Hi-Tech Gears Limited Releases Q3 FY26 Earnings Presentation and Results
Hi-Tech Gears Limited published its Q3 FY26 earnings presentation alongside financial results, showing consolidated operational income growth of 9.0% to ₹2,235 million but significant margin compression with EBITDA declining 17.7% and PAT falling 87.0% to ₹9 million, while the company continues operational efficiency improvements and reported ₹1,172 million in new business wins.
*this image is generated using AI for illustrative purposes only.
Hi-Tech Gears Limited has released its comprehensive earnings presentation for the third quarter and nine months ended December 31, 2025, following the publication of its unaudited consolidated financial results. The company informed stock exchanges on February 17, 2026, about the earnings presentation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Q3 FY26 Consolidated Performance Highlights
The company's Q3 FY26 performance showed mixed results with revenue growth but declining profitability metrics across key parameters.
| Metric: | Q3 FY26 | Q3 FY25 | YoY Change | Q2 FY26 | QoQ Change |
|---|---|---|---|---|---|
| Operational Income: | ₹2,235 million | ₹2,051 million | +9.0% | ₹2,407 million | -7.1% |
| EBITDA: | ₹219 million | ₹266 million | -17.7% | ₹278 million | -21.2% |
| EBITDA Margin: | 9.80% | 12.97% | -317 bps | 11.55% | -175 bps |
| Net Profit After Tax: | ₹9 million | ₹69 million | -87.0% | ₹60 million | -85.0% |
| PAT Margin: | 0.40% | 3.36% | -296 bps | 2.49% | -209 bps |
| Diluted EPS: | ₹0.45 | ₹3.65 | -87.7% | ₹3.19 | -85.9% |
For the quarter ended December 31, 2025, the company reported operational income of ₹2,235 million, representing a 9.0% increase from ₹2,051 million in the corresponding quarter of the previous year. However, profitability metrics declined significantly with net profit after tax falling to ₹9 million compared to ₹69 million in Q3 FY25.
Nine-Month Performance Analysis
The nine-month consolidated performance reflected similar trends with revenue decline and compressed margins.
| Parameter: | 9M FY26 | 9M FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations: | ₹6,798 million | ₹7,121 million | -4.5% |
| EBITDA: | ₹759 million | ₹1,026 million | -26.0% |
| EBITDA Margin: | 11.17% | 14.41% | -324 bps |
| Profit Before Tax: | ₹232 million | ₹455 million | -49.0% |
| Net Profit After Tax: | ₹129 million | ₹306 million | -57.8% |
| PAT Margin: | 1.90% | 4.30% | -240 bps |
| Diluted EPS: | ₹6.83 | ₹16.29 | -58.1% |
Standalone Financial Performance
The standalone operations showed better resilience compared to consolidated performance, with Q3 FY26 operational income of ₹1,603 million representing 10.1% YoY growth.
| Metric: | Q3 FY26 | Q3 FY25 | YoY Change |
|---|---|---|---|
| Operational Income: | ₹1,603 million | ₹1,456 million | +10.1% |
| EBITDA: | ₹161 million | ₹183 million | -12.0% |
| EBITDA Margin: | 10.04% | 12.57% | -253 bps |
| Profit After Tax: | ₹58 million | ₹75 million | -22.7% |
| PAT Margin: | 3.62% | 5.15% | -153 bps |
Business Operations and Strategic Initiatives
The company continues its consolidation phase with focus on improving operational efficiency. Key operational highlights include refurbishment of 45% of high-value machines in the machine shop till December 2025, with expected completion around Q2 FY26-27. The company has also strengthened its workforce in critical areas and reduced contractual manpower mix by 20% through addition of apprentices and permanent employees.
Domestic demand improved in Q3 FY26, supported by higher demand in premium motorcycles and scooters across both EV and ICE segments. However, export revenues declined due to uncertain geo-political operating environment in North America.
New Business Wins and Market Expansion
The company reported significant new business wins totaling ₹1,172 million annualized for 9M FY25-26, including ₹860 million from current customers and ₹312 million from new customers. The company has expanded its presence in higher CC bikes (>350 CC) and entered the Indian Passenger Car SUV segment with Mahindra & Mahindra.
Regulatory Compliance and Publication
The unaudited consolidated financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 12, 2026. The results were published in The Business Standard newspapers on February 14, 2026, and are available on stock exchange websites and the company's website at www.thehitechgears.com .
The company, headquartered in Gurugram, Haryana, operates manufacturing facilities across India, Canada, and the USA, serving diverse automotive segments including two-wheelers, passenger vehicles, and commercial vehicles with 39 years of experience in precision gear manufacturing.
Historical Stock Returns for Hi-Tech Gears
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.52% | +3.15% | -5.99% | +1.92% | +8.55% | +277.45% |
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