IPO closes on 15 Oct'26
HD Fire Protect Limited
Minimum Investment
₹ 14,905 / 55 shares
Our Verdict:
Neutral
- Profit growth is fading: PAT rose 24.8% in FY25 to ₹109.72 crore but only 6.4% in FY26 to ₹116.79 crore, against revenue growth of 13.1%, while PAT margin slipped from 25.4% to ~23.9%. The FY26 run-rate, not the FY24–FY26 trend, is the sounder base for judging earnings power.
- The balance sheet is clean, with no fund-based borrowings and an RoE of ~30%, yet net worth fell from ₹397.23 crore (FY25) to ₹377.15 crore (FY26) despite ₹116.79 crore of profit, which means equity outflows exceeded retained earnings. This is worth understanding before assuming cash generation stays in the business.
- Visibility is short and demand is project-driven: the order book of ₹158.60 crore (June 2026) covers only about four months of FY26 revenue, and roughly a third of sales are overseas (Middle East, Rest of Asia), so results track industrial and data-centre capex and Gulf demand.
About the company
Founded in
24 Apr'97
Managing director
Harish Narshi Dharamshi
- HD Fire Protect Limited (formerly D.H. Fire Protect Private Limited) designs and manufactures water-, foam- and gas-based fire suppression equipment and systems, including sprinklers, alarm and deluge valves, foam systems, monitors and nozzles, for industrial, commercial and residential users.
- It operates two manufacturing facilities in Jalgaon and Thane, Maharashtra (8.50 acres combined), supplied 2,066 customers in FY26 and has served customers in 90+ countries since inception. Order book stood at ₹158.60 crore as of June 30, 2026.
- Revenue grew from ₹372.95 crore (FY24) to ₹489.28 crore (FY26) and PAT from ₹87.92 crore to ₹116.79 crore, with no fund-based borrowings in any period reported.
- Promoters: Harish Narshi Dharamshi (Chairman & Managing Director), Kusum Harish Dharamshi, and Whole-Time Directors Miheer Sadanand Ghotikar, Parika Miheer Ghotikar and Anik Narendra Dharamshi
STRENGTHS
- Established Market Position: A CRISIL report cited in the offer documents ranks the company as the second-largest Indian fire protection equipment maker by revenue and the largest exporter in the segment.
- Extensive Product Certifications: Holds 21 UL Listed and 87 FM Approved product certifications, plus CE and ASME approvals, as of September 2026.
- Debt-Free Balance Sheet: No fund-based borrowings in FY24, FY25, FY26 or the three months ended June 30, 2026.
- High Return Ratios: FY26 RoE of ~30% with PAT margin of ~23.9%, reflecting a profitable, capital-light operating model.
- Broad Customer and Geographic Base: 2,066 customers in FY26, over 86% of FY25 revenue from repeat customers, and exports at 34.69% of FY26 revenue across 90+ countries served since inception.
RISK FACTORS
- Product Liability: Malfunction of fire suppression equipment during a fire could lead to injury, property loss, warranty claims, legal exposure and reputational harm.
- Overseas Revenue Exposure: About 33–36% of revenue comes from outside India, mainly the Middle East and Rest of Asia, exposing results to regional demand and geopolitical swings.
- Supplier Concentration: The top 10 suppliers were 59.28% of expenses in Apr–Jun 2026, with no long-term supply agreements, and raw material availability and prices can fluctuate.
- Geographic and Certification Dependence: Roughly 61–68% of revenue is tied to Maharashtra-based facilities, and sales depend on renewing UL, FM and other regulatory approvals.
- Promoter Exit and Governance Points: The offer is entirely a sale by promoters, so the company receives no proceeds; a joint statutory auditor who resigned early later became CFO, which investors may view negatively.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ Up to ₹712.31 crore
Fresh Issue
₹ Nil
OFS
₹ Up to ₹712.31 crore
Price range
₹ 258 - 271
Lot size
55 shares
Issue Objective
- This is entirely an Offer for Sale of up to 2,62,84,500 equity shares by promoter selling shareholders Harish Narshi Dharamshi (up to 89,83,700 shares) and Kusum Harish Dharamshi (up to 1,73,00,800 shares). The company will not receive any proceeds from the offer.
Dates
Bidding open
13 Oct'26
Bidding close
15 Oct'26
Allotment date
16 Oct'26
Refund date
19 Oct'26
Listing
20 Oct'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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