Hi-Tech Flow Solutions IPO

Strengths · 6

• 01Revenue from operations grew from Rs 229.03 crore in FY2024 to Rs 417.17 crore in FY2026, a CAGR of 34.96%.
• 02Profit after tax doubled from Rs 18.32 crore in FY2024 to Rs 36.42 crore in FY2026.
• 03Return on equity was 32.24% and RoCE 35.62% in FY2026.
• 04Debt is low, with a debt-to-equity ratio of 0.37 in FY2026 and total borrowing of Rs 48.12 crore against net worth of Rs 131.21 crore.
• 05Customer concentration has eased, with the top five customers falling from 46.09% of revenue in FY2025 to 39.47% in FY2026.
• 06The new Nagpur plant adds 120,000 MTPA of capacity, three times the Sanand unit, giving room to grow without fresh capex for plain pipes.

Risks · 7

• 0172.14% of FY2026 revenue came from EPC contractors working on government-funded projects, so delays or funding cuts in these projects hit sales directly.
• 02Operating cash flow was negative at Rs 14.81 crore in FY2026 even as profit rose, because more cash was tied up in receivables and inventory.
• 03The top five suppliers made up 90.75% of purchases in FY2026, with no long-term contracts and some of them related parties.
• 04The Nagpur plant ran at only 33.11% of capacity in FY2026, and the new API-grade unit adds execution risk on top.
• 05HR coil, the key raw material, is volatile in price, and margins are thin, with an EBITDA margin of 12.70% and a PAT margin of 8.71% in FY2026.
• 06Inventory days rose from 25 in FY2025 to 44 in FY2026 and net working capital days from 15 to 49.
• 07Investor selling shareholder The Wealth Company Alternates Trust bought its shares at an average cost of Rs 19.74, while the promoters' cost is negligible.

Hi-Tech Flow Solutions Limited, formerly Hitech Saw Limited, is a Delhi-based maker of helical submerged arc welded (HSAW) steel pipes. These are large-diameter pipes used to carry water over long distances. The company supplies them across 17 states and 2 union territories.

It runs two plants, at Sanand in Gujarat and Nagpur in Maharashtra. The Sanand unit has an installed capacity of 40,000 MTPA and ran at 81.14% utilisation in FY2026. The Nagpur unit, with 120,000 MTPA of capacity, started commercial production on 3 January 2025 and ran at 33.11% utilisation in FY2026.

Most sales go to EPC contractors building government water supply, irrigation, river-linking, sewerage and urban infrastructure projects. In FY2026, EPC customers gave Rs 300.94 crore, or 72.14% of revenue, and dealers and distributors gave Rs 116.24 crore, or 27.86%. Exports are small, at Rs 4.62 crore to the Netherlands and the UAE in FY2026.

The company is part of the Hi-Tech Group and buys a large share of its raw material through group companies. It now plans to make API-grade HSAW pipes and 3LPE-coated pipes for the oil and gas sector at Nagpur, which is the main use of the fresh issue money.

The industry

As per the CareEdge report quoted in the DRHP, India's HSAW pipe market grew from USD 953 million in 2019 to USD 2,097 million in 2025 and is projected to reach USD 3,039 million by 2030. Demand comes from water programmes such as AMRUT 2.0 and the Jal Jeevan Mission, the Inter-Linking of Rivers programme, and gas pipelines.

Customer concentration: Top 5 customers gave 39.47% of FY2026 revenue (46.09% in FY2025, 45.22% in FY2024).