and current lease liabilities) by revenue from operations multiplied by the number of days in the fiscal (365).
(17) Inventory days is calculated as the number of days in the fiscal (365) divided by (revenue from operations divided by the average inventory at the beginning and end of the fiscal).
(18) Debtor days is calculated as the number of days in the fiscal (365) divided by (revenue from operations divided by the average trade receivables at the beginning and end of the fiscal).
(19) Creditor days is calculated as the number of days in the fiscal (365) divided by (revenue from operations divided by the average trade payables at the beginning and end of the fiscal).
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL PERIOD
In the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the business activities or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months, except as disclosed below:
Incorporation of Subsidiary in the United States: Subsequent to the reporting date, our Company incorporated a wholly owned subsidiary, AD USA, on April 3, 2026, under the laws of the State of Texas, United States of America.
The registered office of AD USA is situated at 633 E Fernhurst Dr, Unit 1001, Katy, TX 77450. AD USA is engaged in the business of importing and distributing driveshafts, driveline components and automotive components and has the requisite power and authority to own, lease, license and use its property and assets and to conduct its business.
As on the date of this Red Herring Prospectus, the authorised and paid-up share capital of AD USA comprises 100 equity shares of a face value of US$10 each, all of which are held by our Company.
SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Our business is subjected to various risks and uncertainties, including those discussed in the section titled Risk Factors on page 28. Our results of operations and financial conditions are affected by numerous factors including the following:
1. 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 1,212.44 million, 1,166.83 million and 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.
2. Our revenue from operations is significantly concentrated among a limited number of customers. Revenue from our top 10 customers aggregated to 773.60 miilion, 798.84 million and 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.
3. 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.
4. 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.
5. 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.
6. 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
7. 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.
8. 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.
9. 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.
10. 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.
BASIS OF PREPARATION, MEASUREMENT AND MATERIAL ACCOUNTING POLICIES
A. Corporate Overview
Adroit Industries (India) Limited having CIN -U74999MH1995PLC084474, is a public limited company incorporated under the Companies Act, 1956 on 9th January 1995 having registered office at Gala No. 02, Building No. A-2, Gr. Floor, Print World Industrial Complex, Survey No. 15/1, Mankoli Road, Vehele, Shastrinagar, Bhiwandi, Thane 421 302, Maharashtra, India. Company is presently engaged in the business of manufacturing of Auto parts & components. The company is limited by shares.
The Company has following Subsidiaries:
a) Adroit Driveshafts Private Limited: 99.87% Holding
b) Adroit Driveshafts Canada Limited: 100% Holding
B. Basis of Preparation of Restated Financial Information
The Restated Financial Information comprises of:
Restated Cnosolidated Statement of Assets and Liabilities as on March 31, 2026, March 31, 2025 and March 31, 2024, and the Restated Cnosolidated Statement of Profit and Loss (including Other Comprehensive Income), the Restated Cnosolidated Statement of changes in Equity, and the Restated Cnosolidated Statement of Cash Flows for March 31, 2026, March 31, 2025 and March 31, 2024, the material accounting policies and other explanatory information (collectively, the Restated Consolidated Financial Information).
The Restated Consolidated Financial Information has been prepared on a going concern basis. The accounting policies are applied consistently to all the period/years presented in the Restated Consolidated Financial Information. These Restated Consolidated Financial Information have been prepared by the management as required under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (ICDR Regulations) issued by the Securities and Exchange Board of India (SEBI), in pursuance of the Securities and Exchange Board of India Act, 1992, for the purpose of inclusion in this Red Herring Prospectus ( RHP) and the Prospectus in connection with proposed issue of equity shares of the Company. Accordingly, the Restated Consolidated Financial Information may not be suitable for any other purpose and this report should not be used, referred to or distributed for any other purpose.
These Restated Consolidated Financial Information have been prepared by the Group in terms of the requirements of:
1.Section 26 of Part I of Chapter III of the Companies Act, 2013 (the Act);
2.The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended;
3.The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI) (the Guidance Note ).
The Restated Consolidated Financial Information have been prepared to comply in all material respects with the Indian Accounting Standards (Ind AS) as specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time), presentation requirements of Division II of Schedule III to the Act, as applicable to the financial statements and other relevant provisions of the Act.
The Restated Financial Information have been compiled by the management of the Company from:
The audited Ind AS financial statements of the company as at and for the year ended 31st March, 2026 and special purpose audited Ind AS financial statements each of the years ended 31st March, 2025 & 31st March, 2024(together hereinafter referred as the Special Purpose Ind AS Financial Statements ) each prepared in accordance with the Ind AS prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meeting held on 31.07.2026 and 10.03.2026 respectively . The Special Purpose Ind AS Financial Statements for year ended 31st March, 2025 & , 31st March, 2024 had been prepared by making adjustments required under Ind AS to the audited IGAAP financial statements of the Company as at and for each of the years ended 31st March, 2025 & 31st March, 2024 (the Statutory Indian GAAP Financial Statements ) prepared in accordance with the Accounting Standards as prescribed under Section 133 of the Act read with Companies (Accounting Standards) Rules 2021, as amended, and other accounting principles generally accepted in India, which were approved by the Board of directors at their meeting held on 07.07.2025 and 02.09.2024 respectively.
The Restated Consolidated Financial Information:
(a) have been prepared after incorporating adjustments for change in accounting policies, material errors and regrouping / reclassifications retrospectively in the financial years ended 31 March 2026, 31 March 2025 and 31 March 2024 to reflect the same accounting treatment as per the accounting policies and grouping / classifications followed as at and for the year ended March 31, 2026;
(b) Does not contain any modifications requiring adjustments. Moreover, matters in the Auditors report, which do not require any corrective adjustments in the Restated Consolidated Financial Information have been disclosed in Part B of Annexure VII of the Restated Consolidated Financial Information; and
(c) have been prepared in accordance with the Act, the ICDR Regulations and the Guidance Note.
The Group has applied Ind AS 101 First-time Adoption of the Indian Accounting Standards. A statement provides an explanation of how the adoption of Ind AS has impacted on the balance sheet and results of operations of the Company.
These consolidated financial statements have been prepared on accrual basis and under the historical cost convention except for certain financial instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies mentioned below. An Entity shall classify an asset current when :
(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the reporting period; or
(d) the asset is cash or a cash equivalent (as defined in Ind AS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
An entity shall classify all other assets as non-current
An entity shall classify a liability as current when:
(a) it expects to settle the liability in its normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after the reporting period; or
(d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
An entity shall classify all other liabilities as non-current.
Operating cycle
(a) The operating cycle of an entity is the line between the acquisition of assets for processing and their realisation in cash or cash equivalents.
(b) Time between the acquisition of assets for processing and their realisation in cash or a cash equivalents. When the entityss normal operating cycle is not clearly identifiable, it is assumed to be 12 months.
(c) Current assets include assets (such as inventories and trade receivables) that are sold, consumed or realised as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting period.
(d) Current Liabilities includes liabilities (such as trade payables, employee salaries payable and other operating costs) that are expected to be settled or due to be settled in the company s normal operating cycle even when they are not expected to be realised within twelve months after the reporting period.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Functional and presentation currency
This Restated Consolidated Financial Information has been prepared in Indian Rupee (Rs.) which is the functional currency of the Group. All amounts disclosed in the Restated Consolidated financial information and notes have been rounded off to the nearest million with two decimals, unless otherwise stated.
a) Use of Estimates, Judgments and Assumptions
The preparation of Consolidated financial statements in accordance with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
All the assets and liabilities have been classified as current or non-current as per the Group s normal operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.
Significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have significant effect on amount recognized in the consolidated financial statements are:
(i) Allowance For Bad And Doubtful Trade Receivable.
(ii) Recognition And Measurement Of Provision And Contingencies.
(iii) Depreciation/Amortisation And Useful Lives Of Property, Plant And Equipment / Intangible Assets.
(iv) Recognition Of Deferred Tax.
(v) Income Taxes.
(vi) Measurement Of Defined Benefit Obligation.
(vii) Impairment Of Non-Financial Assets And Financial Assets.
(viii) Fair Value of Financial Instruments.
b) Revenue
Recognition
The group recognised revenue i.e. account for a contract with a customer only when all of the following criteria are met:
(i) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations;
(ii) the entity can identify each party s rights regarding the goods or services to be transferred;
(iii) the entity can identify the payment terms for the goods or services to be transferred;
(iv) the contract has commercial substance (i.e. the risk, timing or amount of the entity s future cash flows is expected to change as a result of the contract); and
(v) it is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customer s ability and intention to pay that amount of consideration when it is due. The amount of consideration to which the entity will be entitled may be less than the price stated in the contract if the consideration is variable because the entity may offer the customer a price concession.
Measurement
When (or as) a performance obligation is satisfied, group recognize as revenue the amount of the transaction price (which excludes estimates of variable consideration that are constrained) that is allocated to that performance obligation.
The transaction price is the amount that the entity expects to be entitled to in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some taxes on sales). The consideration promised may include fixed amounts, variable amounts, or both
i) Sale of Goods
Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Group expects to receive in exchange for those goods. Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on dispatch / delivery of goods, based on contracts with the customers. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with the customers. Revenue excludes taxes collected from customers on behalf of the government. Further, the revenue amount is adjusted for the time value of money if that contract contains a significant financing component.
The export incentives to which the Group is entitle, are recognized as income in the year of export of goods on accrual basis, taking into account certainty of realization and its subsequent utilization.
ii) Interest and Dividend
Interest income is recognized on time proportion basis.
Dividend income on investments is accounted for as and when the right to receive the payment is established.
c) Inventories
Raw Materials are valued at lower of cost and net realizable value on FIFO basis. Cost of Raw material comprises of cost of purchase and other cost incurred in bringing the inventory to their present condition and location.
Finished Goods are valued at lower of cost and net realizable value on FIFO basis. Cost of Finished goods comprises of cost of Raw Material, cost of conversion and other cost incurred in bringing the inventory to their present condition and location.
Net Realisable value is the estimated selling price in the ordinary course business less estimated cost of completion and estimated cost necessary to make the sale.
d) Property, Plant and Equipment
i) Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses (if any).
The cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates and including acquisition or construction cost, borrowing costs or any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in statement of profit or loss.
ii) Subsequent Expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the company.
iii) Depreciation
Depreciation on property, plant and equipment is provided on Straight Line method (SLM) as per the useful life of the assets in the manner as specified in Schedule II to the Companies Act, 2013. The estimated useful life of assets and estimated residual value is taken as prescribed under Schedule II to the Companies Act, 2013.
Depreciation on additions during the year is provided on pro rata basis with reference to date of addition/installation. Depreciation on assets disposed/discarded is charged up to the date on which such asset is sold.
| Asset Name | Useful life as per Schedule II |
| Building | 30 years |
| Computer | 03 years |
| Plant & Machinery | 15 years |
| Vehicles | 08 years |
| Office Equipments | 05 years |
| Electric Installation | 15 years |
| Furniture | 10 years |
iv) Government Grants
Government Grants and subsidies from Government are recognised when there is reasonable certainty that the grant/subsidy will be received and all attaching conditions will be complied with. Government grant related to income are recognised in the Statement of Profit & Loss on a systematic basis over the period in which the Company recognizes as expenses the related costs for which the grant is intended to compensate.
Government Grants related to assets are presented in the balance sheet by deducting the grant in arriving at the carrying amount of asset.
e) Intangible Assets
i) Recognition and Measurement
Intangible assets are recognised when it is probable that the future economic benefit that are attributable to asset will flow to the company and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated and cumulative impairment. All directly attributable cost and other administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of cost of the intangible assets. As on transition date i.e. April 1, 2022 the same are measured at carrying value adjusted for Ind AS.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, when incurred is recognized in statement of profit or loss.
ii) Amortisation
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in statement of profit or loss.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted, if required.
f) Employee benefits
i) Short Term Employee Benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
ii) Defined Benefit Plans
The liability for gratuity a defined benefit plan is determined annually by a qualified actuary using the projected unit credit method.
The Group pays gratuity to the employees who have completed five years of service with the Group at the time when the employee leaves the Group as The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the employees.
Remeasurement of the net defined benefit plans in respect of post-employment are charged to other comprehensive income. Net interest expense and
iii) Other Employee Benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as a liability at the present value of obligation as at the Balance sheet date determined based on an actuarial valuation.
iv) Defined Contribution Plan
The Group s payments to the defined contribution plans are recognized as expenses during the period in which the employees perform the services that payment covers. Defined contribution plan comprise of contribution to the employees provident fund with government, Employees State Insurance and Pension
Scheme.
g) Income Tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to other comprehensive income or a business combination, or items recognised directly in equity.
h) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Current Tax Assets and liabilities are Offset only if, The Company:
a) has a legally enforceable right to set off the recognised amounts; and
b) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
i) Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax assets and liabilities are reviewed at the end of each reporting period.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset only if: a) the entity has a legally enforceable right to set off deferred tax assets against deferred tax liabilities; and b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.
i) Foreign Currency Transactions
The Group s Consolidated Financial Statements are presented in Indian Rupee, which is also the parent company s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency.
Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Difference arising on settlement of monetary items are recognised in statement of profit and loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalized as cost of assets.
Non-monetary items that are measured based on historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Exchange difference arising out of these transactions are generally recognised in statement of profit and loss.
Exchange differences on monetary items are recognised in Consolidated Statement of Profit and Loss in the period in which they arise except for exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur in the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the net investment.
j) Borrowing Cost
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset are capitalised as part of the cost of that asset till the date it is ready for its intended use or sale. qualifying asset are the assets that necessarily takes a substantial period of time to get ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.
k) Cash and Cash Equivalent
Cash and cash equivalent includes the cash and Cheques in hand, bank balances, demand deposits with bank and other short term, highly liquid investments with original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Bank overdraft are shown within borrowings in current liabilities in the balance sheet and forms part of financing activities in the cash flow statement.
Book overdraft are shown within other financial liabilities in the balance sheet and forms part of operating activities in the cash flow statement.
l) Cash Flow Statement
Cash flows are reported using indirect method, whereby profit/ (loss) before tax is adjusted for the effect of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments and items of income or expenses associated with investing or financing cash flow. The cash flow from operating, investing and financing activities of the Group is segregated based on the available information.
m) Earning Per Share
i) Basic earnings per shares is arrived at based on net profit / (loss) after tax available to equity shareholders divided by Weighted average number of equity shares, adjusted for bonus elements in equity shares issued during the year (if any) and excluding treasury shares.
ii) Diluted earnings per shares is calculated by dividing Profit attributable to equity holders after tax divided by Weighted average number of shares considered for basic earning per shares including potential dilutive equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations
n) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation and there is reliable estimate of the amount of obligation.
A disclosure for contingent liabilities is made where there is a possible obligation arising from past events, the existence of which will be confirmed only on the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arise from past events where it is not probable that an outflow of resources will be required to settle or a reliable estimate of the amount can not be made.
o) Leases
As a Lessee
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
As per the requirements of Ind AS 116 the company evaluates whether an arrangement qualifies to be a lease. In identifying a lease the group uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.
The group determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extent the lease if the company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. The Company revises the lease term if there is a change in the non-cancellable period of a lease.
p) Impairment of Non Financial Assets
The Group assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets are impaired. If any such indication exists, the Group estimates the amount of impairment loss.
For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or group of assets is considered as cash generating unit
An impairment loss is calculated as the difference between an asset s carrying amount and recoverable amount. Losses are recognized in statement of profit and loss and reflected in an allowance account. When the Group considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been in place had there been no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in Statement of Profit and Loss, taking into account the normal depreciation/amortization.
q) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign currency foreign exchange forward contracts, interest rate swaps and currency options; and embedded derivatives in the host contract.
i) Financial Assets
1) Classification
The Group classifies financial assets in the following measurement categories: a) Those measured at amortised cost and b) Those measured subsequently at fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
2) Initial Recognition and Measurement
All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset, are adjusted to fair value in the case of financial assets not recorded at fair value through profit or loss. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
Measured at Amortised Cost
A financial asset is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.
Measured at Fair Value Through Other Comprehensive Income (FVOCI)
A financial asset is measured at FVOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
b) The asset s contractual cash flows represent SPPI.
Financial assets included within the FVOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are
Financial Asset at Fair Value Through Profit and Loss (FVTPL)
FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classified as at FVTPL.
In addition, the group company may elect to classify a financial asset, which otherwise meets amortized cost or FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as accounting mismatch ).
Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.
3) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily derecognised (i.e. removed from the Group s balance sheet) when:
a) The rights to receive cash flows from the asset have expired, or
b) The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
c) When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of the Group s continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.
d) Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
4) Impairment of Financial Assets
In accordance with Ind-AS 109, the Group applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank balance.
b) Trade receivables.
The Group follows simplified approach for recognition of impairment loss allowance on:
i. Trade receivables which do not contain a significant financing component.
The application of simplified approach recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. ii. For recognition of impairment loss on other financial assets and risk exposure, the Group determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
ii) Financial liabilities
1) Classification
The Group classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or amortised costs.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Group s financial liabilities include trade and other payables, loans and borrowings, financial guarantee contracts and derivative financial instruments.
Financial liabilities at fair value through profit or loss.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the group that are not designated as hedging instruments in hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
2) Gains or Losses on Liabilities Held For Trading are Recognised in The Profit or Loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/loss are not subsequently transferred to P&L. However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit or loss.
3) Loans and Borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
This category generally applies to interest-bearing loans and borrowings.
4) Derecognition
A financial liability is recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
5) Measurement of Fair Values
The Group s accounting policies and disclosures require the measurement of fair values, for financial instruments.
The Group has an established control framework with respect to the measurement of fair values. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
6) Basis of Consolidation
a) The Consolidated financial statements relate to Adroit Industries India Limited (the Company) and its subsidiaries as under:
| Entity | Basis of Consolidation | Country of Incorporation | % age of Shareholding of the Company |
| Adroit Driveshafts Private Limited | Subsidiary | India | 100% |
| Adroit Driveshafts Canada Limited | Subsidiary | Canada | 99.87% |
b) The consolidated Financial Statements have been prepared in accordance with Ind AS 110 as notified under section 133 of the Companies Act, 2013 read with Rule 4 of Companies (Indian Accounting Standards) Rule 2015 as amended and recognized accounting practices and policies on the following basis:
I. The financial statements of the Company and its subsidiaries have been combined on a line to line basis by adding together like items of assets, liabilities, income and expenses.
II. Intragroup balances, intragroup transactions and resulting unrealized profits/lossess have been eliminated in full.
III. Non controlling interest in the net assets of subsidiaries has been separately disclosed in the consolidated financial statements. Non controlling interest in income for the year has been separately disclosed in the statement of profit and loss.
IV. Figures pertaining to the subsidiaries have been reclassified to bring them in line with parent Company s financial statements.
V. The excess of / shortfall in the cost to the Company of its investment over the Company s portion of equity as at the date of investment is recognized in the consolidated financial statements as goodwill / capital reserve. The resultant goodwill, if any, is capitalized.
VI. The Consolidated Financial Statements have been prepared using uniform accounting policy for like transactions and other events in similar circumstances.
PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS
Set forth below are the principal components of statement of profit and loss from our continuing operations:
Total Income
Our total income comprises of
(i) revenue from operations and
(ii) other income.
Revenue from Operations
Revenue from operations comprises of:
(i) Sale of Products and
(ii) Other Operating Revenues
Other Income
Other income includes
(i) Interest Income;
(ii) Dividend on long term investments;
(iii) Net gain on Foreign Currency Transactions and Translations;
(iv) Depreciation Reversed on Subsidy;
(v) Reversal of Allowance for Expected credit loss;
(vi) Rent Income;
(vii) Gain on sales of Property Plant and Equipment;
(viii) Reversal of Excess Provision of Leave Encashment; and
(ix) Miscellaneous Income
Expenses
Our expenses comprise of:
(i) cost of material consumed;
(ii) purchase of stock-in-trade;
(iii) changes in inventories of finished goods, work in progress and stock-in-trade
(iv) employee benefits expenses;
(v) finance costs;
(vi) depreciation and amortisation expenses; and
(vii) other expenses.
Cost of Material Consumed
Cost of Material Consumed denote the sum of inventory at the beginning of fiscal, purchases of raw materials, less inventory at the end of the fiscal.
Purchase of Stock-in-Trade
Purchase of Stock-in-Trade denote the purchases of trading stock made during the fiscal.
Changes in inventories of finished goods, work in progress and stock-in-trade
Changes in inventories of finished goods, work in progress and stock-in-trade denote the difference between inventory at the beginning of the fiscal and inventory at the end of the fiscal.
Employee Benefits Expense
Employee benefits expenses include
(i) salary, wages and bonus;
(ii) contribution to provident and other funds; and
(iii) staff welfare expenses.
Finance Costs
Finance cost includes
(i) interest expenses;
(ii) other borrowing cost; and
(iii) interest expense on lease liability.
Depreciation and Amortization expenses
Depreciation and amortization expenses include
(i) Depreciation on tangible assets, and
(ii) amortization of intangible assets.
Other Expenses
Other expenses includes:
(i) Consumption of stores and spares,
(ii) Packing expenses,
(iii) Job work charges,
(iv) Power and fuel,
(v) Rent,
(vi) Repairs to buildings,
(vii) Repairs others,
(viii) Brokerage and commission,
(ix) Water charges,
(x) Factory expenses,
(xi) Insurance,
(xii) Rates and taxes,
(xiii) Selling and distribution expenses,
(xiv) Security expenses,
(xv) Travelling and conveyance expenses,
(xvi) Freight forwarding expenses,
(xvii) Net loss on foreign currency transactions and translation,
(xviii) CSR expenses,
(xix) Vehicle hire charges,
(xx) Legal and professional fees,
(xxi) Bad debt written off,
(xxii) Allowance for expected credit loss,
(xxiii) Warehouse expenses,
(xxiv) Service charges,
(xxv) Loss on property, plant and equipment, and
(xxvi) Other miscellaneous expenses.
Our Results of Operations
The following table sets forth selective financial data from our restated statement of profit & loss for the fiscals 2026, 2025 and 2024, the components of which are also expressed as a percentage of revenue from operations for such fiscals:
( Rs.in million, unless stated otherwise)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | As a % of revenue from operations | Amount | As a % of revenue from operations | Amount | As a % of revenue from operations | |
| Income: | ||||||
| Revenue from Operations | 1,399.43 | 100.00 | 1,338.94 | 100.00 | 1,245.28 | 100.00 |
| Other Income | 30.96 | 2.21 | 27.16 | 2.03 | 5.72 | 0.46 |
| Total Income | 1,430.39 | 102.21 | 1,366.10 | 102.03 | 1,251.00 | 100.46 |
| Expenses: | ||||||
| Cost of Material Consumed | 205.03 | 14.65 | 227.08 | 16.96 | 367.13 | 29.48 |
| Purchase of Stock-in-Trade | 130.95 | 9.36 | 125.78 | 9.39 | 49.06 | 3.94 |
| Changes in Inventories in Finished Goods, Work-in-Progress and Stock-in-Trade | 33.07 | 2.36 | 57.06 | 4.26 | (160.16) | (12.86) |
| Employee Benefits Expense | 282.68 | 20.20 | 235.06 | 17.56 | 267.70 | 21.50 |
| Finance Costs | 46.55 | 3.33 | 64.55 | 4.82 | 82.06 | 6.59 |
| Depreciation and Amortization Expenses | 42.48 | 3.04 | 44.56 | 3.33 | 40.91 | 3.28 |
| Other Expenses | 360.62 | 25.77 | 383.77 | 28.66 | 424.70 | 34.10 |
| Total Expenses | 1,101.36 | 78.70 | 1,137.86 | 84.98 | 1,071.40 | 86.04 |
| Profit before tax | 329.03 | 23.51 | 228.24 | 17.05 | 179.60 | 14.42 |
| Less: Tax Expense | ||||||
| Current Tax | 64.80 | 4.63 | 38.85 | 2.90 | 30.83 | 2.48 |
| Deferred Tax | (2.54) | (0.18) | 4.50 | 0.34 | 3.50 | 0.28 |
| Income Tax related to earlier | 5.19 | 0.37 | 3.45 | 0.26 | - | - |
| Total Tax Expense | 67.45 | 4.82 | 46.80 | 3.50 | 34.33 | 2.76 |
| Profit / (Loss) for the period | 261.58 | 18.69 | 181.44 | 13.55 | 145.27 | 11.67 |
RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2026 COMPARED WITH FISCAL 2025
(Rs. in million, unless stated otherwise)
| Particulars | Fiscal 2026 | Fiscal 2025 | Change in Million | Change in % |
| Income: | ||||
| Revenue from Operations | 1,399.43 | 1,338.94 | 60.49 | 4.52 |
| Other Income | 30.96 | 27.16 | 3.80 | 13.99 |
| Total Income | 1,430.39 | 1,366.10 | 64.29 | 4.71 |
| Expenses | ||||
| Cost of Materials Consumed | 205.03 | 227.08 | (22.05) | (9.71) |
| Purchases of Stock-in-Trade | 130.95 | 125.78 | 5.17 | 4.11 |
| Changes in Inventories of Finished | 33.07 | |||
| Goods, Work-in-Progress and Stock- in-Trade | 57.06 | (23.99) | (42.04) | |
| Employee Benefits Expense | 282.68 | 235.06 | 47.62 | 20.26 |
| Finance Costs | 46.55 | 64.55 | (18.00) | (27.89) |
| Depreciation and Amortization Expenses | 42.48 | 44.56 | (2.08) | (4.67) |
| Other Expenses | 360.62 | 383.77 | (23.15) | (6.03) |
| Total Expenses | 1,101.36 | 1,137.86 | (36.50) | (3.21) |
| Profit Before Tax | 329.03 | 228.24 | 100.79 | 44.16 |
| Less: Tax Expense | ||||
| Current Tax | 64.80 | 38.85 | 25.95 | 66.80 |
| Deferred Tax | (2.54) | 4.50 | (7.04) | (156.44) |
| Income Tax related to earlier | 5.19 | 3.45 | 1.74 | 50.43 |
| Total Tax Expense | 67.45 | 46.80 | 20.65 | 44.12 |
| Profit for the Year | 261.58 | 181.44 | 80.14 | 44.17 |
Total Income
Our total income has increased by 4.71% from 1,366.10 million in Fiscal 2025 to 1,430.39 million in Fiscal 2026, due to an increase in revenue from operations and other income by 4.52% and 13.99%, respectively
Revenue from Operations
Our revenue from operations increased by 4.52% from 1,338.94 million in Fiscal 2025 to 1,399.43 million in Fiscal 2026. The increase was primarily attributable to increase in sale of propeller shafts and components from 1,212.09 million in Fiscal 2025 to 1,271.09 million in Fiscal 2026, driven by growth in overall business operations.
The key factors contributing to the increase are set out below:
Rise in export revenue : Our export revenue has increased by 45.61 million from 1,166.83 million in Fiscal 2025 to 1,212.44 million in Fiscal 2026, reflecting continued expansion in our export operations.
Progression in our customer base : Our total number of customers served increased from 151 in Fiscal 2025 to 185 in Fiscal 2026, contributing to higher sales volumes during the year.
Broadening of our product portfolio : During Fiscal 2026, we expanded our product portfolio reflected by an increase in the number of SKUs from 4,452 in Fiscal 2025 to 5,250 in Fiscal 2026.
Other Income
Our other income increased by 13.99% from 27.16 million in Fiscal 2025 to 30.96 million in Fiscal 2026.
This increase was primarily on account of increase in; (i) interest income by 5.77 million. (ii) Net gain on Foreign Currency Transactions and Translations by 5.04 million and (iii) Miscellaneous Income by 2.52 million. The increase was partially set off by decrease depreciation reversed on subsidy by 10.88 million.
Total Expenses
Our total expenses have decreased by 3.21% from 1,137.86 million in Fiscal 2025 to 1,101.36 million in Fiscal
2026. This decrease was primarily on account of decrease in;
(i) cost of material consumed by 22.05 million,
(ii) changes in inventories of finished goods, work-in-progress and stock in trade by 23.99 million,
(iii) finance costs by 18.00 million,
(iv) depreciation and amortization expense by 2.08 million and
(v) other expenses by 23.15 million. The decrease was partially offset by increase in
(i) purchase of stock-in-trade by 5.17 million and
(ii) employee benefits expenses by 47.62 million.
Cost of Material Consumed and Purchase of Stock-in-Trade
Cost of material consumed decreased by 9.71% from 227.08 million in Fiscal 2025 to 205.03 million in Fiscal 2026, primarily due to utilization of opening inventories for meeting a portion of sales requirements during the year. The purchases of Stock-in-trade increased from 125.78 million in Fiscal 2025 to 130.95 million in Fiscal 2026, primarily due to an increase in the purchase of traded goods during the year.
Changes in Inventories of Finished Goods, Work in Progress and Stock-in-Trade
Change in inventories of finished goods, work in progress and stock-in-trade decreased by 42.04% from 57.06 million in Fiscal 2025 to 33.07 million in Fiscal 2026, due to better inventory management in Fiscal 2026.
Employee Benefit Expenses
Employee Benefit Expenses increased by 20.26% from 235.06 million in Fiscal 2025 to 282.68 million in Fiscal 2026, primarily attributable to an increase in salaries, wages and bonus by 47.24 million.
Finance Cost
Finance costs decreased by 27.89% from 64.55 million in Fiscal 2025 to 46.55 million in Fiscal 2026, on account of decrease in;
(i) interest expenses by 16.97 million and
(ii) other borrowing costs by 1.03 million.
Depreciation and Amortization Expenses
Depreciation and amortization expenses decreased by 4.67% from 44.56 million in Fiscal 2025 to 42.48 million in Fiscal 2026, primarily on account of a decrease in depreciation on tangible assets by 1.96 million
Other Expenses
Other expenses decreased by 6.03% from 383.77 million in Fiscal 2025 to 360.62 million in Fiscal 2026. This was primarily due to the following reasons:
The decrease was primarily on account of
(i) consumption of stores and spares by 23.99 million,
(ii) selling and distribution expenses by 10.07 million,
(iii) net loss on foreign currency transactions and translation by 38.15 million,
(iv) rent expenses by 0.31 million,
(v) factory expenses by 0.62 million,
(vi) insurance expenses by 0.52 million,
(vii) allowance for expected credit loss by 0.16 million and
(viii) other miscellaneous expenses by 2.70 million.
Such decrease in other expenses was partially offset by increase in;
(i) bad debts written off by 11.25 million;
(ii) freight and forwarding expenses by 7.29 million;
(iii) power and fuel expenses by 4.62 million;;
(iv) brokerage and commission expenses by 3.74 million;
(v) packing expenses by 3.73 million;
(vi) travelling and conveyance expenses by 3.45 million;
(vii) legal and professional expenses by 7.48 million;
(viii) job work charges by 2.14 million;
(ix) rates and taxes by 2.09 million;
(x) vehicle hire charges by 1.69 million;
(xi) security expenses by 1.63 million;
(xii) warehouse expenses by 1.27 million;
(xiii) CSR expenses by 1.11 million;
(xiv) repairs others by 0.79 million;
(xv) loss on sale of property, plant and equipment by 0.71 million;
(xvi) water charges by 0.29 million; and (xvii) repairs to buildings by 0.08 million.
Bad debt written off
During Fiscal 2026, the Company recognised a bad debt write-off of 11.25 million pertaining to dues from an overseas customer that had been under financial distress and restructuring, with no recovery prospects.
Profit Before Tax
Our total expenses as a percentage of revenue from operations decreased from 84.98% in Fiscal 2025 to 78.70% in Fiscal 2026. Further, other income as a percentage of revenue from operations increased from 2.03% in Fiscal 2025 to 2.21% in Fiscal 2026. Consequently, profit before tax as a percentage of revenue from operations increased from 17.05% in Fiscal 2025 to 23.51% in Fiscal 2026. As a result, profit before tax increased by 44.16%, from 228.24 million in Fiscal 2025 to 329.03 million in Fiscal 2026.
Tax Expenses
Total tax expense increased by 44.12% from 46.80 million in Fiscal 2025 to 67.45 million in Fiscal 2026. This increase was primarily attributable to higher current tax of 25.95 million due to increase in taxable profits driven by improved business operations during Fiscal 2026.
Profit After Tax
Profit After Tax as a percentage of revenue from operations increased from 13.55% in Fiscal 2025 to 18.69% in Fiscal 2026, resulting in an overall increase of 80.14 million, primarily due to higher revenue from operations driven by growth in sales. The Company also benefited from improved cost efficiency, as total expenses decreased by 3.21%, despite revenue from operations increasing by 4.52%. Additionally, other income as a percentage of revenue from operations increased from 2.03% in Fiscal 2025 to 2.21% in Fiscal 2026, further supporting profitability. As a result, profit before tax margin improved from 17.05% in Fiscal 2025 to 23.51% in Fiscal 2026, which translated into a higher PAT despite an increase in total tax expense from 46.80 million in Fiscal 2025 to 67.45 million in Fiscal 2026.
RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2025 COMPARED WITH FISCAL 2024
(Rs. in million, unless stated otherwise)
| Particulars | Fiscal 2025 | Fiscal 2024 | Change in Million | Change in % |
| Income: | ||||
| Revenue from Operations | 1,338.94 | 1,245.28 | 93.66 | 7.52 |
| Other Income | 27.16 | 5.72 | 21.44 | 374.83 |
| Total Income | 1,366.10 | 1,251.00 | 115.10 | 9.20 |
| Expenses | ||||
| Cost of Materials Consumed | 227.08 | 367.13 | (140.05) | (38.15) |
| Purchases of Stock-in-Trade | 125.78 | 49.06 | 76.72 | 156.38 |
| Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade | 57.06 | (160.16) | 217.22 | 135.63 |
| Employee Benefits Expense | 235.06 | 267.70 | (32.64) | (12.19) |
| Finance Costs | 64.55 | 82.06 | (17.51) | (21.33) |
| Depreciation and Amortization Expenses | 44.56 | 40.91 | 3.65 | 8.93 |
| Other Expenses | 383.77 | 424.70 | (40.93) | (9.64) |
| Total Expenses | 1,137.86 | 1,071.40 | 66.46 | 6.20 |
| Profit Before Tax | 228.24 | 179.60 | 48.64 | 27.08 |
| Less: Tax Expense | ||||
| Current Tax | 38.85 | 30.83 | 8.02 | 26.00 |
| Deferred Tax | 4.50 | 3.50 | 1.00 | 28.57 |
| Income Tax related to earlier | 3.45 | - | 3.45 | - |
| Total Tax Expense | 46.80 | 34.33 | 12.47 | 36.33 |
| Profit for the Year | 181.44 | 145.27 | 36.17 | 24.90 |
Total Income
Our total income has increased by 9.20% from 1,251.00 million in fiscal 2024 to 1,366.10 million in fiscal 2025 due to increase in revenue from operations and other income by 7.52% and 374.95% respectively.
Revenue from Operations
Our revenue from operations increased by 7.52% from 1,245.28 million in Fiscal 2024 to 1,338.94 million in Fiscal 2025. The increase was primarily attributable to higher sale of propeller shafts by 95.07 million, driven by growth in overall business operations. The increase was partially set off by decrease in other operating revenues by 1.41 million.
The key factors contributing to the increase are set out below:
Rise in export revenue : Our export revenue has increased by 122.08 million from 1,044.75 million in Fiscal 2024 to 1,166.83 million in Fiscal 2025, reflecting continued expansion in our export operations. However, such increase was partially set off by a decrease in domestic revenue from 60.07 million in Fiscal 2024 to 45.26 million in Fiscal 2025.
Progression in our customer base : Our total number of customers served increased from 130 in Fiscal 2024 to 151 in Fiscal 2025, contributing to higher sales volumes during the year.
Broadening of our product portfolio : During Fiscal 2025, we expanded our product portfolio reflected by an increase in the number of SKUs from 3,821 in Fiscal 2024 to 4,452 in Fiscal 2025.
Other Income
Our other income was 5.72 million in Fiscal 2024 as compared to 27.16 million in Fiscal 2025, which has increased by 374.95%, due to increase in depreciation reversed on subsidy by 17.86 million, interest income by 3.87 million and rental income by 0.60 million during the fiscal 2025. The increase was partially set off by decrease in reversal of allowance for expected credit loss by 0.51 million, miscellaneous income by 0.26 million and reversal of excess provision of leave encashment by 0.12 million.
Total Expenses
Our total expenses have increased by 6.20% from 1,071.40 million in Fiscal 2024 to 1,137.86 million in Fiscal 2025. This increase was primarily on account of increase in;
(i) purchase of stock-in-trade by 76.72 million,
(ii) depreciation and amortization expense by 3.65 million and
(iii) changes in inventories of finished goods, work-in-progress and stock in trade by 217.22 million. The increase was partially offset by decrease in
(i) cost of material consumed by 140.06 million,
(ii) employee benefits expenses by 32.64 million,
(iii) finance costs by 17.51 million and
(iv) other expenses by 40.93 million.
Cost of Material Consumed and Purchase of Stock-in-Trade
Cost of material consumed decreased by 38.15% from 367.13 million in Fiscal 2024 to 227.08 million in Fiscal 2025, primarily due to utilization of opening inventories for meeting a portion of sales requirements during the year. Moreover, the company recorded higher purchases of Stock-in-trade which increased from 49.06 million in Fiscal 2024 to 125.78 million in Fiscal 2025.
Changes in Inventories of Finished Goods, Work in Progress and Stock-in-Trade
Change in inventories of finished goods, work in progress and stock-in-trade increased by 135.63% from (160.16) million in Fiscal 2024 to 57.06 million in Fiscal 2025 due to higher accumulation of stock in Fiscal 2024.
Employee Benefit Expenses
Employee Benefit Expenses decreased by 12.19% from 267.70 million in Fiscal 2024 to 235.06 million in Fiscal 2025 primarily attributable to decrease in salaries and wages (inclusive of bonus, leave encashment and gratuity) by 32.14 million and contribution to provident and other funds by 0.51 million on account of fall in the number of employees from 390 as on March 31, 2024 to 372 as on March 31, 2025.
Finance Cost
Finance cost decreased by 21.33% from 82.06 million in Fiscal 2024 to 64.55 million in Fiscal 2025, on account of decrease in;
(i) interest on term loans by 9.00 million;
(ii) interest on vehicle loans by 0.14 million;
(iii) interest on statutory dues by 0.38 million;
(iv) interest on others by 13.88 million and
(v) other borrowing cost by 0.35 million. The decrease was partially offset by increase in interest on working capital facilities (PCFC facilities) by 6.23 million.
The decrease in finance costs was primarily attributable to repayment of a portion of outstanding borrowings during Fiscal 2025 and the absence of additional borrowings availed during the year, resulting in lower interest expenses.
Depreciation and Amortization Expenses
Depreciation and amortization expenses increased by 8.93% from 40.91 million in Fiscal 2024 to 44.56 million in Fiscal 2025, primarily on account of increase in depreciation on tangible assets by 3.47 million.
Other Expenses
Other expenses decreased by 9.64% from 424.70 million in Fiscal 2024 to 383.77 million in Fiscal 2025. This was primarily due to the following reasons:
The decrease was primarily on account of
(i) brokerage and commission expenses by 22.19 million primarily due to a reduction in the number of sales agents engaged by the Company during Fiscal 2025, resulting in lower brokerage and commission expenses.
(ii) packing expenses by 21.10 million primarily due to packaging optimization initiatives, including adoption of bulk-packing methodologies and improved packaging efficiency, resulting in lower consumption of packaging materials in Fiscal 2025.
(iii) net loss on foreign currency transactions and translation by 15.63 million primarily due to lower foreign exchange fluctuations during Fiscal 2025 as compared to Fiscal 2024.
(iv) selling and distribution expenses by 8.32 million primarily due to a higher proportion of export sales being undertaken on FOB terms then on CIF terms in Fiscal 2025, resulting in lower outward freight and insurance costs.
(v) job work charges by 7.39 million primarily due to changes in the Companys procurement and processing model, resulting in reduced dependence on third-party job workers in Fiscal
2025.
(vi) travelling and conveyance expenses by 5.41 million primarily due to lower overseas travel and participation in international exhibitions and trade fairs in Fiscal 2025 compared to Fiscal 2024.
(vii) power and fuel expenses by 5.14 million primarily due to the absence of certain non-recurring power infrastructure-related expenses incurred in Fiscal 2024.
(viii) legal and professional expenses by 3.37 million primarily due to the absence of certain non-recurring professional consultancy fees incurred in Fiscal 2024.
(ix) factory expenses by 2.14 million primarily due to the absence of certain non-recurring professional consultancy fees incurred in Fiscal 2024.
Such decrease in other expenses was partially offset by increase in;
(i) consumption of stores and spares by 52.01 million;
(ii) repairs- others by 1.48 million;
(iii) CSR expenses by 0.79 million and (iv) Repairs to Buildings by 0.69 million
Profit Before Tax
Our total expenses as a percentage of revenue from operations decreased from 86.04% in Fiscal 2024 to 84.98% in Fiscal 2025. Moreover, our other income as a percentage of revenue from operations increased from 0.46% in Fiscal 2024 to 2.03% in Fiscal 2025. As a result, the Profit before tax as a percentage of revenue from operation has increased 14.42% in Fiscal 2024 to 17.05% in Fiscal 2025 resulting an increase of 27.08% from 179.60 million in Fiscal 2024 to 228.24 million in Fiscal 2025.
Tax Expenses
Our tax expense as a percentage of profit before tax increased from 19.11% in Fiscal 2024 to 20.51% in Fiscal 2025 and accordingly our total tax expense increased by 36.33% from 34.33 million in Fiscal 2024 to 46.80 million in Fiscal 2025. This increase was primarily attributable to higher current tax of 8.02 million due to increase in taxable profits driven by improved business operations during Fiscal 2025. The increase in tax expenses during the period was also attributable to the recognition of income tax pertaining to earlier years amounting to 3.45 million. Further, the increase was also attributable to higher deferred tax expense of 1.00 million.
Profit After Tax
Profit After Tax as a percentage of revenue from operations increased from 11.67% in Fiscal 2024 to 13.55% in Fiscal 2025 resulting an overall increase of 36.17 million, primarily due to higher revenue from operations driven by growth in export sales, expansion of the customer base, and a broader product portfolio. The company also benefited from improved cost efficiency, as total expenses grew at a slower pace than revenue. Additionally, a substantial increase in other income as a percentage of revenue from operation from 0.46% in Fiscal 2024 to 2.03% in Fiscal 2025, further supported profitability. As a result, profit before tax margins improved, which translated into a higher PAT despite a nominal increase in tax expenses.
Cash Flow
The table below summaries our cash flows from our Restated Consolidated Financial Information for the fiscals 2026, 2025 and 2024:
(Rs. in million, unless stated otherwise)
| Particulars | Fiscal | ||
| 2026 | 2025 | 2024 | |
| Net cash flow generated from/ (utilized in) operating activities (A) | 294.06 | 203.10 | 199.36 |
| Net cash flow generated from/ (utilized in) investing activities (B) | (120.89) | 32.12 | (4.57) |
| Net cash flow generated from/ (utilized in) financing activities (C) | (169.87) | (235.17) | (196.58) |
| Net (decrease)/ increase in cash & cash equivalents (A+B+C) | 3.30 | 0.04 | (1.79) |
| Cash and cash equivalents at the beginning of the year | 11.75 | 11.71 | 13.50 |
| Cash and cash equivalents at the end of the year | 15.05 | 11.75 | 11.71 |
Cash flow from Operating Activities
For the Fiscal ended March 31, 2026
Net cash flow generated from our operating activities was 294.06 million for the year ended March 31, 2026. Our operating profit before working capital changes was 392.84 million during the period, which was the result of profit before tax of 329.03 million adjusted primarily for finance costs of 46.06 million, depreciation of 42.48 million and provision for doubtful debts of 0.28 million, partially offset by interest income of 11.85 million, dividend income of 2.00 million, loss on sale of property, plant and equipment of 0.71 million, depreciation reversal on subsidy of 6.98 million and foreign currency translation reserve of 7.15 million. This was further adjusted for unrealised gain/loss on foreign currency transactions and translation of 3.33 million and reversal of leave encashment provision of 0.51 million.
Our movements in working capital primarily consisted of an increase in trade and other payables of 120.20 million, partially offset by an increase in trade and other receivables of 86.97 million and an increase in inventories of 72.40 million. Taxes paid amounted to 59.61 million.
For the Fiscal ended March 31, 2025
Net cash flow generated from our operating activities was 203.10 million during fiscal 2025. Our operating profit before working capital changes was 310.46 million, which was the result of profit before tax of 228.24 million adjusted primarily for finance costs of 64.15 million and depreciation of 44.56 million, partially offset by depreciation reversal on subsidy of 17.86 million, interest income of 6.08 million, foreign exchange gain of 2.40 million and dividend income of 2.00 million.
Our movements in working capital primarily consisted of decrease in trade and other payables of 101.27 million and increase in trade and other receivables of 2.19 million, partially offset by decrease in inventories of 47.41 million. Taxes paid amounted to 51.31 million.
For the Fiscal ended March 31, 2024
Net cash flow generated from our operating activities was 199.36 million during fiscal 2024. Our operating profit before working capital changes was 293.39 million, which was the result of profit before tax of 179.60 million adjusted primarily for finance costs of 81.37 million and depreciation of 40.91 million, partially offset by unrealized foreign exchange gain of 3.11 million, interest income of 2.21 million and dividend income of 2.00 million.
Our movements in working capital primarily consisted of increase in inventories of 160.84 million, partially offset by decrease in trade and other receivables of 73.18 million and increase in trade and other payables of 13.41 million. Taxes paid amounted to 19.78 million.
Cash flow from Investing Activities
For the Fiscal ended March 31, 2026
Net cash flow used in investing activities was 120.89 million for the year ended March 31, 2026. This was primarily attributable to intercorporate loans given of 90.80 million and capital expenditure towards purchase of property, plant and equipment of 76.89 million, partially offset by subsidy received on property, plant and equipment of 32.35 million, interest received of 11.84 million, dividend income of 2.00 million and proceeds from sale of property, plant and equipment of 0.61 million.
For the Fiscal ended March 31, 2025
Net cash flow generated from investing activities was 32.12 million during fiscal 2025. This was primarily attributable to subsidy received on property, plant and equipment of 101.94 million, intercorporate loans recovered of 11.68 million, interest received of 6.08 million and dividend income of 2.00 million, partially offset by capital expenditure towards purchase of property, plant and equipment of 89.58 million.
For the Fiscal ended March 31, 2024
Net cash flow used in investing activities was 4.57 million during fiscal 2024. This was primarily attributable to intercorporate loans given of 13.50 million and capital expenditure towards purchase of property, plant and equipment of 2.86 million and, partially offset by change in bank balances not considered as cash equivalents of 7.58 million, interest received of 2.21 million and dividend income of 2.00 million
Cash flow from Financing Activities For the Fiscal ended March 31, 2026
Net cash flow used in financing activities was 169.87 million during fiscal 2026. This was primarily attributable to repayment of borrowings of 123.96 million and finance costs of 45.91 million.
For the Fiscal ended March 31, 2025
Net cash flow used in financing activities was 235.17 million during fiscal 2025. This was primarily attributable to repayment of borrowings of 170.95 million and finance costs of 64.22 million.
For the Fiscal ended March 31, 2024
Net cash flow used in financing activities was 196.58 million during fiscal 2024. This was primarily attributable to repayment of borrowings of 330.68 million and finance costs of 81.29 million, partially offset by proceeds from borrowings of 215.39 million.
Working Capital
Working capital represents the difference between the Company s current assets and current liabilities. The principal components of the Company s working capital include inventories, trade receivables, cash and cash equivalents, other financial assets, other current assets, trade payables, borrowings, other financial liabilities, other current liabilities, provisions and current tax liabilities.
Fiscal 2026 compared to Fiscal 2025
The Company s working capital increased from 873.23 million as at March 31, 2025 to 906.94 million as at March 31, 2026, representing an increase of 33.71 million. This increase was primarily attributable to an increase in current assets by 159.14 million, partially offset by an increase in current liabilities by 62.69 million.
Inventory increased by 72.40 million from 479.89 million in Fiscal 2025 to 552.29 million in Fiscal 2026. The inventory build-up was primarily due to inventory being maintained against confirmed orders or customer order forecasts based on past experience. Further, the Company increased inventory levels at its Canada subsidiary warehouse to support faster deliveries.
Trade receivables increased by 54.17 million from 398.66 million in Fiscal 2025 to 452.83 million in Fiscal 2026. The increase in trade receivables was primarily attributable to the Company s expansion into geographically distant markets, including South America, resulting in relatively longer voyage times. Further, a change in customer mix, with certain customers operating on extended credit terms, has also contributed to an increase in the overall receivable cycle.
Other current assets increased by 30.17 million from 149.45 million in Fiscal 2025 to 179.62 million in Fiscal 2026. Cash and cash equivalents increased by 3.30 million during the same period.
On the liabilities side, current borrowings decreased by 59.45 million from 564.62 million in Fiscal 2025 to 505.17 million in Fiscal 2026. Trade payables increased by 101.86 million from 108.77 million in Fiscal 2025 to 210.63 million in Fiscal 2026. Other financial liabilities increased by 4.63 million, while provisions and current tax liabilities increased by 3.99 million and 10.38 million, respectively.
Fiscal 2025 compared to Fiscal 2024
The Company s working capital increased from 808.35 million as at March 31, 2024 to 873.23 million as at March 31, 2025, representing an increase of 64.88 million. This increase was primarily attributable to the decrease in current liabilities by 203.13 million, partially offset by a decrease in current assets by 47.16 million. Inventory decreased by 47.41 million from 527.30 million in Fiscal 2024 to 479.89 million in Fiscal 2025. Trade receivables increased by 78.06 million from 320.60 million in Fiscal 2024 to 398.66 million in Fiscal 2025. Other current assets decreased by 75.44 million from 224.89 million in Fiscal 2024 to 149.45 million in Fiscal 2025.
On the liabilities side, current borrowings decreased by 91.04 million from 655.66 million in Fiscal 2024 to 564.62 million in Fiscal 2025, while trade payables decreased by 53.63 million from 162.40 million to 108.77 million during the same period. Other current liabilities decreased by 45.32 million from 56.29 million to 10.97 million.
Overall, the Company s working capital days remained broadly stable at 237 days in Fiscal 2024, 238 days in Fiscal 2025 and 237 days in Fiscal 2026.
Return on Net Worth
Return on Net Worth remained stable at approximately 18.95% in Fiscal 2024 and Fiscal 2025. The same increased from 18.94% in Fiscal 2025 to 22.51% in Fiscal 2026, primarily attributable to the significant improvement in profitability during the period.
Financial Indebtedness
As on March 31, 2026 the total outstanding borrowings of our Company was 524.00 million. The following table sets out the details of the total borrowings outstanding as on March 31, 2026.
(Rs. in Million)
| Particulars | As at March 31, 2026 |
| Secured | |
| (i) Term Loan (including current maturities) | 82.93 |
| (ii) Working Capital Facilities | 441.07 |
| Unsecured | |
| (iv) Unsecured loans from related parties and others | - |
| Total Borrowings | 524.00 |
In the event, any of our lenders declare an event of default, such current and any future defaults could lead to acceleration of our repayment obligations, termination of one or more of our financing agreements or force us to sell our assets, any of which could adversely affect our business, results of operations and financial condition.
Contingent Liabilities and Commitments
The following table sets forth our contingent liabilities a s at March 31, 2026
(Rs. in Million)
| Particulars | As at March 31, 2026 |
| Contingent Liability- | |
| Income Tax demand disputed in appeals | 38.94 |
| Custom Duty demand disputed in appeals | 4.98 |
| Commitments- | |
| Estimated amount of contract remaining to be executed on capital account and not provided for (Net of advance 51.55 million) | 30.09 |
| Total | 74.01 |
Note: The Company has certain disputes, lawsuits and claims, which arise in from time to time in the ordinary course of business. The amount in some of the cases can not be ascertained and in some cases not material.
For details of our contingent liability and guarantees as at March 31, 2026, as per Ind AS 37, see
Restated Consolidated Financial Information Note 36 - Contingent Liability & Commitments on page 423 .
There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe are material to investors.
CONTRACTUAL OBLIGATIONS AND MATURITIES
As on date of this Red Herring Prospectus, our Company does not have any contractual obligations and maturities.
Related Party Transactions
We enter into various transactions with related parties in the ordinary course of business. These transactions principally include remuneration paid to KMPs, sales, purchases, machine purchases and rental income.
For details of our related party transactions, please see Restated Consolidated Financial Information Note 43 Related Party Transactions on page 427.
Quantitative and Qualitative Disclosure about Market Risks
Our Company s activities are expose to a variety of financial risks, including market risk, currency risk, interest rate risk, credit risk and liquidity risk. The Company s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company s risk management assessment policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. These policies and processes are reviewed by management regularly to reflect changes in market conditions and the Company s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes, which are summarized below:
Market risk
Market risk is the risk of changes the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Companys income or the value of its holdings of its financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the returns.
Foreign Currency Risk
The fluctuation in foreign currency exchange rates may have impact on the profit and loss account, where any transaction has more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar and Euro, against the respective functional currencies. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange and interest rate exposure. The Company does not use derivative financial instruments for trading or speculative purposes.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The companys exposure to the risk of changes in market interest rates relates primarily to the borrowing from bank and financial companies. Currently Company is not using any mitigating factor to cover interest rate risk.
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company s receivables from customer. The Company establishes an allowance for doubtful debts and impairment that represents its estimate on expected loss model. The Company s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Impaired amounts are based on lifetime expected losses based on the best estimate of the management. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.
Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company s reputation. The Company has obtained fund based lines from various banks. The Company also constantly monitors various funding options available in the debt and capital markets with a view to maintaining financial flexibility.
Off-Balance Sheet Items
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
Effect of Inflation
We are affected by inflation as it has an impact on the material cost, wages, etc. in line with changing inflation rates; we rework our margins so as to absorb the inflationary impact.
Reservations, Qualifications and Adverse Remarks
Except as disclosed in chapter titled Restated Consolidated Financial Information on page 395, there have been no reservations, qualifications and adverse remarks.
Changes in Accounting Policies
There have been no changes in our accounting policies during the Fiscals 2026, 2025 and 2024.
Material Frauds
There are no material frauds, as reported by our statutory auditor, committed against our Company, during the last three fiscals.
Unusual or Infrequent Events or Transactions
As on date, there have been no unusual or infrequent events or transactions including unusual trends on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses.
Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations
Indian rules and regulations as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations. There are no significant economic changes that materially affected our Company s operations or are likely to affect income from continuing operations except as described in chapter titled Risk Factors on page 28.
Known Trends or Uncertainties that have had or are expected to have a Material Adverse Impact on Sales, Revenue or Income from Continuing Operations
Our business has been subject, and we expect it to continue to be impacted by the trends identified above in
Management s Discussion and Analysis of Financial Condition and Results of Operations - Significant Factors Affecting our Results of Operations and Financial Condition and the uncertainties described in Risk Factors on pages 455 and 28, respectively. To our knowledge, except as discussed in this Red Herring Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operation.
Seasonality of Business
There is no seasonality in our business.
Future Changes in Relationship between Costs and Revenues, in Case of Events Such as Future Increase in Labour or Material Costs or Prices that will Cause a Material Change are known
Other than as described in chapter titled Risk Factors on page 28 and in this section, to our knowledge there are no known factors that might affect the future relationship between cost and revenue.
Extent to which Material Increases in Net Sales or Revenue are due to Increased Sales Volume, Introduction of New Products or Services or Increased Sales Prices
Our business has been affected and we expect that it will continue to be affected by the trends identified above and the uncertainties described in the section Risk Factors on page 28. Changes in revenue in the last three
Fiscals are as described in Results of Operations Information for the Fiscal 2026 compared with Fiscal 2025 and Results of Operations Information for the Fiscal 2025 compared with Fiscal 2024 mentioned above.
Total Turnover of Each Major Industry Segment in which the Issuer Operates
We operate in only one major segment.
Competitive Conditions
We expect competition in our industry from existing and potential competitors to intensify. For further details on competitive conditions that we face across our various business segments, please see Our Business , Industry Overview and Risk Factors on pages 300, 226 and 28.
Status of any Publicly Announced New Products or Business Segments
As on the date of this Red Herring Prospectus, there are no new products or business segments that have or are expected to have a material impact on our business prospects, results of operations or financial condition.
Significant Dependence on a Single or Few Customers
The percentage of sale of machined products derived from our top customers is given below:
(Rs.in million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of Revenue from Sale of Products | Amount | % of Revenue from Sale of Products | Amount | % of Revenue from Sale of Products | |
| Top 1 customer | 265.96 | 20.92 | 311.24 | 25.68 | 133.91 | 12.12 |
| Top 5 customers | 621.65 | 48.91 | 622.80 | 51.38 | 522.89 | 47.33 |
| Top 10 customers | 773.60 | 60.86 | 798.84 | 65.91 | 758.00 | 68.61 |
Note: As certified by our Statutory Auditors vide certificate dated September 16, 2026
IIFL Customer Care Number
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1860-267-3000 / 7039-050-000
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+91 9892691696
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