Hy-Tech Engineers Limited held its Q2 and H1 FY27 earnings conference call on November 05, 2026. The transcript was submitted to the exchanges on November 12, 2026.

Financial Performance – Q2 FY27

Revenue from operations stood at ₹60.9 crores, registering a year-on-year growth of 32% compared to ₹49.8 crores in Q2 FY26. EBITDA increased by 21% to ₹14.5 crores from ₹12.0 crores in the corresponding quarter last year. The EBITDA margin was 23.8%, slightly down from 24.0% in Q2 FY26.

Profit After Tax (PAT) stood at ₹8.5 crores, registering a growth of 23% compared to ₹6.9 crores in Q2 FY26. The PAT margin improved to 14.0% from 13.8% in the prior year period.

The sequential performance was strong. Revenue increased by 41% compared to Q1 FY27, while EBITDA grew by 72%. The EBITDA margin improved significantly from 19.6% in Q1 to 23.8% in Q2.

Financial Performance – H1 FY27

For the first half of FY27, revenue from operations stood at ₹103.9 crores, registering a growth of 18% over ₹87.8 crores in H1 FY26. EBITDA increased by 14% to ₹22.9 crores. PAT grew by 19% to ₹13.1 crores from ₹11.0 crores in the corresponding period last year.

The EBITDA margin for the half-year stood at 22.1%, while the PAT margin remained stable at 12.6%.

Business Highlights and Strategy

The company highlighted its strong position in the hydraulic fittings industry built over four decades, with integrated manufacturing capabilities and a wide product portfolio of nearly 11,000 SKUs.

A key strategic initiative is the expansion of its international presence. The company has established a wholly-owned subsidiary and a warehouse in New Jersey, USA, to improve customer engagement and supply chain efficiency.

The company is developing its product portfolio through the introduction of stainless steel double ferrule fittings, which open opportunities in new sectors such as oil & gas, shipping, and defence. Management stated they are already doing ₹8-10 crores of business in this new product and expect margins to be approximately 5% higher than carbon steel fittings.

The company's philosophy is to maintain approximately 20-30% free capacity to onboard new customers. Investments are being made in automated machinery, including rotary transfer machines, to improve productivity and operational efficiency.

Guidance and Outlook

Management provided the following guidance:

  • For FY27, they expect revenue growth of 20-22% and EBITDA margins of 24-25%.
  • They are targeting a doubling of revenue within the next 3 years, aiming to reach ₹500 crores.
  • For FY28, they anticipate growth could accelerate to 24-25%, supported by potential improvements in the US market post-midterm elections.
  • The second half of the year is traditionally stronger, typically contributing 53-54% of the annual turnover versus 45-46% in the first half.

Capacity and Expansion

Management stated that the current infrastructure (land and building) is sufficient to support a turnover of ₹500 crores, which will be achieved through additional machinery.

The company has a 6.5-acre land parcel at Shirwal earmarked for future expansion beyond the ₹500 crore mark. Setting up a factory there is expected to take 2.5 to 3 years.

The ₹30 crores raised from the recent IPO will be invested over the next 1.5 years and is expected to generate ₹100 crores in revenue.

Customer and Market Updates

  • John Deere: Currently constitutes about 12% of total turnover. Supplies have commenced to three plants, with four more plants having approved samples. Significant business ramp-up with John Deere is expected in FY28.
  • Tata Hitachi & Sany: These are described as long-term contributors, but the business ramp-up will be gradual. The company's growth is not dependent on these clients.
  • US Market: Characterized as having a replacement (aftermarket) that is 5 times larger than the OEM market. The company supplies to distributors in the US for the aftermarket.

Price Revisions

Management confirmed that price revisions from customers have been finalized and accepted. These revisions were not only for raw material cost pass-through but also included an increase for conversion costs. Approximately 25% of the amount due from these revisions is yet to be recovered and is expected to be completed in the coming half.

Registration and New Sectors

The company is registered with the defence sector and Engineers India Limited for its new stainless steel fittings. Management indicated that developing business in these new sectors (e.g., railways, data centers, defence, oil & gas) is a long-term process, with results expected in 1-2 years.