HD Fire Protect plans to raise ₹712 crore through an offer for sale. The promoter group’s stake will fall to 85% after the IPO. The company makes fire protection equipment and exports to over 90 countries. Investors with a high-risk appetite may apply for long-term growth in this regulated industry.
Synopsis
HD Fire Protect is set to generate ₹712 crore through an offer for sale, marking a pivotal moment in their funding strategy. Following the IPO, the promoter group's share will drop to 85%, down from the current 100%. Renowned for their fire protection solutions, they export over a third of their revenue internationally.
ET Intelligence Group: HD Fire Protect, a fire protection equipment manufacturer, plans to raise ₹712 crore through an offer for sale. The promoter group's stake will fall to 85% after the IPO from 100%. The company manufactures fire protection equipment and systems, offering water, foam and gas-based fire suppression solutions. It has a strong portfolio of certified products and equipment, creating significant entry barriers in a highly regulated industry. Exports contribute over one-third to the revenue, with 15% coming from Middle East and 10% from Asia. The top 10 suppliers accounted for nearly half of total expenses, signalling concentration. Repeat customers contributed around 85% to FY26 revenue. Imported raw materials and contract-manufactured goods account for 37% of total expenses, exposing the company to input-cost inflation, currency fluctuations and supply-chain disruptions. Given these factors, investors with high-risk appetite may apply for long-term.
Business
Incorporated in 1997, HD Fire Protect offers a comprehensive portfolio across eight product categories, including sprinklers, alarm valves and accessories, deluge valves and systems, foam equipment and suppression systems, monitors and nozzles, water spray nozzles, custom-engineered systems and gas suppression systems. The company operates two manufacturing facilities in Jalgaon and Thane, Maharashtra. It exports products to over 90 countries. Order book surged to ₹134.4 crore in FY26 from ₹75.3 crore in FY24 and further increased to ₹158.6 crore as of June 30, 2026. According to Crisil, the company is the second-largest manufacturer of fire protection equipment and systems in India in terms of revenue and the largest exporter by value in FY25.
Financials
Between FY24 and FY26, revenue from operations increased 14.5% annually to ₹489.3 crore and net profit rose 15.3% to ₹116.8 crore. Operating profit before interest, tax, depreciation and amortisation (Ebitda) jumped 18.8% to ₹150.5 crore during the same period. Ebitda margin was at 30.8% in FY26 from 31.9% in FY25 and 28.6% in FY24. Cash flow from operations grew 20.4% annually to ₹92.5 crore in FY26 from ₹63.8 crore in FY24. Return on equity increased to 30.2% in FY26 from 28.4% in FY24.
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Valuation
The company has no comparable listed peer. Considering the post-IPO equity and FY26 net profit, the company seeks price-earnings (P/E) multiple of 41, while based on annualised FY27 earnings, the P/E works out to 50. Other industrial engineering companies such as Kirloskar Pneumatic Company, Ingersoll-Rand (India), and KSB trade at P/E multiples of 34 to 50 based on FY26 earnings, while their annualised FY27 P/E multiples range from 21 to 60.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
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