Apollo Techno Industries
- Apollo Techno Industries is coming out with an initial public offering (IPO) of 36,89,000 shares in a price band of Rs 123-130 per equity share.
- The issue will open on December 23, 2025 and will close on December 26, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 12.30 times of its face value on the lower side and 13.00 times on the higher side.
- Book running lead manager to the issue is Beeline Capital Advisors.
- Compliance Officer for the issue is Alpeshkumar Kanubhai Parmar.
Profile of the company
Apollo Techno Industries is a manufacturer specializing in trenchless technology and foundation equipment for the construction industry. The company’s product line-up includes Horizontal Directional Drilling (HDD) Rigs, Diaphragm Drilling Rigs, Rotary Drilling Rigs and Spare parts. The Horizontal Directional Drilling rigs are primarily utilized for the installation of essential utilities such as gas pipelines, water supply lines, sewer lines, optical fibre cables, and electrical conduits. The Diaphragm Drilling Rigs are designed for constructing foundations for deep basements, retaining walls in railway, airports and metro stations, as well as developments along riverfronts. The Rotary Drilling Rigs are employed for creating foundation piles necessary for high-rise buildings and bridges. It also provides warranties, on-site support and technical training to ensure its customers are well-equipped to utilize its machinery effectively.
The company’s organization has experienced growth, driven by ongoing improvements and customer support. It operates on an SAP ERP system, which enhances its manufacturing processes. The company is committed to delivering quality products and it strives to maintain the highest standards in every aspect of its operations. The company is accredited with quality management system certification of ISO 9001:2015.
With in-house design and engineering capabilities, the company is able to offer a broad spectrum of products and solutions that emphasize quality to its clients. As of June 30, 2025, the company has a team of 5 members in its design department. This strategic focus has enabled it to expand its business both domestically and internationally. In addition to its manufacturing capabilities, it also provides refurbishment services for used machines at its factory. This comprehensive approach not only enhances its product offerings but also reinforces its commitment to sustainability and customer satisfaction in the construction equipment market.
Proceed is being used for:
- Meeting working capital requirements of the company
- General corporate purpose
Industry Overview
Indian construction equipment industry is the world’s third-largest, next only to China and the U.S, transforming India’s infrastructure growth. The construction equipment industry in India is experiencing significant growth, driven by various factors including urbanization, government infrastructure investments, and technological advancements. Infrastructure development is the foundation of the construction sector, which is supported by strategic government investment and active private sector participation, leading to widespread expansion of critical sectors. The construction equipment industry in India is poised for substantial growth driven by infrastructure investments, urbanization trends, and technological advancements. Despite the availability of multiple types of equipment deployed in construction activity, a construction project is incomplete without drilling equipment. Drilling equipment plays a crucial role in construction, particularly in foundation engineering, road construction, and various infrastructure projects. The types of drilling equipment vary widely, each designed for specific applications and geological conditions.
Horizontal directional drilling (HDD) is a sophisticated trenchless technology used primarily for installing underground pipelines, conduits, and cables with minimal surface disruption. This method is particularly advantageous in urban environments or areas with existing underground utilities. HDD is used when trenching or excavating is not practical. The tools and techniques used in HDD process are an outgrowth of the oil well drilling industry. HDD is characterized by its ability to create horizontal boreholes beneath obstacles like roads, railroads, and rivers without the need for extensive excavation. Moreover, Diaphragm wall drilling rigs are specialized machines used in the construction of diaphragm walls, which are reinforced concrete structures cast into the ground for various applications such as foundation support, excavation support, and cutoff walls. Diaphragm walls have become a standard method in specialist foundation engineering, acting as retaining structures, cut-off walls, foundation elements with structural function.
The Indian construction equipment market is navigating a complex landscape characterized by high maintenance costs, increasing demand for rentals, regulatory pressures, supply chain challenges, and competition from imports. Addressing these threats will require strategic planning, investment in technology, and a focus on building a skilled workforce to sustain growth in this dynamic industry. Going forward, the Indian government's incentives for promoting construction encompass a range of financial support mechanisms, regulatory simplifications, and initiatives focused on sustainability and skill development. These measures aim to stimulate growth in the construction sector, enhance infrastructure development, and promote affordable housing while addressing environmental concerns. As these incentives continue to evolve, they play a crucial role in shaping the future landscape of India's construction industry.
Pros and strengths
Focus on quality and customer service: For the company, quality is of utmost importance. It is accredited with quality management system certification of ISO 9001:2015. Delivering quality products is not only a measure of its success, but also a reflection of its commitment to excellence. With a team of skilled professionals, the company has built a history of delivering products that are worth their value and meet the high standards of quality. It ensures that every product it manufactures passes strict quality checks before it reaches its clients. It never compromises on quality, and always strive to deliver products that exceed its clients' expectations.
Strong market presence driven by customer-centric approach: The company prioritizes understanding and addressing its customers' diverse product needs, fostering long-term relationships and enhancing customer retention. This strong foundation has given it a competitive advantage in acquiring new customers and expanding its market presence. The company’s domestic sales footprint spans multiple states, with Gujarat consistently leading in contributions. As of June 30, 2025, Gujarat accounted for 39.05% of its total domestic sales, followed by Delhi at 12.70%, and Haryana at 12.06%. Its existing relationship with its customers represents a competitive advantage in gaining new customers and increasing its business.
In-house engineering and design capabilities: The company develops components and processes through its in-house design and manufacturing capabilities, producing products as per the market requirements and specifications. Its in-house engineering and design capabilities enable it to offer quality products. As of June 30, 2025, it has a team of 5 members in its design department. Its design team is trained on software tools such as computer-aided design tools, which further enhance the design and development processes that it utilizes. Since its incorporation, the company’s in-house engineering and design capabilities have enabled it to continuously enhance, its existing products while driving the development of new ones.
Risks and concerns
Concentration of revenues across key accounts: The company generates a significant portion of its revenues from, and are therefore dependent on, certain customers for a substantial portion of its business. The company’s business is dependent on few numbers of clients. Its Top 10 customers contributed 67.01%, 58.03%, 54.36% and 57.35% of revenue from operations for the three months period ended on June 30, 2025 and the financial years ended on March 31, 2025, 2024 and 2023, respectively. The loss of any of these clients could have an adverse effect on its business, financial condition, results of operations and cash flows.
Concentration of operations in select Indian states: The company’s revenue from operation is concentrated in India more particularly in few selected States as substantial part of its revenue is generated from the India i.e. Rs 2,225.82 lakh, Rs 7,487.61 lakh, Rs 5512.43 and Rs 6839.27 lakh, constituting 90.69%, 75.52%, 79.92% and 95.35% of the total revenue from operations for the three months period ended on June 30, 2025 and the financial year ended March 31,2025, 2024 and 2023, respectively. Such concentration of revenue in few selected states may have an adverse effect. An economic slowdown or change of laws or regulations, particularly in relation to Construction Equipment Industry in these states may have a significant adverse impact on its business, financial condition, cash flows and results of operations.
Risk arising from high dependence on sales of HDD machines: The company derived a substantial portion of its revenue from the sale of Horizontal Directional Drilling (HDD) machines, representing 62.69%, 59.34%, 79.41% and 97.39% of its total sale of finished goods for the three months period ended on June 30, 2025 and financial years ended on March 31, 2025, 2024 and 2023, respectively and loss of sales due to a reduction in demand for these products would have a material adverse effect on its business, financial condition, results of operations and cash flows.
Outlook
Apollo Techno Industries is a company that operates in the manufacturing and technology sectors. The company specializes in trenchless technology and foundation equipment for the construction industry, offering products like Horizontal Directional Drilling rigs, Diaphragm Drilling Rigs, Rotary Drilling Rigs, and spare parts. The company has strong market presence driven by customer-centric approach. It has in-house engineering and design capabilities. On the concern side, geographically, the company’s revenues are highly dependent on its operations in the India more particularly in few selected States. Any adverse development affecting its operations in these regions could have an adverse impact on its business, financial condition and results of operations. Moreover, the company’s business is dependent on few numbers of clients and the loss of any of these clients could have an adverse effect on its business, financial condition, results of operations and cash flows.
The company is coming out with a maiden IPO of 36,89,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 123-130 per equity share. The aggregate size of the offer is around Rs 45.37 crore to Rs 47.96 crore based on lower and upper price band respectively. On performance front, the company has reported 43.73% rise in its revenue from operations to Rs 9,914.09 lakh in FY25 as compared to Rs 6,897.67 lakh in FY24. Moreover, the company’s net profit jumped 4-fold to Rs 1,378.84 lakh in FY25 as compared to Rs 323.06 lakh in FY24.
The company will continue to enhance its operating practices and improve operational effectiveness. Improved efficiency leads to improve performance and higher sales, enabling it to reduce fixed costs and enhance profit margins. The company’s focus on economies of scale allows it to strengthen its negotiating power in procurement, further driving cost savings. The company’s gross profit margin improved from 17.77% in FY 2022-23 to 32.13% in FY 2024-25, demonstrating its ability to enhance profitability through cost efficiency. Moving forward, it will continue to enhance its operating practices and leverage economies of scale to strengthen its financial position, drive sustainable growth, and maintain a competitive edge in the market.
