Business Overview
HD Fire Protect Limited manufactures and supplies fire protection equipment and systems, covering water, foam and gas based fire suppression. It designs most of its products in house to national and international standards and serves high-hazard industrial applications as well as residential and commercial buildings. The business started as the partnership M/s HD Fire Protect Co., set up by Harish Dharamshi on April 27, 1990. The company was incorporated on April 24, 1997 as D.H. Fire Protect Private Limited, was renamed HD Fire Protect Private Limited in 2005, acquired the partnership as a going concern on April 1, 2005, and was converted into a public company on June 19, 2025. Its registered office is in Mulund West, Mumbai and its corporate office is at Wagle Estate, Thane. Its promoters are Harish Narshi Dharamshi, Kusum Harish Dharamshi, Miheer Sadanand Ghotikar, Parika Miheer Ghotikar and Anik Narendra Dharamshi.
The CRISIL Report commissioned for the Offer ranks the company the second largest manufacturer of fire protection equipment and systems in India by revenue from operations in the Financial Year 2025, and the largest exporter by value. It was the first Indian manufacturer of such equipment to obtain a UL listing for deluge valves, in 1996, the first to obtain FM approval for a range of low expansion foam products, and the first Indian company focused on this equipment to hold an ASME U stamp. It holds 21 UL listed and 87 FM approved product certifications, the highest among fire protection equipment focused peers in India as of September 2026. Its products are installed at the Sriharikota launch pad, the Jamnagar refinery, the new Parliament building, Saudi Aramco’s Ras Tanura Sea Island site and Oman’s Integrated Power and Water Plant.
The company runs two plants in Maharashtra, at Jalgaon and Thane MIDC, covering 8.50 acres, and is building a further warehouse at Wagle Estate expected to be ready by November 2026. Its range spans eight product categories. It supplied 2,066 customers in the Financial Year 2026 and has exported to more than 90 countries. Revenue from operations was ₹489.28 Crore in the Financial Year 2026 and profit after tax was ₹116.79 Crore, with exports at 34.69% of revenue. In the three months ended June 30, 2026 revenue was ₹109.05 Crore and profit after tax ₹23.87 Crore. The order book stood at ₹158.60 Crore on June 30, 2026. The workforce was 532 as of June 30, 2026, of whom 279 were permanent employees.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | October 13, 2026 to October 15, 2026 (Anchor bidding: October 12, 2026) |
| Issue Type | Book Built Issue – Offer for Sale only; there is no Fresh Issue |
| Tentative Listing Date | October 21, 2026 (BSE and NSE) |
| Face Value | ₹5 per Equity Share |
| Price Band | ₹258 to ₹271 per Equity Share |
| Lot Size | 55 Equity Shares |
| Minimum Retail Investment | ₹14,905 (1 lot at the Cap Price) |
| Issue Size | 2,62,84,500 Equity Shares aggregating to ₹712.31 Crore at the Cap Price (entirely an Offer for Sale) |
| Selling Shareholders | Harish Narshi Dharamshi (89,83,700 shares, weighted average acquisition cost ₹0.05 per share) and Kusum Harish Dharamshi (1,73,00,800 shares, ₹0.09 per share) |
| Employee Reservation | Up to ₹1.75 Crore |
| Equity Shares Outstanding | 17,52,30,000 before and after the Offer |
| Post-Issue Market Cap | ₹4,748.73 Crore (at the Cap Price) |
| Promoter & Promoter Group Holding (Pre-Issue / Post-Issue) | 100.00% / 85.00% |
| Reservation | QIB: not more than 50%; NII: not less than 15%; Retail: not less than 35% of the Net Offer |
| Book Running Lead Managers | Ambit Private Limited, Anand Rathi Advisors Limited and IIFL Capital Services Limited |
| Registrar to the Offer | MUFG Intime India Private Limited |
Objects of the Offer
The Offer is entirely a sale by two promoters. The company will not receive any proceeds from the Offer for Sale. The proceeds, after applicable expenses and taxes, will go to the Promoter Selling Shareholders.
| Issue Objects | Est. Amt (₹ Cr.) |
|---|---|
| Proceeds to the Company | Nil |
| Proceeds to the Promoter Selling Shareholders (Offer for Sale, at the Cap Price) | 712.31 |
| Listing benefits: visibility, brand image and a public market for the Equity Shares | Not quantifiable |
Key Strengths and Opportunities
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Certifications and Empanelment That Are Hard to Replicate
The business has a legacy of over 36 years and exports to more than 90 countries. It holds 21 UL listed and 87 FM approved product certifications, the highest among fire protection equipment focused peers in India as of September 2026, and is the only such peer to hold UL Solutions, FM Approvals, CE, VdS, ASME-U and Lloyd’s Register certifications across the seven product categories the RHP lists, custom engineered systems being the exception. The CRISIL Report notes that these certifications typically take 6 to 24 months for a new product line, and empanelment with domestic and international clients takes a further 3 to 12 months, involving technical evaluation, on-site audits and documentation. Once empanelled, customers prefer to keep sourcing from approved vendors, which makes displacement by new entrants difficult. The company is also among the few Indian firms holding certification from the China National Quality Testing Center for Fire Fighting Products. -
A Portfolio of Eight Product Categories Across Many End Uses
As of June 30, 2026 the range covered sprinklers and alarm valves, deluge valves and pre-action systems, foam equipment, monitors and monitor nozzles, system valves, water spray nozzles, custom engineered systems and gas suppression systems, sold into industrials, heavy engineering, aerospace, oil and gas, power, pharmaceuticals, data centres and warehousing. In the Financial Year 2026 sprinklers and alarm valves gave 33.95% of revenue from operations, deluge valves 21.85% and foam equipment 18.71%, so no single category dominates. The company holds patents in the United States, India, Turkey and Saudi Arabia for a pressure operated fluid valve with a configurable diaphragm, plus two Indian design registrations, with a further application filed in the United Arab Emirates. -
A Wide Customer Base with Long-Standing Relationships
The company had over 905 customers as of June 30, 2026 and 2,066 in the Financial Year 2026, spread across India, the Middle East, the rest of Asia, Europe, the Americas, Africa and Oceania. Concentration is low: the top 10 customers were 23.69% of revenue from operations in the Financial Year 2026 and the top three only 11.40%. Customers of more than five years’ standing gave 54.40% of revenue in that year, and repeat customers 85.20%. It sells directly in India through two stockists in New Delhi and one in Mumbai, and overseas through 22 distributors, having added distributors in Colombia, Argentina, South Africa, Kuwait, Saudi Arabia and Malaysia. It also holds 9COM numbers for valves and sprinkler systems, which allow it to receive requests for quotation on Saudi Aramco projects. -
Vertical Integration from Foundry to Flow Testing
The company is vertically integrated across research, design, casting, machining, assembly, testing, painting and quality control, with foundry operations carried out in house at its Jalgaon facility. Its capabilities include an ASME certified fabrication shop for U-stamp pressure vessels, a non-ferrous foundry, CNC and VMC machining including 5-axis centres, in-house 3D modelling, and flow testing infrastructure handling up to 18,000 litres of water per minute as of June 30, 2026. It holds ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications and runs a 745 kWp rooftop solar installation at Jalgaon. It holds a portfolio of 8 patents filed or granted, and its current development work covers deluge valves with integrated pressure reducing mechanisms and foam systems compatible with fluorine-free concentrates. -
Margins and Returns at the Top of the Peer Set, with No Debt
Revenue from operations grew at a compound annual rate of 14.54% from ₹372.95 Crore in the Financial Year 2024 to ₹489.28 Crore in 2026. Operating EBITDA rose from ₹106.63 Crore to ₹150.46 Crore, at margins of 28.59%, 31.89% and 30.75% across the three years, and profit after tax from ₹87.92 Crore to ₹116.79 Crore at margins of 22.43%, 24.35% and 23.12%. The CRISIL Report records the highest operating margin, at 32.56%, and the highest net profit margin, at 24.58%, among the fire protection equipment focused peer set for the Financial Year 2025, and the second highest return on equity and return on capital employed. The company states it has maintained a debt-free position, funding working capital and capacity expansion from internal accruals.
Key Risks
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The Whole Issue Is Offer for Sale
The Offer consists only of an Offer for Sale of up to 2,62,84,500 Equity Shares by Harish Narshi Dharamshi and Kusum Harish Dharamshi. The entire proceeds, after Offer expenses and taxes, go to the two Promoter Selling Shareholders, and the company will not receive any of them. No part of the money raised funds capacity, working capital or debt reduction. -
Supplier Concentration Has Risen Sharply
The top 10 suppliers accounted for 59.28% of total expenses in the three months ended June 30, 2026 and 47.76%, 42.90% and 35.59% in the Financial Years 2026, 2025 and 2024. The company had 388 suppliers in the Financial Year 2026 and has no long-term purchase agreements or firm commitments with any of them, so the loss of a major supplier would disrupt production. -
Both Plants Are in One State
All manufacturing is centralised at Thane and Jalgaon in Maharashtra, and those facilities produced 61.02%, 63.49%, 65.80% and 67.94% of revenue from operations in the stub period and the Financial Years 2026, 2025 and 2024, with contract manufactured goods making up the balance. Floods, labour unrest, power outages or state policy changes would hit output at both sites together, and the RHP notes the facilities sit away from major ports, which raises lead times and freight cost on exports. -
A Third of Revenue Comes from Outside India
Exports were 32.78% of revenue from operations in the three months ended June 30, 2026 and 34.69%, 36.24% and 33.33% in the Financial Years 2026, 2025 and 2024, with the Middle East and the rest of Asia the key markets. That revenue is exposed to import and export rules, local product certification regimes and foreign currency controls across more than 90 countries.
Financial Snapshot
| Key Performance Indicator | Units | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|---|
| Revenue from Operations | ₹ Cr. | 489.28 | 432.80 | 372.95 |
| Revenue Growth | % | 13.05 | 16.05 | NA |
| Domestic Revenue | ₹ Cr. | 317.01 | 273.17 | 246.58 |
| Exports Revenue | ₹ Cr. | 168.41 | 155.26 | 123.28 |
| Other Income | ₹ Cr. | 15.83 | 17.88 | 19.07 |
| Total Income | ₹ Cr. | 505.12 | 450.68 | 392.02 |
| Operating EBITDA | ₹ Cr. | 150.46 | 138.01 | 106.63 |
| Operating EBITDA Margin | % | 30.75 | 31.89 | 28.59 |
| Finance Costs | ₹ Cr. | 0.17 | 0.03 | 0.01 |
| Depreciation and Amortisation | ₹ Cr. | 10.14 | 9.14 | 9.34 |
| Profit Before Tax | ₹ Cr. | 155.98 | 146.71 | 116.35 |
| Profit After Tax | ₹ Cr. | 116.79 | 109.72 | 87.92 |
| PAT Margin (on Total Income) | % | 23.12 | 24.35 | 22.43 |
| Basic and Diluted EPS | ₹ | 6.66 | 6.26 | 5.01 |
| Return on Equity | % | 30.17 | 29.63 | 28.41 |
| Return on Capital Employed | % | 40.33 | 39.63 | 37.61 |
| Return on Net Worth | % | 31.07 | 27.71 | 25.69 |
| Net Asset Value per Equity Share | ₹ | 21.45 | 22.59 | 19.49 |
| Total Equity | ₹ Cr. | 377.15 | 397.23 | 343.41 |
| Total Borrowings | ₹ Cr. | Nil | Nil | Nil |
| Investments (non-current financial assets) | ₹ Cr. | 78.88 | 127.37 | 90.53 |
| Cash and Cash Equivalents | ₹ Cr. | 14.87 | 17.47 | 20.91 |
| Bank Balances other than Cash and Cash Equivalents | ₹ Cr. | 4.57 | 6.08 | 12.46 |
| Inventories | ₹ Cr. | 87.36 | 69.88 | 55.14 |
| Trade Receivables | ₹ Cr. | 93.71 | 57.78 | 47.96 |
| Trade Payables | ₹ Cr. | 29.78 | 24.78 | 20.90 |
| Inventory Days | Days | 85 | 77 | 85 |
| Trade Receivable Days | Days | 57 | 45 | 48 |
| Trade Payable Days | Days | 40 | 39 | 37 |
| Cash Conversion Cycle | Days | 102 | 83 | 96 |
| Fixed Asset Turnover Ratio | (x) | 5.17 | 5.18 | 4.86 |
| Cash Flow from Operating Activities | ₹ Cr. | 92.49 | 98.32 | 63.77 |
| Cash Flow from Investing Activities | ₹ Cr. | 40.97 | (52.56) | (32.98) |
| Cash Flow from Financing Activities | ₹ Cr. | (136.06) | (49.20) | (22.90) |
| Dividend Paid | ₹ Cr. | 140.18 | 56.15 | 0.19 |
| Purchase of Property, Plant and Equipment | ₹ Cr. | 4.15 | 15.99 | 7.24 |
| Number of Customers | Nos. | 2,066 | 2,179 | 2,114 |
| Order Book (year end) | ₹ Cr. | 134.45 | 70.35 | 75.29 |
Peer Comparison
| Company | Total Income (₹ Cr.) | P/E (x) | RoNW (%) | NAV (₹ per share) |
|---|---|---|---|---|
| HD Fire Protect Limited | 505.12 | 40.66 | 31.07 | 21.45 |
| KSB Limited | 2,754.87 | 55.68 | 16.11 | 96.46 |
| Kirloskar Pneumatic Company Limited | 1,814.46 | 17.20 | 20.36 | 192.25 |
| Elgi Equipment Limited | 4,068.50 | 44.83 | 19.28 | 70.41 |
| Ingersoll-Rand (India) Limited | 1,430.80 | 51.39 | 20.36 | 195.04 |
| Industry Average (as per RHP) | – | 62.95 | – | – |
Valuation
| Valuation Metric | At the Cap Price of ₹271 |
|---|---|
| Market Capitalisation | ₹4,748.73 Crore |
| Market Cap / FY 2026 Revenue from Operations | 9.71 times |
| P/E on FY 2026 EPS of ₹6.66 | 40.69 times |
| P/E on FY 2026 Profit After Tax | 40.66 times |
| Enterprise Value | ₹4,729.29 Crore |
| EV / FY 2026 Operating EBITDA | 31.43 times |
| NAV per Share (March 31, 2026 / June 30, 2026) | ₹21.45 / ₹22.82 |
| Price to Book (on March 31, 2026 NAV) | 12.63 times |
| Price to Book (on June 30, 2026 NAV) | 11.88 times |
| Order Book (June 30, 2026) / FY 2026 Revenue | 0.32 times |
| Industry Average P/E (as per RHP) / Peer Median | 62.95 times / 51.39 times |
Conclusion
HD Fire Protect is a sound business in a niche that is hard to enter. It makes water, foam and gas based fire suppression equipment and is the second largest maker in India. Its 21 UL listed and 87 FM approved products take up to two years to earn, and this keeps rivals out. The company sells to 2,066 customers, and repeat buyers gave 85.20% of revenue.
The numbers are robust. Revenue grew 14.54% a year from FY 2024 to FY 2026, to ₹489.28 Crore. The operating margin stood at 30.75%, return on equity at 30.17%, and the company has no debt.
The concern is the price. At ₹271, the stock trades at 40.69 times FY 2026 earnings and post listing PE will be 50 and 12.63 times book value. Profit grew only 6.4% last year, and trade receivables rose faster than sales. The order book covers about four months of revenue. The whole issue is an Offer for Sale, so no money comes to the company. At this price, growth of the past few years leaves a thin margin of safety.
Still, the lack of listed fire protection peers and the strong return ratios may draw demand at listing. We recommend investors “Subscribe for listing gains”. Long-term investors should track the next few quarters and look for a better entry point after listing.
