Can HD Fire Protect IPO deliver long-term growth for high-risk investors?

ET Online

The promoter group's stake will fall to 85% after the IPO from 100%.

ET Bureau

Business

Incorporated in 1997, HD Fire Protect offers a comprehensive portfolio across eight product categories, including sprinklers, alarm valves and accessories, deluge valves and systems, foam equipment and suppression systems, monitors and nozzles, water spray nozzles, custom-engineered systems and gas suppression systems. The company operates two manufacturing facilities in Jalgaon and Thane, Maharashtra. It exports products to over 90 countries. Order book surged to ₹134.4 crore in FY26 from ₹75.3 crore in FY24 and further increased to ₹158.6 crore as of June 30, 2026. According to Crisil, the company is the second-largest manufacturer of fire protection equipment and systems in India in terms of revenue and the largest exporter by value in FY25.

Financials

Between FY24 and FY26, revenue from operations increased 14.5% annually to ₹489.3 crore and net profit rose 15.3% to ₹116.8 crore. Operating profit before interest, tax, depreciation and amortisation (Ebitda) jumped 18.8% to ₹150.5 crore during the same period. Ebitda margin was at 30.8% in FY26 from 31.9% in FY25 and 28.6% in FY24. Cash flow from operations grew 20.4% annually to ₹92.5 crore in FY26 from ₹63.8 crore in FY24. Return on equity increased to 30.2% in FY26 from 28.4% in FY24.

Valuation

The company has no comparable listed peer. Considering the post-IPO equity and FY26 net profit, the company seeks price-earnings (P/E) multiple of 41, while based on annualised FY27 earnings, the P/E works out to 50. Other industrial engineering companies such as Kirloskar Pneumatic Company, Ingersoll-Rand (India), and KSB trade at P/E multiples of 34 to 50 based on FY26 earnings, while their annualised FY27 P/E multiples range from 21 to 60.