HD Fire Protect IPO DRHP: ₹489.28 crore FY26 revenue; pure offer for sale
- HD Fire Protect files DRHP for a pure Offer for Sale with no fresh issue component.
- FY2026 revenue reached ₹489.28 crore, marking a 14.54% CAGR from FY2024.
- The company holds 21 UL Listed and 87 FM Approved certifications, leading Indian peers.
- Key risks include high supplier concentration and significant import dependency from China.
*this image is generated using AI for illustrative purposes only.
HD Fire Protect Limited, India's second-largest fire protection equipment manufacturer and largest exporter by value, has filed its Draft Red Herring Prospectus for an initial public offering structured entirely as an Offer for Sale. The Mumbai-based company reported revenue from operations of ₹489.28 crore in FY2026, reflecting a compound annual growth rate of 14.54% from FY2024.
About the Company
Founded in 1997 and headquartered in Mulund West, Mumbai, HD Fire Protect operates as a vertically integrated manufacturer with facilities in Jalgaon and Thane, Maharashtra. The company offers a comprehensive portfolio across eight product categories, including water, foam, and gas-based suppression systems. It serves diverse sectors such as oil and gas, petrochemicals, power, aerospace, data centers, and pharmaceuticals. The company exports to over 90 countries, with international revenue accounting for 32.78% to 36.24% of total operations in recent periods.
Financial Performance
The company has demonstrated consistent top-line growth and strong profitability metrics. Revenue from operations increased from ₹372.95 crore in FY2024 to ₹489.28 crore in FY2026. Profit After Tax (PAT) grew from ₹87.92 crore in FY2024 to ₹116.79 crore in FY2026. The balance sheet remains debt-free, with non-current liabilities limited to ₹1.97 crore in FY2026.
| Metric | FY2024 (₹ Cr) | FY2025 (₹ Cr) | FY2026 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 372.95 | 432.80 | 489.28 |
| Total Expenses | 275.67 | 303.96 | 349.14 |
| Profit Before Tax | 116.35 | 146.71 | 155.98 |
| Profit After Tax | 87.92 | 109.72 | 116.79 |
| Total Equity | 343.41 | 397.23 | 377.15 |
Operating cash flow remained robust at ₹92.49 crore in FY2026. Return on Equity stood at approximately 29.87% in FY2026, supported by high operating margins of 32.56% in FY2025.
Why the Company Is Raising Funds
This is a pure Offer for Sale (OFS) by Promoter Selling Shareholders. Consequently, the company will not receive any proceeds from the issue. The primary objectives are to provide liquidity to the selling shareholders and to achieve the benefits of listing on stock exchanges, including enhanced visibility and brand image.
Business Strengths
HD Fire Protect holds the highest number of UL Listed (21) and FM Approved (87) certifications among Indian fire protection peers, creating significant barriers to entry given the 6–24 month certification timeline. The company maintains a diversified customer base of over 905 clients, with the top 10 customers contributing only 23.69% of FY2026 revenue. Its vertically integrated manufacturing capabilities include ASME-certified fabrication and 5-axis CNC machining.
Key Risks
The company faces supplier concentration risk, with the top 10 suppliers accounting for 59.28% of total expenses in Q1 FY2027. Additionally, approximately 45% of total procurement is imported, with China constituting 24.98% to 30.96% of purchases, exposing the firm to geopolitical and currency risks without hedging arrangements. All manufacturing operations are concentrated in Maharashtra, posing geographic disruption risks.
Important IPO Dates
- Opening Date: 13-Oct-2026
- Closing Date: 15-Oct-2026
- Allotment Date: 16-Oct-2026
- Listing Date: 21-Oct-2026
Bottom Line
HD Fire Protect presents a financially healthy profile with consistent revenue growth, high margins, and a debt-free status. However, the absence of fresh capital injection due to the pure OFS structure means funds are directed solely to promoters, while operational risks related to supplier concentration and import dependency remain material considerations.
How might the pure Offer for Sale structure, which provides no fresh capital to the company, impact HD Fire Protect's ability to fund future capacity expansion or R&D initiatives post-listing?
Given that nearly 30% of procurement comes from China without hedging arrangements, what specific strategies is the company planning to mitigate geopolitical and currency risks in its supply chain?
With manufacturing operations concentrated entirely in Maharashtra, what steps is the management taking to diversify production locations to reduce geographic disruption risks?
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