Admach Systems Limited IPO Analysis: Designed to Order, Built to Perform

23 December 2025

From custom blueprints to automated powerhouses, Admach Systems is shifting gears with a ₹42.60 crore IPO, aiming to scale its precision engineering into industrial dominance.

Let's explore this further:

Parameter	Details
Issue Type	100% Fresh Issue
Issue Size	INR ₹42.60 crore
Price Band	INR 227-239 per share
Lot Size	600 shares
Net Issue	17,82,600 Shares
Listing Platform	BSE SME
Issue Opens	December 23, 2025
Issue Closes	December 26, 2025
Listing Date	December 31, 2025

Before the Deep Dive: What’s Working — and What Isn’t

Strengths	Risks
Multi-product Capability: The company offers customised solutions for various industries, including steel, automobile, and packaging, specialising in special-purpose machines (SPMs), robotics, and automation	Industry and Product Dependency: The business is heavily reliant on the steel industry, which accounted for 76.11% of revenue for the period ending June 30, 20251314. A downturn in this sector could adversely impact financial stability
Diversified and Loyal Customer Base: Admach serves both domestic and international markets, including China, Italy, and South Korea56. As of March 2025, more than 13 customers have been associated with the company for over 15 years	High Customer Concentration: A substantial portion of revenue is derived from a limited number of clients; the top ten customers contributed 99.94% of total sales for the period ended June 30, 20251718. The loss of any major client could significantly affect profitability
Significant Improvement in Profitability Margins: The company has demonstrated a sharp increase in operational efficiency, with EBITDA margins rising from 7.62% in FY 2022-23 to 19.32% in FY 2024-25 (witnessing a peak of 31.96% in FY 2023-24)12. Similarly, PAT margins improved from 0.74% in FY 2022-23 to 11.43% in FY 2024-25	Cash Flow and Operating Cycle Irregularities: The company has experienced -ve net cash flows from operating activities in the past (e.g., -₹798.51 lakhs in FY24 and -₹222.19 lakhs in FY23). The business also faces historical delays in payment cycles to MSME suppliers.
Robust Order Book: As of November 14, 2025, the company maintains a strong pipeline with orders in hand totalling ₹44.22 Cr. from both domestic and international clients	High Working Capital Requirements: The business involves a long gestation period for projects, leading to higher working capital needs; for instance, the inventory holding period peaked at 763 days in FY 2024

Now that you’ve seen the snapshot, let’s unpack the full story behind these numbers and understand the business in context.

Industry Overview
India’s capital goods production reached INR 4,29,000 Crores in 2023−24. Admach Systems Limited operates within the Indian and global engineering industry, specialising in Special Purpose Machines (SPM), automation, and robotic material handling systems. The SPM market focuses on creating customised solutions for specific industrial applications that are not part of standard manufacturing agendas and are not available on a ready basis. These tailored machines are primarily used to enhance precision and efficiency in processes like automated trimming, inspection, and assembly

A significant portion of this industry’s demand is driven by the steel sector, which represents a major part of the company's client base. India’s domestic steel demand is projected to grow by 9–10% in FY25, supported by the local availability of raw materials and cost-effective labor57. The broader engineering sector acts as a vital pillar of the Indian economy, representing 27% of all factories and roughly 25% of total goods exports

Looking ahead, the industry is positioned for growth as India is expected to become the world's second-largest consumer of steel and a global manufacturing hub under the "Make in India" initiative. Furthermore, investment in engineering R&D in India is forecasted to reach US$ 63 billion by 2025.

Operating in the Special Purpose Machine industry is like being a master architect; while a standard builder follows a generic blueprint for every house, an SPM manufacturer must design a unique structure from the ground up to solve the specific operational challenges of each individual client.

 

Company Origin Story

Founded in 2008 in Pune, Admach Systems began its journey by taking over a specialised proprietorship where the promoters identified a vital gap between standard, off-the-shelf machinery and the growing industrial need for customised, precision-driven engineering. Leveraging over 30 years of promoter expertise, the company built an integrated manufacturing framework to design and assemble customised bespoke Special Purpose Machines (SPMs) and automation systems, maintaining absolute control over technical accuracy and performance. What began as a strategic takeover of a small engineering business gradually evolved into a global player in robotics and material handling, aligning with India’s industrial shift from generic mechanical services to high-tech.

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