Admach Systems IPO

The company states it sells products in both domestic and international markets. It also states it has exported special-purpose machinery to countries including China, Italy, South Korea, Dubai, and Russia.

The company states it has quality-control processes for checking raw materials and final products, and that it has internal procedures for procurement of raw materials. It also states its units have dedicated personnel who monitor equipment and material parameters, report irregularities during manufacturing, and make adjustments.

The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 13.10 crore in FY23 to Rs 19.68 crore in FY24 and Rs 53.36 crore in FY25. PAT increased from Rs 0.10 crore in FY23 to Rs 3.35 crore in FY24 and Rs 6.10 crore in FY25.

Steel machines accounted for Rs 17.54 crore (76.11 percent) of the company’s revenue for the period ended June 30, 2025; Rs 47.16 crore (88.48 percent) in FY25; Rs 10.85 crore (55.13 percent) in FY24, and Rs 4.41 crore (33.66 percent) in FY23. Any downturn, regulatory tightening, or reduced demand in the steel industry, or inability to offset such decline through other segments, could adversely affect the company’s business, results of operations, cash flows, and financial condition.

Maharashtra accounted for Rs 0.60 crore (2.61 percent) of the company’s total sales for the period ended June 30, 2025; Rs 17.29 crore (32.41 percent) in FY25; Rs 10.42 crore (52.94 percent) in FY24, and Rs 11.03 crore (84.19 percent) in FY23. Any adverse political, social, economic, competitive, or regulatory developments affecting operations in this region could negatively impact the company’s business, financial condition, results of operations, and cash flows.

The top customer accounted for Rs 19.21 crore (83.33 percent) of the company’s revenue for the period ended June 30, 2025; Rs 10.37 crore (19.44 percent) in FY25; Rs 8.19 crore (41.61 percent) in FY24, and Rs 8.26 crore (63.06 percent) in FY23. Failure to retain this key customer, expand the customer base, or a loss of business from this client can adversely affect the company’s business and financial standing.

The cost of materials consumed accounted for Rs 16.79 crore (72.86 percent) of the company’s revenue for the period ended June 30, 2025; Rs 36.61 crore (68.61 percent) in FY25; Rs 8.96 crore (45.53 percent) in FY24, and Rs 8.97 crore (68.43 percent) in FY23. This creates exposure to supply interruptions and price volatility in key inputs such as stainless/structural steel, geared motors, MS sheets/plates, and bearings, and the company does not follow a formal hedging policy. Therefore, if the company is unable to get a timely supply of materials at acceptable prices or pass on higher input costs to customers, it could adversely affect its business, cash flows, and finances.

The company does not have long-term agreements with most of its suppliers for key inputs such as mild steel sections, plates, and stainless steel materials. The top 10 vendors accounted for 55.90 percent, 54.52 percent, 50.93 percent, and 57.41 percent of the company’s total purchases for the period ended June 30, 2025; FY25; FY24, and FY23, respectively. Any failure by suppliers to deliver required quantities on schedule or to required specifications, or any shortage of raw materials, could disrupt production and affect the company’s ability to meet sales obligations, impacting revenue and cash flows.

As of June 30, 2025, the company had outstanding financial indebtedness of Rs 10.15 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.