Hi-Tech Gears Q2 profit rises 78% as income reaches Rs 287.85 crore

The Hi-Tech Gears Limited reported consolidated profit after tax of Rs 10.70 crore for the quarter ended September 30, 2026, up 78% from Rs 6.01 crore a year earlier, as total income increased to Rs 287.85 crore from Rs 243.11 crore. Profit also rose from Rs 4.76 crore in the preceding June 2026 quarter.

How did Hi-Tech Gears perform in the September 2026 quarter?

Hi-Tech Gears reported consolidated total income of Rs 287.85 crore for the quarter ended September 30, 2026, compared with Rs 243.11 crore in the quarter ended September 30, 2025 and Rs 238.94 crore in the quarter ended June 30, 2026. Revenue from operations rose to Rs 278.50 crore from Rs 235.18 crore a year earlier, while other operating revenue was Rs 6.48 crore and other income was Rs 2.87 crore.

Consolidated profit before tax reached Rs 15.13 crore, compared with Rs 9.60 crore in the year-earlier quarter and Rs 6.39 crore in the June 2026 quarter. Total tax expense was Rs 4.44 crore, comprising current tax of Rs 4.66 crore, deferred-tax credit of Rs 0.33 crore and earlier-years tax adjustment of Rs 0.10 crore. Basic earnings per share rose to Rs 5.69 from Rs 3.20 a year earlier and Rs 2.53 sequentially.

Hi-Tech Gears reported no exceptional items in any of the three quarterly comparison columns, leaving profit before exceptional items and tax at the same Rs 15.13 crore as reported profit before tax. Total comprehensive income was Rs 14.04 crore, against Rs 10.28 crore a year earlier, following other comprehensive income of Rs 3.34 crore. The board approved the unaudited results on November 4, 2026, after audit committee review and a limited review by statutory auditors.

Which costs increased as Hi-Tech Gears' income grew?

Hi-Tech Gears' consolidated total expenses rose to Rs 272.72 crore in the September 2026 quarter from Rs 233.52 crore a year earlier and Rs 232.55 crore in the June 2026 quarter. Cost of materials consumed, the largest expense line, increased to Rs 143.92 crore from Rs 124.21 crore a year earlier and Rs 110.71 crore sequentially. Purchases of stock-in-trade were Rs 3.66 crore, compared with Rs 1.27 crore in the prior-year quarter.

Employee-benefit expense increased to Rs 52.93 crore from Rs 44.55 crore in the September 2025 quarter and Rs 46.09 crore in the June 2026 quarter. Other expenses rose to Rs 62.17 crore from Rs 46.39 crore a year earlier and Rs 47.36 crore sequentially. These cost increases coincided with a negative Rs 11.23 crore change in inventories of finished goods and work in progress, compared with a negative Rs 3.48 crore change a year earlier and a positive Rs 3.84 crore change in June 2026.

Finance costs were Rs 3.78 crore, up from Rs 3.57 crore a year earlier but below Rs 3.88 crore in the prior quarter. Depreciation and amortisation expense was Rs 17.48 crore, compared with Rs 17.01 crore in the September 2025 quarter and Rs 17.33 crore in June 2026. The difference between Rs 287.85 crore of income and Rs 272.72 crore of expenses produced the Rs 15.13 crore quarterly profit before tax.

Which geographic segments contributed to Hi-Tech Gears' result?

Hi-Tech Gears' India segment recorded revenue of Rs 212.70 crore in the September 2026 quarter, up from Rs 176.44 crore a year earlier and Rs 171.21 crore in June 2026. Canada segment revenue increased to Rs 72.50 crore from Rs 63.22 crore and Rs 65.71 crore, respectively. The Others segment reported Rs 6.22 crore of revenue, versus Rs 6.92 crore a year earlier and Rs 7.44 crore sequentially.

Segment revenue before eliminations totalled Rs 291.43 crore, while inter-segment revenue of Rs 3.58 crore was eliminated to arrive at consolidated total income of Rs 287.85 crore. The corresponding elimination was Rs 3.47 crore in the September 2025 quarter and Rs 5.42 crore in June 2026. India therefore remained the largest geographic contributor, accounting for Rs 212.70 crore of the gross segment revenue figure.

India generated segment profit before interest and tax of Rs 17.18 crore, compared with Rs 12.84 crore a year earlier and Rs 10.05 crore sequentially. Canada contributed Rs 2.88 crore, against Rs 0.49 crore in the prior-year quarter and Rs 0.48 crore in June 2026, while Others recorded a Rs 1.14 crore loss. Total segment profit of Rs 18.91 crore less finance costs of Rs 3.78 crore resulted in consolidated profit before tax of Rs 15.13 crore.

What do Hi-Tech Gears' half-year cash flow and balance sheet show?

For the half year ended September 30, 2026, Hi-Tech Gears reported consolidated total income of Rs 526.79 crore, compared with Rs 463.21 crore in the half year ended September 30, 2025. Profit before tax was Rs 21.52 crore against Rs 20.11 crore, while profit after tax increased to Rs 15.46 crore from Rs 12.01 crore. Half-year basic earnings per share were Rs 8.22, compared with Rs 6.39.

Net cash from operating activities was Rs 58.78 crore for the six months, compared with Rs 22.22 crore in the prior-year period. Operating profit before working-capital changes increased to Rs 65.46 crore from Rs 46.56 crore, while inventory movement used Rs 8.15 crore and trade and other payables added Rs 19.40 crore. Income tax paid was Rs 12.57 crore, compared with Rs 8.67 crore in the corresponding prior-year half.

Investing activities used Rs 32.52 crore, including Rs 22.69 crore spent on property, plant, equipment and capital work in progress, versus Rs 12.26 crore in the prior-year half. Financing activities used Rs 27.01 crore after Rs 42.86 crore of borrowing repayments and Rs 28.31 crore of borrowing proceeds. Cash and cash equivalents closed at Rs 5.57 crore on September 30, 2026, compared with Rs 6.33 crore at March 31, 2026.

Consolidated total assets were Rs 854.02 crore at September 30, 2026, compared with Rs 839.30 crore at March 31, 2026. Total equity rose to Rs 529.84 crore from Rs 522.64 crore, while current borrowings fell to Rs 38.87 crore from Rs 53.37 crore and non-current borrowings declined to Rs 7.14 crore from Rs 7.39 crore. Current liabilities increased to Rs 203.92 crore from Rs 190.11 crore, including Rs 110.20 crore owed to trade creditors other than micro and small enterprises.

Conclusion

Hi-Tech Gears' September 2026 quarter combined an 18% year-on-year increase in total income, to Rs 287.85 crore, with profit after tax rising 78% to Rs 10.70 crore. India supplied Rs 17.18 crore of segment profit before interest and tax, while Canada increased its equivalent contribution to Rs 2.88 crore from Rs 0.49 crore a year earlier. Higher materials, employee and other expenses accompanied the income increase.

The next results will show whether the September-quarter increase in income and profit continues after half-year capital expenditure reached Rs 22.69 crore and operating cash flow was Rs 58.78 crore. Hi-Tech Gears also disclosed that 6,497 equity shares were allotted on July 31, 2026 under its 2021 stock incentive plan, taking paid-up share capital to Rs 18.82 crore from Rs 18.81 crore.