The Hi-Tech Gears Limited (HITECHGEAR)
₹552.85 -2.38% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Hi-Tech Gears' revenue was ₹238 Cr (+10.3% year on year, +4.0% on the previous quarter), and net profit ₹4.8 Cr (-20.7% year on year); the operating margin was 11.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹238 | +10.3% | +4.0% |
| Operating profit | ₹26.3 | +0.7% | +4.4% |
| Net profit | ₹4.8 | -20.7% | -41.3% |
| EPS (₹) | 2.53 | -20.7% | -41.3% |
| Operating margin | 11.1% | — | — |
HITECHGEAR exchange data
NSE end-of-day data for
It closed at a price band (circuit) on 5 sessions in about the last 20.
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
The National Company Law Appellate Tribunal (NCLAT) has continued its interim stay on the Corporate Insolvency Resolution Process (CIRP) against The Hi-Tech Gears Limited. The stay was initially granted on September 03, 2024, in an appeal filed by a shareholder against Happy Forgings Ltd. & Anr. Due to paucity of time on October 07, 2026, the bench could not hear the appeal and scheduled the next hearing for November 06, 2026. While the stay remains operative, the overarching insolvency overhang persists for the company (market cap Rs 1,071 Cr).
- Interim stay on CIRP process granted vide order dated September 03, 2024, remains in force
- NCLAT adjourned the matter on October 07, 2026, due to paucity of time
- Next date of hearing fixed for November 06, 2026
- Proceedings relate to Company Appeal (AT) (Ins) No. 1734 of 2024 filed against Happy Forgings Ltd.
The Hi-Tech Gears Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate from RTA MAS Services Limited confirms that all securities received for dematerialization were processed, confirmed, or rejected within the mandated 15-day timeline. Additionally, physical certificates were mutilated and cancelled as per standard depository procedures. This filing is entirely procedural with no impact on business operations or financials.
- Compliance certificate pertains to the period from 01/07/2026 to 30/09/2026
- RTA confirmed securities processed within the statutory 15 days of receipt
- Filing submitted pursuant to Regulation 74(5) of SEBI Depositories Regulations, 2018
- Issued by Registrar and Share Transfer Agent MAS Services Limited on October 06, 2026
The National Company Law Appellate Tribunal (NCLAT), New Delhi, has extended the interim stay on the Corporate Insolvency Resolution Process (CIRP) against The Hi-Tech Gears Limited. The matter could not be heard on October 5, 2026, due to paucity of time and has been rescheduled for October 7, 2026. The stay continues under the original relief granted on September 3, 2024, in an appeal involving Happy Forgings Ltd.
- Hearing before NCLAT on October 5, 2026, deferred due to paucity of time
- Next date of hearing scheduled for October 7, 2026
- Continuation of interim stay on CIRP granted originally vide order dated September 3, 2024
- Dispute ongoing with respondent Happy Forgings Ltd. under Company Appeal No. 1734 of 2024
The Hi-Tech Gears Limited received an order on October 01, 2026, from the Customs Authority regarding export proceeds realization. The order dropped demands of ₹73,78,166 in duty drawbacks and ₹43,37,246 in RoDTEP benefits (totaling ~₹1.17 Cr). However, it disallowed drawbacks of ₹13,58,140 and RoDTEP of ₹8,76,568, alongside recovering interest and a penalty of ₹1,00,000, against which the company intends to appeal. Given the company's TTM revenue of ₹931 Cr and PAT of ₹20 Cr, the net financial impact is immaterial.
- Customs dropped demand of drawbacks worth Rs. 73,78,166 and RoDTEP worth Rs. 43,37,246
- Disallowed drawback claims of Rs. 13,58,140 and RoDTEP claims of Rs. 8,76,568
- Imposed a penalty of Rs. 1,00,000 along with applicable interest recovery
- Matter pertains to short/delayed realization of export proceeds against shipping bills
- Company is preparing to file an appeal against the disallowance with the appropriate authority
The Hi-Tech Gears Limited informed exchanges that the National Company Law Appellate Tribunal (NCLAT) has continued its interim stay on the Corporate Insolvency Resolution Process (CIRP). The stay, originally granted on September 3, 2024, in an appeal against Happy Forgings Ltd, was extended following an adjournment request by the appellant. NCLAT has scheduled the next hearing for October 5, 2026, specifically to consider the respondent's stay vacation application. For a company with a market cap of ₹1,176 Cr and annual revenue of ₹908 Cr, the resolution of insolvency proceedings remains a critical legal overhang.
- NCLAT Order dated September 25, 2026, extended the interim stay on CIRP proceedings
- Matter scheduled for the next hearing on October 5, 2026, to consider the stay vacation application
- Interim stay on CIRP has been operational since the order dated September 3, 2024
- Dispute stems from Company Appeal (AT) (Ins) No. 1734 of 2024 involving Happy Forgings Ltd
The Hi-Tech Gears Limited has announced the resignation of Mr. Naveen Jain from the role of Company Secretary & Compliance Officer, effective from the close of business hours on August 29, 2026. The resignation was tendered on August 27, 2026, citing personal reasons, with no other material reasons confirmed. The company will need to appoint a successor to manage secretarial compliance and regulatory disclosures. This administrative change does not impact the company's manufacturing operations or financial performance (TTM revenue of ₹931 Cr).
- Mr. Naveen Jain resigned as Company Secretary & Compliance Officer effective close of business hours on August 29, 2026
- Resignation letter submitted on August 27, 2026, citing personal reasons
- Confirmation provided that there are no other material reasons behind the resignation
- Company is in the process of ensuring statutory compliance handoff
The Hi-Tech Gears Limited announced that Mr. Naveen Jain has resigned from the position of Company Secretary and Compliance Officer due to personal reasons. The resignation is effective from the close of business hours on August 29, 2026. The outgoing official confirmed there are no other material reasons behind the departure. This is an administrative compliance change with no direct impact on the company's financial operations or business performance.
- Cessation of Mr. Naveen Jain as Company Secretary & Compliance Officer
- Resignation effective from the close of business hours on August 29, 2026
- Resignation letter tendered on August 27, 2026, citing personal reasons with no other material reasons confirmed
The Hi-Tech Gears Limited has issued the notice for its 40th Annual General Meeting (AGM) scheduled for Tuesday, September 22, 2026. Key agenda items include adoption of FY26 financial statements and approval of a final dividend of ₹4.00 per equity share (40% on face value of ₹10). Shareholders will also vote on the re-appointment of Independent Director Rajiv Batra for a second five-year term and continuation of directorships beyond age 75. The cut-off date for e-voting eligibility is September 15, 2026.
- 40th Annual General Meeting scheduled for September 22, 2026, at 05:00 PM IST.
- Proposed final dividend of ₹4.00 per equity share (40% on ₹10 face value) for FY26.
- Remote e-voting window open from September 19, 2026 (09:00 AM) to September 21, 2026 (05:00 PM).
- Cut-off date for determining voting rights fixed as September 15, 2026.
- Special resolution proposed for re-appointment of Independent Director Rajiv Batra for a second term from Nov 2, 2026 to Nov 1, 2031.
The National Company Law Appellate Tribunal (NCLAT) has continued its interim stay on the Corporate Insolvency Resolution Process (CIRP) against The Hi-Tech Gears Limited. Due to paucity of time, the scheduled hearing on August 17, 2026, could not be taken up. The tribunal has adjourned the matter and fixed the next hearing date for September 25, 2026. The underlying appeal was filed against Happy Forgings Ltd. regarding the CIRP proceedings.
- NCLAT extended the interim stay on CIRP granted earlier on September 03, 2024
- Scheduled hearing on August 17, 2026, deferred due to paucity of time
- Next date of NCLAT hearing listed for September 25, 2026
- Matter relates to Company Appeal (AT) (Ins) No. 1734 of 2024 vs Happy Forgings Ltd.
The Hi-Tech Gears Limited has fixed September 15, 2026, as the record date for a final dividend of Rs 4 per equity share (40% of face value) for FY 2025-26. This dividend is subject to shareholder approval at the upcoming 40th Annual General Meeting. Based on the current market price of Rs 547.9, the dividend yield stands at approximately 0.73%. The payout represents roughly 35.8% of the company's FY26 EPS of Rs 11.16, indicating a moderate distribution of annual profits.
- Dividend declared at Rs 4 per equity share of Rs 10 face value (40%)
- Record date for dividend entitlement fixed as September 15, 2026
- Cut-off date for 40th AGM voting eligibility also set for September 15, 2026
- Dividend payout ratio is approximately 35.8% based on FY26 EPS of Rs 11.16
The Hi-Tech Gears reported a 10.3% YoY growth in consolidated revenue to ₹237.7 Cr for Q1 FY27, though consolidated PAT fell 20% to ₹4.8 Cr. Profitability was impacted by upfront costs related to a major machine refurbishment program and inflationary pressures in fuel (PNG/LPG) and consumables. The company is maintaining a strong balance sheet with a Net Debt/Equity ratio of 0.05x. Management is pivoting towards EV components, having secured business from Hero Moto Corp and Dana, while expecting efficiency gains from refurbishment to accrue starting H2 FY27.
- Consolidated Revenue increased 10.3% YoY to ₹237.7 Cr in Q1 FY27.
- Consolidated PAT declined 20% YoY to ₹4.8 Cr, with PAT margins contracting to 2.02%.
- Net Debt/Equity remains exceptionally low at 0.05x as of June 2026.
- International operations (Exports and North America) contributed 46% of total revenue.
- Machine refurbishment program in the machine shop is scheduled for completion by Q2 FY27.
The Hi-Tech Gears Limited reported a 10.3% YoY increase in consolidated revenue to ₹232.34 Cr for Q1 FY27. However, consolidated net profit declined by 20.7% YoY to ₹4.76 Cr, primarily due to an 18.9% rise in employee benefit expenses and higher other expenses. The company has appointed Manoj Kumar Saxena, a veteran from Gates Corporation, as VP - Operations Transformation to lead strategic projects. The board also approved the re-appointment of Independent Director Rajiv Batra for a second five-year term.
- Consolidated revenue from operations increased 10.3% YoY to ₹232.34 Cr in Q1 FY27
- Consolidated net profit for the quarter dropped to ₹4.76 Cr from ₹6.00 Cr in the year-ago period
- Employee benefit expenses rose significantly by 18.9% YoY to ₹46.09 Cr
- Manoj Kumar Saxena appointed as VP - Operations Transformation & Strategy effective August 06, 2026
- Rajiv Batra re-appointed as Independent Director for a 5-year term starting November 02, 2026
The Hi-Tech Gears reported a 10.3% YoY increase in consolidated revenue to ₹232.34 Cr for Q1 FY27, but net profit declined by 20.7% to ₹4.76 Cr. The bottom line was impacted by an 18.9% rise in employee benefit expenses (₹46.09 Cr) and a 20.6% increase in other expenses (₹47.36 Cr). To address operational efficiency, the company appointed Manoj Kumar Saxena as VP - Operations Transformation, Strategy & Special Projects. Consolidated EPS fell to ₹2.53 from ₹3.19 in the year-ago period, reflecting margin pressure.
- Consolidated revenue from operations grew 10.3% YoY to ₹232.34 Cr in Q1 FY27.
- Net profit for the quarter declined to ₹4.76 Cr compared to ₹6.00 Cr in Q1 FY26.
- Employee benefit expenses rose significantly by 18.9% YoY to ₹46.09 Cr.
- Manoj Kumar Saxena appointed as VP - Operations Transformation effective August 06, 2026.
- Consolidated EPS for the quarter stood at ₹2.53, down from ₹3.19 YoY.
The Hi-Tech Gears Limited reported a 10.3% YoY increase in consolidated revenue to ₹232.34 cr for Q1 FY27. However, consolidated net profit declined by 20.7% YoY to ₹4.76 cr, driven by a sharp rise in employee benefits (up 18.9%) and other expenses (up 20.6%). Profit Before Tax (PBT) saw a steeper decline of 39.2% YoY to ₹6.39 cr, indicating significant margin pressure. To address operational challenges, the company appointed Manoj Kumar Saxena as VP of Operations Transformation and Strategy.
- Consolidated Revenue from operations grew 10.3% YoY to ₹232.34 cr from ₹210.62 cr.
- Consolidated Net Profit dropped 20.7% YoY to ₹4.76 cr compared to ₹6.00 cr in the previous year.
- Employee benefit expenses surged to ₹46.09 cr, an 18.9% increase over Q1 FY26.
- Other expenses rose 20.6% YoY to ₹47.36 cr, further squeezing operating margins.
- Appointed Manoj Kumar Saxena as VP - Operations Transformation to lead manufacturing excellence and strategy.
The Hi-Tech Gears reported a 10.3% YoY increase in consolidated revenue to ₹232.34 Cr for Q1 FY27. However, consolidated Net Profit fell by 20.7% to ₹4.76 Cr, down from ₹6.00 Cr in the same quarter last year, as margins were squeezed by rising costs. Employee benefit expenses surged 18.9% YoY to ₹46.09 Cr, and other expenses rose 20.6% to ₹47.36 Cr. To address operational challenges, the company appointed Manoj Kumar Saxena as VP of Operations Transformation and Strategy.
- Consolidated Revenue from operations reached ₹232.34 Cr, a 10.3% increase over Q1 FY26 (₹210.62 Cr).
- Consolidated Net Profit for the quarter stood at ₹4.76 Cr, down from ₹6.00 Cr in the previous year.
- Employee benefit expenses increased significantly to ₹46.09 Cr from ₹38.76 Cr YoY.
- Consolidated Profit Before Tax (PBT) dropped to ₹6.39 Cr compared to ₹10.51 Cr in Q1 FY26.
- Appointment of Manoj Kumar Saxena as VP - Operations Transformation, Strategy & Special Projects effective August 06, 2026.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for H1 FY26 stood at INR 456.3 Cr, representing a decline of approximately 10% compared to INR 507.0 Cr in H1 FY25. Standalone India revenue for H1 FY26 was INR 333.2 Cr, a 15.6% decrease from INR 394.7 Cr YoY. The decline is attributed to muted activity in the commercial automobile industry and geopolitical tensions affecting North American operations.
Geographic Revenue Split
The group operates in India and North America. India operations contributed approximately 73% of consolidated revenue in H1 FY26 (INR 333.2 Cr out of INR 456.3 Cr). North American business revenues decreased due to an uncertain geopolitical environment causing customers to adopt a 'wait and watch' mode.
Profitability Margins
Consolidated PAT margin for H1 FY26 was 2.63% (INR 12.0 Cr) compared to 10.23% (INR 114.3 Cr) in FY24. Standalone PAT margin for H1 FY26 was 5.22% (INR 17.4 Cr). Net margins were impacted by an impairment of INR 11.62 Cr related to investments in Altigreen Propulsion Labs and higher raw material costs in overseas operations.
EBITDA Margin
Consolidated EBITDA margin stood at 11.83% in H1 FY26 (INR 53.9 Cr), a contraction from 14.66% in FY25 and 13.55% in FY24. The margin compression of approximately 283 bps YoY is driven by product mix changes and higher raw material costs in the North American subsidiary, partially offset by productivity improvements.
Capital Expenditure
The company utilized INR 166 Cr from a sale and leaseback arrangement of one of its plants to prepay term debt. Management has indicated an absence of any sizeable, debt-funded capital expenditure (capex) plans over the medium term to maintain a healthy financial risk profile.
Credit Rating & Borrowing
CRISIL Ratings has assigned a 'Positive' outlook, reflecting an improved financial risk profile. Interest coverage is expected to range between 4-5 times in fiscal 2026. The group has significantly reduced its reliance on external debt, with the Net Debt to Equity ratio improving from 1.00x in FY23 to 0.06x as of September 30, 2025.
Operational Drivers
Raw Materials
The company utilizes steel and specialized alloys for manufacturing gears and transmission components; specific raw material names and their exact percentage of total cost are not disclosed, though 'higher raw material costs' are cited as a primary reason for lower overseas profitability.
Import Sources
Not specifically disclosed in the available documents, though the company has significant operations and supply chains in India and North America (Canada).
Capacity Expansion
Current capacity is not disclosed in MT/units; however, the company is 'leveraging existing capacities' to quote for new business. Focus remains on 'strengthening critical equipment' and 'restoring productivity' rather than greenfield expansion.
Raw Material Costs
Raw material costs increased in North American operations due to a 'product mix change,' which negatively impacted margins despite higher productivity. Total consolidated expenses for H1 FY26 were INR 402.3 Cr, representing 88.1% of revenue.
Manufacturing Efficiency
The company is focused on 'building organizational capability initiatives' to improve manufacturing efficiency and operational reliability. Average bank limit utilization improved from 79% to 37-40% in 2024, indicating better internal cash flow management.
Strategic Growth
Expected Growth Rate
8-10%
Growth Strategy
Growth will be achieved through the onboarding of new OEMs (CNH, Dana, Stackpole, Mahindra, Harley), a strategic pivot toward Electric Vehicle (EV) components, and aggressive bidding for new business. In H1 FY26, the company won new business worth approximately INR 86 Cr (annualized), with a focus on selling existing unutilized capacity.
Products & Services
Precision auto components including gears, shafts, and transmission products for the automobile industry, specifically targeting OEMs in the commercial and passenger vehicle segments.
Brand Portfolio
The Hi-Tech Gears Limited (THGL).
New Products/Services
The company is pivoting toward EV-specific components and has won new business worth INR 86 Cr annualized in H1 FY26, though the specific revenue contribution percentage from new products is not yet finalized.
Market Expansion
Targeting expansion in the North American market by leveraging the Canadian subsidiary (Ontario Inc) and adding global OEMs to the client roster.
Strategic Alliances
The company has a wholly owned subsidiary, Ontario Inc, Canada, which manages various step-down subsidiaries for international operations.
External Factors
Industry Trends
The industry is shifting toward Electric Vehicles (EVs), and the company is positioning itself for this transition. Current trends show a temporary slowdown in the commercial vehicle segment due to global economic uncertainty.
Competitive Landscape
The company competes in the auto component industry against both domestic and international gear manufacturers, focusing on high-precision transmission components.
Competitive Moat
The moat is built on 30+ years of promoter experience and established relationships with global OEMs. This is sustainable due to the high switching costs and technical specifications required for precision gears, though it is currently tested by macroeconomic headwinds.
Macro Economic Sensitivity
Highly sensitive to the commercial automobile industry cycle and global trade policies. A decline in revenue or operating margins to 9-10% is identified as a downward rating factor.
Consumer Behavior
Shift toward EV adoption is changing the demand profile for traditional transmission components, necessitating the company's strategic pivot.
Geopolitical Risks
Uncertain geopolitical environment in North America and potential US tariffs are cited as major risks that have already led to decreased revenues and customer hesitation.
Regulatory & Governance
Industry Regulations
Operations are subject to automotive manufacturing standards and potential international trade tariffs (specifically US tariffs).
Taxation Policy Impact
The standalone tax expense for H1 FY26 was INR 7.0 Cr on a PBT of INR 24.4 Cr, implying an effective tax rate of approximately 28.7%.
Legal Contingencies
The company recorded an impairment of INR 11.62 Cr on account of fair valuation of investment in Altigreen Propulsion Labs Private Limited. No other specific pending court cases were detailed.
Risk Analysis
Key Uncertainties
The primary uncertainty is the 'wait and watch' mode of North American customers due to geopolitical factors, which could impact revenue by 10-15% if sustained.
Geographic Concentration Risk
Approximately 27% of revenue is estimated to come from overseas operations (based on standalone vs consolidated H1 FY26 figures), making the group vulnerable to regional economic shifts in North America.
Third Party Dependencies
Dependency on a few major OEMs like Mahindra and Harley; loss of any single major client would significantly impact the 8-10% growth target.
Technology Obsolescence Risk
The shift to EVs poses a risk to traditional gear products; the company is mitigating this by pivoting its product development toward EV applications.
Credit & Counterparty Risk
Receivables quality is supported by relationships with established global OEMs, though specific aging data is not provided.
