Hy-Tech Engineers IPO (24-27 August) Analysis

IPO Analysis | BSE and NSE Main Board | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 6(1)

Based on Red Herring Prospectus dated August 17, 2026 | Hydraulic Fittings and Forged Components | Thane, Maharashtra

STATUS: LIVE RHP, ANCHOR BID AUGUST 21, BIDDING OPENS AUGUST 24 AND CLOSES AUGUST 27, 2026

Fresh Issue: up to Rs.600 Million | Offer for Sale: up to 1,42,89,450 Equity Shares by 2 Promoters | Main Board Listing on BSE and NSE

RoNW of 20.24% (FY26) Highest Among 3 Listed Hydraulics/Engineering Peers | Debt-Equity Improved from 49.67% to 24.39% | PAT Declined in FY24 Before Recovering Strongly in FY25 and FY26

Hy-Tech Engineers Limited was incorporated as Hy-Tech Engineers Private Limited on December 18, 1978, and converted to a public limited company on March 23, 2022. Its CIN is U99999MH1978PLC020853, with its registered and corporate office in Wagle Industrial Estate, Thane, Maharashtra. The Promoters are Hemant Tukaram Mondkar, Surekha Hemant Mondkar and Ashwin Hemant Mondkar.

The Company manufactures hydraulic fittings and forged components, operating 6 manufacturing facilities: 4 in Maharashtra (Thane, Shirwal, Kavathe) and 2 in Madhya Pradesh (Pithampur).

The Company's Nashik Unit is dedicated solely to forging (3,120.00 MT per annum capacity) and forms the backbone of a backward integration strategy, supplying forged components as raw material to the Company's other 5 units, which together manufacture 483.00 lakh pieces per annum of hydraulic fittings.

Manufacturing operations span die-designing, forging, heat treatment, machining, plating and inspection, allowing the Company to control quality and cost across its production chain. The Company derives 77.43% to 77.64% of revenue from its Maharashtra facilities, and 28.30% to 29.37% of revenue from exports across the disclosed track record, with customers including Tompkins Industries Inc, Sisa Hydropneumatics, Hy-Tech USA Inc. and Fittings Unlimited Inc.

Revenue from operations grew from Rs.1,377.08 million in Fiscal 2024 to Rs.1,894.04 million in Fiscal 2026, while PAT grew from Rs.115.96 million to Rs.225.92 million over the same period.

The Company's own Risk Factors disclose that PAT actually declined 35.59% in Fiscal 2024 before recovering sharply, up 69.19% in FY25 and a further 15.16% in FY26. The Company has meaningfully deleveraged over the same period, with its Debt-Equity ratio falling from 49.67% (FY24) to 24.39% (FY26).

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated August 17, 2026. This is a live offer: Anchor Investor Bid Friday, August 21, 2026, Bid or Offer opens Monday, August 24, 2026 and closes Thursday, August 27, 2026.
Issue Structure	100% Book Built Offer comprising a Fresh Issue of Equity Shares aggregating up to Rs.600.00 million by the Company and an Offer for Sale of up to 1,42,89,450 Equity Shares by 2 Promoter Selling Shareholders. Face value Rs.5 per share.
Face Value	Rs.5 per Equity Share.
Promoters and Selling Shareholders	Hemant Tukaram Mondkar (up to 89,80,961 shares, WACA Rs.0.22) and Surekha Hemant Mondkar jointly with Hemant Tukaram Mondkar (up to 53,08,489 shares, WACA Rs.0.12), both a tiny fraction of the likely Offer Price.
Eligibility Route	Regulation 6(1) of the SEBI ICDR Regulations, 2018, the standard main board profitability-based eligibility route.
Listing Exchange	Main board listing on both BSE Limited and the National Stock Exchange of India (NSE); NSE is the Designated Stock Exchange.
BRLM	New Berry Capitals Private Limited.
Registrar	Bigshare Services Private Limited.
Bid or Offer Dates	Anchor Bid: Friday, August 21, 2026. Opens: Monday, August 24, 2026. Closes: Thursday, August 27, 2026.
Listed Peers, One Line	3 listed peers in the hydraulics and precision engineering space (Aeroflex Industries, Dynamatic Technologies, Yuken India), all substantially larger, with RoNW below the Company's own disclosed figure.

This is a long-established (incorporated 1978) hydraulic fittings and forging manufacturer with a genuinely favourable comparison against its 3 disclosed listed peers on capital efficiency grounds. Both Promoters exiting via the Offer for Sale hold near-zero cost bases, and the Fresh Issue itself is relatively modest (Rs.600.00 million) compared to the Offer for Sale, which is a larger share of this Offer's total size.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Million)	Substantiation
Capital expenditure for procurement of machinery and equipment for expansion at Kavathe Unit, Shirwal Unit and Pithampur Unit-I	299.66	A specific rupee figure disclosed, independently certified by a named Chartered Engineer (Nandkishor P. Kalekar, certificate dated August 5, 2026), scheduled across FY 2026-27 (Rs.50.00 million) and FY 2027-28 (Rs.249.66 million).
Repayment or prepayment, in full or in part, of certain outstanding borrowings	160.00	A specific rupee figure disclosed; directly supports the Company's ongoing deleveraging trend.
General corporate purposes	[TBD]	Capped at 25% of Gross Proceeds. No further breakdown provided, as is standard.

The capital expenditure Object is directed at 3 of the Company's existing manufacturing units rather than a new greenfield site, reducing execution complexity, and is independently certified by a named Chartered Engineer, a more concrete substantiation than a purely internal management estimate.

The debt repayment Object, while modest in absolute terms, reinforces the Company's already improving leverage trend. As with all RHPs at this stage, the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Offer Price is fixed.

Financial Performance

P&L and Key Metrics (Rs. Million unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	1,894.04	1,613.82	1,377.08
Total revenue	1,934.35	1,667.07	1,411.73
EBITDA	416.86	357.88	225.51
EBITDA margin (%)	22.01	22.18	16.38
Profit after tax	225.92	196.19	115.96
PAT growth (%)	15.16	69.19	(35.59)
PAT margin (%)	11.68	11.77	8.21
Return on equity (%)	20.24	21.39	15.11
Return on capital employed (%)	24.40	20.46	15.24
Debt to equity ratio (%)	24.39	42.99	49.67
Current ratio (times)	2.93	2.21	1.69
NAV/Book value per share, post bonus and split (Rs.)	14.61	12.12	9.84

Independently recomputed, revenue grew approximately 17.2% in FY25 and a further 17.4% in FY26, indicating steady, consistent top-line growth across the recent track record. PAT, however, tells a more textured story: the Company's own Risk Factors disclose a 35.59% decline in FY24, followed by a strong 69.19% recovery in FY25 and a further 15.16% growth in FY26.

This means the current 3 year PAT trend, viewed in isolation, could overstate the smoothness of the Company's recent history; investors should understand that FY24 was a genuine setback year before the subsequent 2 years of recovery and growth, rather than assuming uninterrupted improvement throughout.

Beyond that FY24 dip, the trend has been consistently positive: EBITDA margin improved from 16.38% to 22.18% before a marginal easing to 22.01% in FY26, PAT margin followed a similar pattern (8.21% to 11.77% to 11.68%), and the Company has meaningfully deleveraged, with Debt-Equity falling from 49.67% to 24.39% over the 3 years while the Current Ratio nearly doubled (1.69 to 2.93 times), indicating a genuinely strengthening balance sheet. ROCE has improved in every year without reversal (15.24% to 20.46% to 24.40%), a cleaner trend than the RoE figures shown above.

How Does It Compare to Peers?

Company	Revenue FY26 (Rs. Million)	Diluted EPS (Rs.)	P/E (times)	RoNW (%)	NAV/Share (Rs.)
Hy-Tech Engineers Limited	1,894.04	2.70	N/A (Price TBD)	20.24	14.61
Aeroflex Industries Limited	4,419.35	4.28	107.04	14.06	33.80
Dynamatic Technologies Limited	16,213.40	47.73	230.32	7.89	1,168.41
Yuken India Limited	4,621.73	10.81	69.32	4.27	274.66

The RHP discloses 3 listed peers in the hydraulics and precision engineering space, Aeroflex Industries, Dynamatic Technologies and Yuken India, all substantially larger than Hy-Tech by revenue (roughly 2.3 to 8.6 times) and NAV per share, the latter reflecting these peers' longer public market history and larger absolute equity bases.

On RoNW, Hy-Tech's 20.24% is the highest of all 4 companies in the set, well ahead of Aeroflex Industries (14.06%), Dynamatic Technologies (7.89%) and Yuken India (4.27%), a genuinely strong comparison on capital efficiency grounds. Investors should note the P/E range among these listed peers is wide (69.32 to 230.32 times), and Hy-Tech's own P/E cannot yet be calculated pending Offer Price determination.

Key Risks

l The Company experienced a 35.59% decline in PAT in Fiscal 2024, before recovering with 69.19% growth in FY25 and a further 15.16% in FY26; the Company itself cautions that it cannot assure this recovery pace will continue or that future growth strategies will be implemented successfully within budget and timeline estimates.

l The Company is dependent on a concentrated group of top 10 customers (led by Tompkins Industries Inc, Sisa Hydropneumatics and Hy-Tech USA Inc.) for a significant portion of revenue, and derives 28.30% to 29.37% of revenue from exports, exposing it to both customer concentration and international trade or currency risk.

l 77.43% to 77.64% of revenue is derived from the Company's 4 Maharashtra manufacturing facilities; any significant regional disruption could disproportionately affect the business, and the Company's Nashik forging unit is a critical single point of supply for forged components used across its other 5 units.

l The Company depends on a concentrated group of top 10 suppliers for raw materials, without necessarily long-term supply agreements, exposing it to input availability and pricing risk.

l Under-utilisation of manufacturing capacity, including any newly expanded capacity funded by this Offer, could adversely affect the Company's financial performance if demand growth does not keep pace with the planned expansion.

l The Company's growth strategy depends on continued expansion of scope, distribution network and product offerings; unfamiliarity with new markets, pricing dynamics or competitive dynamics as the Company scales could expose it to execution risk distinct from its historical experience.

l The Company's manufacturing facilities are split across only 2 states (Maharashtra and Madhya Pradesh), and its Nashik forging capacity, while supporting backward integration, also concentrates a key input process in a single location.

l The Company faces standard manufacturing-sector risks, including raw material price volatility, dependence on skilled labour, and the need for continued capital investment to remain competitive in hydraulic fittings and precision forged components.

l The Company operates in a competitive industry alongside larger, more established listed peers (Aeroflex Industries, Dynamatic Technologies, Yuken India), which may have greater financial and operational resources.

l As with most companies at this Offer stage, none of the fund requirements have been independently appraised by any bank or financial institution beyond the named Chartered Engineer's capital expenditure certification.

l The Company's international customer relationships (Tompkins Industries, Hy-Tech USA, Fittings Unlimited) expose it to geopolitical and trade policy risk in its export markets.

l The Offer for Sale, comprising both Promoters exiting a portion of their holding at near-zero cost bases, is a larger absolute component of this Offer than the Fresh Issue itself, meaning a meaningful share of proceeds will not be received by the Company.

Positives to Note

l The Company holds a genuine, favourable capital efficiency position: RoNW of 20.24% in FY 2026 is the highest among all 4 companies in the disclosed peer set, including 3 substantially larger, longer-listed hydraulics and precision engineering companies.

l The Company has meaningfully deleveraged over the disclosed track record, with its Debt-Equity ratio falling from 49.67% to 24.39% and its Current Ratio nearly doubling (1.69 to 2.93 times), indicating a genuinely strengthening balance sheet.

l ROCE has improved in every one of the 3 disclosed years without reversal (15.24% to 20.46% to 24.40%), a cleaner and more consistent trend than the Company's RoE figures over the same period.

l The Company has a genuinely long operating history, tracing back to 1978, nearly 5 decades of hydraulic fittings and forging experience, led by Managing Director Hemant Tukaram Mondkar, an IIT Bombay alumnus with more than 4 decades of industry experience.

l The Company's backward integration strategy (captive forging at its Nashik Unit supplying raw material to its other 5 manufacturing units) supports better inventory management, operational flexibility and cost control across its production chain.

l The capital expenditure Object of this Offer is independently certified by a named Chartered Engineer and is directed at expanding 3 of the Company's existing, already-operational manufacturing units rather than an unproven new site.

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