What the company does
Ardee recycles end-of-life energy-storage products and non-ferrous scrap into refined lead and customized lead alloys. Its outputs are used primarily by battery manufacturers and other industrial customers.
The model combines raw-material procurement, recycling and refining. That creates exposure to scrap availability, lead-price movements, inventory funding, environmental compliance and the company's ability to pass input-price changes through to customers.
The current promoters acquired the company in 2021 and manufacturing under the present operating setup began that year. The reported growth therefore comes from a relatively short operating history under current control.
The Andhra Pradesh facility's authorized capacity was 1,04,025 MTPA in FY26. Total production reached 69,855 tonnes and utilisation improved to 67.15%, from 45.16% in FY25, after the authorized capacity had expanded during FY25.
Exports supplied 39.83% of FY26 revenue, up from 17.63% in FY24, and reached eight countries. Longer international credit periods, export inventory and supplier advances make geographic growth inseparable from working-capital execution.
Where the IPO money goes
Three-year financial snapshot
| Year | Revenue | EBITDA | PAT | Net worth | Borrowings | Assets |
|---|---|---|---|---|---|---|
| FY24 | ₹462.96 Cr | ₹28.06 Cr | ₹8.95 Cr | ₹29.25 Cr | ₹142.36 Cr | ₹196.12 Cr |
| FY25 | ₹742.74 Cr | ₹65.93 Cr | ₹33.27 Cr | ₹62.6 Cr | ₹165.77 Cr | ₹262.06 Cr |
| FY26 | ₹1,167.65 Cr | ₹147.08 Cr | ₹84.68 Cr | ₹147.38 Cr | ₹182.75 Cr | ₹363.33 Cr |
Restated financial information from IPO source materials; rounding may create small differences.
FY26 EBITDA margin
12.60%
Up from approximately 6.1% in FY24.
FY26 PAT margin
7.25%
Profit grew faster than revenue across the reported period.
FY26 debt/equity
1.25×
Improved as equity expanded, though absolute borrowings increased.
Upper-band P/E
15.96×
Based on reported FY26 EPS of ₹3.32 and the ₹53 upper band.
FY26 operating cash/PAT
35.2%
₹29.83 crore operating cash flow versus ₹84.68 crore PAT; FY24 operating cash flow was negative ₹25.26 crore.
FY26 inventory days
47 days
Up from 28 days in FY25 as inventory increased to ₹116.12 crore.
FY26 supplier advances
₹84.58 Cr
Up from ₹41.05 crore in FY25 and equal to 74.6% of other current assets; government-authority balances added another ₹22.17 crore.
Receivables / loss allowance
₹24.79 Cr / nil
Approximately 96.9% of FY26 receivables were under six months old. The RHP reports 30–60 day general terms and distinguishes recourse from non-recourse factoring.
Guarantee-linked exposure
₹12.76 Cr
FY26 contingent liabilities were mainly a ₹12.50 crore performance/security bank guarantee, up from ₹7.25 crore in FY25, plus a ₹0.26 crore disputed income-tax demand.
FY26 export revenue
39.83%
Up from 17.63% in FY24; the RHP links exports to longer receivable and inventory cycles.
Post-offer promoter holding
~67.36%
Derived from 23,23,01,700 promoter shares before the offer, the 1,99,75,000-share promoter OFS and approximately 31,52,01,358 post-offer shares.
Listing-day close vs issue
+26.6%
NSE recorded a ₹72.00 open and ₹67.12 close on 12 August versus the ₹53 issue price.
What stands out
- Revenue increased from ₹462.96 crore in FY24 to ₹1,167.65 crore in FY26, while EBITDA and PAT expanded faster.
- EBITDA margin improved materially, indicating operating leverage and/or better spreads over the reported period.
- The fresh issue directs ₹220 crore to working capital and ₹22 crore to debt repayment, addressing two constraints visible in the balance sheet.
- Recycling and secondary-metal recovery provide exposure to circular-economy demand and import substitution, although the economics remain commodity-linked.
Key concerns
- The top customer, top five and top ten customers contributed 40.64%, 81.98% and 91.61% of FY26 revenue respectively, according to RHP-derived disclosures.
- Battery and metal industries contributed 84.79% of FY26 revenue, creating end-market concentration.
- FY26 borrowings were ₹182.75 crore. Debt/equity improved to 1.25× from 4.87× in FY24, but absolute debt continued to rise.
- FY26 operating cash flow was ₹29.83 crore, only 35.2% of PAT. A ₹71.17 crore inventory increase and ₹41.45 crore increase in other current assets absorbed much of the ₹136.53 crore operating profit generated before working-capital changes. Supplier advances alone reached ₹84.58 crore, more than double FY25.
- The net working-capital requirement increased from ₹104.63 crore in FY24 to ₹226.19 crore in FY26. The RHP says export growth required more inventory, supplier advances and longer customer credit, which raises the execution bar for the ₹220 crore IPO allocation.
- The top ten raw-material suppliers supplied 38.48% of FY26 purchases, down from 53.71% in FY25. Related-party transactions nevertheless equalled 7.75% of FY26 revenue, including remuneration, loans, rent, asset purchases and goods transactions.
- Promoters retain approximately 67.36% after the fresh issue and promoter OFS. This preserves decisive voting control, so board independence, related-party approvals and any future pledges or secondary sales remain important governance checks.
- Capacity utilisation improved to 67.15% in FY26 from 45.16% in FY25, but the comparison follows a significant capacity expansion and should be tested against normalized demand rather than a single ramp year.
- Lead scrap availability, commodity prices, foreign exchange, environmental compliance and customer pass-through arrangements can affect margins.
- The operating record under current promoters is limited because the acquisition and manufacturing ramp began in 2021.
- Cash availability needs qualification: ₹13.94 crore of the ₹14.09 crore cash-equivalent balance sat in an EEFC account, while another ₹9.38 crore of bank balances was pledged as margin against guarantees.
What to monitor after listing
- Whether the ₹220 crore working-capital infusion improves operating cash conversion rather than only supporting higher inventory, supplier advances and receivables.
- Operating cash flow relative to PAT, plus inventory, supplier advances and other-current-asset days after the IPO-funded expansion.
- Gross and EBITDA margins after listing, particularly if lead prices or scrap spreads normalize.
- Reduction in borrowings and finance cost after use of the fresh proceeds.
- Customer concentration: movement in the top-five and top-ten revenue shares.
- Export receivable terms, supplier-advance days and related-party transaction disclosures.
- Environmental approvals, plant utilization, accident record and compliance disclosures.
- Post-offer promoter ownership, share encumbrances, related-party voting and the independence of listed-company oversight.
Valuation context
At the ₹53 final issue price, the indicated FY26 P/E was approximately 15.96× based on EPS of ₹3.32. The offer calculations indicated an equity valuation of about ₹1,671 crore.
RHP peer references include Gravita India, Pondy Oxides & Chemicals and Jain Resource Recycling. Their business mixes, scale, margins and trading histories differ, so a simple P/E discount is not sufficient by itself.
The valuation case depends heavily on whether FY26 margins and profit growth are sustainable after the IPO. A normalized-cycle view should test lower recycling spreads, slower revenue growth and continued working-capital consumption.
Ardee Industries IPO FAQs
What is the Ardee Industries IPO price band?
The stated price band is ₹50–₹53. Offer terms should be checked against the final prospectus and exchange notices.
When does the Ardee Industries IPO open and close?
The IPO is scheduled to open on 5 August 2026 and close on 7 August 2026. The stated listing date is 12 August 2026.
What is the Ardee Industries IPO issue size?
The stated total issue size is ₹425.87 Cr, comprising ₹320 Cr of fresh issue and ₹105.87 Cr of offer for sale.
What is the minimum lot for the Ardee Industries IPO?
The stated minimum lot is 281 shares.
What do the latest Ardee Industries financials show?
For FY26, the offer documents report revenue of ₹1,167.65 Cr, EBITDA of ₹147.08 Cr and PAT of ₹84.68 Cr. Read these figures with the cash-flow, leverage and working-capital analysis on this page.
What is a key risk in the Ardee Industries IPO analysis?
The top customer, top five and top ten customers contributed 40.64%, 81.98% and 91.61% of FY26 revenue respectively, according to RHP-derived disclosures.
How is the Ardee Industries IPO valued?
At the ₹53 final issue price, the indicated FY26 P/E was approximately 15.96× based on EPS of ₹3.32. The offer calculations indicated an equity valuation of about ₹1,671 crore.