HGS India export share hits 84% as domestic sales fall

HGS India became substantially more export-dependent in fiscal 2026: exports accounted for 84.22% of revenue from operations, up from 59.15% in fiscal 2025, while domestic sales declined to Rs 7.12 crore from Rs 20.05 crore. The shift occurred even as HGS India stated that it intends to increase its focus on India’s seismic-equipment market.

Why did HGS India’s export share reach 84%?

HGS India’s export share reached 84.22% in fiscal 2026 because export revenue rose while domestic revenue contracted sharply. Exports were Rs 38.04 crore in fiscal 2026, compared with Rs 29.03 crore in fiscal 2025, an increase of Rs 9.01 crore. Domestic sales fell by Rs 12.92 crore over the same period, bringing the Indian share of revenue down by 25.07 percentage points to 15.78%.

The composition of revenue changed despite a decline in total revenue from operations. HGS India reported revenue from operations of Rs 45.16 crore in fiscal 2026, below Rs 49.08 crore in fiscal 2025, while profit after tax rose to Rs 11.64 crore from Rs 10.51 crore. The export-share increase therefore reflects both higher overseas sales and a lower domestic contribution, rather than growth in consolidated revenue alone.

HGS India’s fiscal 2026 mix also differed from fiscal 2024, when exports represented 63.17% and domestic sales 36.83% of revenue. Domestic share first rose to 40.85% in fiscal 2025 before falling to 15.78% in fiscal 2026. That sequence means the latest export dependence is not a steady three-year movement, but follows a pronounced reversal in the most recent fiscal year.

How far did HGS India’s domestic sales and revenue change?

HGS India’s domestic sales fell 64.46% in value between fiscal 2025 and fiscal 2026, from Rs 20.05 crore to Rs 7.12 crore. India was the company’s largest reported geography in fiscal 2025 at 40.85% of revenue, but it accounted for only 15.78% in fiscal 2026. The decline in Indian revenue was larger than the Rs 3.92 crore reduction in total revenue, because export growth partly offset it.

The stub period ended April 30, 2026 shows the export mix becoming still more concentrated, although HGS India labels that figure as not annualized. HGS India recorded Rs 3.11 crore of revenue in the period, of which exports were Rs 3.06 crore, or 98.52%, and India contributed Rs 4.59 lakh, or 1.48%. This partial-period outcome cannot establish a full-year trend, but it shows that domestic sales had not recovered at that reporting date.

HGS India supplies geophones, seismic cables, connectors and related equipment to sectors including oil and gas exploration, vibration monitoring, earthquake seismology, geophysical seabed surveys and mining. Fiscal 2026 revenue was led by geophone strings or harnesses at Rs 29.94 crore, or 66.29% of revenue, while seismic cables contributed Rs 9.21 crore, or 20.39%. Demand across these product lines and applications will affect whether the domestic share can rise without reducing overseas sales.

Which overseas markets now drive HGS India’s sales?

HGS India’s fiscal 2026 export exposure was concentrated in the United States and several European markets. The United States supplied Rs 10.92 crore, or 24.19% of fiscal 2026 revenue, followed by Norway at Rs 6.14 crore, Germany at Rs 5.43 crore and Sweden at Rs 5.33 crore. Together, these four countries represented 61.60% of total fiscal 2026 revenue.

The United States and Norway accounted for much of the mix change from fiscal 2025. United States revenue increased from Rs 5.04 crore, or 10.28% of revenue, in fiscal 2025 to Rs 10.92 crore in fiscal 2026. Norway rose from Rs 2.33 crore, or 4.74%, to Rs 6.14 crore, or 13.58%. By contrast, United Kingdom revenue declined from Rs 4.80 crore to Rs 84 lakh, lowering its share from 9.78% to 1.86%.

HGS India reported that its portfolio was sold in around 47 countries including India as of April 30, 2026. This broad country count does not eliminate revenue concentration: the top four reported overseas markets accounted for nearly three-fifths of fiscal 2026 company revenue. Sales continuity in those markets, particularly the United States, Norway, Germany and Sweden, is consequently material to maintaining the 84.22% export share.

Can HGS India reduce export dependence while expanding abroad?

HGS India has disclosed plans to pursue both wider exports and a greater domestic focus, so lower export dependence would require Indian sales to grow faster than overseas revenue. Its stated “Dual-Hub” model uses manufacturing in India alongside wholly owned subsidiary HGS Products B.V. in the Netherlands for marketing activity and customer engagement in developed markets. The Netherlands generated Rs 2.13 crore, or 4.72% of fiscal 2026 revenue, compared with Rs 63 lakh in fiscal 2025.

For India, HGS India says it aims to use the Government of India’s Make-in-India initiative by offering locally manufactured, cost-competitive and application-specific seismic equipment to exploration companies, infrastructure developers, research institutions and geoscience agencies. The disclosed intention is important because fiscal 2026 domestic sales of Rs 7.12 crore were below both fiscal 2025 sales of Rs 20.05 crore and fiscal 2024 sales of Rs 13.06 crore. The prospectus does not provide a target amount or timetable for domestic revenue growth.

HGS India also intends to use net offer proceeds for Rs 19.36 crore of expansion and replacement expenditure at its Manesar, Haryana facility. The plan includes Rs 1.05 crore for an in-house gold-plating facility, Rs 15.05 crore for replacement and upgrades to machinery, and Rs 3.26 crore for second-floor infrastructure development. These projects are intended to support backward integration, assembly capacity and operational efficiency, but the disclosed plan does not allocate the expenditure between domestic and export customers.

Conclusion

HGS India’s fiscal 2026 revenue mix shows a clear increase in export dependence: the export share rose to 84.22% as domestic revenue dropped to Rs 7.12 crore. Overseas expansion supported export revenue even as total revenue from operations decreased to Rs 45.16 crore, leaving the company more exposed to demand in a group of markets led by the United States, Norway, Germany and Sweden.

The next measure to watch is whether HGS India’s stated domestic-market push produces revenue growth in India while its Netherlands-led international model continues to expand. The period ended April 30, 2026 recorded only Rs 4.59 lakh of Indian revenue and 98.52% export share, while the Rs 19.36 crore manufacturing plan may affect capacity and cost processes but has no disclosed domestic-sales target.