Highlights
| Issue Size –: 8,03,52,358 shares | Issue Open/Close – 5 Aug / 7 Aug, 2026 |
| Price Band (Rs.) 50 – 53 | Issue Size (Rs.) – 4,260 mn |
| Face Value (Rs) 2 | Lot Size (shares) – 281 |
Ardee Industries Limited (AIL) incorporated in 1993, specialized in the environmentally responsible recovery and recycling of end-of-life energy storage products and non-ferrous scrap, while reclaiming critical resources from waste streams. Their product range includes pure lead and lead alloys such as lead calcium alloys, lead antimony alloys, lead tin alloys, lead silver alloys and lead cadmium alloys.
AIL’s brand ‘Ardee’ listed on the MCX platform which provides customers and commodity traders a platform to purchase and trade in product, pure lead. Further, their brand ‘ARDEE LEAD 9997’ is also listed on the London Metal Exchange (LME) which further establishes company’s credibility and competitiveness in the international markets, provide global price benchmarking of their products.
AIL served more than 50 customers across diverse industries including battery and metal, both in the domestic and international markets and they exported products to customers based in eight countries including Singapore, Hong Kong, South Korea, Switzerland, United Arab Emirates, Japan, Saudi Arabia and United States of America.
Out of the total proceeds of Rs. 4,260 mn, Rs. 2,200 mn would be go towards funding incremental working capital requirement of the Company, Rs. 200 mn would go towards repayment/pre-payment, in full or part of certain borrowings availed by the company, ~Rs. 800 mn would go towards general corporate purpose. Additionally, ~Rs. 1,060 mn going towards promoter selling shareholders of the company.
Key Highlights
- The recycled lead ingots market in India was valued at Rs. 309.33 bn in FY 2026, the demand split of recycled lead ingot between automotive and non-automotive was 68 pct (Rs. 210.34 bn) and 32 pct (Rs. 98.99 bn) respectively. The recycle ingot market is projected to Rs. 392 bn by FY30 with a CAGR of 6.1 pct from FY26 to FY30.
- AIL’s manufacturing facility is strategically located in Andhra Pradesh, on account of the presence of large batter y manufacturers such as Amara Raja Energy & Mobility and other notable lead acid battery manufacturers in proximity. Owing to AIL’s strategic presence, they are able to deliver products to such customers in a short turnaround time, saving on logistical costs, thereby making products cost competitive as compared to competitors.
- Company imports majority of raw material and exports products which requires forex. To protect against forex risk, company use Back-to-back pricing modeI and hedging by entering into futures derivative contracts on the LME. This disciplined approach helps in safeguarding margins and protect against adverse price movements in pure lead.
- AIL continuously expanding their capacities from 54,570 MTPA in FY24 to 156,950 MTPA in Q1FY27. Further, AIL propose to augment their installed capacity and lead recycling business through strategic integration and consolidation of the lead recycling business carried on through the manufacturing facility of Group Company.
- AIL’s key growth strategies include (i) To expand sustainably driven product portfolio through capacity expansion and strategic integration to capitalize on the growing renewable energy sector in India. (ii) Expand geographical footprint to capture larger customer base across exports and domestic markets (iii) Leverage LME listing to expand global presence (iv) Improving the debt profile of the company.
- The sales of the company have grown by 59 pct CAGR over FY24-26 and EBITDA/profit has grown 129 pct CAGR/208 pct CAGR over same year. In FY26 the company reported sales of Rs. 11,677 mn, (Rs. 429.33 mn of foreign exchange fluctuations included in sales) rose 57 pct YoY. EBITDA of the company increased 123 pct YoY to Rs. 1,471 mn. In FY26 the company posted profit of Rs. 847 mn, up 155 pct.
Key Risk
- The company might face client concentration risk, as 81 pct of company’s sales came from top 5 clients.
- Any decline in the use of lead-acid batteries due to increasing adoption of lithium-ion battery technologies could adversely affect AIL’s business.
- AIL’s manufacturing operations are concentrated in the State of Andhra Pradesh. Any disruption including occurrence of any internal or external factors in the State of Andhra Pradesh may restrict AIL’s operations.
Financial Performance
| Particulars (Rs. mn) | FY24 | FY25 | FY26 | CAGR | YoY |
| Sales | 4,630 | 7,427 | 11,677 | 59% | 57% |
| EBITDA | 281 | 659 | 1,471 | 129% | 123% |
| EBITDA Margin % | 6.06% | 8.88% | 12.60% | ||
| Profit | 90 | 333 | 847 | 208% | 155% |
| Profit Margin % | 1.93% | 4.48% | 7.25% | ||
| ROE % | 30.61% | 53.15% | 57.46% | ||
| RoCE % | 12.83% | 25.17% | 44.26% | ||
| Fixed Assets Turnover (X) | 10.22 | 11.15 | 16.54 |
Source: – RHP.
Peer Comparison based on FY26 Financials.
| Particulars (Rs. mn) | Adree Industries | Gravita India | Pondy Oxides & Chemicals | Jain Resources Recyling |
| Sales | 11,677 | 42,653 | 29,584 | 95,431 |
| EBITDA | 1,471 | 4,349 | 2,096 | 5,580 |
| EBITDA Margin % | 12.60% | 10.20% | 7.09% | 5.85% |
| Profit | 847 | 3,783 | 1,319 | 3,474 |
| Profit Margin % | 7.25% | 8.87% | 4.46% | 3.64% |
| ROE % | 57.46% | 15.43% | 16.73% | 22.25% |
| RoCE % | 44.26% | 13.28% | 19.88% | 20.95% |
| Fixed Assets Turnover (X) | 16.54 | 5.55 | 12.26 | 103.08 |
Valuation
Ardee Industries Limited (AIL) is one of India’s leading players in circular economy, specializing in the environmentally responsible recovery and recycling of end-of-life energy storage products and non-ferrous scrap and hold 2.09 pct market share. At the upper end of the price band of Rs. 53, the issue is priced at an PE of 19.7x its FY26 post issue capital. The issue appears to be fully priced.
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