HD Fire Protect IPO Review: Debt-Free, 31% RoNW, But Should You Buy At 41x PE?

HD Fire Protect makes fire-safety gear that refineries, energy vegetation and information centres depend on. The firm has a 31.07% return on web price and no borrowings. The HD Fire Protect IPO asks INR 258–271 per share, which is 38.74–40.69 occasions final yr’s earnings, and each share on provide comes from the promoters. The firm receives nothing.

The enterprise is robust on most measures. The open questions are the worth, a slowdown in revenue development to six.44% in FY26, and money that’s getting tied up in inventory and unpaid payments. Let’s discover the HD Fire Protect IPO evaluate in depth.

HD Fire Protect IPO Quick Facts

Here, two promoters are promoting: Harish Narshi Dharamshi presents 8,983,700 shares (9.13% of his holding) and Kusum Harish Dharamshi presents 17,300,800 shares (55.38% of hers). Kusum Dharamshi alone accounts for 65.82% of the problem. Promoters and promoter group collectively maintain 100% right this moment and about 85% after the provide.

HD Fire Protect IPO Review: Business & Industry Overview

The firm makes the valves, foam methods and nozzles that sit inside a fire-fighting setup. Think of the gear that sprays water or foam over an oil tank or a refinery unit when a fireplace begins. Its factories are in Thane and Jalgaon, Maharashtra, and it had 2,066 prospects in FY26. The high 10 prospects gave solely 23.69% of income, so no single purchaser decides its fortunes.

Its promoting level is certification. UL and FM are worldwide security approvals that many oil, fuel and energy consumers insist on, and the corporate holds 21 UL Listed and 87 FM Approved certifications. About 34.69% of FY26 income got here from exterior India.

On business information (Source: CRISIL Report), India’s fireplace safety gear market was INR 10,900 crore in FY26 and is anticipated to develop 10–12% a yr to INR 17,500–19,500 crore by FY31. CRISIL ranks HD Fire Protect the second-largest Indian maker by FY25 working revenue and the biggest exporter. The largest is Safex Fire Services, with INR 555.25 crore of FY25 working revenue in opposition to HD Fire Protect’s INR 433.07 crore, and Safex grew quicker (29.47% in opposition to 15.54% a yr over FY23–FY25).

HD Fire Protect IPO Analysis: Financial Growth Cooled in FY26

Over two years, income grew 14.54% a yr and PAT 15.25% a yr. The second yr was a lot weaker for revenue: PAT development fell from 24.79% to six.44%, and export development from 25.94% to eight.47%. The EBITDA margin slipped from 31.89% to 30.75% in FY26 and to 27.26% in Q1 FY27. Across FY24–FY26, the enterprise turned 80.97% of its PAT into working money, and FY26 money from operations (INR 92.49 crore) was decrease than FY25 (INR 98.32 crore) regardless of greater revenue.

HD Fire Protect IPO Valuation Against Listed Peers

FY26 earnings per share (EPS) are INR 6.66. That places the worth band at 38.74 occasions earnings (P/E) at INR 258 and 40.69 occasions at INR 271. In plain phrases, an investor pays about INR 40.69 for each INR 1 of final yr’s revenue on the higher finish.

The RHP places the peer common at 62.95, however Azad’s 145.65 inflates it. Without Azad, the typical is 42.28, near the place HD Fire Protect is priced. The RHP additionally admits there isn’t any listed pure-play fireplace safety firm, so these are normal engineering and pump makers, not direct comparisons. Peer P/E makes use of closing costs on 30 September 2026. The firm’s return on web price is greater than each peer proven, which is the principle argument for a premium.

HD Fire Protect IPO Risks

Customers pay slower; inventory piles up. Trade receivables (cash owed by prospects) jumped 62.19% in FY26 to INR 93.71 crore whereas income grew 13.05%. Inventory rose from INR 55.14 crore in March 2024 to INR 87.36 crore in March 2026 (up 58.43%) in opposition to 31.19% income development, and reached INR 105.41 crore by June 2026. The firm permits credit score of as much as 150 days. This is why money tied up within the enterprise went from 83 days to 112 days.

More buying and selling, much less manufacturing. Factory-made items fell from 67.94% of income in FY24 to 61.02% in Q1 FY27. Purchases of completed items purchased for resale rose from 21.68% of income to 36.90%. China provided 30.96% of FY26 purchases, the highest 10 suppliers rose from 35.59% to 47.76% of bills (59.28% in Q1), one provider alone was 22.42% of Q1 bills, and there are not any long-term provide contracts. The RHP doesn’t say whether or not traded items earn decrease margins, however the Q1 margin dip is price watching in opposition to this shift.

Some product traces have shrunk. Revenue from custom-engineered methods fell 58.95% in FY26 to INR 3.52 crore. Gas suppression, one among its marketed classes, earned nothing in FY26 and Q1 FY27 after INR 4.90 crore in FY25. Foam gear plant use fell from 84.94% to 63.40% in FY26.

Large payouts earlier than the IPO. Dividends paid in FY26 have been INR 140.18 crore, or 120.03% of that yr’s PAT, and a particular dividend of INR 52.57 crore (INR 3 per share) goes out in FY27. Because promoters and their group maintain all of the shares, most of this went to the promoter household. Related-party transactions, which embrace these dividends, have been INR 161.96 crore in FY26 (33.10% of income) in opposition to 11.12% in FY24.

HD Fire Protect IPO Growth Driver

The order e-book rose 91.13% in FY26 to INR 134.45 crore and stood at INR 158.60 crore on 30 June 2026. The firm has no borrowings, earns a 40.33% return on capital employed and a 30.17% return on fairness in FY26, and is determined by no single buyer. Certification is an actual barrier: a brand new rival wants time and testing to win the identical approvals (Source: CRISIL Report). Q1 is just one quarter, so the margin dip could or might not be a pattern.

Three Things to Track After HD Fire Protect IPO Listing

1. Receivables and stock days. If money tied up within the enterprise retains rising above 112 days, revenue will not be turning into money.
2. The share of traded items. The greater it goes, the much less HD Fire Protect appears just like the licensed producer the worth is constructed on.
3. Margin and revenue development. A return to 30%+ EBITDA margin and double-digit PAT development would again up the 41x a number of; one other yr close to 6% would increase questions on it.

Based on HD Fire Protect Limited’s Red Herring Prospectus (RHP), with key efficiency indicators permitted by its Audit Committee on 5 October 2026. Final provide dimension and price-linked figures are undetermined within the RHP; challenge dimension proven is as listed by IPO Central. This is editorial commentary on public submitting disclosures, not funding recommendation.

Disclaimer: This HD Fire Protect IPO evaluate is predicated on public disclosures and is for informational functions solely. It will not be funding recommendation.

Rajat Bhati has a powerful technical background and 5 years of expertise within the inventory market. He focuses on fairness analysis, technical evaluation, IPO valuations, and threat administration, serving to traders make clearer, data-backed choices. Today, he works full-time to teach individuals in regards to the alternatives in IPO market.