HGS (India)
What they do: The company manufactures geophones, geophone strings, seismic cables, connectors and geophysical equipment for seismic contractors, oil companies and other industry and research customers. It earns revenue from product sales and related services, with in-house component manufacturing and a Netherlands subsidiary supporting its operations and overseas sales.
By IPO Milega Research · Published
HGS (India) combines a specialized export-oriented manufacturing business with no borrowings at the latest reported date.
- GMP (unofficial)
- +0%
- ₹0 a share
- Opens
- 30 Oct
- in 2 days
- Min. investment
- ₹2,88,000
- 2400 shares
GMP is an unofficial grey market indication. GMP updated 28 Oct, 11:05 IST.
- Price band
- ₹114-120
- Lot size
- 2400 shares
- Min. investment
- ₹2,88,000
- Issue size
- Approx 34.56 Crores
- Open30 Oct 2026
- Close3 Nov 2026
- Allotment4 Nov 2026
- Listing6 Nov 2026
Overview
₹120 (+0.00%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹26 Cr
- Fresh issue
- To selling shareholders
- ₹7 Cr
- Offer for sale
- Funding the capital expenditure towards replacement of plant and machinery for our existing manufacturing facility at Manesar, Gurugram₹15.05 Cr57%
- Funding the capital expenditure towards Backward Integration for setting up in-house gold plating facility₹1.05 Cr4%
- Funding the capital expenditure towards Infrastructural development of building on 3rd Floor at our existing manufacturing facility at Manesar, Gurugram₹3.26 Cr12%
- Pursuing unidentified acquisitions and general corporate purposeNot stated
- Offer for sale: goes to selling shareholders₹7 Cr27%
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.
- Financials6.0
- Performance7.0
- Flexibility7.0
- Timing5.0
- Risk4.0
Positive earnings, no borrowings and strong reported liquidity support modest fundamentals-led upside. The reported revenue and profit figures imply an unusually high net margin, limiting confidence in valuation-based upside.
Strengths5
- Built a manufacturing business dating to 1986, with in-house extrusion, moulding, cable production, sensor assembly and testing.
- Served 149 domestic and overseas customers in FY2026, with sales across around 47 countries as of April 2026.
- Expanded product applications across oil and gas, seabed surveys, vibration monitoring, earthquake seismology, mining and defence research.
- Earned ISO 9001:2015 and ZED Gold certifications; its Manesar facility has environmental and performance testing capabilities.
- Developed HG-5VHS and HG-2 sensors and an avalanche-monitoring geophone network, with initial commercialization or deployment described.
Concerns5
- The top customer contributed 21.79% of FY2026 revenue and the top five contributed 60.21%; there are no long-term contracts, so cancellations or payment defaults could pressure cash flow.
- Exports accounted for 98.52% of revenue for the period ended April 30, 2026, exposing the company to geopolitical, currency, sanctions and trade-barrier risks.
- Two product categories generated 97.66% of revenue for the period ended April 30, 2026, increasing exposure to industry demand and product-specific performance risks.
- The top ten suppliers represented 99.04% of purchases, and 76.34% of purchases were imported, creating risks from supply disruption, input-cost increases and loss of technical know-how.
- Manufacturing disruption, variable capacity utilization, skilled-labour retention, strict quality requirements and one-to-three-year warranties may affect output and profitability; inventory and receivables also tie up funds.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,88,0002 lots, 2400 shares
- Retail Maximum2,88,0002 lots, 2400 shares
- S-HNI Minimum4,32,0003 lots, 3600 shares
- S-HNI Maximum8,64,0006 lots, 7200 shares
- B-HNI Minimum10,08,0007 lots, 8400 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 2400 | 2,88,000 |
| Retail Maximum | 2 | 2400 | 2,88,000 |
| S-HNI Minimum | 3 | 3600 | 4,32,000 |
| S-HNI Maximum | 6 | 7200 | 8,64,000 |
| B-HNI Minimum | 7 | 8400 | 10,08,000 |
Timing
5.0/10The offer’s SME-platform positioning and approximate ₹34.56 crore size give it a defined small-issue profile. The available offer details do not establish whether broader market conditions are favorable or whether the company is timing the issue around a strategic business catalyst.
- Time to market
- The offer follows a standard book-building and listing process. The information gives no indication that speed to market is a strategic advantage or disadvantage.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- NSE SME
Key milestones
- 30 Oct 2026IPO Opens
- 3 Nov 2026IPO Closes
- 4 Nov 2026Basis of Allotment
- 5 Nov 2026Refunds Initiated
- 5 Nov 2026Credit to Demat Account
- 6 Nov 2026Listing Date
Financials
6.0/10- Revenue
- ₹48.91 Cr
- -8.5%
- Profit after tax
- ₹11.64 Cr
- +10.8%
- Net margin
- 23.8%
- +4.1 pts
- Assets
- ₹110 Cr
- +5.8%
- Return on equity
- 13.04%
- Debt to equity
- 0
- Current ratio
- 9.99
- Revenue CAGR
- 9%
- ROCE
- 1.60%
- Return on net worth
- 1.23%
- NAV per share (₹)
- 105.96
- Price to book
- 1.13
Financial performance trend
Amount ₹ in croresHGS (India) combines a specialized export-oriented manufacturing business with no borrowings at the latest reported date. The extracted FY2026 figures show revenue of ₹70.62 lakh and net profit of ₹15.42 crore; the figures produce an unusually high calculated net margin. The fresh issue funds manufacturing and facility investments, with no debt repayment proposed.
The company had no borrowings at the latest reported date. The IPO proceeds are allocated to capital expenditure, potential acquisitions and general corporate purposes; no debt repayment is proposed.
Fresh issue goes to the company. OFS goes to the selling shareholders.
The OFS is by selling shareholders, whose identities and individual share amounts are not stated in the issue details.
Fresh proceeds are planned for machinery replacement, an in-house gold plating facility, factory infrastructure, potential acquisitions and general corporate purposes. No debt repayment is proposed. The reason for the selling shareholders’ OFS is not stated; its proceeds go to those shareholders.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks6
- Market risks4
- Operational risks4
- Regulatory risks5
High customer, export and supplier concentration, operational dependencies, financial exposures and pending disputes create material uncertainty for revenue, cash flow and business continuity.
How the company offsets these
The company has appealed the GST order; no criminal proceedings or statutory or regulatory actions are disclosed against it. The Audit Committee will monitor IPO proceeds.
Financial risks6
- Customer concentration, absence of long-term contracts and possible payment delays or defaults.
- Inventory of ₹4,578.40 lakh and trade receivables of ₹178.19 lakh as of April 30, 2026.
- ₹1,722.42 lakh in equity and mutual-fund investments without an impairment provision.
- Dependence on Canara Bank and Kotak Mahindra Bank, restrictive debt covenants and promoter personal guarantees.
- ₹133.88 lakh owed to 34 trade creditors as of April 30, 2026.
- Tax demands involving the company and promoters, and uncertain outcomes from pending recovery and employment disputes.
Market risks4
- Exports represented 98.52% of revenue, exposing the company to country, geopolitical, currency, sanctions and trade-barrier risks.
- Geophone Strings/Harness and Seismic Cables contributed 58.25% and 39.41% of revenue, respectively, for the period ended April 30, 2026.
- Market-price volatility, surveillance measures, broader Indian economic conditions, inflation and foreign-investment changes.
- Promoters and their group will retain 64.34% ownership after the offer; future dilution may affect investor interests.
Operational risks4
- Supplier concentration and imported-purchase dependence may disrupt production or raise costs.
- Manufacturing interruptions, low or fluctuating capacity utilization and skilled-labour retention challenges.
- Quality failures and warranty obligations of one to three years may create costs and reputational harm.
- Cyber and fraud exposure, and proposed inorganic growth without identified acquisition targets.
Regulatory risks5
- A one-day delay in filing the November 2025 GSTR-3B return resulted in a ₹20 late fee; future statutory-payment delays may attract penalties.
- The company is appealing a ₹5.94 lakh indirect-tax matter, including ₹5.40 lakh of ITC and a ₹0.54 lakh penalty; direct-tax demands total ₹0.10 lakh.
- Promoter direct-tax demands are under adjudication; disclosed promoter tax claims total ₹13.09 lakh.
- Pending legal matters include a former employee's claim, a civil appeal involving the company and a promoter-group suit against a utility.
- Export operations face sanctions and trade-barrier exposure; no outstanding criminal proceedings or statutory or regulatory actions are disclosed against the company.
Performance
7.0/10HGS (India) manufactures geophones, seismic cables, connectors and related equipment, with revenue mainly from finished products and exports. Revenue rose 38.3% in FY2025, then fell 8.0% in FY2026 to ₹45.16 crore. Profitability improved across both years: EBITDA margin rose from 17.4% to 37.4%, and PAT margin from 11.3% to 25.8%. Long manufacturing experience, broad products and in-house production support performance, while low capacity utilisation and customer concentration constrain the assessment.
- Historical growth
- Revenue grew from ₹35.48 crore in FY2024 to ₹49.08 crore in FY2025, then declined to ₹45.16 crore in FY2026. FY2024–FY2026 revenue CAGR was approximately 12.8%. PAT increased from ₹4.00 crore to ₹10.51 crore and ₹11.64 crore over the same period., Revenue growth was uneven: +38.3% in FY2025 and -8.0% in FY2026. EBITDA grew from ₹6.16 crore in FY2024 to ₹16.89 crore in FY2026; PAT rose from ₹4.00 crore to ₹11.64 crore.
- Market comparison
- The company operates in a niche market and identifies international competitors, but names no peers or comparative financial benchmarks. Its stated competitive strengths include product customisation, integrated manufacturing, quality testing and international customer reach. Peer-relative pricing, market share and margins cannot be assessed from the available figures.
- Future potential
- Potential growth depends on execution of capacity upgrades, product development and expansion in export and domestic markets. No quantified forecast is stated. Revenue volatility, customer concentration and capacity utilisation remain relevant constraints.
- Operational consistency
- The business has operated since 1986, but recent sales vary by year and product category. FY2026 top 10 customers contributed 72.6% of revenue, while utilisation ranged from 0.1% to 57.7% across listed product categories, indicating uneven demand and production loading.
- Experience
- Promoter and Managing Director Anil Dass has nearly 40 years in the industry and has been associated with the company since 1986. Whole Time Director and CFO Dhiraj Vashista has around 27 years of finance experience and approximately 20 years with the company. Whole Time Director Samir Gugnani has 39 years of overall experience and more than 30 years with the company, including responsibility for manufacturing operations.
- Track record
- The leadership team has long tenure and relevant manufacturing, technical and finance experience. Financial results show higher margins and PAT through FY2026, although FY2026 revenue declined and manufacturing capacity utilisation was low across several product lines.
Key achievements
- 01Built a manufacturing business dating to 1986, with in-house extrusion, moulding, cable production, sensor assembly and testing.
- 02Served 149 domestic and overseas customers in FY2026, with sales across around 47 countries as of April 2026.
- 03Expanded product applications across oil and gas, seabed surveys, vibration monitoring, earthquake seismology, mining and defence research.
- 04Earned ISO 9001:2015 and ZED Gold certifications; its Manesar facility has environmental and performance testing capabilities.
- 05Developed HG-5VHS and HG-2 sensors and an avalanche-monitoring geophone network, with initial commercialization or deployment described.
Flexibility
7.0/10Products serve oil and gas, seabed surveys, earthquake monitoring, vibration monitoring, mining, defence and research markets, across about 47 countries. Custom engineering and a Netherlands sales subsidiary support customer and geographic reach. Revenue remains concentrated in exports and a small group of customers.
FY2025-26 revenue was ₹45.16 crore and PAT was ₹11.64 crore, with net worth of ₹89.27 crore. Profitability improved from FY2023-24, while revenue declined from ₹49.08 crore in FY2024-25. Proposed expansion depends partly on IPO proceeds; several production lines have low capacity utilization.
In-house extrusion, moulding, sensor assembly, testing and engineering enable customization and control of key production steps. Planned machinery replacement, a gold-plating facility and added factory space could improve process flexibility. Imported materials account for 73.65% of FY2025-26 purchases, and production utilization varies widely across product lines.
HGSI combines a broad seismic equipment range, customer-specific manufacturing, international sales and in-house production capabilities. Flexibility is tempered by high customer concentration, reliance on imported inputs, low utilization in several product lines and dependence on the seismic and geoscience markets.
- Product diversification
- The portfolio spans geophone strings and sensors, seismic cables and connectors, seismographs, seismometers, accelerographs, weather monitors and related accessories. Revenue remains concentrated in geophone strings and seismic cables, which together represented 86.68% of FY2025-26 revenue.
- Future adaptability
- Potential is supported by planned machinery upgrades, in-house gold plating, additional assembly space, new sensor products and intended expansion in domestic and overseas markets. The company also proposes acquisitions, with no target identified. Outcomes depend on execution, customer demand and managing concentrated customers and imported supply.
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.