HGS (India) Ltd: Geophone strings supplied two-thirds in FY26

HGS (India) Ltd generated Rs 29.94 crore, or 66.29%, of FY26 revenue from geophone strings and harnesses. The share rose from 51.15% in FY25 despite revenue from operations falling to Rs 45.16 crore from Rs 49.08 crore, making FY26 materially more dependent on the leading product category.

How concentrated was HGSI's FY26 revenue by product?

HGSI's FY26 revenue was concentrated in geophone strings and harnesses, which accounted for Rs 29.94 crore of the Rs 45.16 crore revenue from operations. A geophone string is an assembly of sensors used to detect and transmit ground-vibration signals in seismic work. The category's share increased by 15.14 percentage points from 51.15% in FY25.

Seismic cables were the second-largest FY26 category at Rs 9.21 crore, or 20.39% of revenue, followed by parts and accessories for geophysical instruments at Rs 4.88 crore, or 10.81%. Others, which include services, research and development and seismic scrap, contributed Rs 1.06 crore, or 2.35%, while geophysical connectors contributed Rs 7.14 lakh, or 0.16%.

The three-year product comparison shows that string concentration recovered after a lower FY25 share. Geophone strings represented 66.98% of FY24 revenue, declined to 51.15% in FY25 and returned to 66.29% in FY26. Seismic cables accounted for 23.06% in FY24, increased to 26.95% in FY25 and then declined to 20.39% in FY26.

How did HGSI's FY26 revenue become string-led?

HGSI became more string-led because geophone-string revenue increased while major non-string categories declined from FY25. String and harness revenue rose by Rs 4.84 crore, from Rs 25.10 crore in FY25 to Rs 29.94 crore in FY26. In contrast, total revenue from operations fell by Rs 3.92 crore over the same period.

Seismic-cable revenue declined by Rs 4.02 crore, from Rs 13.23 crore in FY25 to Rs 9.21 crore in FY26. Parts and accessories declined by Rs 4.73 crore, from Rs 9.62 crore to Rs 4.88 crore, and geophysical connectors fell from Rs 17.39 lakh to Rs 7.14 lakh. The disclosed product table does not link product sales to individual end markets, so it does not establish the cause of these category movements.

The period ended April 30, 2026 retained strings as the largest category but showed a different short-period split. HGSI reported Rs 1.81 crore from strings, or 58.25% of Rs 3.11 crore revenue for that period, while seismic cables contributed Rs 1.22 crore, or 39.41%. As the company identifies this period as not annualised, it cannot establish a full-year product trend.

Why did HGSI's end-market mix swing sharply in FY26?

HGSI's FY26 end-market mix moved away from oil and gas exploration toward vibration monitoring and defence research, while geophysical seabed survey became the largest reported industry. Geophysical seabed survey generated Rs 12.64 crore, or 27.99% of FY26 revenue, narrowly exceeding oil and gas exploration at Rs 12.51 crore, or 27.70%.

In FY25, oil and gas exploration had been the largest industry at Rs 16.61 crore, or 33.84% of revenue, while geophysical seabed survey generated Rs 14.05 crore, or 28.62%. Oil and gas revenue therefore fell by Rs 4.10 crore in FY26, whereas seabed-survey revenue fell by Rs 1.41 crore but gained share because total revenue also declined.

Vibration monitoring increased to Rs 9.13 crore, or 20.22% of FY26 revenue, from Rs 4.18 crore, or 8.53%, in FY25. Defence research increased to Rs 4.01 crore, or 8.89%, from Rs 80.58 lakh, or 1.64%. Earthquake seismology moved in the other direction, declining from Rs 7.90 crore, or 16.09%, in FY25 to Rs 1.33 crore, or 2.95%, in FY26.

The FY24 comparison shows that the industry mix has varied across all three completed years. Geophysical seabed survey represented 17.37% of FY24 revenue, compared with 27.99% in FY26, while oil and gas represented 30.20% in FY24 and 27.70% in FY26. Earthquake seismology increased from 7.92% in FY24 to 16.09% in FY25 before falling to 2.95% in FY26.

Does HGSI's portfolio remove its revenue dependencies?

HGSI's product range serves several applications, but FY26 revenue remained concentrated in a limited set of markets and customers. The two largest industries, geophysical seabed survey and oil and gas exploration, provided 55.69% of FY26 revenue. Adding vibration monitoring brought the three largest industries to 75.91% of FY26 revenue.

Customer data show a separate concentration measure. HGSI sold to 149 domestic and foreign customers in FY26, but its top five customers contributed Rs 27.19 crore, or 60.21%, of revenue, and its top 10 customers contributed Rs 32.78 crore, or 72.58%. The largest customer's share increased to 21.79% in FY26 from 9.96% in FY25.

HGSI states that its products are used in oil and gas exploration, vibration monitoring, geophysical seabed surveys, earthquake seismology, mineral exploration, defence research and applied and academic research. The revenue split confirms exposure to these industries, but the FY25-to-FY26 changes show that application breadth has not prevented significant annual movement in individual industry contributions.

What could change HGSI's product and end-market mix next?

HGSI has disclosed product and capacity initiatives that may affect future sales composition, although it has not forecast their revenue contribution. The company developed the HG-5VHS, a very-high-sensitivity sensor, and the HG-2, a low-frequency sensor, and launched both in a first round of commercialisation. It has also developed a geophone sensor network for avalanche studies and supplied strong-motion accelerographs for earthquake seismology to government entities.

HGSI intends to use net offer proceeds for Rs 19.36 crore of capital expenditure at its Manesar facility. The plan includes Rs 1.05 crore for an in-house gold-plating facility, Rs 15.05 crore for replacement and upgrading of plant and machinery, and Rs 3.26 crore for second-floor infrastructure development. These are stated plans, not reported sales, and their effect on the share of strings, cables or individual end markets remains unresolved.

Conclusion

HGSI's FY26 disclosures show that a broad seismic-equipment portfolio translated into a revenue base dominated by geophone strings. Strings supplied 66.29% of revenue, while geophysical seabed survey, oil and gas exploration and vibration monitoring supplied 75.91% collectively. The movement in vibration monitoring, defence research and earthquake seismology also shows that end-market allocation changed substantially within one financial year.

The next disclosures to watch are whether the first commercialisation of the HG-5VHS and HG-2 sensors, the avalanche-monitoring system and the Rs 19.36 crore manufacturing plan broaden reported revenue. The period ended April 30, 2026 still placed strings first at 58.25% of revenue, but that one-month period is not annualised and does not resolve the FY27 mix direction.