Hy-Tech Engineers IPO

Strengths · 8

• 01Sales and profit have grown for three years. Total income went from Rs 141.17 crore in FY2024 to Rs 166.71 crore in FY2025 and Rs 193.44 crore in FY2026.
• 02Profit after tax nearly doubled in two years, from Rs 11.60 crore in FY2024 to Rs 19.62 crore in FY2025 and Rs 22.59 crore in FY2026.
• 03Return ratios are healthy, with RoCE of 20.46% and RoNW of 21.39%, and the PAT margin was 11.77%.
• 04The company cut its borrowing while growing, from Rs 43.53 crore in FY2025 to Rs 29.76 crore in FY2026, against a net worth of Rs 122.02 crore.
• 05The product range is very wide at more than 11,000 SKUs, so a customer can source most of its fitting needs from one supplier.
• 06It is backward integrated. Its Nashik unit supplies forged parts to the other plants, which helps control cost and quality.
• 07It has a long record of more than 45 years, having started in December 1978.
• 08Exports go to eleven markets including the USA, Germany and Italy, and railway and defence certifications open up further demand.

Risks · 8

• 01Demand depends on industrial and vehicle capital spending. Hydraulic fittings are bought when construction, farm and factory machinery is being built, so a slowdown in those industries directly cuts orders.
• 02The company runs four manufacturing plants plus a forging unit, which is a lot of fixed cost to carry for a company of this size if volumes fall.
• 03Rs 29.97 crore of the issue money goes into expanding three units at the same time, at Kavathe, Shirwal and Pithampur, which brings execution risk and the new capacity will take time to earn.
• 04It uses a large contract workforce, 253 contract workers against 468 permanent employees, which brings labour availability and compliance risk.
• 05Steel and alloy prices are the main raw material cost and any sharp rise that cannot be passed on to OEM customers will squeeze margin.
• 06Selling to OEMs usually means long payment terms and pressure on price at every annual contract renewal.
• 07Exports to eleven countries bring currency risk and exposure to trade rules in those markets.
• 08Promoter holding will come down from 97.99% to 71.23% after the issue.

Hy-Tech Engineers Limited was started in December 1978. It designs, makes and supplies hydraulic fittings, which are the joints and connectors used to carry high pressure oil in machines. It has more than four decades of experience in the hydraulics business.

Its range covers over 11,000 SKUs, including DIN-metric fittings, JIC flared and flareless fittings, O-Ring Face Seal fittings, conversion fittings and fittings made to a customer's own design. It works on a B2B model, selling to original equipment makers and industrial buyers both directly and through authorised distributors.

Its fittings go into construction machinery, automotive, farming machinery, injection moulding machines and general hydraulic systems, and it also holds certifications for railway and defence use. As on 31 March 2026 it was selling in markets including the USA, Belgium, Poland, Russia, Brazil, Italy, Saudi Arabia, Hungary, UAE, Thailand and Germany. It runs plants at Thane, Shirwal, Kavathe and Pithampur, supported by a unit at Nashik that supplies forged parts to the other plants. As on 31 March 2026 it had 468 permanent employees and 253 contract workers.

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