HD Fire Protect makes the valves, sprinklers, foam systems and nozzles that put out fires in refineries, power plants, factories and buildings. It is India’s second-largest maker and its largest exporter. Two promoters are selling shares in this IPO, so the company gets none of the money.HD Fire Protect
Issue timeline
HD Fire Protect began as a partnership in 1990 and became a company in 1997. It has two plants in Maharashtra, at Jalgaon and Thane, with 279 permanent staff and 253 contract workers. About 35% of its sales are exports, and it has sold in more than 90 countries. In July 2026 it set up a 70% owned subsidiary in Saudi Arabia.
On 12 October, 25 anchor investors bought 78,64,008 shares at ₹271. Mutual funds took 71.9% and life insurers 7.0%.
Key takeaway
HD Fire Protect is a very profitable, debt-free leader in a growing market. Funds and insurers backed it at ₹271, but its share of India’s market is small.
Two plants · 8 product groups · 90+ countries
Many customers, but a third of sales are goods made by others
HD Fire Protect sells fire protection equipment in eight product groups. Sprinklers and alarm valves are 34% of FY26 sales, deluge valves 22% and foam equipment 19%. Exports are 35% of sales, led by the Middle East at 15%.
How the business earns money
How full the plants are
Who it depends on
Share of FY26 sales
Largest 3 customers
11.40%
Largest 5 customers
15.21%
Largest 10 customers
23.69%
Share of FY26 costs
Largest 3 suppliers
26.57%
Largest 5 suppliers
35.53%
Largest 10 suppliers
47.76%
Our assessment
No customer is large: the top ten bought 23.7% of FY26 sales, and customers of more than five years gave 54.4%. Costs are more concentrated. Goods made by contract manufacturers rose from 31.1% of sales in FY24 to 36.7% in FY26, and the top ten suppliers took 47.8% of costs, up from 35.6%. China supplied 31% of total purchases in FY26. A trade barrier or a supply break would hurt more than losing any one customer.
Key takeaway
HD Fire Protect has a wide customer base and a strong certification record. The weak spot is supply: about a third of what it sells is made by others, from a few suppliers.
India fire protection equipment · ₹10,900 Cr market in FY26
A market growing 10 to 12% a year, with room to catch up
The industry report puts India’s fire protection equipment market at ₹10,900 Cr in FY26, up 12% a year since FY20. It expects ₹17,500 to 19,500 Cr by FY31. Fire suppression, where HD Fire Protect sells, is 75% of the market (₹8,200 Cr) and is forecast to grow faster, at 11 to 13% a year.
India market size
FY26
₹10,900 Cr
FY31 forecast
₹17,500–19,500 Cr
Fire suppression market by product, FY26
Sprinkler based
₹2,200 Cr 27%
Hydrant based
₹2,100 Cr 26%
Extinguishers
₹1,800 Cr 22%
Foam equipment
₹1,000 Cr 12%
Gas based
₹600 Cr 7%
HD Fire Protect makes no extinguishers, and its gas system sales were nil in FY26.
What is driving demand
Where the demand sits, FY26
| End use | Market (₹ Cr) | Share | Growth a year to FY31 |
|---|---|---|---|
| Commercial | 4,500 | 42% | 8.5 to 10.5% |
| Industrial and infrastructure | 4,100 | 37% | 10.5 to 12.5% |
| Residential | 2,300 | 21% | 11.5 to 13.5% |
Who HD Fire Protect competes with
The industry report names seven fire protection makers, led by Safex Fire Services, Newage Fire Fighting and Ceasefire Industries. Large groups such as Johnson Controls (India), Honeywell and Gunnebo India also compete. Among the specialists only Safex is larger: its FY25 sales were ₹555 Cr against ₹433 Cr, and it grew faster (29% a year over FY23 to FY25 against 16%).
Why it is hard to enter, and where prices are weaker
New certifications such as UL and FM take 6 to 24 months for each product line, and buyers favour suppliers already on their approved lists. The industry report adds that extinguishers, sprinklers and hydrants are becoming commodity products, while deluge valves, pre-action systems, monitors, foam and gas systems are mostly sold by branded makers.
Our assessment
Demand looks supportive: India spends about $1 a head on fire protection equipment against $57 in North America, and imports are twice exports. Two cautions. The report was paid for by the company and its FY31 numbers are forecasts. And sprinklers and alarm valves, the largest line at 34% of sales, include products the report calls commodities.
Key takeaway
India’s fire protection market is growing 10 to 12% a year from a low base. Demand is not the worry here. The price and the reliance on bought-in goods are.
Sales · Profit · Returns · Cash flow, FY24 to FY26
Very profitable and debt free, but growth is slowing
Sales rose from ₹373 Cr in FY24 to ₹489 Cr in FY26, or 14.5% a year. Profit after tax was ₹87.9 Cr, ₹109.7 Cr and ₹116.8 Cr. Growth slowed in FY26: sales rose 13% (against 16% in FY25) and profit rose 6% (against 25%).
Sales (₹ Cr)
Up 13% in FY26
Profit after tax (₹ Cr)
Up 6% in FY26
Cash from operations (₹ Cr)
Positive in all three years
FY26 sales by product
Sprinklers, alarm valves
₹164.8 Cr 33.9%
Deluge valves and pre-action
₹106.1 Cr 21.9%
Foam equipment
₹90.8 Cr 18.7%
Water spray nozzles
₹33.1 Cr 6.8%
Monitors and nozzles
₹26.8 Cr 5.5%
System valves
₹26.5 Cr 5.5%
Custom engineered
₹3.5 Cr 0.7%
Gas suppression
Nil 0%
Others
₹33.8 Cr 7.0%
Return on capital and on equity (%)
37.639.640.328.429.630.2
FY24FY25FY26
● Return on capital (ROCE) ● Return on equity (RoE)
| FY24 | FY25 | FY26 | Apr to Jun 2026 | |
|---|---|---|---|---|
| Sales (₹ Cr) | 373.0 | 432.8 | 489.3 | 109.1 |
| EBITDA margin (%) | 28.6 | 31.9 | 30.8 | 27.3 |
| Profit after tax (₹ Cr) | 87.9 | 109.7 | 116.8 | 23.9 |
| Profit margin (%) | 22.4 | 24.4 | 23.1 | 20.9 |
| Earnings per share (₹) | 5.01 | 6.26 | 6.66 | 1.36 |
| Stock held (days) | 85 | 77 | 85 | 109 |
| Customers take to pay (days) | 48 | 45 | 57 | 61 |
| Cash conversion cycle (days) | 96 | 83 | 102 | 112 |
EBITDA here leaves out other income. April to June 2026 is three months, not annualised, so its return ratios are not shown. The RHP does not give profit by product.
Our assessment
HD Fire Protect earns an EBITDA margin of about 31% and a 30% return on equity with no borrowings. Growth is slowing, though. In April to June 2026 sales were ₹109.1 Cr against a FY26 quarterly average of ₹122.3 Cr, and the margin was 27.3%. The RHP gives no figure for the same quarter a year earlier, so one quarter does not settle the trend. Customers and stock are also turning into cash more slowly: the cash conversion cycle went from 83 days in FY25 to 102 in FY26.
Key takeaway
HD Fire Protect turns a small amount of capital into high profit and has no debt. Growth and margins have both started to ease.
Up to 2,62,84,500 shares · No new shares · Anchor book ₹213 Cr
Two promoters are selling and the company gets nothing
The offer is up to 2,62,84,500 shares, or 15.0% of the company. There are no new shares. Harish Dharamshi and Kusum Dharamshi are the only sellers, and both are promoters, so every rupee goes to them. At the ₹271 anchor price the offer is worth about ₹712 Cr.
Fresh issue and sale by promoters
New shares
None 0%
Sold by promoters
2,62,84,500 100%
Where the money goes
All of it goes to the two sellers, after their share of offer costs. The company pays only its listing fee, audit fees and usual advertising, so the IPO funds no growth, plants or debt repayment.
Who is selling
| Seller | Shares | Cost a share (₹) |
|---|---|---|
| Harish Narshi Dharamshi | 89,83,700 | 0.05 |
| Kusum Harish Dharamshi | 1,73,00,800 | 0.09 |
| Total | 2,62,84,500 |
Cost is the average each seller paid per share, as certified in the RHP.
Promoter holding before and after the IPO
| 0% – 100% | Before → After | |
|---|---|---|
| Promoters and their relatives | 85.00% → 100.00% | |
| All promoters together | 80.32% → 95.32% | |
| Harish Narshi Dharamshi | 51.00% → 56.13% | |
| Kusum Harish Dharamshi | 7.95% → 17.83% |
● Before the IPO ○ After the IPO. After the IPO assumes all 2,62,84,500 shares are sold. The other three promoters, Miheer Ghotikar, Parika Ghotikar and Anik Dharamshi (21.4% together), are not selling.
How the offer is split by buyer type
Institutions
Up to 50%
Non-institutional
At least 15%
Retail investors
At least 35%
Share of the offer, not counting up to ₹1.75 Cr for employees.
Who the anchor investors are, by type
Mutual funds
71.9% 9 funds
Life insurers
7.0% 2 firms
Other investors
21.1% 4 firms
Pension funds
None
Share of the 78,64,008 anchor shares, all bought at ₹271.
The biggest anchor investors (% of the anchor shares)
Magnum Equity Ex-Top 100 Long Short Fund
12.30%
Kotak Infrastructure & Economic Reform Fund
10.70%
Ashoka WhiteOak Emerging Markets Equity Fund
10.70%
HDFC Multi Cap Fund
8.20%
ICICI Prudential Energy Opportunities Fund
6.81%
20 more anchors
51.29%
The 25 anchor investors paid ₹213 Cr in all, about 30% of the shares on offer. Half of their shares are locked in for 30 days after allotment and the other half for 90 days.
Key takeaway
The promoter family sells 15% of the company and keeps 85%, and none of the money reaches the company. Mutual funds and insurers took 79% of the anchor shares.
Five listed machinery makers · P/E on FY26 earnings
Priced about 21% below its closest peer at the anchor price
No listed company in India makes fire protection equipment, so the RHP compares HD Fire Protect with five listed machinery makers. Their P/E ratios run from 17.2x to 145.7x and average 63.0x. The price band is not in the RHP, so we use the ₹271 the anchor investors paid, which is 40.7x FY26 earnings. We treat Ingersoll-Rand (India) (51.4x) as the closest peer because its margins and returns are nearest to HD Fire Protect’s taken together.
P/E (times)
HD Fire Protect (at ₹271)
40.7x
Ingersoll-Rand (India)
51.4x
How the companies compare, FY26
| Company | P/E (x) | Operating margin (%) | Profit margin (%) | ROE (%) | Sales (₹ Cr) | Profit (₹ Cr) |
|---|---|---|---|---|---|---|
| HD Fire Protect (at ₹271) | 40.7 | 31.7 | 23.0 | 30.2 | 489.4 | 116.8 |
| Ingersoll-Rand (India) (closest) | 51.4 | 24.8 | 17.9 | 41.8 | 1,408.7 | 256.0 |
How the price compares
Our assessment
At ₹271, HD Fire Protect is priced at 40.7x earnings, 21% below Ingersoll-Rand (India) and 35% below the five-company average. It has the highest profit margin of the six companies (23.0%) and the second-highest operating margin and, where given, the second-highest return on equity. It is also the smallest by sales and profit. None of the five makes fire protection equipment, and their P/E ratios are far apart, so this is a rough guide at best. The price band is not in the RHP, so a higher final price would raise the P/E.
Key takeaway
At the ₹271 anchor price, HD Fire Protect is cheaper than its closest peer. Our opinion would change to wait only if the final price is above about ₹411 a share.
Anchor price ₹271 · Clean audit reports · Priced below its closest peer
Strong profits, priced below peers, but a small market share
High profit on little money
Return on equity was 30% and return on capital 40% in FY26. The company has no borrowings and made ₹92.5 Cr of cash from operations.
Big funds bought in early
25 anchor investors took ₹213 Cr at ₹271. Mutual funds took 72% and life insurers 7%.
Priced below its closest peer
At ₹271 the P/E is 40.7x, against 51.4x for Ingersoll-Rand (India) and 63.0x for the five-company average. Our call turns to wait above about ₹411.
A leader with a certification edge
Second-largest in India and the largest exporter. It holds 21 UL and 87 FM certifications, the most among its fire protection peers.
Many customers, long relationships
2,066 customers in FY26. The top ten bought 23.7% of sales, and customers of over five years gave 54.4%.
Clean audit reports
The auditors did not qualify their opinion in any year shown. No criminal, civil or regulatory case is pending against the company, only three small tax cases.
A small share of India’s market
FY26 sales of ₹489 Cr, exports included, are about 6% of India’s ₹8,200 Cr fire suppression market. The RHP gives no share figure.
The company gets no money
All 2,62,84,500 shares are sold by two promoters. The promoter family also took ₹140.2 Cr in dividends in FY26, more than that year’s profit, and the four promoter directors were paid ₹20.0 Cr.
A third of sales are goods made by others
Contract-made goods were 36.7% of FY26 sales, up from 31.1% in FY24. China supplied 31% of total purchases and ten suppliers took 47.8% of costs.
Growth and margins are easing
FY26 sales growth slowed to 13% and profit growth to 6%. April to June 2026 sales and margin were below the FY26 average.
Cash is taking longer to arrive
The cash conversion cycle rose from 83 days in FY25 to 102 in FY26 and 112 in the latest quarter.
Governance points
A joint auditor who signed the FY24 accounts resigned in March 2025 and became the CFO in May 2025. Three of the eight directors are close relatives. Two brokerage firms of promoter group members were sanctioned by SEBI in 2003 and 2004 and have closed.
Our opinion
Apply for listing gains only
Profits are strong, debt is nil, and mutual funds and insurers bought most of the early investors’ shares. But its share of India’s market is small, so we advise to apply for listing gains only, not the long term.
