Hi-Tech Gears Reports Q2/H1 FY26 Results: Revenue Dips Amid Market Challenges

Hi-Tech Gears , a leading auto component manufacturer, has released its financial results for the second quarter and first half of fiscal year 2026, revealing a mixed performance amid challenging market conditions.

Key Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change	H1 FY26	H1 FY25	YoY Change
Operational Income	2407.00	2464.00	-2.3%	4563.00	5070.00	-10.0%
EBITDA	278.00	352.00	-21.0%	540.00	762.00	-29.1%
EBITDA Margin	11.55%	14.29%	-274 bps	11.83%	15.03%	-320 bps
PAT	60.00	95.00	-36.8%	120.00	238.00	-49.6%
PAT Margin	2.49%	3.86%	-137 bps	2.63%	4.69%	-206 bps

Performance Analysis

The company faced headwinds in both its domestic and international operations:

Consolidated Performance: Operational income for Q2 FY26 decreased by 2.3% year-over-year to ₹2,407.00 million, while H1 FY26 saw a more significant decline of 10.0% to ₹4,563.00 million.
Profitability Pressure: EBITDA margins contracted by 274 basis points in Q2 and 320 basis points in H1, reflecting increased operational challenges.
Domestic Operations: The India business continues in a consolidation phase, focusing on improving operational efficiency through equipment refurbishment and reliability enhancement.
North American Challenges: Operations in North America faced difficulties due to an uncertain geopolitical environment and customers adopting a wait-and-watch approach.

Strategic Initiatives and Future Outlook

Despite market volatility, Hi-Tech Gears has made progress in several areas:

New Business Wins: The company secured new business worth ₹860.00 million annualized, demonstrating its ability to attract customers even in challenging times.
Product Development: Hi-Tech Gears has 117 precision components under development across various segments, indicating a strong pipeline for future growth.
Operational Improvements: The company is undertaking initiatives to enhance manufacturing efficiency and operational reliability.

Management Commentary

The management emphasized their focus on cost discipline, prudent financial management, and maintaining a balanced exposure across ICE and EV programs in both domestic and international markets. They also highlighted ongoing efforts to strengthen long-term manufacturing efficiency and operational reliability.

Conclusion

While Hi-Tech Gears faces short-term challenges, particularly in its North American operations and due to global market uncertainties, the company's efforts in securing new business and focusing on operational improvements may position it for recovery as market conditions stabilize.

Note: All figures are in Indian Rupees (₹) unless otherwise stated.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.73%	-6.60%	-15.42%	+19.90%	-15.26%	+516.37%

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:

Metric	Q2 (₹ in million)	Q2 (₹ in million)	YoY Change
Revenue from Operations	1,740.92	1,730.50	+0.60%
Total Income	1,765.53	1,747.52	+1.03%
Profit Before Tax	114.92	158.57	-27.53%
Profit After Tax	79.81	121.81	-34.48%

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:

Metric	Q2 (₹ in million)	Q2 (₹ in million)	YoY Change
Revenue from Operations	2,407.38	2,463.95	-2.30%
Total Income	2,431.11	2,483.03	-2.09%
Profit Before Tax	95.95	154.44	-37.87%
Profit After Tax	60.14	95.42	-36.97%

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:

India: Remained the primary revenue generator with ₹1,764.42 million.
Canada: Contributed ₹632.20 million to the consolidated revenue.
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.