Hi-Tech Gears has received a demand order for liquidated damages of $5000 from the US Department of Homeland Security, Customs and Border Protection (CBP). The order, received on June 19, 2026, penalizes the company for the late filing of an Importer Security Filing (ISF) for a specific Bill of Lading. Despite the penalty, the company stated there is no material impact on its financial or operational activities and is currently filing an appeal for a waiver with the appropriate authority.

The demand arises from a violation of US regulations concerning the shipment on the vessel APL QINGDAO. The ISF for Bill of Lading number AOLA-L24NYK024737 was required to be filed 24 hours prior to lading at Mundra, India, on March 6, 2024, but was filed untimely. Consequently, liquidated damages of $5000 were assessed against the company. The notice was issued by the FPF Office in Newark, New Jersey, under Case Number 2026460120277901.

Details of the Demand Order

The disclosure was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The table below outlines the key particulars of the order and the alleged contravention.

The company has confirmed that it is addressing the issue through the proper channels. The demand was issued on May 15, 2026, and allows for a petition for relief to be filed within 60 days of the notice date.

Hi-Tech Gears Limited reported a 48% decline in consolidated net profit to ₹210 crore for the financial year ended March 31, 2026, compared to ₹404 crore in the previous year. Revenue from operations decreased by 2% to ₹9,084 crore from ₹9,270 crore in FY25. The company's profitability was impacted by cost pressures and a challenging geopolitical environment in North America, which led to a contraction in EBITDA margins to 11.13% from 14.67% in the prior year. The Board of Directors has recommended a final dividend of ₹4 per equity share, subject to shareholder approval.

Financial Performance

The standalone net profit for FY26 stood at ₹331 crore, down 30.2% from ₹474 crore in FY25. Standalone revenue from operations increased marginally by 1.4% to ₹6,668 crore. For the quarter ended March 31, 2026, the consolidated net profit stood at ₹81 crore compared to ₹97 crore in the same period last year, while Q4 consolidated revenue rose 6.4% to ₹2,286 crore.

Operational Metrics and Margins

The company's profitability metrics faced significant pressure during the year. Consolidated EBITDA declined by 25.7% to ₹1,011 crore in FY26, resulting in an EBITDA margin contraction of 354 basis points to 11.13%. In Q4 FY26, consolidated EBITDA fell to ₹252 crore from ₹331 crore in the corresponding quarter of the previous year, with the margin shrinking to 11.02% from 15.40%.

Business Highlights and Outlook

The company stated that its India operations are in a consolidation phase, focusing on improving operational efficiency through machine refurbishment and labour productivity initiatives. Domestic demand improved in Q4 and FY26, supported by higher demand in premium motorcycles and scooters across both EV and ICE segments. However, export revenues declined due to an uncertain geopolitical operating environment in North America, where customers are in a wait-and-watch mode. The company won new business worth ₹860 crore from current customers and ₹312 crore from new customers during FY25-26.

Dividend and Appointments

The Board recommended a final dividend of 40%, or ₹4 per equity share of ₹10 each, for FY26. The company appointed Mr. Vijay Mathur as Executive Director & CFO, effective immediately. Mr. Mathur, a Fellow member of the Institute of Cost Accountants of India, has been associated with the company for 36 years. The statutory auditors, M/s YAPL & Co., Chartered Accountants, issued an unmodified opinion on the financial results.