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1 — At a Glance
Forty years old, five plants across three countries, 2,500 employees, and a quarter where revenue went up and profit went down. The Hi-Tech Gears Ltd reported consolidated revenue of ₹237.69 crore for the quarter ended June 2026, up 10.3% from ₹215.55 crore a year earlier. Operating profit came in at ₹26.34 crore against ₹26.15 crore. PAT was ₹4.76 crore versus ₹6.00 crore. EPS ₹2.53.
So the top line grew by roughly ₹22 crore and the operating profit grew by roughly ₹19 lakh. Somewhere between those two numbers sits an entire quarter of gas bills, minimum-wage revisions, machine overhauls and cutting-tool consumables — management lists all of them.
Operating margin was 11.08%, against 12.13% in the same quarter last year. Other income fell to ₹1.25 crore from ₹4.55 crore. Interest was ₹3.88 crore, depreciation ₹17.33 crore — the depreciation line alone is nearly two-thirds of the entire operating profit, which is what happens when a gear company owns five factories.
The market cap is ₹1,035 crore. Stock P/E is 52.4 and the industry P/E is 29.7. Crisil reaffirmed the long-term rating at A-/Stable in June 2026.
Also in the file: a GST demand, a CFO chair that has changed hands more than once, and an insolvency proceeding sitting under an appellate stay. We’ll get to all three.
2 — Introduction
Hi-Tech Gears was incorporated in 1986, which by the standards of Indian auto components makes it an elder. The founder and promoter is Mr Deep Kapuria, who still signs the results as Executive Chairman. Plant-I at Bhiwadi went up in 1986, Plant-II at Manesar in 2005, Plant-III at Bhiwadi in 2011. Then in 2017 the company bought two more — one in Guelph, Ontario, and one in Emporium, Pennsylvania — and became a company that manufactures on two continents while remaining, in market-cap terms, a smallcap.
That North American limb is not decorative. Segment disclosure for the June 2026 quarter shows Canada revenue of ₹65.7 crore and India ₹171.2 crore, with a small “Others” bucket at ₹7.4 crore. The Canada segment posted a segment profit of ₹0.48 crore; Others posted a loss of ₹0.26 crore. The auditor’s review report notes the overseas subsidiary group carried revenue of ₹73.15 crore and a net loss after tax of ₹1.32 crore for the quarter.
The recent corporate calendar has been busy in a very specific way. In January 2026 CFO Kapil Rajora resigned and Vinod Raheja was appointed the next day. In April 2026 Vinod Raheja resigned, accepted with immediate effect. On 29 May 2026 the board approved FY26 audited results, a ₹4 final dividend, and appointed Vijay Mathur as Executive Director & CFO. On 6 August 2026 the board approved the June-quarter results, appointed Mr Manoj Kumar Saxena as Vice President – Operations Transformation, Strategy & Special Projects, re-appointed Mr Rajiv Batra as an Independent Director for a second five-year term from November 2026, and approved the continuation of Mr Bidadi Anjani Kumar as a Non-Executive Non-Independent Director past the age of 75.
Three finance chiefs and a transformation VP inside eight months. The org chart has been rebuilt roughly as often as the forge shop.
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3 — Business Model: WTF Do They Even Do?
They make the bits inside the box that makes the wheels turn. Precision gears, shafts, transmission components, engine components. Two-wheeler transmissions, car transmissions and drivelines, commercial and off-highway transmission, precision forging and machining, engine gears, power take-off components, sintered components.
The process list in the earnings presentation reads like a metallurgy syllabus: hot forging, warm forging, cold forging, cold extrusion, coining. CNC turning, gear cutting by wet or dry hobbing, broaching, shaping, shaving. Spline rolling. Deep hole drilling. Then heat treatment — normalizing, case carburizing, carbo-nitriding, nitro-carburizing, induction hardening, nitriding, tempering. Then shot blasting, gear grinding, honing, gear honing, hard turning. There is a stage in this pipeline called “auto shaft straightening,” which suggests a prior stage where shafts become unstraight.
FY26 consolidated revenue splits as Passenger Vehicles 40%, Two Wheelers 31%, Commercial Vehicles and Off-Highway 29%. Geographically, International 46% and India 54%.
The customer list is the pitch. In India: Hero MotoCorp, Daimler India, Tata Cummins, Cummins India, JCB India, New Holland, Magna RICO, Honda Car, Simpson, M&M. Overseas: American Axle, GKN, Magna Powertrain, Robert Bosch, Borg Warner, IFA, Navistar, Dana, Stackpole, CNH, Wabco, Foton, Daimler, Perkins. Exports go to ten-plus countries. Logistics runs through Alonso Logistic, HTL Logistic and CH Robinson.
This is the Tier-1 supplier bargain in its purest form. You get named alongside the most recognisable badges in global mobility, you get multi-decade relationships, and you get the margin of a company that sells hardened steel to people who buy hardened steel professionally. Crisil describes the business as commoditised and notes that gross current assets ran at 150–160 days over three fiscals through 2026, driven partly by extended credit given to customers to combat competition.
On the EV question, management reports won business from Hero MotoCorp and Dana in the EV space, currently in production, plus active quotes across customers. The gear
