Lerthai Finance Ltd. Share Price

Hy-Tech Engineers

• Hy-Tech Engineers is coming out with a 100% book building; initial public offering (IPO) of 2,62,89,450 shares of face value Rs 5 each in a price band Rs 50-53 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 24, 2026 and will close on August 27, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 10.00 times of its face value on the lower side and 10.60 times on the higher side.
• Book running lead manager to the issue is New Berry Capitals.
• Compliance officer for the issue is Sai Yashwant Ranadive. 

Profile of the company

Hy-Tech Engineers is an engineering company engaged in the design, manufacture and supply of hydraulic fittings catering to diverse industrial applications, with over four decades of operational experience in the hydraulics industry. Its product portfolio comprises standard hydraulic fittings viz. DIN-metric fittings, JIC flared and flareless fittings, O-Ring Face Seal (ORFS) fittings and conversion fittings, as well as fittings customized to customer specifications. Its portfolio consists of more than 11,000 stock keeping units (SKUs) of hydraulic fittings, serving diverse application needs across industries such as construction machinery, automotive, farming machinery, injection moulding machines and hydraulic systems. In addition, it has obtained certifications which enable it to cater to sectors such as railways and defence, thereby expanding its addressable market.

The company operate on a business-to-business (B2B) model across both domestic and international markets. Its sales approach combines direct engagement with original equipment manufacturers (OEMs) and other industrial customers as also through a network of authorized distributors and distribution partners. Direct customer engagement enables it to build long-term relationships and offer tailored solutions aligned with specific industry requirements. The company has supplied to 170 direct customers including OEMs. To complement its direct sales efforts, it leverages a network of distributors and distribution partners in India and overseas, which allows it to expand its reach to a broader customer base. The distributors typically maintain inventory in their territories, promote its products, provide after-sales support, and act as the primary interface for customers. This dual-channel distribution strategy enhances its market penetration and provides it with the opportunity to increase market share for its offerings across a wide range of industrial sectors. The company has also engaged with a non-exclusive distribution partner in Europe who is not directly involved in customer acquisition but primarily provide post-sale services, local coordination and logistics support.

Proceed is being used for: 

• Funding the capital expenditure requirements towards procurement of machinery and equipment for expansion at Kavathe Unit, Shirwal Unit and Pithampur Unit-I
• Repayment or prepayment, in full or in part, of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

The Indian hydraulic fittings market, comprising couplings, adapters, unions, plugs, sleeves and caps, has witnessed steady growth during CY21-CY25, driven by strong recovery in industrial activity following the pandemic, increasing capital expenditure on infrastructure, rising construction and mining equipment sales, higher farm mechanisation and expansion of the domestic manufacturing sector. Government initiatives such as PM Gati Shakti, National Logistics Policy, Make in India and continued investments in roads, railways, mining and urban infrastructure have supported demand for hydraulic equipment and associated fittings.

The consumption of hydraulic fittings in India's construction equipment sector is projected to increase from $116.2 million in CY21 to $300.4 million by CY31, registering a CAGR of 10% during CY21–CY25 and accelerating to 11% during CY26P-CY31P. The higher growth outlook reflects sustained investments in infrastructure, mining and urban development, coupled with increasing mechanisation across the construction industry. Earth Moving Equipment (EME) remains the largest consumer of hydraulic fittings, accounting for nearly 46% of the market by CY31 growing at a CAGR of 9% from CY26, driven by strong demand for excavators, backhoe loaders and wheel loaders. Road Construction Equipment is expected to witness steady growth, supported by continued investments in highways, expressways and rural road connectivity, while Concrete Equipment demand is projected to increase in line with expanding urban infrastructure and housing projects.

Going forward, the market is projected to witness robust growth through CY31, with couplings expected to reach $84.7 million, followed by adapter fittings ($75.3 million) and union fittings ($66.6 million). Growth is expected to be driven by continued public infrastructure spending, increasing mechanisation across agriculture and mining, expansion of domestic capital goods manufacturing, rising industrial automation and growing exports of engineering goods. In addition, the increasing preference for high-pressure, corrosion-resistant and precision-engineered hydraulic fittings to improve equipment reliability, safety and lifecycle performance is expected to support demand across all product categories over the forecast period. Overall, the market is shifting towards precision-engineered, corrosion-resistant and high-pressure hydraulic fittings, driven by increasing OEM requirements for improved durability, operational efficiency and lower maintenance costs.

Pros and strengths 

Integrated operations and product development capabilities: Its product portfolio includes more than 11,000 SKUs, comprising standard hydraulic fittings such as DIN-metric fittings, JIC flared fittings, O-Ring Face Seal (ORFS) fittings, and conversion fittings. It also has the capability to develop application-specific fittings tailored to customer specifications and applicable industry standards, with 880 new SKUs in Fiscal 2026, 1,676 in Fiscal 2025, and 2,206 in Fiscal 2024. This breadth and pace of product development demonstrates both the scale and adaptability of its operations. Its manufacturing operations encompass die-designing, forging, heat treatment, machining, plating and inspection and testing, which are primarily conducted in-house. It has in-house design capabilities that allow it to tailor products to specific customer needs, enabling it to maintain wide product range that caters to both standard and specialized applications. These capabilities enable it to meet the requirements of both large OEMs and small and mid-sized enterprises, including customers served through its distributor network demonstrates the flexibility of its operations and the inclusivity of its customer base across a broad spectrum of industries.

Diversified customer base with wide market reach: Its business model is designed to provide scalability by balancing direct engagement with customers and a distributor network. While direct sales to OEMs and other industrial users allow to customize solutions and build enduring relationships, its distributors also enable access to smaller and mid-sized industrial customers across domestic and overseas markets. It served 170 direct customers in Fiscal 2026, compared to 152 in Fiscal 2025 and 144 in Fiscal 2024, while the number of distributors and distribution partners has grown from 5 in Fiscal 2024 to 7 in Fiscal 2026. This dual channel approach provides access to diverse customer segments and reduces dependence on any single sales channel or industry vertical.

Established global presence with access to growing international markets: As of March 31, 2026, its operations span both domestic and international markets, supported by a product portfolio of over 11,000 SKUs. During the last three Fiscals, it has exported hydraulic fittings to eleven countries including the USA, Belgium, Poland, Russia, Brazil, Italy, Saudi Arabia, Hungary, UAE, Thailand and Germany. It has entered into a distribution agreement dated April 1, 2022 with its Promoter Group entity, Hy-Tech USA Inc., pursuant to which it has appointed them as the exclusive distributor of all hydraulic fittings and related equipment manufactured by it for its customers, including OEMs, in North America, Canada, and Brazil. Further, in the domestic market, its distribution network covered four states in India between Fiscal 2024 and Fiscal 2026. Its continued focus on engineering, product quality, and industry-specific requirements has enabled it to gain insights and consistently meet the varying standards of international customers and deliver application-specific solutions.

Decentralized cell-based manufacturing model: The company follows a cell-based manufacturing model, which enables it to maintain accountability, and customer focus. Under this structure, its operations are organized into smaller, self-contained cells, with certain cells aligned to specific customer requirements or product categories. Each cell functions with dedicated oversight for production, quality, and design support, which promotes ownership of outcomes, alignment with customer expectations, and consistency in delivery. This approach helps it respond flexibly to customer needs while maintaining standards of quality and reliability. Its Manufacturing Facilities operate under a decentralized accountability framework, with plant heads responsible for operational performance and supported by central teams for procurement and strategic planning. This model fosters operational agility, cost discipline, and a performance-driven culture across its manufacturing operations.

Risks and concerns

Significant revenue dependence on top customers: The company is dependent on a few customers for a major portion of its revenues with its top 10 customers contributing to 45.32%, 42.02% and 48.72% of its revenue from operations in the Fiscals 2026, 2025 and 2024, respectively. Further, it does not enter into long-term arrangements with its customers and any failure to continue its existing arrangements with such customers could adversely affect its business, financial condition results of operations and cash flows.

Dependence on overseas markets, particularly the United States: The company derives a significant portion of its revenue from operations from overseas markets out of which substantial portion is received from the sale of its products in the United States of America. It derives a significant portion of revenue from operations from exports, which accounted for 29.37%, 28.30% and 33.14% of its total revenues in Fiscal 2026, 2025 and 2024, respectively. Out of which a substantial portion was generated from the United States of America, which contributed 21.42%, 22.85% and 24.56% of its total revenues during the same period. Fluctuation in exchange rates, any adverse developments in these markets or restrained economic or political relations of India with the United States of America could adversely affect its business.

Reliance on limited number of suppliers for raw materials: The company is dependent on third party suppliers for raw materials used in its manufacturing operations. Its primary raw materials include carbon steel and stainless steel, materials which it primarily sources from local suppliers in India. The company is dependent on its suppliers for raw materials used in its manufacturing processes with its top 10 suppliers contribution to 65.61%, 54.78% and 65.49% of its total purchases in the Fiscal 2026, 2025 and 2024, respectively. Any shortages, delay or disruption in the supply of the raw materials it uses in its manufacturing process may have a material adverse effect on its business, financial condition, results of operations and cash flows. Further, Volatility in the commodity markets could impact the pricing of its raw materials. Price increases of its raw materials could materially impact its production costs and profitability and consequently have an adverse effect on its business, results of operations and financial condition.

Geographic concentration of manufacturing facilities: The company has four out of its six Manufacturing Facilities are located in the state of Maharashtra and the balance two Manufacturing Facilities located in the state of Madhya Pradesh. The Manufacturing Facilities located in Maharashtra contributed 77.64%, 77.27% and 77.43% of its revenue from operations for Fiscals 2026, 2025, and 2024, respectively. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in the state of Maharashtra or Madhya Pradesh where its other Manufacturing Facilities are concentrated could have an adverse effect on its business, results of operations and financial condition.

Outlook

Hy-Tech Engineers is engaged in the manufacturing and selling of Hydraulic fittings for auto and industrial sector. The company caters to both domestic and international markets. Its product portfolio comprises standard hydraulic fittings viz. DIN-metric fittings, JIC flared and flareless fittings, O-Ring Face Seal (ORFS) fittings and conversion fittings, as well as fittings customized to customer specifications. The company operate on a business-to-business (B2B) model across both domestic and international markets. On the concern side, its significant portion of its revenue comes from construction machinery, farming and automotive industry segments, which collectively contributed 54.82%, 52.33% and 54.55% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively. It may be affected by any reduction in the demand or requirement of products in such industries which can adversely impact its business, financial condition, results of operations, cash flows and prospects.

The issue has been offering 2,62,89,450 shares in a price band of Rs 50-53 per equity share. The aggregate size of the offer is around Rs 131.45 crore to Rs 139.33 crore based on lower and upper price band respectively. Minimum application is to be made for 283 shares and in multiples thereon, thereafter. On performance front, its total income increased by 16.03%, from Rs 1,667.07 million in Fiscal 2025 to Rs 1,934.35 million in Fiscal 2026. Net profit increased by 15.15%, from Rs 196.19 million in Fiscal 2025 to Rs 225.92 million in Fiscal 2026.

Meanwhile, it aims to continuously enhance its designing and manufacturing efforts in order to control its costs and optimize its products. It intends to leverage its scale of operations, existing long-standing and strategic relationship with suppliers and enhanced backward integration measures to improve operational efficiency and reduce costs. its experienced operations team actively implements industry aligned methodologies to drive process improvements and reduce wastage, with a long-term view on profitability and environmental responsibility. In line with its sustainability goals, it has installed solar panels at the units situated at Kavathe (Maharashtra) and Shirwal (Maharashtra) as well as effluent treatment plants at all its Manufacturing Facilities, which has helped it reduces energy costs, minimize environmental impact, and enhance operational efficiency.

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Data Patterns (India) has informed that the company has received order worth about Rs. 585.76 Crores from Bharat Electronic for procurement of Radar Electronics. Further, the company has informed that the Company has announced order book status as on July 30, 2026 as Rs.2,654 Crores (including orders received and negotiated). Subsequent to the said announcement, the Company has received orders amounting to Rs.771.08 Crores (including the order mentioned above). Out of this Rs.771.08 Crores, orders amounting to Rs.745.93 Crores were considered under ‘orders negotiated and yet to be received’ in the announcement made on July 30, 2026. The remaining orders amounting to Rs.25.15 Crore are new orders. The company has enclosed the brief details as per SEBI Circular No. HO/49/14/14(7)2025-CFDPOD2/I/3762/2026 dated January 30, 2026, as Annexure A to this letter. 

The above information is a part of company’s filings submitted to BSE.