Adroit Industries reported a strong Q2 FY27, with profit after tax rising 14% sequentially to Rs 8.55 crore. The company is aggressively expanding capacity at its Pithampur and Dewas plants to meet rising demand, targeting FY27 revenue beyond Rs 180 crore. While profitability metrics are healthy, investors should monitor the long working capital cycle and validation timelines for new industrial and defence projects.
Adroit Industries Posts Strong Q2 Growth and Capacity Expansion Plans
Q2 FY27 PAT stands at Rs 85.47 million, up 14% sequentially.
H1 FY27 PAT surged 51% YoY to Rs 160.36 million, supported by margin expansion.
Reader Takeaway: Robust operational performance drives bottom-line growth, though high working capital and long product validation cycles remain key challenges.
What just happened
Adroit Industries has announced its Q2 FY27 earnings, reporting a revenue of Rs 426.73 million, a 25% increase from the previous quarter. The company’s EBITDA grew 13% QoQ to Rs 119.56 million, with margins hitting 29.3% for the first half of the year. Management confirmed it is deploying IPO proceeds to scale operations, with specific focus on doubling machining capacity and significantly increasing forging capacity.
Why this matters
The company is currently operating near maximum capacity, with forging plants at 93-94% utilization. By expanding its Pithampur and Dewas facilities, Adroit aims to address current supply constraints and fuel its long-term revenue vision. The guidance to reach Rs 475-500 crore in annual revenue by FY31 signals a high-growth phase, provided the capital expenditure translates into timely production.
Risks to watch
Investors must watch the working capital cycle, which is currently elevated at 248-249 days. Although management plans to bring this down to the 200-230 range, it remains a significant cash-flow pressure point. Additionally, the new industrial and defence business segments are in a 6-12 month testing phase, making the timeline for revenue contribution from these verticals uncertain.
Context metrics
- H1 FY27 Revenue: Rs 767.87 million (11% YoY growth)
- H1 FY27 EBITDA Margin: 29.3% (versus 22% in FY26)
- FY27 Revenue Guidance: Exceeding Rs 180 crore
- Order Book: Rs 68-70 crore (78% export-oriented)
What to track next
Watch for the operational commissioning of the Pithampur facility in Q4 FY27 and the Dewas plant in Q1 FY28. Progress on domestic sales growth, which management expects will help optimize the working capital cycle, will be a critical indicator of efficiency improvement.