Hittco Tools proposes four-sector expansion amid FY26 loss

Hittco Tools Limited has proposed adding hospitality, electric-vehicle leasing, real estate and securities activities to its objects clause, subject to member and regulatory approvals, after reporting a Rs 70.73 lakh loss after tax for the year ended March 31, 2026. Hittco Tools is currently engaged in cutting tools and says the additions align with its proposed future business plans.

What businesses does Hittco Tools propose to add?

Hittco Tools proposes to add four broad business areas to its memorandum of association: hospitality and food services; leasing and rental of vessels and automobiles, including electric vehicles; real-estate development; and securities-market activities. The board has approved the proposed alteration of the main objects clause, but it remains conditional on approval from members and any required statutory, regulatory and governmental authorities.

The hospitality object covers hotels, resorts, restaurants, cafés, cloud kitchens, catering, food delivery and food-and-beverage brands. Hittco Tools would be able to operate directly or through subsidiaries, joint ventures, franchises, partnerships, collaborations or other arrangements, subject to licences, registrations and approvals required under applicable laws.

The proposed vehicle-leasing object covers buying and renting trawlers, vessels, barges, automobiles and all types of electric vehicles in India or abroad. Hittco Tools also proposes consultancy and advisory services for automobile leasing and rental, as well as acquisition of assets through purchase or lease and related support services.

The real-estate object would permit development, acquisition, sale, leasing, management and maintenance of land, buildings, apartments, offices, shops, warehouses, townships and industrial properties. A separate proposed object would permit securities-related activity as a stock broker, sub-broker, dealer, jobber, market maker, broker or agent in securities, capital markets, mutual funds, company deposits and government securities.

What is Hittco Tools' existing business?

Hittco Tools is currently engaged in cutting tools, while its existing main objects also cover machinery, coating-related products, computer software and hardware, and power-generation activities. The company was incorporated on January 4, 1995 and adopted its current name on April 24, 2003, following earlier name changes.

Hittco Tools has authorised share capital of Rs 35 crore, divided into 3.50 crore equity shares with a face value of Rs 10 each. Its issued, subscribed and paid-up capital is Rs 6.6048 crore across 66,04,847 equity shares, including 2,47,600 partly paid-up shares as of the draft letter of offer date.

Hittco Tools is listed on BSE Limited under scrip code 531661 and International Securities Identification Number, or ISIN, INE863C01019. The filing identifies 5,63,840 equity shares as subject to lock-in obligations, while the company had 4,831 public-category shareholders as of September 30, 2026.

The filing does not quantify planned investment, expected revenue, start dates or individual projects for hospitality, EV leasing, property development or securities operations. Hittco Tools states that it will undertake the proposed activities only after obtaining required licences, registrations, permissions, approvals and clearances.

How did Hittco Tools perform before the diversification proposal?

Hittco Tools recorded revenue from operations of Rs 8.0975 crore in FY26, compared with Rs 6.9451 crore in FY25 and Rs 5.9705 crore in FY24. Revenue therefore increased in each of the last two financial years, but the company reported a Rs 70.73 lakh loss after tax in FY26, compared with a Rs 0.63 lakh loss in FY25 and a Rs 18.74 lakh profit in FY24.

FY26 expenditure excluding depreciation and interest was Rs 7.9322 crore, up from Rs 6.5176 crore in FY25 and Rs 4.8394 crore in FY24. Depreciation rose to Rs 65.44 lakh from Rs 60.93 lakh a year earlier, while interest fell to Rs 12.78 lakh from Rs 16.99 lakh; profit before tax nevertheless changed to a Rs 59.13 lakh loss from a Rs 7.79 lakh profit.

For the unaudited quarter ended June 30, 2026, Hittco Tools reported revenue from operations of Rs 2.023 crore and a Rs 5.94 lakh loss after tax. Expenditure excluding depreciation and interest was Rs 2.0107 crore in the quarter, while depreciation was Rs 3.15 lakh and interest was Rs 4.21 lakh.

Other equity was negative Rs 3.1692 crore at March 31, 2026, compared with negative Rs 2.626 crore at March 31, 2025 and negative Rs 2.8589 crore at March 31, 2024. Net worth was Rs 3.3119 crore at March 31, 2026, down from Rs 3.41 crore a year earlier; non-current borrowings were Rs 3.3108 crore and current borrowings were Rs 87.59 lakh.

How could the proposed allotment change Hittco Tools ownership?

Hittco Tools has proposed preferential allotments of 59,40,000 equity shares and 1,00,60,000 convertible warrants, which would expand voting capital from 66,04,847 existing shares to 2,26,04,847 shares on a fully expanded basis. The filing states that the proposed allotment and related open offer would result in the acquirers assuming control, subject to completion and applicable compliance.

The three acquirers have agreed to subscribe to 1.15 crore shares and convertible warrants combined: 44 lakh each for Irfan Ismail Chapra and Reshma Irfan Chapra, and 27 lakh for Mubina Gulzar Sofia. Other public-category investors are shown receiving 45 lakh shares and warrants under the preferential issue, taking the proposed aggregate issuance to 1.60 crore instruments.

If the preferential allotment and open offer are successfully completed, the acquirers’ combined holding is shown at 1,73,77,261 shares and voting rights, or 76.87% of expanded voting capital. Existing promoters’ holding would remain 18,73,891 shares but decline from 28.37% before the transactions to 8.29% of expanded capital, based on the filing’s assumptions.

The open offer covers up to 58,77,261 equity shares, equivalent to 26.00% of expanded voting capital, at Rs 15.30 per fully paid-up share and Rs 10.30 per partly paid-up share. Maximum consideration is Rs 8.99220933 crore assuming full acceptance, with Rs 2.27 crore secured through Rs 1.50 crore cash escrow and a Rs 77 lakh bank guarantee.

What approvals and conditions still apply to Hittco Tools' plan?

Hittco Tools cannot implement the new objects solely through the board decision because the memorandum alteration requires member approval and applicable statutory, regulatory and governmental approvals. The filing specifically says the company will undertake the proposed activities only after securing the necessary licences, registrations, permissions, approvals and clearances.

Hittco Tools shares are frequently traded on BSE, with annualised turnover of 25.97% during the 12 months from October 2025 to September 2026. The Rs 15.30 open-offer price was above the Rs 14.50 preferential-issue price and the Rs 15.23 60-trading-day volume-weighted average price preceding the October 26, 2026 public announcement.

BSE closing prices cited in the filing were Rs 15.68 on October 23, 2026, Rs 15.99 on the public-announcement date, Rs 16.30 the following day and Rs 17.61 on November 2, 2026, the detailed-public-statement date. The filing says there had been no offer-price or offer-size revision as of its date, though a higher acquisition price during the offer period could require an upward revision under takeover regulations.

Conclusion

Hittco Tools is seeking authority for a substantially broader set of activities while its disclosed operating business remains cutting tools. The proposal covers consumer hospitality, asset leasing, property development and regulated securities-market activity alongside FY26 revenue of Rs 8.0975 crore, a Rs 70.73 lakh annual loss and negative other equity of Rs 3.1692 crore.

Next, shareholders and regulators must consider the memorandum amendment and the proposed preferential allotment. Investors can watch for the required approvals, completion of the open offer for up to 58,77,261 shares, and disclosures identifying investments, licences, operating launches or specific projects under the proposed new business objects.