Adroit Industries India Limited IPO

Major portion of the company's revenue from Sale of Products is derived from export sales. Revenue from outside India aggregated to Rs.600.04 million, Rs.1,166.83 million, Rs.1,044.75 million and Rs.866.90 million for the six-month period ended September 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, representing 94.15%, 96.27%, 94.56% and 95.13% of its revenue from Sale of Products for the respective periods. Any adverse developments affecting its export markets could materially and adversely affect the company's business, financial condition, results of operations, cash flows and prospects.

The company's revenue from operations is significantly concentrated among a limited number of customers. Revenue from its top 10 customers aggregated to Rs.425.18 million, Rs.798.84 million, Rs.758.00 million and Rs.663.00 million for the six-month period ended September 30, 2025 and Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively, representing 66.71%, 65.91%, 68.61% and 72.76% of our revenue from Sale of Products for the respective periods.The company is dependent on such customers for a substantial portion of its revenue and any reduction, modification or termination of business by such customers could materially and adversely affect the company's business, financial condition, results of operations, cash flows and prospects.

The company's 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 its business, financial condition, results of operations, cash flows and prospects.

The company depends on a limited number of domestic suppliers for the procurement of its key raw materials and the company's top ten suppliers accounted for purchases aggregating to Rs. 175.85 million, Rs. 337.75 million, Rs. 325.06 million and Rs. 316.63 million, representing 91.84%, 90.41%, 88.09% and 79.87% respectively, of its total purchase cost during the six-month period ended September 30, 2025 and in Fiscal 2025, 2024 and 2023, respectively. Any disruption in supply, increase in prices or inability to procure such materials on commercially acceptable terms may adversely affect the company's business, results of operations, cash flows and financial condition.

The company's revenue from Sale of Products is significantly dependent on distributor-led sales channels. Revenue from distributors aggregated to Rs.409.25 million, Rs.702.48 million, Rs.709.05 million and Rs.663.39 million for the six-month period ended September 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, representing 64.21%, 57.96%, 64.18% and 72.80% of its revenue from Sale of Products for the respective periods. Any disruption in the company's relationships with distributors may materially and adversely affect its business, financial condition, results of operations, cash flows and prospects.

A substantial portion of the company's revenue from Sale of Products is derived from automotive applications. Revenue from automotive applications aggregated to Rs.471.18 million, Rs.873.82 million, Rs.700.11 million and Rs.599.18 million for the six-month period ended September 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, representing 73.93%, 72.50%, 63.37% and 65.75% of its revenue from Sale of Products for the respective periods. Any adverse developments in the automotive sector or failures to adapt to such changes could materially and adversely affect its business, financial condition, results of operations, cash flows and prospects.

The company intend to undertake expansion of its manufacturing operations through installation of additional machinery and equipment at the company's existing facilities, and there can be no assurance that such expansion will be implemented on time or yield the expected benefits. Any delay, cost overrun or under-utilisation may materially and adversely affect its business, financial condition, results of operations, cash flows and prospects.

The company is subject to stringent vendor qualification, product validation and quality control requirements imposed by the company's customers, including Tier-1 suppliers and OEMs, and any failures to meet such requirements or maintain consistent quality standards may result in rejection of products, loss of business and may adversely affect the company's business, financial condition, results of operations, cash flows and prospects

The company does not have long-term agreements with its customers, and the company's sales are largely purchase order-based. Any reduction, delay or cessation of orders from its customers may adversely affect our business, financial condition, results of operations, cash flows and prospects

A substantial portion of the company's revenue is denominated in foreign currencies, and the company is exposed to foreign exchange fluctuation risks and changes in foreign trade policies, which may adversely affect its business, results of operations, cash flows and financial condition.