HD Fire Protect IPO: Issue Structure, Financials and Peer Valuation Analysis

HD Fire Protect Limited, an established manufacturer and supplier of specialized fire protection equipment and suppression systems with over three decades of operational history, has outlined the schedule and structure for its upcoming public offering. According to the red herring prospectus, the initial public offering is scheduled to open for bidding on 13 October 2026 and close on 15 October 2026. The public issue consists entirely of an offer for sale of 2,62,84,500 equity shares, with no fresh issue component. The face value of each equity share is set at INR 5.

The company provides a diverse range of safety equipment across eight distinct product categories. Its core offerings include sprinklers and alarm valves, deluge valves, pre-action systems, specialized foam equipment, monitors, nozzles, water spray nozzles, custom-engineered systems, and gas suppression solutions. These products are engineered to support high-hazard industrial environments such as oil and gas refining, petrochemical plants, power generation facilities, heavy engineering installations, aerospace units, pharmaceutical plants, and data centers, alongside standard commercial and residential structures.

Manufacturing Infrastructure, Certifications and Export Footprint

Operations are anchored by manufacturing plants located in Jalgaon and Thane, Maharashtra, spanning a combined area of 8.50 acres. These production facilities work in tandem with an internal research and development center, a dedicated fire test laboratory, and comprehensive warehouse infrastructure. To maintain competitive positioning globally, the enterprise focuses on in-house product development. By September 2026, the company secured an extensive certification portfolio featuring 21 UL Listed and 87 FM Approved certifications.

Market presence extends well beyond domestic borders. During the three months ended 30 June 2026, the company exported its systems to 49 countries, and its annual reach expanded to more than 90 countries through Fiscal 2026. According to CRISIL data cited in the prospectus, the firm held the position of the second-largest fire protection equipment manufacturer in India by operating income and the largest equipment exporter by value in Fiscal 2025. Revenue visibility is supported by a robust order book standing at INR 158.60 crore as of 30 June 2026, while the permanent workforce counted 279 employees at the end of the same period.

Schedule and Issue Parameters

The equity shares are slated for listing on both the Bombay Stock Exchange and the National Stock Exchange following completion of the allotment process. Ambit Private Limited acts as the lead manager for the issue, while MUFG Intime India Private Limited serves as the registrar.

Financial Performance and Operating Margins

The financial statements indicate steady top-line expansion across recent fiscal periods. Total revenue grew from INR 372.95 crore in Fiscal 2024 to INR 432.80 crore in Fiscal 2025, and further advanced to INR 489.28 crore in Fiscal 2026. For the first quarter ended June 2026 (Q1 FY 2027), total revenue reached INR 109.05 crore. Net income showed consistent profitability, moving from INR 87.92 crore in FY 2024 to INR 109.72 crore in FY 2025 and INR 116.79 crore in FY 2026, with Q1 FY 2027 net income standing at INR 23.86 crore.

Market and Financial Analysis

Market Impact and Sector Sentiment

The upcoming market debut arrives amid steady industrial demand for specialized safety infrastructure. Given the company’s status as a leading domestic manufacturer and top export earner in its niche, institutional and retail investor interest is expected to remain firm. Sector sentiment is supported by stringent safety regulations across high-hazard industries like oil and gas, power, and pharmaceuticals, which mandate certified fire suppression deployments.

Financial and Valuation Analysis

Based on the reported financial data, the enterprise demonstrates strong operational efficiency and high return ratios. The Return on Net Worth (RoNW) stood at 25.69% in FY 2024, rising to 27.71% in FY 2025 and reaching 31.07% in FY 2026. Similarly, the Return on Capital Employed (ROCE) advanced from 37.61% to 40.33% over the same timeframe. Earnings per share (EPS) increased from INR 5.01 in FY 2024 to INR 6.26 in FY 2025 and INR 6.66 in FY 2026.

When evaluated against listed peers in the engineering and capital goods sector, the company exhibits competitive return metrics. Listed peers such as Azad Engineering, KSB Limited, Kirloskar Pneumatic, Elgi Equipments, and Ingersoll-Rand trade across varying valuation multiples, with an industry average P/E of 62.95, ranging from a low of 17.20 to a high of 145.65. The company’s pre-issue RoNW of 31.07% compares favorably against this peer group, highlighting robust capital utilization.

Company and Business Impact

The business model relies heavily on proprietary product development and international accreditations, which creates a competitive moat against unorganized players. The healthy order book of INR 158.60 crore provides short-to-medium-term revenue visibility. However, because the entire public offering is an offer for sale by existing promoters and shareholders, the transaction will not inject fresh working capital into the business, meaning future expansion will continue to rely on internal accruals and existing financial strength.

Key Takeaways

• Bidding Dates: The public subscription window opens on 13 October 2026 and closes on 15 October 2026.
• Issue Structure: The offering comprises entirely an offer for sale of 2,62,84,500 equity shares with a face value of INR 5 per share.
• Financial Growth: Total revenue expanded to INR 489.28 crore in FY 2026, accompanied by a net profit of INR 116.79 crore.
• Strong Returns: The company reported a high Return on Capital Employed (ROCE) of 40.33% and a Return on Net Worth (RoNW) of 31.07% for FY 2026.
• Global Footprint: Products are supplied to over 90 countries, supported by 21 UL Listed and 87 FM Approved certifications.

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