HD Fire Protect
What they do: Designs, manufactures and supplies fire protection products and related solutions, with earnings supported by operating cash generation and investment income.
By IPO Milega Research · Published
HD Fire Protect Limited shows strong profitability and a solid equity base.
- GMP (unofficial)
- +31.73%
- ₹86 a share
- Subscribed
- 1.46x
- Total so far
- Retail odds
- 65%
- 1 in 1.5
GMP is an unofficial grey market indication. GMP updated 13 Oct, 12:07 IST.
- Price band
- ₹258-271
- Lot size
- N/A
- Min. investment
- N/A
- Issue size
- Approx 712.31 Crores
- Open13 Oct 2026
- Close15 Oct 2026
- Allotment16 Oct 2026
- Listing21 Oct 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 0x
- S-HNI
- 4.13x
- B-HNI
- 2.73x
- Retail
- 1.54x
₹357 (+31.73%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
This IPO is entirely an offer for sale. The company receives none of the money : all ₹712 Cr goes to the selling shareholders.
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials7.0
- Performance8.0
- Flexibility8.0
- Timing6.0
- Risk5.0
The business shows strong profitability, high margins, nil borrowings, and a broad export base across fire protection products. Certification depth, patents, and planned capacity additions support long-term earnings quality. Gains potential is moderated by the offer being entirely an OFS, so no fresh capital is raised, along with working capital intensity, customer and supplier concentration, and export and currency risk.
Strengths5
- Exports to more than 90 countries in FY2026 and 49 countries in the three months ended June 30, 2026
- 21 UL Listed and 87 FM Approved certifications as of September 2026
- 4 granted patents across the US, India, Turkey and Saudi Arabia
- 2 design registrations in India and 1 patent application in the UAE
- Highest operating margin and net profit margin among fire-protection-focused peers in fiscal 2024–2025 set observations
Concerns5
- Foreign exchange exposure from USD and other currency receivables, payables and cash balances can affect profit before tax.
- Export revenue dependence creates sensitivity to overseas demand, trade conditions and currency movements.
- Top customer or supplier concentration can disrupt revenue, margins and procurement continuity.
- Manufacturing concentration in Maharashtra raises exposure to local operational disruption, labor issues and regional events.
- Fire protection equipment failure can lead to loss of life, claims, warranty costs and reputational damage.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,9051 lots, 55 shares
- Retail Maximum1,93,76513 lots, 715 shares
- S-HNI Minimum2,08,67014 lots, 770 shares
- S-HNI Maximum9,98,63567 lots, 3685 shares
- B-HNI Minimum10,13,54068 lots, 3740 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 55 | 14,905 |
| Retail Maximum | 13 | 715 | 1,93,765 |
| S-HNI Minimum | 14 | 770 | 2,08,670 |
| S-HNI Maximum | 67 | 3685 | 9,98,635 |
| B-HNI Minimum | 68 | 3740 | 10,13,540 |
Timing
6.0/10The timing looks fair to moderately positive. The business enters the market with consistent net profits, solid operating cash flow, and a sizeable cash balance, which usually suits an IPO window. The offer is less compelling because cash generation has been offset by heavy shareholder payouts and recent investing outflows, while contingent liabilities and related party transactions add some caution. Overall, the issue appears timed for a stable market rather than an aggressive one.
- Time to market
- Profitability and operating cash flow support launch readiness, but the combination of negative recent net cash movement, large dividend distributions, and some balance-sheet and governance-related cautions keeps the timing from looking especially strong.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 6.0
- Listing on
- BSE, NSE
Key milestones
- 13 Oct 2026IPO Opens
- 15 Oct 2026IPO Closes
- 16 Oct 2026Basis of Allotment
- 19 Oct 2026Refunds Initiated
- 19 Oct 2026Credit to Demat Account
- 21 Oct 2026Listing Date
Financials
7.0/10- Revenue
- ₹505 Cr
- +12.1%
- Profit after tax
- ₹117 Cr
- +6.4%
- Net margin
- 23.1%
- -1.2 pts
- Assets
- ₹432 Cr
- -4.0%
- Return on equity
- 39.3%
- ROCE
- 8.36%
- Return on net worth
- 5.97%
- NAV per share (₹)
- 22.82
- Price to book
- 12.63
Financial performance trend
Amount ₹ in croresHD Fire Protect Limited shows strong profitability and a solid equity base. The latest reported net profit is ₹1,559.79 million against total assets of ₹4,500.82 million and equity of ₹3,972.32 million. The offer is a pure offer for sale, so the company receives no fresh capital from the IPO.
Borrowings are not stated, so leverage cannot be assessed from the available figures. The IPO does not state any debt repayment use of proceeds.
Fresh issue goes to the company. OFS goes to the selling shareholders.
Promoter shareholders Harish Narshi Dharamshi and Kusum Harish Dharamshi are selling all offered shares, about 8,983,700 and 17,300,800 shares respectively.
The company is not raising fresh capital. The offer is entirely an OFS, so existing promoters are monetising part of their stake while the company receives no issue proceeds.
Risk
5.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks3
- Operational risks4
- Regulatory risks3
Moderate risk from export dependence, customer and supplier concentration, receivable buildup, operational disruption, foreign currency exposure, and one unresolved export obligation.
How the company offsets these
Currency sensitivity analysis, limited hedging, ECL provisioning, board oversight of risks, and disclosure of concentrated exposures and outstanding obligations.
Financial risks3
- Foreign currency exposure from unhedged USD positions.
- Receivable collection delays and overdue balances.
- Working capital strain from extended credit terms up to 150 days.
Market risks3
- 32.78% of revenue from outside India exposes the business to export demand swings.
- Dependence on demand from industrial and fire protection equipment markets.
- Revenue and supply concentration can amplify customer or vendor loss.
Operational risks4
- Manufacturing dependence on Maharashtra for 61.02% of revenue.
- Supplier concentration, with top 10 suppliers at 59.28% of total expenses.
- Fire protection product malfunction can cause liability and reputational damage.
- Capacity utilization can shift with raw material availability, order cancellations and demand changes.
Regulatory risks3
- Regulatory or certification failure could restrict sales or product acceptance.
- Outstanding export obligation may require compliance action or penalties.
- Cross-border revenue and product standards can create compliance exposure.
Performance
8.0/10HD Fire Protect has shown strong operating performance with high margins, profitable growth, nil borrowings and a broad export footprint across fire protection equipment and systems. FY2026 revenue rose 12.08% and PAT rose 6.61%, while Q1 FY2026 delivered Operating EBITDA margin of 27.26% and PAT margin of 20.92%. The business benefits from certifications, patents, product breadth and a clear capacity expansion plan, though working capital remains moderate with a 112-day cash conversion cycle and revenue growth is not yet fast.
- Historical growth
- Revenue grew 12.08% in FY2026 to ₹5,051.15 million and PAT grew 6.61% to ₹1,167.86 million. Q1 FY2026 revenue was ₹1,090.52 million with PAT of ₹238.65 million. Operating EBITDA was ₹1,504.59 million in FY2025 and ₹1,380.08 million in FY2024, showing steady expansion., Moderate to strong revenue growth with slower profit growth than sales in FY2026; margins remained high.
- Market comparison
- Against fire-protection-focused peers, HD Fire Protect ranks strongly on margins, with the highest operating margin and net profit margin in fiscal 2024–2025 set observations. It also ranks 2nd in RoE and RoCE among peers, while maintaining zero gearing. This positions it as a higher-quality profitability player, though peer data also shows stronger capital efficiency in some comparables.
- Future potential
- Growth prospects are supported by product innovation, fluorine-free fire protection solutions, certification expansion, in-house engineering capability and capacity additions at Jalgaon and Thane.
- Operational consistency
- The company has operated profitably over the last three financial years, kept borrowings at nil, and maintained strong margins. Execution is supported by a broad customer base of 905 customers, repeated certification gains and planned capacity expansion, though working capital intensity remains elevated with inventory days at 109 and cash conversion cycle at 112.
- Experience
- Led by Chairman and Managing Director Harish Narshi Dharamshi. The business shows structured execution in manufacturing, certifications, product development and international expansion.
- Track record
- Management has delivered profitable growth, maintained nil borrowings, expanded exports, and built a certification-led product platform with in-house design, simulation and testing capability.
Key achievements
- 01Exports to more than 90 countries in FY2026 and 49 countries in the three months ended June 30, 2026
- 0221 UL Listed and 87 FM Approved certifications as of September 2026
- 034 granted patents across the US, India, Turkey and Saudi Arabia
- 042 design registrations in India and 1 patent application in the UAE
- 05Highest operating margin and net profit margin among fire-protection-focused peers in fiscal 2024–2025 set observations
- 06Nil gearing ratio across fiscal 2023 to FY2025
- 07Completed Jalgaon unit with dedicated fire test laboratory, warehouse and R&D centre
Flexibility
8.0/10High adaptability across India and exports, with sales in over 90 countries, 22 distributors, white-labelling in select markets, and exposure to industrial, commercial, and residential end uses. Its certifications and empanelments support entry into regulated markets and recurring customer approvals.
FY26 revenue was ₹4,892.81 million, with operating EBITDA margin of 30.75% and PAT margin of 23.12%. RoE was 30.17% and RoCE 40.33%, with zero gearing in the peer table. The cash conversion cycle of 112 days and inventory days of 85 suggest working capital intensity, but the balance sheet appears conservative.
Vertical integration across R&D, casting, machining, assembly, testing, painting, and quality control supports fast customization and tighter control on quality and lead time. The company also uses contract manufacturing, white-labelling, ERP-linked processes, and a distributor-led model, which adds operating flexibility.
HD Fire Protect operates in a certification-heavy fire protection market with a broad 8-category portfolio, presence in more than 90 countries, and revenue split across domestic and export markets. The company has strong product credentials, in-house design and manufacturing, and a steady customer base, which supports adaptation across sectors and geographies. The main constraints are a working capital cycle of 112 days in FY26 and moderate scale versus larger industrial peers.
- Product diversification
- The portfolio spans sprinklers, alarm valves, deluge valves, pre-action systems, foam equipment, monitors, water spray nozzles, custom engineered systems, and gas suppression systems. Revenue is spread across multiple product lines, with no single category dominating to an extent that suggests narrow dependence.
- Future adaptability
- Future adaptability looks strong because the company has certification depth, patent activity, a broad end-use spread, and capacity expansion at Jalgaon and Thane. Demand from data centres, warehousing, petrochemicals, and infrastructure can support further diversification. The main execution risk is continued reliance on certifications, long approval cycles, and working-capital discipline as scale grows.
Latest on HD Fire Protect IPO
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.