Apollo Techno Industries Ltd IPO

Geographically, the company revenues are highly dependent on its operations in the India more particularly in few selected States. Any adverse development affecting its operations in these regions could have an adverse impact on the company business, financial condition and results of operations.

The company derives a substantial portion of its revenue from the sale of Horizontal Directional Drilling (HDD) machines, representing 62.69%, 59.34%, 79.41% and 97.39% of the company total sale of finished goods for the three months period ended on June 30, 2025 and financial years ended on March 31, 2025, 2024 and 2023, respectively and loss of sales dues to a reduction in demand for these products would have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company business is dependent on few numbers of clients. Its Top 10 customers contributed 67.01%, 58.03%, 54.36% and 57.35% of revenue from operations for the three months period ended on June 30, 2025 and the financial years ended on March 31, 2025, 2024 and 2023, respectively. The loss of any of these clients could have an adverse effect on the company business, financial condition, results of operations and cash flows.

Several of the company key raw materials and components are sourced from a limited group of suppliers, which exposes its to supplier concentration risks. Any restriction in supply or defects in quality could cause delays in project construction or implementation and impair the company ability to provide its products to clients at a price that is profitable to the company, which could have a material adverse effect on its business, financial condition and results of operations.

The Company has experienced negative cash flow in the past and may continue to does so in future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

The company are subject to strict compliance of quality requirements by its customers. Any failure in maintaining the company quality accreditations and certifications may negatively impact its brand and reputation which may adversely affect the company business, results of operations, financial condition, cash flows and future prospects.

The company Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of its Company.

The company business is dependent on its manufacturing units and the company are subject to certain related risks. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations, as well as an inability to effectively utilize the company production capacity, could adversely affect its business, operations results, cash flows, and financial condition.

The company does not have long term agreements with any of its customers, and hence may not realize all of the revenue expected from the company existing or new customers and may not be able to accurately forecast demand for its products and plan production schedules in advance. If the company are unable to predict customer demands and maintain optimal inventory level, there may be an adverse effect on its results of operations, financial condition, and cash flows.

The company have entered into a number of related party transactions and may continue to enter into such transactions under Ind AS 24 in the future. However, there can be no assurance that its could not have achieved more favourable terms had such transactions not been entered into with related parties.