Ardee Industries

Ardee Industries

By Geetanjali Kedia
about 6 days ago

IPO Size: Rs. 426 cr

  • Fresh Issue of Rs. 320 cr for (i) working capital Rs. 220 cr (ii) debt repayment Rs. 20 cr of Rs. 123 cr gross debt as of 30.6.26
  • Offer for Sale (OFS) of Rs. 106 cr by promoter (91% stake to shrink to 68% post IPO)

Price band: Rs. 50-53 per share

  • Rs. 115 cr promoter secondary of 8.5% equity at Rs. 53 per share in Jul 2026

M cap: Rs. 1,671 cr, implying 25% dilution

IPO Date: Wed 5th Aug to Fri 7th Aug 2026, Listing Wed 12th Aug 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Lead Recycler

Ardee Industries is a Delhi headquartered lead recycler, having an installed capacity of 156,950 MTPA at Tirupati, close to battery maker and biggest customer Amara Raja’s facility. Recycled lead ingots are used for manufacturing lead-acid batteries, which are in turn supplied to automotive Original Equipment Manufacturers (OEMs), inverters and UPS systems, power backup solutions for data centres and telecom towers, and energy storage systems for solar rooftop applications.

 

High Growth Visibility

Ardee undertook a cumulative capex of Rs. 58 cr in 3 fiscals, between FY24 to FY26. Its installed capacity nearly tripled during this period from 54,750 MTPA in FY23 to 1,56,950 MTPA as of July 2026. Thus, FY26 year-end capacity of 1,04,250 MTPA has increased by 51% in May 2026, which leads to healthy volume growth expectation for FY27E.

Over the next 24 months, company proposes a scheme of arrangement with unlisted group company Pilot Industries Limited, having manufacturing facility at Bhiwadi Rajasthan, to grow and consolidate operations further.

 

Strengthening Margins

Nearly 60% of FY26 revenue of Rs. 1,168 cr came from pure lead recycling and 30% from lead alloys. Between FY23 to FY26, production volume increased at 34% CAGR, as capacity utilization strengthened to 67% in FY26. During this period, gross margin per ton has almost doubled to Rs. 38,300 while EBITDA per ton has nearly tripled to Rs. 21,000.

Share of exports have increased from 20% of revenue in FY24 to 40% in FY26, with exports mainly to Singapore, Switzerland, South Korea and Hong Kong. As export realization is stronger, EBITDA margin strengthened from 6% in FY24 to 12.6% in FY26. PAT stood at Rs. 85 cr translating into a net margin of 7.3% in FY26 and an EPS of Rs. 3.32, on an equity of Rs. 51 cr (face value Rs. 2 each).

 

Attractive Pricing

M cap of Rs. 1,671 cr leads to a historic PE multiple of 16x, on FY26 EPS of Rs. 3.3. Accounting for the 50% increase in capacity in May 2026 and equity dilution, FY27E EPS is estimated at close to Rs. 4.5, implying a PE multiple of 12x on current year basis. This is not expensive for company’s historic growth (production volume CAGR of 34%, resultant revenue CAGR of 42%) and superior EBITDA margins of 12% as against 7% for peers.  

Larger lead recycler Pondy Oxides with Rs. 3,000 cr topline, up 45% YoY, and 4.7% net margin is ruling at a historic PE of 29x, while smaller lead recycler Nile reported 12% YoY topline growth in FY26, with 5.8% net margin, and ruling at a historic PE multiple of 9x.