Hi-Tech Gears Limited has received temporary relief in its ongoing Corporate Insolvency Resolution Process (CIRP) proceedings, with the National Company Law Appellate Tribunal (NCLAT) extending the interim stay and postponing the next hearing to February 2026.

NCLAT Proceedings Update

The company informed stock exchanges on December 18, 2025, about the latest developments in its CIRP case:

The NCLAT could not hear the matter on the scheduled date of December 16, 2025, due to paucity of time, leading to the postponement. The tribunal has directed the continuation of the interim stay on the CIRP process that was originally granted on September 03, 2024.

Recent Financial Performance Context

Prior to these legal developments, the auto component manufacturer had reported challenging financial results for Q2 and H1 FY26:

The company had faced headwinds in both domestic and international operations, with North American operations particularly affected by geopolitical uncertainties.

Legal Framework and Implications

The CIRP proceedings stem from a case filed by Happy Forgings Limited against Hi-Tech Gears. The company secretary Naveen Jain, representing the company as appellant, has been pursuing the matter through legal channels. The interim stay provides temporary protection from the insolvency resolution process while the appeal is pending.

Business Continuity Measures

Despite the legal challenges, Hi-Tech Gears has continued its operational activities and strategic initiatives. The company had previously secured new business worth ₹860.00 million annualized and maintained 117 precision components under development across various automotive segments.

Market Position and Outlook

As a leading auto component manufacturer serving both ICE and EV segments, Hi-Tech Gears operates across domestic and international markets. The extended stay period until February 2026 provides the company additional time to address its financial challenges and work toward a resolution of the insolvency proceedings.

The company's management has emphasized focus on cost discipline, prudent financial management, and operational improvements during these challenging times.

Hi-Tech Gears , a prominent player in the gears and transmissions manufacturing sector, has announced its financial results for the second quarter, revealing a mixed performance across its standalone and consolidated operations.

Standalone Performance

On a standalone basis, Hi-Tech Gears demonstrated resilience in its core Indian operations:

The company's standalone revenue from operations saw a marginal increase of 0.60% year-over-year, reaching ₹1,740.92 million. However, profitability faced headwinds, with profit after tax declining by 34.48% to ₹79.81 million compared to the same quarter last year.

Consolidated Results

The consolidated financial picture presented more challenges:

On a consolidated basis, Hi-Tech Gears experienced a 2.30% decline in revenue from operations, amounting to ₹2,407.38 million. The consolidated profit after tax decreased by 36.97% to ₹60.14 million.

Segment Performance

The company's operations are segmented geographically:

1. India: Remained the primary revenue generator with ₹1,764.42 million.
2. Canada: Contributed ₹632.20 million to the consolidated revenue.
3. Others: Generated ₹69.20 million in revenue.

Half-Year Performance

For the half-year:

• Standalone revenue reached ₹3,332.14 million with a profit after tax of ₹173.73 million.
• Consolidated revenue stood at ₹4,562.85 million, with a profit after tax of ₹120.12 million.

Looking Ahead

As Hi-Tech Gears moves forward, the focus may likely be on strengthening its core Indian operations while addressing the challenges in its international segments. The company's ability to manage costs and improve operational efficiencies across all geographies will be crucial in the coming quarters.

Investors and stakeholders will be watching closely to see how Hi-Tech Gears adapts its strategies to improve its consolidated performance and return to stronger profitability across all its business segments.

Note: All financial figures are in Indian Rupees (₹) and are based on the unaudited financial results as reported by Hi-Tech Gears Limited.