Hy-Tech Engineers Limited (HTEL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY27 Earnings Conference Call for Hy-Tech Engineers Limited. We have with us the senior management team represented by Mr. Hemant Mondkar, Chairman and Managing Director; Mr. Sunil Sathe, Whole-Time Director; and Mr. Sunil Satwani, Chief Financial Officer. The management will be sharing the key operating and financial highlights for the quarter and half year ended September 30, 2026, followed by a question-and-answer session. Please note that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Documents relating to the company's financial performance are available on the stock exchange and the company's website. Trust you have been able to go through the same. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Hemant Mondkar. Thank you and over to you, Mr. Mondkar.

Hemant Mondkar:

Thank you so much. Good morning everyone. A very warm welcome to all our investors and stakeholders. We are pleased to share that the second quarter of FY27 has been a very strong quarter for the company with healthy growth in revenues and a meaningful improvement in profitability compared to the previous quarter. This performance reflects the strength of our existing business, our long-standing relationships with leading OEMs, and our continued focus on operational efficiency. During the quarter, our revenue from operations grew by 32% year on year to INR60.9 croress, reflecting healthy demand and continued business momentum. We are particularly encouraged by the strong sequential performance, with revenue growing 41% over the previous quarter, demonstrating the underlying strength of our business and improving operating momentum. As you know, Hy-Tech has built a strong position in the hydraulic fittings industry over more than four decades. Our integrated manufacturing capabilities, wide product portfolio of nearly 11,000 SKUs, and ability to deliver high-quality precision components have helped us establish ourselves as a trusted supplier to leading OEMs. Our focus remains on strengthening this core business while expanding our presence across international markets and higher-value industrial applications. Coming to the business outlook, we continue to see significant opportunities in our existing hydraulic fitting business. Our strategy is to increase our share of business with existing customers, onboard new OEMs, and expand our presence across the international manufacturing locations of our customers.

Page 2 of 19

Hy-Tech Engineers Limited November 05, 2026 Exports remain an important growth driver. The US and Europe offer significant opportunities, supported by our established customer relationships and competitive manufacturing capabilities. To further strengthen our US presence, we have established a wholly-owned subsidiary and a warehouse in New Jersey. This will bring us closer to our customers, improve engagement, and enable faster and more efficient supply chain support. We believe this initiative will strengthen our positioning in the US market and support our long-term international growth ambitions. Alongside our core business, we are also strengthening our product portfolio through the development of stainless steel double ferrule fittings. We see attractive opportunities in these segments as demand for specialized, high-quality engineering components continues to evolve. Our existing manufacturing expertise and engineering capabilities provide us with a strong foundation to address these requirements and gradually expand into these higher-value applications. I would like to emphasize that our core hydraulic fitting business will continue to remain the primary growth engine, while these new applications provide additional opportunities to expand our addressable market. We continue to invest in capacity expansion, automation, and technological upgradation to support our goal plans. Our investments in automated machinery, including rotary transfer machines, are helping us improve productivity, manufacturing speed, and operational efficiency. We will continue to focus on building capacities ahead of demand while ensuring disciplined capital allocation and healthy returns on our investments. Looking ahead, we remain confident about the growth prospects of Hy-Tech Engineers. Our confidence is supported by the strength of our existing business, increasing opportunities with global OEMs, expansion into new geographies, and our entry into specialized industrial applications. We remain focused on achieving sustainable growth through higher volumes, improved efficiencies, automation, and better utilization of our manufacturing infrastructure. We believe that the combination of our strong existing business and the new growth opportunities we are building position of Hy-Tech well for the next phase of growth. With that, I would now like to hand over to our CFO, Mr. Sunil Satwani, to take you through the financial performance. Thank you very much. Sunil Satwani:

Thank you, sir. Good afternoon everyone. I am Sunil Satwani, Chief Financial Officer of HyTech Engineers Limited. I am pleased to take you through our financial performance for Q2 FY27 and the first half of the financial year. We have delivered a strong performance during the quarter, with healthy growth across our key financial parameters. Revenue from operations stood at INR60.9 crores, registering a year-on-year growth of 22% compared to INR49.8 crores in Q2 of FY26. EBITDA increased by 21% to INR14.5 crores compared to INR12 crores in the corresponding quarter of last year. EBITDA margin stood at 23.8%, compared to 24% in Q2 FY26.

Page 3 of 19

Hy-Tech Engineers Limited November 05, 2026 Our sequential performance was particularly encouraging. Revenue increased by 41% compared to Q1 FY27, while EBITDA grew by 72%. EBITDA margin also improved significantly from 19.6% in Q1 to 23.8% in Q2. This reflects improved operating performance, better cost absorption, and our continued focus on manufacturing efficiency. At the bottom line, PAT stood at INR8.5 crores, registering a growth of 23% compared to INR6.9 crores in Q2 of FY26. PAT margin improved to 14% compared to 13.8% in the corresponding quarter of last year. For the first half of FY27, revenue from operations stood at INR103.9 crores, registering a growth of 18% over INR87.8 crores in H1 FY26. EBITDA increased by 14% to INR22.9 crores, while PAT grew by 19% to INR13.1 crores compared to INR11 crores in the corresponding period last year. EBITDA margin for the half-year stood at 22.1%, while PAT margin remained stable at 12.6%. Overall, we are pleased with the growth delivered during the first half, supported by a strong second quarter performance. To conclude, we remain focused on strengthening our core business, improving our operating efficiencies, and investing in capacities and capabilities to support our future growth. With our established customer relationships, expanding international presence, and opportunities in specialized applications, we believe Hy-Tech is well-positioned to deliver sustainable growth. Thank you for your continued trust and support. With this, we would be happy to open the floor for questions. Thank you. Moderator:

Thank you. We will now begin the question-and-answer session. The first question comes from the line of Harsh Kothari with MK Securities. Please go ahead.

Harsh Kothari:

Am I audible?

Hemant Mondkar:

Yes.

Harsh Kothari:

Yes. So congrats -- first of all congrats on the fantastic set of results. So you achieved a fantastic growth of 18% first half year-on-year and the 23% PAT growth. So I wanted to know, like, will we continue this growth in the second half of the financial year? And can we expect some kind of further EBITDA expansion? And will we be able to achieve our target of PAT growth of 25% to 30%?

Hemant Mondkar:

As far as the EBITDA target is concerned, I think next half is going to be much better than the first half. So 24% EBITDA down the line for the second half is guaranteed. And the business -normally what happens is that our business is -- first half is always about 45%-46% of the turnover, and second half is about 53%-54% of the total turnover. So we expect the turnover to go up in the second half. So this is basically because the first half of every year is always slow and the second half is always better. So we expect second half to be much better than the first half.

Page 4 of 19

Hy-Tech Engineers Limited November 05, 2026 Harsh Kothari:

Okay. That's fantastic. And although I wanted to know about the -- so we've got the revised revenue listing from the Q1 quarter. So we have already recovered the amounts that we lost in Q1 from our clients due to the revised pricing of our products?

Hemant Mondkar:

Can you repeat the question, please?

Harsh Kothari:

Yes. So I Just wanted to ask that, have we recovered the entire amount which we lost in Q1 due to the revised pricing which happens on the 1st April?

Hemant Mondkar:

Yes, yes. We are not completely covered. Some part is going to go, but now for the next half, it will be recovered completely.

Harsh Kothari:

Okay.

Hemant Mondkar:

And Just about 25% of the previous amount is yet to be recovered.

Harsh Kothari:

All right. Yes, thank you. That's it from my side. Congrats once again.

Moderator:

Thank you. Next question comes from the line of Paras Chheda with Purpleone Vertex Ventures LLP. Please go ahead.

Paras Chheda:

Hello sir, good morning and congratulations for a strong set of results. So just continuing with the previous question to participant, so what I understand is the growth for the full year on a bottom line basis will be in the region of 25% or so. Is that correct?

Hemant Mondkar:

It will be around 24% to 25%.

Paras Chheda:

Okay. So broadly in that range, I mean.

Hemant Mondkar:

Yes, yes, broadly in that range. Yes.

Paras Chheda:

Okay. I mean, in general, what's the medium-term demand outlook for the business? So say FY28…

Hemant Mondkar:

We are completely booked.

Paras Chheda:

Okay.

Hemant Mondkar:

All the schedules have come from all OEMs and little bit of downfall will come in the tractors market, but we have balance. The excavator market is going up, so there is a balance.

Paras Chheda:

Right? So for FY27, we are expecting, let's say, I mean, bottom line basis, about 24%-25%. And for FY28, what would you sort of ballpark rang?

Hemant Mondkar:

See, we will be maintaining 24%-25% throughout, because normally we don't charge. In fact, as we talked in the first quarter, we have got the price revision from all customers almost after 7-8 years. That was also because of the war situation I was telling you. So we are quite comfortable,

Page 5 of 19

Hy-Tech Engineers Limited November 05, 2026 but we keep on improving our EBITDA through our operational efficiencies improvement, and we maintain our EBITDA from that point of view. And since we are keeping up with a very reasonable price with our customers, we have established very good relationship. So we do not want to unnecessarily charge them more and go for a higher EBITDA. 24%-25% is a very sound EBITDA that we continue to get. Okay? Paras Chheda:

No, no, so I was trying to say in terms of growth, not margin. So 24%-25% in terms of PAT growth?

Hemant Mondkar:

No, no. This year we'll be growing at about 18% to 20%. And, according to me, now with the midterm elections in the USA, whatever results we have seen, now our business from USA, I'm expecting a little more.

Paras Chheda:

Okay. So on a full year basis…

Hemant Mondkar:

So we can go to 24%-25% growth -- in the year '27-'28 we can go, definitely.

Paras Chheda:

Okay. For this year you would put it at about, 19%, 20%.

Hemant Mondkar:

20%, 22%. Yes.

Paras Chheda:

Okay. Next year about 24%, 25%?

Hemant Mondkar:

Yes. And that will be continuous because basically fundamentally because of the tariff situation of USA, our USA growth has been very flat.

Paras Chheda:

Right?

Hemant Mondkar:

That is the reason why we are growing at about 20%, 22%, and it will definitely go to 24%, 25% once. Now let us see what are the results of the midterm elections. I hope you are watching that.

Paras Chheda:

Yes, no, no, sir, there is I mean whole world is…

Hemant Mondkar:

You must have seen the impact on the, on the NSE also.

Paras Chheda:

Yes. No, that is clear. Absolutely.

Hemant Mondkar:

Yes.

Paras Chheda:

And you will be probably the first to realize the business impact of that probably because you have quite a significant exposure there. But generally, like on the last call that you had mentioned also, you are trying to diversify in Europe and other regions.

Hemant Mondkar:

That is happening. It takes time for us. It takes more than 3 to 6 months to really stabilize in the new market. But this is an established market, so we should start getting the results.

Page 6 of 19

Hy-Tech Engineers Limited November 05, 2026 Paras Chheda:

Right. And in terms of this specialty application that you are talking about, what are these specialty applications?

Hemant Mondkar:

These new double ferrule stainless steel fittings. Now we are exploring the market for that, and that's a big market. So that has been started only about, say, 6 months before, and we will start getting the results in '27-'28 for this particular expansion.

Paras Chheda:

Right? And so just last query, my end, currently we are at, let's say, 70% capacity utilization, right? And we are continuing to grow, of course. So with the current capacity, and there is some expansion also that is happening at that Unit 1 and the other 2 locations. So post this expansion and with the current capacity, what kind of peak revenue can we expect from this facility?

Hemant Mondkar:

What you are asking? What?

Paras Chheda:

Peak revenue. There is a current capacity which is being utilized 70% today, and I believe maybe we can go up to, let's say, 85%, 90% utilization probably?

Hemant Mondkar:

No, we will be working only on 70% capacity. The reason is that whenever new customer is coming to us, he is asking us about the free capacity available. So as a philosophy and policy of Hy-Tech, we always keep about 20% capacity available. But one thing you have to understand, you are Paras only, continuing right?

Paras Chheda:

Yes, yes, sir.

Hemant Mondkar:

Paras it's like this, that when you have an additional capacity, that doesn't affect your profitability. Because operating expenses is limited, you understand?

Paras Chheda:

Yes. No, what I was trying…

Hemant Mondkar:

So we always Hy-Tech has always kept 70% capacity constantly and 30%, 20% available capacity for the new customers who are coming to us.

Paras Chheda:

Understood.

Hemant Mondkar:

Every time a new customer comes, his first question is, how much capacity do you have to take our business?

Paras Chheda:

Understood, sir. So let me just reframe. So now with whatever, there is some expansion that is happening also. What kind of-- without any further expansion and with this current expansion itself, what peak revenue, what is the maximum revenue you can generate if the entire facilities…

Hemant Mondkar:

I think we have talked about it Paras in the last quarter. I will repeat it. Every year we will be growing at about 25%, which will take us within a period of next 4 or 5 years, we will be going to INR500 crores of turnover.

Paras Chheda:

With the current capacity itself.

Page 7 of 19

Hy-Tech Engineers Limited November 05, 2026 Hemant Mondkar:

Whatever additional capacity we have to install, we will keep on installing because these INR30 crores which we have got from the object of the -- that is going to be invested in next 1.5 years. After that, we will have a lot of money to invest on our own through the generated revenue.

Paras Chheda:

Right. So this INR30 crores IPO money that will be invested, that takes you to what kind of revenue, sir?

Hemant Mondkar:

It will give us about 3 times, INR100 crores we can do with that INR30 crores.

Paras Chheda:

INR100 crores. Understood. Fine, thank you.

Moderator:

Thank you. Next question comes from the line of Uttam Purohit with VVD Asset Managers. Please go ahead.

Uttam Purohit:

Yes. Thank you for the opportunity and congrats to the team for a great set of numbers. So my question is around margins. So we said we have, till now just, passed on 25% of the raw material price hikes to the customers. So once we completely pass through this cost, would our gross margins get back to 65% plus levels? Because it is down on both Q-o-Q and Y-o-Y basis?

Hemant Mondkar:

See, only raw material compensation doesn't-- in fact reduces the operating margin. But this time we have not only got the price revision for only raw material, but we have also got some conversion cost increase also from all our OEMs. And because of that, now our margins are maintained.

Uttam Purohit:

Okay, but, with further price hikes, like further pass-on, we expect the gross margins to go up, right?

Hemant Mondkar:

Pardon?

Uttam Purohit:

We have yet not completely done the price hike, right? And we would be doing in this in coming…

Hemant Mondkar:

No, it has been finalized now. It has been finalized. Only thing is the money is to be received. Nothing is pending now. All the price revisions have been accepted by these customers.

Uttam Purohit:

Okay. So benefit could be seen in the Q3, right?

Hemant Mondkar:

What?

Uttam Purohit:

Benefit of that, all the prices could be seen in Q3?

Hemant Mondkar

The second half will be billing only at revised prices.

Uttam Purohit:

Okay. Got it. And, if you could just share on more on the seasonality front, like you said that H2 is generally very strong compared to H1, and if you could share more on a granular level, like how Q3 was last year and, how, what kind of, generally differences are between Q3 and Q4 for our businesses, because in such businesses Q4 are always much more higher that?

Page 8 of 19

Hy-Tech Engineers Limited November 05, 2026 Hemant Mondkar:

I think you want me to repeat that, repeat the answers I have given. I will do that. See, what happens is in the very first quarter, the business is very slow because most of the OEMs, they are very strong at the end of the year. The moment their year ends, in the first quarter they go slow on the production. So their schedules are lower in the first half. In second half, they are at peak. That's why our business is 45% in the first half and 55% in the second half. This is how it happens every year. That's why our second half is always better than the first half.

Uttam Purohit:

Okay, understood. That's all my side. Thank you.

Moderator:

Thank you. The next question comes from the line of Himanshu Bisani with PinpointX Capital. Please go ahead.

Himanshu Bisani:

Hi sir. Thanks for the opportunity and congratulations on a steady set of numbers. My first question is, lastly in the last call, you mentioned that John Deere buys completely from us, but there are like 47 plants and six to seven plants we are supplying. So what is the disconnect here, sir? I mean, is it that we supply for the entire six, seven plants?

Hemant Mondkar:

We have already started with about three plants now. Four plants have approved our samples also. So this business will start coming, but there was a hitch of some tariff, which I hope will go away, and this business will speed up. But it takes a long time to develop a new customer in the USA. It takes about six months to one year. So John Deere business will come in FY28. It will start working properly, and further on it will go up.

Himanshu Bisani:

Understood, sir. So what kind of concentration do we have of our business from John Deere?, As a percentage of topline..

Hemant Mondkar:

Total business as of today, we are at about 12% of the total turnover is with John Deere.

Himanshu Bisani:

That's great. And sir, you have had some new wins from Tata Hitachi, Sany. So I wanted to know...

Hemant Mondkar:

No. Tata Hitachi and Sany, they are all far-fetched customers. It will take time. Because Sany is a Chinese fellow, they are buying everything from China, and shifting over to us because of indigenization, that will take a little time. And as far as Tata Hitachi is concerned...

Himanshu Bisani:

How does that ramp-up happen, sir? Is it a very gradual process, and they will…?

Hemant Mondkar:

It will be a very gradual process, but we are not dependent on them. There is plenty of business available in other OEMs that we are developing, and this Sany and Tata Hitachi is one of the long-term contributors to our business. They will take their own pace of development. But our business is not dependent on them.

Himanshu Bisani:

Got it sir. The new land block, I think that can do INR500 crores of top line in five years is what was mentioned. Is that understanding correct?

Page 9 of 19

Hy-Tech Engineers Limited November 05, 2026 Hemant Mondkar:

The new land is for beyond INR500 crores.

Himanshu Bisani:

It is for beyond INR500 crores.

Hemant Mondkar:

Yes.

Himanshu Bisani:

Got it. So at current infra, sir, it is fair to assume that current infra with the new greenfield lines...

Hemant Mondkar:

We have talked about this at all. You were not there in the first quarter telecon?

Himanshu Bisani:

No sir, I am new to the company.

Hemant Mondkar:

You were there or you were not there?

Himanshu Bisani:

I was not there in the con-call.

Hemant Mondkar:

It's okay, fine. See, it's like this, that present infrastructure that we have built is okay for INR500 crores. I am talking about the land and the building. INR500 crores we are going to reach only by additional machinery.

Himanshu Bisani:

So this will be used in the new greenfield line which we are talking about?

Hemant Mondkar:

The plant which you have now bought, land we have taken, is for because we will take more than two and a half to three years to set up a factory there. So it is for additional INR500 crores.

Himanshu Bisani:

Got it. Thank you.

Moderator:

Thank you. Next question comes on the line of Srikanth, PinPoint X Capital. Please go ahead.

Srikanth:

Thank you for opportunity, sir. Can you explain whether we are catering to replacement market of fittings?

Hemant Mondkar:

No, not in India, not in domestic market. In the domestic market, we have got an integrity clause signed with all the OEMs that we will not supply their fittings in the market, domestic market. But as far as USA is concerned, it is all replacement market. To update, update you, in USA 5 times market is aftermarket and only 1 is OEM. So we are supplying to distributors in USA, which is all aftermarket.

Srikanth:

So what will be the time frame for replacement? Of every 2 years or every 3 years? Can you give some timeline average?

Hemant Mondkar:

What is that?

Srikanth:

So what is the replacement market time frame of fittings replacement is after 2 years or after 3 years like this?

Hemant Mondkar:

So you have to understand the business in USA. I will tell you that because this is something which I am repeating in every conference. So better you be there in all the conferences. American

Page 10 of 19

Hy-Tech Engineers Limited November 05, 2026 market, they are refurbishing every equipment every year. So when they are refurbishing, they are throwing away all the hoses, all the fittings. So fittings market is a regular market requirement, aftermarket requirement in USA. So it's not a question of 1 year or 2 years, it's a requirement continuously on. Are you able to understand? Excuse me, Srikanth, are you able to understand what I am saying? Moderator:

Mr. Srikanth, please go ahead. Since there is no reply from the line of Mr. Srikanth, we will move to the next. The next question comes on the line of Resham Jain with VVD Asset Managers. Please go ahead.

Resham Jain:

Yes, hi, Hemant ji. Congratulations on good set of numbers. But I have one question on the nature of your warehousing business. What I understood is that the existing business is with OEM. And most of the manufacturing which you do is based on orders, while the warehousing business will be like you will be keeping goods over there and then orders will come later. Is that understanding correct?

Hemant Mondkar:

More or less correct, but which warehouse you are referring to?

Resham Jain:

No, my question was that, on day 1 when you receive the order, you know the margin. While in case of warehousing, when you will be keeping inventory, your orders will not be there and there will be price fluctuation in terms of raw material and all. So will the margin be different in warehousing versus what you do currently?

Hemant Mondkar:

First of all, Resham, first of all, all our warehousing what we are doing is all for standard fittings. Now these standard fittings have a price list and then there is a discount structure based on the volume of business that our customer gives.

Resham Jain:

Okay.

Hemant Mondkar:

And these price lists are revised once in a year at the most.

Resham Jain:

Okay. Understood.

Hemant Mondkar:

So that business is not on price every time. All our customers know this is the list price, this is the discount they will get. That discount depends on the quantities which they take from us. So there is a standard price list available for the standard items.

Resham Jain:

Okay. And sir, the warehousing-based supplies because some…

Hemant Mondkar:

We do not have much warehousing-based sub-business.

Resham Jain:

No, now you are getting into, that kind of, model, right? Slightly.

Hemant Mondkar:

No, you have misunderstood. That warehousing in USA we are going to do for supply to John Deere and Caterpillar and Case New Holland, but we will be stocking their requirement in the warehouse. Price will be fixed for that.

Page 11 of 19

Hy-Tech Engineers Limited November 05, 2026 Resham Jain:

Very clear. Okay, that was the only question for me.

Moderator:

Thank you. Next question comes from the line of Ram Raghavan with Trinity Capital. Please come ahead.

Ram Raghavan:

Sir. Congratulations on good set of numbers, and as you predicted or you guided, the numbers have followed the guidance. Sir, you, on the Q1 call, you mentioned that we are also exploring entry into railways, data centers and defence. I just wanted to know a little bit more about our strategy in that.

Hemant Mondkar:

No, nothing much has happened in the quarter, so you will have to hang on. Work is going on. As I told you that we are registered with defence now, and, so that business will come only up for a year or so. It takes a long time.

Ram Raghavan:

Okay, sir, that's all from my side.

Moderator:

Next question comes from the line of Rajesh with NB Investments. Please go ahead.

Rajesh:

Hello. Can you hear me?

Hemant Mondkar:

Go ahead.

Rajesh:

My first question is, you have been mentioning that there is a huge potential in the market. And India itself is around INR2,000 crores potential, and we are just doing INR190 crores, INR200 crores. So that is, almost less than 10% market share. So my first question is, why are we targeting only 20% growth? Why we are not aspiring for higher growth?

Hemant Mondkar:

Where do I get people from? It has to be supported by the structure. It has to be supported by all the people. Is it possible? See, this is a process, which requires a lot of manufacturing value addition. It is not only putting the money and getting the money out. We have to manufacture the fittings in the factory. So the manufacturing process requires support of people, development of structure. Money is not the only thing that is required for growth. The entire structure has to be supported, and that takes a long time. 25% growth in an engineering company. itself is a very good growth because if you see majority of engineering companies, they grow by about 10%, 15%. So 25% growth itself is inorganic.

Rajesh:

So what you are saying is with the current scenario, growing anything about 20% itself is a big achievement?

Hemant Mondkar:

It is that a big achievement? 25% growth in engineering company is a good achievement.

Rajesh:

Okay, fair enough.

Page 12 of 19

Hy-Tech Engineers Limited November 05, 2026 Hemant Mondkar:

See, because one thing there, one thing I will tell you, once we grow, start growing, you have to consolidate also? Consolidation is required, otherwise the structure is not in place, then how can we sustain the growth? So sustenance of growth is also equally important. I hope you appreciate what I am saying.

Rajesh:

Sure. So, now out of this INR2,000 crores potential in India, we are doing around INR190 crores in which the export is also included. So is there any segment we are not able to supply or they are not buying from us?

Hemant Mondkar:

First thing is there, I think it is very-- it is always better to work with what is in the hand rather than what is there in the bush. There is a tremendous amount of scope with our existing sectors, existing customers to grow. So the new sectors we can definitely take up, but do you know, if you go through the entire spread of our business, we are in almost all the sectors. And almost in the geographically also we are spread out. So that is the philosophy with which Hy-Tech is growing. And we do not want to focus only on specific sectors, but we should be in that sector. And from that point of view, our presence, we want to make it fresh. But the business in available sectors itself is there. Now, for example, USA business, it has been set for last 12 years. It's only because of the current scenario we were flat in USA. But with, with the changes now, USA business will start growing. Should we, should we focus on business in hand, or should we focus on business which is there at the far away? What do you propose?

Rajesh:

No, you will have to do both parallelly, provided…

Hemant Mondkar:

Exactly, exactly. So we will grow slow in the new sectors. And take the best benefits of the existing sectors, because there we have established relationships

Rajesh:

Sir, my question is coming from like, the new 6.5 acres, whatever the big land parcel you have taken. I think that you are earmarking for the new sectors like data centers and all that. And, and you already mentioned, you-- it will take minimum 2.5 to 3 years to come up with the plant. So the question was, by that time, the growth of data centers may get moderated, then we may be late entrant into that segment, right?

Hemant Mondkar:

But doesn't matter, there are so many other areas. Oil and gas is there, same product is also, also required in oil and gas, which is an established sector. You understand this? Oil and gas is a permanent established sector, and that is a sector if we have to really get into, that sector is available. Same things are required. I understand your question that AI may moderate, it may go down also, we do not know. So that is the reason. So we should focus on oil and gas, which is a more stable sector. So we should focus more on that. So that is what we will do.

Rajesh:

Okay, so the thinking of the management: is with whatever the resources we have to focus more on the existing segments and slowly divert part of it to the new sector.

Page 13 of 19

Hy-Tech Engineers Limited November 05, 2026 Hemant Mondkar:

We should be playing in that sector as well. That is all. Otherwise, the business is available in existing sectors. I think in the first quarter, if you were there, I have discussed with you that there is a tremendous amount of business in existing sectors where we are working. Okay, so it is INR40,000 crores business. We are at INR200 crores. So we keep on exploring and exploiting the available business. There is no end to what we can grow.

Rajesh:

Okay, sir, my next question is about the capacity. Now with the existing land bank at 3- 4 different locations, what you said is if you could add additional machineries in that location, you can get minimum of around INR500 crores of turnover. Is that understanding correct? Correct?

Hemant Mondkar:

Absolutely correct. Absolutely.

Rajesh:

Okay, sir, my last question is, sir, we have a lot of MNC competitors in India, so do they have manufacturing facilities in India?

Hemant Mondkar:

Again ask me the question properly. What are you talking about, MNCs and all that? I am not able to understand. Are you talking about MNCs which they are competing with us, or are you talking about?

Rajesh:

No, I am talking of any MNC competitors who are there, you know, in India. Are they producing these fittings in India itself, or are they importing it from outside India?

Hemant Mondkar:

Are you asking specifically like Parker and all that?

Rajesh:

Exactly, sir. Parker or any other MNC?

Hemant Mondkar:

They are importing and selling, so their prices are 2 times our prices.

Rajesh:

Okay. So that means we will have that price advantage with the most of these MNC competitors.

Hemant Mondkar:

Perfect.

Rajesh:

Sir. Now, do you have any-- being an Indian company, do we have any technology constraints to enter into any new sectors, or do we have to take this from any MNC companies in future?

Hemant Mondkar:

No, we are adequately placed to have technology in-house to carry out the business of the fittings and all that what we are talking about. Okay, so we do not need any support.

Rajesh:

Okay, very good, sir. Sir, and my last question?

Hemant Mondkar:

We are the leaders in India for manufacturing technology of fittings.

Rajesh:

Okay, fair enough, sir. In your plan of future growth, is there any acquisitions are also there? Acquisition of any Indian or foreign companies?

Hemant Mondkar:

We will talk about it in the next quarter or a quarter after that

Page 14 of 19

Hy-Tech Engineers Limited November 05, 2026 Rajesh

Okay, fair enough. And my last question is, with this 6.5 acres land at Shirwal, so you mentioned that that would be sufficient to take care of growth up to INR1,000 crores. But at Shirwal, if you want to do capex, is the existing internal accruals and debt would be sufficient, or do you have to come to the market to raise the money?

Hemant Mondkar:

I think more or less we will-- we may not require because see, we will be generating around INR25 crores INR30 crores of revenue to be, to be put in in the next 2 years' time, available funds. But in case, in case we need it, you are there, na? We will come to you.

Rajesh:

Most welcome, sir. So wish you all the best and thanks for answering all my questions patiently, sir. Thank you.

Hemant Mondkar:

Okay, thank you.

Moderator:

Thank you. Next question comes on the line of Rohit Taparia, an Individual Investor. Please go ahead.

Rohit Taparia:

First of all, congratulations, sir, on great set of numbers. So my first question is, in last…

Moderator:

Mr. Taparia, sorry for interrupting, we cannot hear you. Can you speak a little louder?

Rohit Taparia:

Okay, sir. Sir, congratulations on great set of numbers. So my first question is, in earlier con call you mentioned that you are looking for a 20% top line for FY27. Am I right?

Hemant Mondkar:

Yes.

Rohit Taparia:

So sir, actually last year we had about approximately INR189 crores. So are we sticking to that 20% top line guidance or we want to revise it?

Hemant Mondkar:

What?

Rohit Tapadia:

Are we sticking for 20%? Would be revising the guidance further.

Hemant Mondkar:

No, no, no, 20% will be getting -- we will be getting 20%.

Rohit Taparia:

Okay, no further upward revision, I think.

Hemant Mondkar:

I do not know now, things may not change, but it will reflect very -- actually, whatever has happened in midterm elections in USA, that, that may not give us the immediate benefit, but it will definitely come in the next year.

Rohit Taparia:

Okay. And sir, the second question was that, you had also guided for about doubling our revenue in 3 years' time. Are we intact on that?

Hemant Mondkar:

Pardon me? Doubling? Yes, we will be doubling within 3 years. Yes.

Rohit Taparia:

Okay. Thank you. That's all from my side.

Page 15 of 19

Hy-Tech Engineers Limited November 05, 2026 Hemant Mondkar:

Okay.

Moderator:

Thank you. Next question comes from the line of Paras Chheda with Purpleone Vertex Ventures LLP. Please go ahead.

Paras Chheda:

Yes, sir. So just, one follow-up question. Like this year we may grow 20% and next year probably in the region of 25% or so, and potentially doubling in the next 3 years' time. So I am just trying to understand, sir, what are the-- I mean growth driver in terms of whether the industry itself grows and allows us the opportunity to grow at 25% next year, or are we gaining market share over other players?

Hemant Mondkar:

Good, very good question, Paras. But that-- I hope it is your last question, otherwise come and meet me, I will answer all your questions.

Paras Chheda:

I would love too.

Hemant Mondkar:

Check with our seller people and come and meet me. I think that is because you have-- you seem to be a lot -- have you invested already?

Paras Chheda:

Absolutely, sir, and I am looking to further it.

Hemant Mondkar:

You come in and visit us, you come and visit us. But anyway, your question is very, very nice. I will answer you briefly that there is a market available, and today Hy-Tech is growing not for the new market but for the existing market. We are gaining shares now in existing OEMs in India itself, our share, share, so share of business is going up. Okay, then we are exploring the market in Europe where we will be now much better placed in US market. So business is available and available business share is going up. The market is growing at a pace of-- in India it's going at a pace of about 7%, 8%, but I am promising, promising the growth of 20%- 25% purely through SOV increase. And not only that, is one more point. Whatever MNCs which are coming now in India and their growth, along with them we are growing because all new MNCs coming, the first option for them for fittings is Hy-Tech. When they come in India and they ask who is a good fitting supplier, our name goes. It's a mouth publicity of our existing OEMs. They tell them go to HyTech. So that's how the business is coming,

Paras Chheda:

Right. So our competitive position itself is strong, which allows us to gain market share.

Hemant Mondkar:

That's right, you have understood it correctly. Another thing policy of Hy-Tech is we give a very reasonable price and we are enjoying 10% premium in the market.

Paras Chheda:

Okay, understood. So that is reasonably vast market. And by gaining market share itself, we are reasonably confident of achieving our growth targets.

Hemant Mondkar:

Perfect.

Page 16 of 19

Hy-Tech Engineers Limited November 05, 2026 Paras Chheda:

Thank you so much, and I would love to meet you though, but I will connect.

Hemant Mondkar:

Please do come.

Paras Chheda:

Sure. Thank you so much.

Moderator:

Thank you. Next question comes from the line of Richa Agrawal with Equitymaster. Please go ahead.

Richa Agrawal:

Thank you for the opportunity, sir, and, congratulations on a good set of numbers. Yes, hi, am I audible?

Hemant Mondkar:

You are audible, and I have-- I am sorry for not giving you enough time.

Richa Agrawal:

No problem, sir, no problem. I will use the opportunity now and hopefully in future. So my question is, most questions have been answered. I just wanted a little more color on this new product of stainless steel double ferrule fittings. Is this for, I mean, does this open further TAM for you? Is this for new sectors? Or what kind of margin difference, if it is a value-added product, could it bring to your product portfolio?

Hemant Mondkar:

Very, very good question. Now, there is -- this is going to open us for a totally different market, market of oil and gas, shipping, then defence. All these sectors, they require double ferrule stainless steel fittings, and there is a very single player in the Indian market today. Against that, we will start getting the business. The margins, margins are little more, maybe 5% more than the carbon steel fittings. The margins are better by 5%. Another important point is that since it is stainless steel, if the cost is 4 times whatever carbon steel fitting, instead of that, if we give stainless steel fitting, the price of that fitting price. And that gives us a higher turnover instantly with a lesser product, lesser production requirement, because the material cost itself is 4 times. Okay, Richa, have you understood what I am saying?

Richa Agrawal:

Yes. Just, an add-on.

Hemant Mondkar:

Yes, so it's an add-on with, with lesser number of machines. We will be able to turn out higher turnover. Okay,

Richa Agrawal:

And so because you said that there is no other player in India for it as of now, how big is this market?

Hemant Mondkar:

There is one -- there is one player in India.

Richa Agrawal:

Okay. And so the idea, I mean, this, the whole development of the product, was this demanded by clients or was it like proactive at your end?

Hemant Mondkar:

No. We did it ourselves and we have spent almost 2, 2.5 years to establish this product. And now it has been established, we are already doing around INR8 crores to INR10 crores of business in this, product as of today.

Page 17 of 19

Hy-Tech Engineers Limited November 05, 2026 Richa Agrawal:

Okay. Thank you. All the best.

Hemant Mondkar:

You have to scale it up. It required tremendous amount of registrations and all that. For it, for example, it requires railways registration, which we have now done. It requires registration with Engineers India Limited. We have been registered now, so now we will start getting the results in next 1 or 2 years. Okay Richa?

Richa Agarwal

Yes, thank you, thank you so much and all the best.

Hemant Mondkar:

All right, thank you.

Moderator:

The next question comes on the line of Vishal P. Patel, an Individual Investor. Please go ahead.

Vishal P. Patel:

Good afternoon, sir, and congratulations for the good set of numbers. Sir, most of my questions has been answered so far, but the only thing I want to understand is what challenges do we face? I want to understand the business more. So what challenges as an industry and as a business we face?

Hemant Mondkar:

What challenges?

Vishal P. Patel:

Like what general set of challenges do we face in the business, like in this business?

Hemant Mondkar:

You are asking me, a general question?

Vishal P. Patel:

Yes, sir, just a general question. Try to understand the industry and the business more.

Hemant Mondkar:

So challenges you face in any business, even Hy-Tech faces, but challenges are always opportunities for further growth. So unless you have challenges, there is no growth.

Vishal P. Patel:

No, no, sir, not in general sense, in the sense of like the raw material challenges or the competitors.

Hemant Mondkar:

Absolutely we have challenges. We do not have any challenges. Everything challenges. Whatever we are facing, we have overcome. I do not find any risk factors now.

Vishal P. Patel:

Okay.

Moderator:

Thank you, ladies and gentlemen. That was the last question for today. We have reached the end of question-and-answer session. I now hand the conference to the operator for closing comments.

Hemant Mondkar:

Okay, thank you very much. Thank you all. For, being patient and hearing me out. So we at HyTech appreciate the opportunity to interact with all of you. Thank you once again for taking the time to be a part of our earnings call for Q2 and H1. I hope I have been able to satisfy and do justice to your questions. Should you have any further questions, please do write to us or Stellar IR advisors, and we shall respond as best as we can. And we look forward to continuing this journey with you in the quarters and years ahead. Thank you once again, and I give you an offer that if you are serious about investing a good sum, you

Page 18 of 19

Hy-Tech Engineers Limited November 05, 2026 are most welcome to visit our factories. Share it with Stellar, and you can come in, get together, and come and visit our factory. You are most welcome. Because when you see, you will start believing what we are. Thank you very much. Bye-bye, all of you. Moderator:

Thank you. On behalf of Hy-Tech Engineers Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Page 19 of 19