Hy-Tech Engineers IPO

Promoter Hemant Tukaram Mondkar, an IIT Bombay alumnus, leads the company and brings more than 40 years of industry experience. His technical know-how has played an important role in scaling the company’s revenue to ₹189.40 crore in FY26.

Net profit almost doubled from ₹11.60 crore in FY24 to ₹22.59 crore in FY26. This shows that the business has become more profitable, with its profit margin improving from 8.21% to 11.68% during the same period.

Repeat customers contributed a huge 95.10%, or ₹180.08 crore, of operating revenue in FY26. This strong repeat business makes revenue more predictable, reduces the need to constantly find new customers, and reflects trust in its products.

It follows a converter model, where product prices are agreed with customers and adjusted every month or two based on changes in raw material, particularly steel, prices. This pass-through mechanism protects the company from sudden commodity price swings and has helped keep raw material costs relatively stable at 34.80% of revenue in FY26, compared with 35.73% in FY24.

It exports hydraulic fittings to 11 countries, generating ₹55.62 crore, or 29.37% of FY26 operating revenue. Selling across different markets gives it access to overseas opportunities and reduces its dependence on the Indian market alone.

Its Nashik factory has a captive forging capacity of 3,120 metric tonnes per year to supply its other plants. This backward integration, meaning it makes some of its own inputs, helps lower production costs, reduce dependence on outside suppliers, and maintain control over raw material quality.

The company sells directly to 170 OEMs (manufacturers that make the final equipment) and also works with seven active distributors. This approach helps it build strong relationships with large customers while using distributors to efficiently reach smaller workshops and businesses.

Its top 10 customer groups contributed 45.32%, or ₹85.84 crore, of total revenue in FY26. Since these customers do not have long-term contracts, losing even one major account could have a noticeable impact on sales and profits.

Exports contributed 29.37% of revenue in FY26, with the USA alone accounting for 21.42%, or ₹40.58 crore. Changes in US tariffs, regulations, or geopolitical conditions could therefore affect one of its biggest export markets.

Trade receivables stood at ₹49.90 crore in FY26, equal to 26.35% of revenue, while customers took an average of 91 days to pay. This ties up a large amount of cash and can increase its reliance on short-term bank borrowing to fund day-to-day operations.

Its top 10 suppliers accounted for 65.61% of total purchases in FY26, worth ₹44.38 crore. With no long-term supply contracts in place, supplier disputes, delivery delays, or steel shortages could disrupt production.

The company earns 29.37% of its revenue from exports, mainly in US Dollars, but does not use hedging contracts to protect against currency movements. A sharp change in the rupee's value could therefore reduce its export margins and hurt overall profits.

Direct sales made up 88.42%, or ₹167.48 crore, of FY26 revenue. This means any major equipment failure or slowdown at its direct customers' factories could quickly reduce their demand for its products.

The company relies heavily on three industries, construction, farming, and automotive, which together contributed 54.82%, or ₹103.83 crore, of FY26 revenue. A slowdown in any of these sectors could lead to lower demand for its products.