HD Fire Protect

Focused on fire safety

HD Fire Protect is an Indian manufacturer and supplier of fire protection equipment and systems, offering a comprehensive portfolio spanning water, foam, and gas-based fire suppression systems, which are also generally known as fire fighting products. The company develops most of its products in-house with proprietary designs to meet national and international standards, serving high hazard industrial applications as well as residential and commercial sectors.

Product offerings of the company as of June 30, 2026, are spread across 8 product categories: (a) sprinklers, alarm valves and accessories, (b) deluge valves, deluge skids and pre-action systems, (c) foam equipment and suppression systems, (d) monitors and monitor nozzles, (e) systems valves and accessories, (f) water spray nozzles, (g) custom engineered systems, and (h) gas suppression systems.

In FY26, about 33.95% of revenue from operations was from sprinklers alarm valves & accessories, 21.85% from deluge valves/skids & preaction systems; 18.71% from foam equipment & suppression systems; 6.82% from water spray nozzles; 5.45% from system valves & accessories;5.52% from monitors & monitor nozzles; and balance 0.73% from custom engineered systems.

The company caters to a wide spectrum of (a) industrial end use in sectors such as industrials, heavy engineering, aerospace, oil & gas, refining and petrochemicals, power & energy, pharmaceuticals, data centres, warehousing amongst others; and (b) residential and commercial end use in sectors such as hospitality, healthcare, retail, education, banking and warehousing. It is also empanelled with various customers across sectors where it has presence.

As of June 30, 2026, the company had built a robust and diversified customer base of over 905 clients across India and international markets, with long-standing relationships spanning industrials, heavy engineering, aerospace, oil & gas, refining and petrochemicals, power & energy, pharmaceuticals, data centres, warehousing amongst others.

Key customers include Sterling and Wilson Private Limited, Metec Design & Construction Engineers India, Matrix Engineers, Techno Electric & Engineering Company, Godrej Properties, HCPL?Mittal Energy, Chetan Corporation, Phoenix Engineers, Agnice Fire Protection, Universal Fire Protect LLP, Sahaj Fire Safety &Equipments, and Punim Engineering Co, among others.

While the top 3 customers accounted for 11.40% of revenue from operations in FY26, the top 10 customers accounted for 23.69%. In FY26, it got about 54.40% of its revenue from customers of more than 5 years and 14% from customers three-five years old. Revenue from repeat customers stood at 85.20%.

The company is the first Indian fire protection equipment and systems manufacturer to receive UL Listing for deluge valves (1996). It is also the first Indian fire protection equipment and systems manufacturer to receive FM approval for range of products used in low expansion foam system namely foam concentrates, bladder tanks, proportioners, topside discharge devices and foam water sprinkler discharge devices.

Further, it is also the first Indian company focused on fire protection equipment and systems manufacturing to receive ASME U (pressure vessels) stamp certification. As of September 2026, it had 21 products UL-listed and 87 products FM approved.

Among the fire protection equipment focused peers it is the only company to have all of the following certifications, UL Solutions, FM Approvals, CE, VdS, ASME-U and Lloyd?s Register, across the following product categories: sprinklers, alarm valves and accessories, deluge valves, deluge skids and pre-action systems, foam equipment and suppression systems, monitors and monitor nozzles, systems valves and accessories, water spray nozzles, gas suppression systems. In FY26, the company supplied its fire protection equipment and systems to 2,066 customers.

The company is the second-largest manufacturer of fire protection equipment and systems in India in terms of operating income (revenue from operations) in FY25 and the largest exporter by value (equipment) in FY25.

The company has export sales across more than 90 countries between inception and March 31, 2026. Itskey export destinations include UAE, Saudi Arabia, Brazil, Turkey, Malaysia, and Indonesia. This international reach is supported by a distributor-led supply chain for international markets. In FY26 revenue from operation, exports revenue accounted for 34.69% [Middle East 14.98%, rest of Asia 9.92%, South America 2.61%, Europe 2.31%, North America 2.19%, Africa 2.48%, Oceania 0.20%] with balance 65.31% come from domestic market.

As on October 5, 2026, the company held 4 patents granted, one each in the United States of America, India, Turkey, and Saudi Arabia for ?pressure operated fluid valve with configurable diaphragm arrangement?, and two design registrations in India for ?diaphragm of fire protection valve? and 1 patent application made in the UAE.

The company currently operates two manufacturing facilities in Maharashtra, Jalgaon MIDC and Thane MIDC, spanning a combined area of 8.50 acres. The company is also constructing a warehouse at Wagle Estate, Thane, admeasuring 0.50 acres, expected to be completed by November 2026. In addition to its in-house production, the company also undertakes contract manufacturing of off-the-shelf products as well as white labelling to cater to diverse customer requirements. Contract manufactured products accounted for a revenue share of 36.16% in Q1FY27, 36.71% in FY26 and 33.02% in FY25.

The issue, Objects of the issue

The offer comprises only OFS of 26284500 equity shares of Rs 5 each by the promoters/promoter group [17300800 shares by Kusum Harish Dharamshi; 8983700 shares by Harish N Dharamshi].

To benefit from stock exchange listing of its equity shares.

Strengths

Comprehensive equipment and systems portfolio with presence across diverse end use sectors

Has the highest number of UL-listed and FM-approved product certifications amongst the fire protection equipment focused peers in India.

Hold 9COM number [for valves (6000002872) and sprinkler fire protection systems (6000001325)], which allows an entity to receive RFQ?s for upcoming Saudi Aramco projects for the approved product categories.

Diversified global customer base with long standing customer relationship.

The order book as end of Jun 30, 2026, stood at Rs 158.601 crore, which translates into 0.32 times of its FY26 revenue.

Weaknesses

Fire protection equipment/systems industry is subject to stringent regulatory requirements and certifications in India and overseas. Any failure to obtain, maintain, renew or comply with applicable standards, licenses or approvals may adversely affect its operations.

Demand for its products is also linked to project based procurement by infrastructure and real estate customers and any deferment, cancellation, or delay in such projects may impact orders of the company.

Growth is dependent on government policies and regulatory mandates pertaining to fire safety and infrastructure development.

Any disruption in the availability, timely delivery, or price volatility of raw materials and contract manufactured goods may adversely affect the business.

All of its own manufacturing facilities located in Maharashtra and accounted for a revenue share of 61.02% in Q1FY27 and 63.49% in FY26.

Operations involve the use of certain hazardous chemicals that are subject to environmental, health and safety laws, and subsequent ESG compliances.

Dependent on its distribution and sales network for the sale, delivery and servicing of its products.

Restrictions on import of raw materials (RM) and contract manufactured goods (CMG) could adversely affect the business. Cost of imported RM accounted for 6.09% of total expenses in FY26 and that of CMG stood at 31.24%.

Currently entitled to certain incentives including duty drawbacks under government schemes. Thus, any change in these benefits and incentives applicable to it or a delay in disbursement of benefits under such schemes may affect the results of operations.

Inconsistency or volatility in operating profit margin.

Valuation

Consolidated re-stated revenue in FY26 stood higher by 13% to Rs 489.28 crore. With OPM contracting by 110 bps to 30.8%, the growth of OP was 9% to Rs 150.46crore. Finally, net profit after MI was higher by 6% to Rs 116.79 crore.

On the expanded equity, the EPS for FY26 was Rs 6.7. On the upper price band, the PE works out to 40.4 times its FY26 EPS. PE works out to 50.2 times its annualised EPS of Rs 5.4 for Q1FY27. P/BV stood at 11.8 times and EV/Sales stood9.6 times. Based on annualised netprofit of Q1FY27, the ROE stands at 23.8%.

There are no listed players in India in fire protection equipment and systems industry for comparison.

HD Fire Protect : Re-stated Consolidated Financials
	2403 (12)	2503 (12)	2603 (12)	2606 (3)
Sales	372.95	432.80	489.28	109.05
OPM (%)	28.6	31.9	30.8	27.3
OP	106.63	138.01	150.46	29.73
Other income	19.07	17.88	15.83	5.02
PBIDT	125.70	155.88	166.29	34.74
Interest	0.01	0.03	0.17	0.02
PBDT	125.69	155.86	166.12	34.72
Depreciation	9.34	9.14	10.14	2.21
PBT	116.35	146.71	155.98	32.51
EO Exp	0.00	0.00	0.00	0.00
PBT after EO	116.35	146.71	155.98	32.51
Tax	28.43	37.00	39.19	8.65
PAT	87.92	109.72	116.79	23.87
Share of Profit from Associates	0.00	0.00	0.00	0.00
Minority Interest	0.00	0.00	0.00	0.00
Net profit after MI	87.92	109.72	116.79	23.87
EPS (Rs)*	5.0	6.3	6.7	5.4
* on post IPO fully dilluted equity (on upper price band) of Rs 87.62 crore. Face Value: Rs 5
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate database

HD Fire Protect : Issue Highlights
Fresh Issue (Rs crore)	0
Offer for sale (in nos.)	26284500
Price band (Rs.) **
Upper	271
Lower	258
Post-issue equity (Rs crore)	87.62
Post-issue promoter (including promoter group) stake (%)	85.00
Minimum Bid (in nos.)	55
Issue Open Date	13-10-2026
Issue Close Date	15-10-2026
Listing	BSE, NSE
Rating	45/100

Powered by Capital Market - Live News