HIRECT - Hind Rectifiers

📊 NSE: HIRECT 🏢 Electronics - Components 📅 Last Updated: 12/13/2025 23:00

💰 Financial Performance

Revenue Growth by Segment

The company achieved total revenue of INR 655.4 Cr in FY25, representing a growth of 26.6% from INR 517.6 Cr in FY24. Revenue from operations for H1 FY26 reached INR 441.9 Cr, a 46.6% YoY increase. Q2 FY26 revenue grew 37% YoY to INR 227.1 Cr. Approximately 80-90% of revenue is derived from the Indian Railways segment.

Geographic Revenue Split

Not disclosed in available documents, though the company is actively venturing into global markets to diversify its domestic concentration.

Profitability Margins

Gross Profit Margin improved to 27.0% in FY25 from 25.7% in FY24. Net Profit Ratio increased significantly to 5.69% in FY25 compared to 2.42% in FY24, driven by a 196.8% increase in PAT to INR 37.1 Cr.

EBITDA Margin

EBITDA Margin stood at 10.7% (INR 70.3 Cr) in FY25, up from 8.5% (INR 44.2 Cr) in FY24. Q2 FY26 EBITDA grew 41.4% YoY to INR 25.9 Cr, reflecting a margin of approximately 11.4% due to backward integration and operating leverage.

Capital Expenditure

The company is undertaking debt-funded capex to support growth, though specific future INR values are not disclosed. Net worth improved to INR 139 Cr as of March 31, 2025, from INR 124.5 Cr in FY24.

Credit Rating & Borrowing

CRISIL upgraded the rating to 'BBB+/Stable/A2' from 'BBB/Stable/A3+'. Interest coverage ratio improved to 5.3 times in FY25 from 3.3 times in FY24. Average bank limit utilization was 78% through October 2024.

⚙️ Operational Drivers

Raw Materials

Semiconductors and electronic components for power equipment; specific material names like copper or steel are not explicitly listed but are subject to price volatility.

Capacity Expansion

Current capacity not disclosed in units; however, the company is expanding through 'continuous product addition' and backward integration into component manufacturing to improve margins.

Raw Material Costs

Cost of Goods Sold (COGS) was INR 478.3 Cr in FY25, representing 73% of total revenue, compared to INR 384.3 Cr (74.2% of revenue) in FY24.

Manufacturing Efficiency

Return on Capital Employed (ROCE) increased to 23.36% in FY25 from 17.23% in FY24, driven by improved operational efficiency and higher profits.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Execution of an all-time high order book of INR 1,000 Cr (as of June 2025), diversification into new verticals like Defense, EMS, and Auto, and the acquisition of BeLink for patented Printed Electronics and Robotics technology.

Products & Services

Rectifiers, transformers, and semiconductor devices for locomotives, railway coaches, industrial rectification, and pollution control equipment.

Brand Portfolio

Hirect

New Products/Services

Printed Electronics, Robotics, and specialized equipment for the Defense and EMS sectors.

Market Expansion

Targeting global markets and sectoral diversification into the automotive and defense industries over the next three years.

Market Share & Ranking

Holds a leadership position in the locomotive, railway coach, and industrial rectification markets.

Strategic Alliances

Joint venture/acquisition involving BeLink to leverage their robotics division and Printed Electronics IP.

🌍 External Factors

Industry Trends

The railway industry is evolving rapidly with massive government investment in infrastructure transformation, currently driving a 26.6% revenue growth for the company.

Competitive Landscape

Faces competition from both domestic and international players in the power electronic equipment industry.

Competitive Moat

Durable advantage through extensive promoter experience in power electronics and a strong R&D pipeline, which are sustainable due to high technical entry barriers in railway-certified equipment.