Company Overview

The Hi-Tech Gears Ltd. (THGL) was incorporated in 1986 and has grown to be an auto component manufacturer supplying engine and transmission components to diverse marquee customers globally. The company has 5 state-of-the-art manufacturing plants worldwide (3 in India, 1 in Canada, and 1 in USA). The product portfolio comprises precision gears, shafts, transmission components, and engine components catering to Two-Wheeler, Passenger Vehicles, Commercial Vehicles – On Highway and Agri and Off Highway Vehicles segments.

Q2 FY27 Financial Highlights (Consolidated)

  • Operational Income: ₹2,850 Mn (18.4% YoY growth)
  • Operational EBITDA: ₹335 Mn (20.5% YoY growth)
  • EBITDA Margin: 11.75% (20 bps improvement YoY)
  • PBT: ₹151 Mn (57.3% YoY growth)
  • PBT Margin: 5.30%
  • PAT: ₹107 Mn (78.3% YoY growth)
  • PAT Margin: 3.75% (125 bps improvement YoY)
  • Diluted EPS: ₹5.68 (78.1% YoY growth)
  • Other Income: ₹29 Mn (20.8% YoY growth)
  • Finance Costs: ₹38 Mn (5.6% YoY growth)
  • Depreciation and amortisation: ₹175 Mn (2.9% YoY growth)
  • Tax Expense: ₹44 Mn (22.2% YoY growth)

Q2 FY27 Financial Highlights (Standalone)

  • Operational Income: ₹2,106 Mn (21.0% YoY growth)
  • Operational EBITDA: ₹246 Mn (24.9% YoY growth)
  • EBITDA Margin: 11.68% (36 bps improvement YoY)
  • PBT: ₹157 Mn (36.5% YoY growth)
  • PAT: ₹116 Mn (45.0% YoY growth)
  • PAT Margin: 5.51% (91 bps improvement YoY)
  • Diluted EPS: ₹6.15 (45.0% YoY growth)
  • Finance Costs: ₹20 Mn (11.1% YoY growth)
  • Depreciation and amortisation: ₹92 Mn (3.4% YoY growth)
  • Tax Expense: ₹41 Mn (17.1% YoY growth)

H1 FY27 Financial Highlights (Consolidated)

  • Operational Income: ₹5,227 Mn (14.6% YoY growth)
  • Operational EBITDA: ₹599 Mn (10.9% YoY growth)
  • EBITDA Margin: 11.46%
  • PBT: ₹215 Mn (7.0% YoY growth)
  • PBT Margin: 4.11%
  • PAT: ₹155 Mn (29.2% YoY growth)
  • PAT Margin: 2.97%
  • Diluted EPS: ₹8.21

H1 FY27 Financial Highlights (Standalone)

  • Operational Income: ₹3,806 Mn (14.2% YoY growth)
  • Operational EBITDA: ₹429 Mn (8.6% YoY growth)
  • EBITDA Margin: 11.27%
  • PBT: ₹242 Mn (-0.8% YoY decline)
  • PAT: ₹178 Mn (2.3% YoY growth)
  • PAT Margin: 4.68%
  • Diluted EPS: ₹9.46

Operational Highlights

India Business

Standalone India operations continue consolidation phase with focus on improving operational efficiency through machine throughput and labor productivity improvements. Q2 FY27 represents the third consecutive quarter of growth with revenues increasing both sequentially and year-on-year, primarily driven by volume growth across all customer segments.

Cost inflation has led to margin pressure despite volume growth. Conversion costs increased significantly due to inflationary pressures including PNG, LPG, industrial diesel, and cutting tool consumables driven by crude and derivatives inflation. Government mandated minimum wage revision added to manpower costs in the quarter.

Domestic demand remained intact through H1FY27 with premium motorcycle and scooter demand healthy across both EV and ICE segments. Export demand has started seeing improvement with consistent orders from North American customers.

North America Business

North American business revenues increased both sequentially and year-on-year. Market demand is stabilizing as geo-political uncertainty is being factored in and customer ordering patterns returning to normal.

New Business Wins

New business won approximately ₹1,172 Mn annualized in current period. The company has entered Indian Passenger Car SUV segment with Mahindra & Mahindra and expanded presence in higher CC bikes (>350 CC) including Royal Enfield and Harley Davidson X-440.

Average ramp-up time to achieve peak revenues is approximately 2-3 years post Start of Production (SOP). All new programs are being launched with limited balancing capex.

EV Initiatives

The company has won EV business from Hero MotoCorp and Dana – currently in production. Active quotes are ongoing across customers in EV space. EV components include differential assembly, gear components final assembly, counter assembly, and helical gear components.

Historical Financial Performance (Consolidated)

Income Statement Trends

  • FY24: Revenue ₹11,069 Mn, EBITDA ₹1,499 Mn (13.55% margin), PAT ₹1,143 Mn (10.23% margin)
  • FY25: Revenue ₹9,270 Mn, EBITDA ₹1,359 Mn (14.66% margin), PAT ₹404 Mn (4.30% margin)
  • FY26: Revenue ₹9,084 Mn, EBITDA ₹1,011 Mn (11.13% margin), PAT ₹210 Mn (2.30% margin)
  • H1 FY27: Revenue ₹5,227 Mn, EBITDA ₹599 Mn (11.46% margin), PAT ₹155 Mn (2.97% margin)

Balance Sheet Position (H1 FY27 Consolidated)

  • Total Assets: ₹8,540 Mn
  • Non-Current Assets: ₹4,444 Mn (including Property, plant and equipment: ₹2,797 Mn)
  • Current Assets: ₹4,096 Mn (including Inventories: ₹1,489 Mn, Trade Receivables: ₹1,708 Mn)
  • Equity: ₹5,298 Mn
  • Non-Current Liabilities: ₹1,203 Mn
  • Current Liabilities: ₹2,039 Mn

Market Data (as on September 30, 2026)

  • Face Value: ₹10.00
  • CMP: ₹516.00
  • 52 Week H/L: ₹894.80/516.00
  • Market Cap: ₹11,721.12 Mn
  • Shares Outstanding: 18.82 Mn
  • Average Volume: 3.06 ('000)

Disclaimer

The presentation includes forward-looking statements based on currently held beliefs and assumptions of management, expressed in good faith. The company disclaims any obligation to update these forward-looking statements to reflect future events or developments.