Patil Automation IPO GMP

June 23, 2025 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Patil Automation Limited, established in 2015, is a leading provider of industrial automation solutions in India, primarily serving automotive OEMs, Tier I suppliers, and component manufacturers. The company specializes in designing, manufacturing, testing, and installing customized automation systems, including welding lines, assembly lines, and material handling machinery. Patil Automation operates across 10 Indian states and, as of March 31, 2025, employed 244 full-time staff and over 250 contract laborers. The Patil Automation IPO, opening on June 16 and closing on June 18, 2025, aims to raise ₹69.61 crore through a fresh issue, with shares to be listed on the NSE SME platform.

₹20

Latest IPO GMP

Last updated on 21 Jun 2025 10.51

₹120

IPO Offer Price

*cut off price

₹155

Listing Price

Listing Date 23/06/2025

Expert Opinions

Market sentiment for the Patil Automation IPO is cautiously optimistic, supported by the company’s strong financial growth and its positioning in India’s expanding industrial automation sector. Company strengths include robust engineering capabilities, a diversified client base among major automotive OEMs and Tier I suppliers, and a track record of consistent revenue and profit growth—revenue rose from ₹118.72 crore in FY2024 to ₹122.04 crore in FY2025, with profit surging from ₹7.84 crore to ₹11.70 crore over the same period. Risks and challenges include dependence on the automotive industry, exposure to raw material price volatility, and the cyclical nature of industrial capex.

Valuation analysis for Patil Automation IPO (FY2025) indicates a healthy Return on Equity (ROE) of 27.28%, Return on Capital Employed (ROCE) of 21.62%, and a Net Asset Value (NAV) of ₹34.96, reflecting efficient capital usage and strong profitability. The long-term investment perspective is positive, given India’s manufacturing push and increasing automation adoption, but investors should monitor sector trends and execution risks for sustained returns. Patil Automation is well-positioned to benefit from these trends, provided it maintains operational excellence and diversifies its client base.

Investor Considerations

Investors evaluating the Patil Automation IPO should consider the company’s strong performance and fundamentals, with revenue rising from ₹82.35 crore in FY2023 to ₹122.04 crore in FY2025 and profit after tax increasing from ₹4.20 crore to ₹11.70 crore over the same period, reflecting robust growth and improving profitability. The sector outlook is positive, driven by India’s manufacturing expansion and the increasing adoption of automation technologies in industries such as automotive and industrial manufacturing. Patil Automation IPO valuation for FY2025 stands at a Price to Book Value of 3.43, PAT margin of 9.91%, and a debt/equity ratio of 0.43, indicating healthy valuation, reasonable profitability, and manageable leverage.

Growth prospects are promising, supported by new facility expansion and rising demand for automation solutions. However, risk factors include heavy reliance on the automotive sector, customer concentration (top ten clients contributing over 76% of revenue), and potential raw material cost fluctuations. Short-term investors may face market volatility, while long-term investors could benefit from India’s manufacturing and automation growth, provided Patil Automation maintains operational excellence and diversifies its client base.