Apollo Techno IPO

The company is ISO 9001:2015 certified for its quality management systems.

The company claims to follow a customer-centric approach and to have a domestic sales footprint across multiple Indian states.

Apollo Techno Industries claims to have in-house engineering and design capabilities, with a team of five members in its design department as of June 30, 2025. It claims that these capabilities have supported the export of the Apollo A800 HDD machine in 2017, the launch of the Apollo A1200 HDD machine in 2019, and the introduction of the Diaphragm Wall Drilling Rig Machine in 2023.

The company has its factory located at Mehsana, Gujarat, with business offices in Bhopal (Madhya Pradesh), Chennai (Tamil Nadu), Kolkata (West Bengal), and Ghaziabad (Uttar Pradesh). It claims that this presence across multiple locations helps it serve customers in different regions.

The company has witnessed a consistent increase in its profit after tax (PAT). It increased from Rs 0.90 crore in FY23 to Rs 3.23 crore in FY24 and Rs 13.79 crore in FY25.

Gujarat accounted for Rs 8.69 crore (39.05 percent) of the company’s total domestic sales for the period ended June 30, 2025; Rs 39.67 crore (52.99 percent) in FY25; Rs 19.81 crore (35.93 percent) in FY24, and Rs 15.11 crore (22.10 percent) in FY23. Furthermore, the company’s manufacturing facility is located in this region. Any adverse political, social, or economic developments, or changes in state-level taxes, regulations, or infrastructure spending in Gujarat can negatively impact the company’s business, cash flows, and financial condition.

Horizontal directional drilling (HDD) machines accounted for Rs 12.01 crore (62.69 percent) of the company’s total sales of finished goods for the period ended June 30, 2025; Rs 45.16 crore (59.34 percent) in FY25; Rs 44.69 crore (79.41 percent) in FY24, and Rs 47.69 crore (97.39 percent) in FY23. Any significant reduction in demand for HDD machines or a shift by customers to competing suppliers, coupled with any failure to scale its diaphragm and rotary drilling rigs or new products, can adversely affect the company’s business, cash flows, and financial performance.

The top three customers accounted for 36.96 percent of the company’s revenue for the period ended June 30, 2025; 32.98 percent in FY25; 29.40 percent in FY24, and 25.06 percent in FY23. Furthermore, the company does not have any long-term agreements with these clients. Any inability to retain key customers, diversify the customer base, or avoid a loss or decline in business from them could materially harm the company’s operations, financial position, and cash flows.

The top three suppliers accounted for 23.50 percent of the company’s total purchases for the period ended June 30, 2025; 19.96 percent in FY25; 27.36 percent in FY24, and 20.00 percent in FY23. Any disruption, quality issue, or inability of these suppliers to meet required quantities or timelines, combined with the absence of long-term supply agreements, can increase costs, disrupt production schedules, and adversely affect the company’s operations and financial performance.

Imported cost of materials accounted for Rs 5.30 crore (30.11 percent) of the company’s total cost of materials consumed for the period ended June 30, 2025; Rs 17.66 crore (31.79 percent) in FY25; Rs 22.05 crore (40.69 percent) in FY24, and Rs 16.88 crore (31.29 percent) in FY23. Delay in shipments, changes in trade policy, tariffs, import duties, exchange rate volatility, or geopolitical disruptions affecting these imports can adversely impact its production costs, profitability, and overall business operations.

The company reported negative cash flow from operating activities amounting to Rs 0.97 crore in FY23. This was mainly due to low profit before tax, combined with higher outflows towards inventories and trade receivables. Additionally, negative cash flow from investing activities amounted to Rs 0.01 crore for the period ended June 30, 2025, and Rs 0.32 crore in FY25. The company also reported negative cash flow from financing activities amounting to Rs 1.71 crore for the period ended June 30, 2025; Rs 14.19 crore in FY25; Rs 3.25 crore in FY24, and Rs 3.86 crore in FY23. This was primarily due to repayment of long-term borrowings. If the company is unable to generate sufficient positive cash flows to support working capital, debt obligations, and investment needs, its business and financial stability may be adversely affected.

As of June 30, 2025, the company had contingent liabilities of Rs 16.01 crore. If any of these contingent liabilities materialise, it could negatively affect the company’s financial condition.

Apollo Techno Industries has outstanding trade payables to MSME vendors, which must be paid within 45 days as per the MSME Development Act, 2006. As of June 30, 2025, its MSME dues stood at Rs 4.57 crore, up from Rs 2.61 crore in FY25, Rs 2.43 crore in FY24, and Rs 1.13 crore in FY23. Any delay beyond the permitted period may attract interest liabilities, financial penalties, and potential legal claims, and repeated delays could strain supplier relationships and disrupt the company’s supply chain.

The company, its promoters, and subsidiary companies are involved in certain ongoing tax proceedings. Any adverse judgments in any of these cases can hurt the company’s business prospects.

As of June 30, 2025, the company had trade receivables of Rs 16.86 crore. Any delay or default in payments from customers can strain the company’s cash flows, affect its ability to meet financial obligations, and negatively impact its business and results of operations.

As of June 30, 2025, the company had outstanding financial indebtedness of Rs 30.57 crore. Failure to service or repay these loans can harm the company’s operations and financial position.