HD Fire Protect Limited – Investor Presentation Summary

Key Operational Highlights

  • Revenue growth in Q2FY27 attributed to higher demand, deeper market penetration, and onboarding of new project orders
  • Domestic sales accounted for 64.37% of total H1FY27 revenue, while exports contributed 35.63%
  • Company introduced 3 new products/product ranges in H1FY27: UL Listed Fire Sprinklers (K11.2), FM Approved Air Release Valves, and UL Listed Pressure Gauges (Models HDP2-S, HDP3, HDP3-S, HDP4 and HDP4-S)
  • Business demonstrates H2-weighted seasonality with second half typically contributing ~55% to 60% of annual revenue

Financial Highlights

Q2FY27 Performance:

  • Revenue from Operations: Rs. 1,273.36 Mn (28.79% YoY growth)
  • EBITDA: Rs. 375.41 Mn (29.22% YoY growth)
  • PAT: Rs. 288.87 Mn (41.04% YoY growth)
  • EPS: Not specified
  • Gross Profit Margins: 46.38% (vs 50.09% in Q2FY26)
  • EBITDA Margins: 29.48% (vs 29.38% in Q2FY26)
  • PAT Margins: 22.69% (vs 20.72% in Q2FY26)

H1FY27 Performance:

  • Revenue from Operations: Rs. 2,363.88 Mn (22.52% YoY growth)
  • EBITDA: Rs. 672.67 Mn (16.68% YoY growth)
  • PAT: Rs. 529.28 Mn (12.26% YoY growth)
  • Gross Profit Margins: 47.60% (vs 50.38% in H1FY26)
  • EBITDA Margins: 28.46% (vs 29.88% in H1FY26)
  • PAT Margins: 22.39% (vs 24.44% in H1FY26)

Drivers of Financial Performance:

  • Revenue growth driven by high demand, deeper market penetration and new project supply
  • Margin pressure due to volatility in key raw material prices (bronze and steel) and supply chain constraints including elevated shipment costs
  • Prudent cost optimization initiatives and ability to command pricing premium helped maintain healthy profitability

Geographical Revenue Split

  • Domestic: 64.37% of total H1FY27 revenue
  • Export: 35.63% of total H1FY27 revenue
  • Regional Breakdown: Not specified

Balance Sheet Snapshot

As at 30 September 2026:

  • Total Assets: Rs. 4,461.95 Mn
  • Non-Current Assets: Rs. 2,048.23 Mn
  • Current Assets: Rs. 2,413.72 Mn
  • Inventories: Rs. 1,123.89 Mn
  • Trade Receivables: Rs. 523.30 Mn
  • Cash and Cash Equivalents: Rs. 154.50 Mn
  • Total Equity: Rs. 3,772.37 Mn
  • Equity Share Capital: Rs. 876.15 Mn
  • Non-current liabilities: Rs. 24.18 Mn
  • Current liabilities: Rs. 665.40 Mn
  • Net Debt/Equity: Not specified
  • Working Capital/Leverage Metrics: Not specified

Capex & Cash Flow Health

Half Year Ended 30 September 2026:

  • Net Cash from Operating Activities: Rs. 710.68 Mn
  • Net Cash from Investing Activities: Rs. (179.24) Mn
  • Net Cash from Financing Activities: Rs. (525.69) Mn
  • Capital Expenditure: Capital work-in-progress of Rs. 231.48 Mn as of 30 September 2026
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Rs. 710.68 Mn
  • Net Debt Movement: Not specified

Strategic & R&D Initiatives

Investments in Innovation:

  • Expanding Jalgaon facility with new production facility, dedicated fire test laboratory, industrial warehouse and R&D centre
  • Constructing new production facility and warehouse at Wagle Estate, Thane
  • Focus on developing new products including fluorine-free foam equipment and suppression system

Expected Impact on Growth:

  • Enhance operational capabilities
  • Reduce Lead Time
  • Meet growing domestic and international demand

Industry Trends & Business Environment

Macro/Industry Trends:

  • Volatility in key raw material prices including bronze and steel
  • Supply chain constraints including elevated shipment costs
  • Certification and stringent empanelment driven, high barrier industry

Impact on Company:

  • Resulted in higher input costs and moderate impact on margins during Q2FY27
  • Company's ability to command pricing premium supported by long-standing customer relationships helped mitigate cost pressures

Management Commentary & Growth Outlook

Strategic Outlook: From Chairman Harish Narshi Dharamshi: "Following the close of the September 2026 quarter, our successful listing on the stock exchanges in October 2026 marked a significant milestone in our journey. In Q2FY27 we delivered an impressive revenue from operations. Building on a revenue CAGR of 14.54% between FY24 and FY26, we continued to deliver strong performance... This provides us with a positive outlook as we enter H2."

FY Guidance: Not specified

Market Share Targets: Not specified

Risks and Opportunities: Input cost volatility and supply chain constraints identified as challenges

ESG Updates

Not specified

Digital Transformation

Not specified