Archive · 9 Oct 2026
Ardee Industries Expands Capacity and Exports Amid Cash-Flow Risks
Ardee Industries recycles lead, much of it from used batteries.
It has grown its sales and profits quickly in recent years.
The company added a lot of production capacity by improving its existing plant, spending about Rs 15 crore.
It also sells more of its lead to customers in other countries.
But in the first quarter of FY27, sales grew much faster than operating profit, and profit margins fell.
The company says shipping and raw-material difficulties make it cautious about growth this year.
It also needs a lot of money tied up in buying scrap and giving customers time to pay.
Investors will be watching whether the company can grow while improving cash generation and maintaining returns.
Ardee Industries increased installed capacity by 50.9% for about Rs 15 crore through brownfield debottlenecking.
Revenue rose from Rs 463 crore in FY24 to Rs 1,167.7 crore in FY26, while profit after tax reached Rs 84.7 crore.
Exports grew to Rs 465.1 crore in FY26, and the company now sells to eight countries.
In Q1 FY27, revenue rose 35.2% year over year, but EBITDA was nearly unchanged and margins fell.
Management forecasts 10-20% FY27 growth amid procurement disruption, while working-capital needs and customer concentration remain risks.
- Who
- Ardee Industries, an Indian lead recycler.
- What
- The company is expanding capacity and exports while facing margin, working-capital and raw-material risks.
- When
- The article covers FY24-FY26 results and Q1 FY27; the added capacity became effective May 29, 2026.
- Where
- India, with exports to eight countries.
- Why
- Growth depends on using added capacity and expanding exports, while managing imported scrap procurement, margins and cash needs.
Growth opportunities
Risks and execution challenges
Capacity expansion
Growth opportunities
Ardee added 50.9% capacity for about Rs 15 crore, suggesting it can grow without a large plant investment.
Risks and execution challenges
The added capacity must translate into higher sales and returns; current utilisation is about 65%.
Exports
Growth opportunities
Export revenue reached Rs 465.1 crore in FY26, and LME empanelment may help build credibility with overseas buyers.
Risks and execution challenges
Some export markets require more customer credit, increasing working-capital needs, and profitable export growth remains to be demonstrated.
Growth and profitability
Growth opportunities
Revenue and profit rose sharply between FY24 and FY26, and management sees potential to outperform its FY27 guidance.
Risks and execution challenges
Q1 FY27 EBITDA was nearly flat year over year as margins fell; management's formal FY27 growth guidance is 10-20%.
- Installed capacity
- 156,950 metric tonnes per annum after a 50.9% increase.
- Capacity expansion cost
- About Rs 15 crore through brownfield debottlenecking.
- FY26 revenue
- Rs 1,167.7 crore, compared with Rs 463 crore in FY24.
- FY26 profit after tax
- Rs 84.7 crore, compared with Rs 9 crore in FY24.
- FY26 export revenue
- Rs 465.1 crore.
- Q1 FY27 EBITDA
- Rs 33.8 crore, nearly unchanged year over year despite revenue growth of 35.2%.
- FY27 management guidance
- 10-20% revenue and volume growth; EBITDA margin around 10%.
- Expected working capital
- 90-100 days, with gross requirements of more than Rs 400 crore in FY27.