HD Fire Protect

IPO Size: Rs. 712 cr, entirely Offer for Sale (OFS)

• By promoter (100% stake to shrink to 85% post IPO)

Price band: Rs. 258-271 per share

M cap: Rs. 4,748 cr, implying 15% dilution

IPO Date: Tue 13^th Oct to Thu 15^th Oct 2026, Listing Wed 21^st Oct 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

India’s 2^nd Largest Fire Protection Equipment Maker

HD Fire Protect is a 36-year-old Mumbai-based manufacturer of fire protection equipment such as sprinkler, alarm valves, deluge valves, deluge skids, pre-action systems, foam equipment, suppression systems, water spray nozzles and monitors used in both residential and commercial sectors. HD Fire Protect is India’s largest exporter, with 1/3^rd of Rs. 500 cr revenue comprising exports to Middle East, Asia and Americas. It holds patents in US, India, Turkey, Saudi Arabia for ‘pressure operated fluid valve with configurable diaphragm arrangement’ and has supplied to ISRO, RIL, Indian Parliament building, Saudi Aramco's Ras Tanura Sea Island among others.

Two Manufacturing Plants

It has 2 manufacturing facilities at Jalgaon and Thane, in Maharashtra with capacity utilization spanning 60-90% across different products. Company has completed expansion at Jalgaon, and awaiting commercialization subject to approvals, while a new unit and warehouse at Thane is likely by Nov 2026.

As of 30.6.26, capital work in progress was Rs. 23 cr, with an additional Rs. 5 cr envisaged to be invested. At a fixed asset turn of about 5x, new capacity can lead to incremental annual revenue of Rs. 140 cr FY28E onwards.

In July 2026, it formed a subsidiary in Saudi Arabia with plans to establish manufacturing presence overseas.

High Margin Business 

Revenue has grown at a CAGR of 15% since FY23, from Rs. 324 cr in FY23 to Rs. 489 cr in FY26. Due to niche proprietary products, it clocks high margins – 49% gross, 30% EBITDA, 24% net. FY26 PAT stood at Rs. 117 cr, with EPS of Rs. 6.66, on equity of Rs. 88 cr, of face value Rs. 5 each.  

Company’s working capital, mainly to fund debtors and inventory, is nearly Rs. 140 cr representing nearly 4 months of topline.  

High Cash Generating Business

Rs. 140 cr dividend was paid in FY26. In earlier years, buy-back was undertaken from promoters, cumulatively worth Rs. 97 cr between 2021 and 2024. Since company is 100% promoter-owned, there is no impact of dividend on minority shareholders, although the net worth has reduced to Rs. 401 cr, as of 30.6.26.

Despite such large payouts, company remains debt free, with surplus cash and equivalents of Rs. 157 cr (Rs. 9 per share), as of 30.6.26 and generating Rs. 125 cr cash annually.