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1 — At a Glance
The Hi-Tech Gears Ltd makes gears, shafts and transmission parts for vehicle makers. The company is forty years old and employs about 2,500 people. It runs five plants spread across three countries.
Consolidated revenue for the three months to June 2026 was ₹237.69 crore. That is up 10.3% from ₹215.55 crore a year earlier. Operating profit was ₹26.34 crore, against ₹26.15 crore in the same quarter. Profit after tax was ₹4.76 crore, against ₹6.00 crore. Earnings per share, the profit divided by the number of shares, was ₹2.53.
So the top line grew by roughly ₹22 crore. Operating profit grew by roughly ₹19 lakh. Management lists what sat in the gap between them: gas bills, minimum-wage revisions, machine overhauls and cutting-tool consumables.
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 cost was ₹3.88 crore and depreciation ₹17.33 crore. Depreciation, the yearly write-down of plant and machinery, is nearly two-thirds of the operating profit. That is the arithmetic of owning five factories.
Market capitalisation is ₹1,035 crore. The market pays ₹52.40 for every ₹1 of yearly profit. Across the industry the figure is ₹29.70. Crisil, a credit-rating agency, reaffirmed the long-term rating at A-/Stable in June 2026.
A GST demand, a finance chair that has changed hands more than once and an insolvency proceeding under an appellate stay also sit in the filings.
2 — Introduction
Hi-Tech Gears was incorporated in 1986, which makes it an elder among Indian auto component makers. The founder and promoter is Mr Deep Kapuria. He still signs the results as Executive Chairman.
The plants arrived one at a time. Plant-I at Bhiwadi opened in 1986 and Plant-II at Manesar in 2005. Plant-III, also at Bhiwadi, followed in 2011. In 2017 the company bought two more, one in Guelph, Ontario and one in Emporium, Pennsylvania. A company that is a smallcap by market value now manufactures on two continents.
That North American limb is not decorative. Segment figures for the three months to June 2026 show Canada revenue of ₹65.7 crore and India ₹171.2 crore. A smaller bucket labelled Others carried ₹7.4 crore. The Canada segment posted a profit of ₹0.48 crore, and Others a loss of ₹0.26 crore. The auditor’s review report notes that the overseas subsidiary group carried revenue of ₹73.15 crore for the quarter. The same report puts that group’s net loss after tax at ₹1.32 crore.
The recent corporate calendar has been busy in a very specific way. In January 2026 the chief financial officer, Kapil Rajora, resigned, and Vinod Raheja was appointed the next day. In April 2026 Vinod Raheja resigned, and the board accepted it with immediate effect. On 29 May 2026 the board approved the audited results for the year to March 2026. The same meeting approved a final dividend of ₹4 a share and appointed Vijay Mathur as Executive Director and Chief Financial Officer.
On 6 August 2026 the board approved the June-quarter results. It appointed Mr Manoj Kumar Saxena as Vice President for Operations Transformation, Strategy and Special Projects. It re-appointed Mr Rajiv Batra as an Independent Director for a second five-year term from November 2026. It also 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 vice-president have arrived or left inside eight months. That is a great deal of traffic through one corridor. Mr Deep Kapuria remains Executive Chairman and signs the results.
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3 — Business Model: WTF Do They Even Do?
The company makes the parts inside the box that turns the wheels. Precision gears, shafts, transmission components and engine components are the four families.
The catalogue runs from two-wheeler transmissions to car transmissions and drivelines. It also covers commercial and off-highway transmission, plus precision forging and machining. Engine gears, power take-off components and sintered components complete it.
The process list in the earnings presentation reads like a metallurgy syllabus. Forging comes hot, warm or cold, with cold extrusion and coining alongside. Machining covers CNC turning, gear cutting by wet or dry hobbing, broaching and shaping. Shaving, spline rolling and deep hole drilling follow. Heat treatment then hardens the steel through normalizing, case carburizing, carbo-nitriding and induction hardening. Nitriding and tempering sit in the same stage. Finishing adds shot blasting, gear grinding, honing and hard turning. One stage is called auto shaft straightening, which implies an earlier stage where shafts stop being straight.
Consolidated revenue in the twelve months to March 2026 came 40% from passenger vehicles and 31% from two-wheelers. Commercial vehicles and off-highway took the remaining 29%. By geography, international sales were 46% and India 54%.
The customer list is the pitch. In India it includes Hero MotoCorp, Daimler India, Tata Cummins and Cummins India. JCB India, New Holland, Magna RICO and Honda Car also buy. Simpson and M&M are on the same list. Overseas, the names include American Axle, GKN, Magna Powertrain and Robert Bosch. Borg Warner, IFA, Navistar and Dana follow. Stackpole, CNH, Wabco and Foton are there too, with Daimler and Perkins.
