HGS (India) Limited IPO

HGS (India) Initial Public Offering is a book-built issue of ₹34.56 crore. The issue is a combination of a fresh issue of 23.26 lakh shares aggregating to ₹27.91 crore and an offer for sale of 5.54 lakh shares aggregating to ₹6.65 crore.

Hem Securities Limited is the book-running lead manager, and KFin Technologies Limited is the registrar of the issue. Hem Finlease Private Limited is the market maker for the company.

About HGS (India) Limited

HGS (India) Limited was established in 1986 in technical and financial collaboration with Geosource Inc., United States, to manufacture geophone strings, seismic cables, and connectors. The company subsequently changed its name from Geosource India Limited to HGS (India) Limited in 1992. It is an India-based manufacturer of geophones, geophone strings, seismic cables, geophysical connectors, and accessories for geophysical equipment, operating in the seismic industry within the energy and geoscience sectors. Its products are used for seismic data acquisition, helping record and transmit ground vibration signals for the analysis of subsurface geological structures.

The company's product portfolio includes geophone elements, geophone strings, seismic system cables, geophysical connectors, seismographs, accelerographs, seismometers, battery chargers, weight drops, and pig tracking systems. It also manufactures parts and accessories for geophysical instruments, along with cables and connectors used in resistivity meters and radar equipment. The company's products are designed for applications such as oil and gas exploration, mineral exploration, defence research, vibration monitoring, geophysical seabed surveys, earthquake seismology, and academic research. Its products are manufactured under the brand name “HG” and are developed to meet specific customer requirements across different field applications.

HGS (India) Limited operates a manufacturing facility at Manesar, Haryana. Its production infrastructure includes precision assembly lines, injection moulding machines, coil winding and magnetising equipment, extrusion and cable manufacturing lines, and in-house testing facilities. The company uses backward integration to manufacture critical components internally, supported by multiple extrusion and cable lines and 16 injection moulding machines. Its testing facilities include environmental stress screening and harmonic distortion analysis to assess product performance under demanding conditions.

The company's products cater to domestic and international customers across the energy, geoscience, defence, mineral exploration, and research sectors. Its customer base includes global seismic contractors and major oil companies.

For the financial year ended March 31, 2026, HGS (India) Limited reported consolidated revenue from operations of ₹45.16 crore and profit after tax of ₹11.64 crore. For the financial year ended March 31, 2025, the company reported revenue from operations of ₹49.08 crore and profit after tax of ₹10.51 crore. For the financial year ended March 31, 2024, revenue from operations stood at ₹35.48 crore, while profit after tax was ₹4.00 crore.

The company's business model is based on manufacturing and supplying specialised geophysical and seismic equipment for energy exploration, geological surveys, defence research, and scientific applications. Its operations are supported by an established manufacturing facility, in-house component production, quality certifications, and an international sales network.

Through its range of geophones, cables, connectors, and related equipment, the company serves customers involved in seismic data collection and subsurface geological analysis. Its technical manufacturing capabilities, specialised product portfolio, and international market presence form the foundation of its business operations.

Industry Outlook

• The seismic equipment industry supports the acquisition of seismic data used to record and analyse ground vibrations, helping identify and interpret subsurface geological structures for exploration and geoscientific applications.
• The industry serves multiple end-use segments, including oil and gas exploration, mineral exploration, defence research, vibration monitoring, geophysical seabed surveys, earthquake seismology, and applied and academic research.
• Geophones, geophone strings, seismic cables, and geophysical connectors are key components of seismic data acquisition systems. These products help capture and transmit signals required for geological analysis and field surveys.
• The industry also includes specialised equipment such as seismographs, accelerographs, seismometers, battery chargers, weight drops, and pig tracking systems, catering to different operational requirements across land, marsh, and other survey environments.
• Demand for seismic and geophysical equipment is linked to exploration and monitoring activities across oil and gas, mining, defence, and scientific research. The equipment is also used for vibration monitoring and earthquake studies, extending its applications beyond conventional energy exploration.
• The industry requires precision engineering and product reliability, as equipment may operate under demanding environmental conditions. Manufacturing capabilities, in-house testing, quality control, and the ability to customise products are important operational considerations.
• The market has an international customer base, with geophysical equipment supplied to customers across several countries. HGS (India) Limited identifies markets including the United States, Germany, Sweden, the Netherlands, South Africa, Saudi Arabia, Australia, the United Kingdom, and Canada.
• The company's disclosed revenue mix demonstrates demand across multiple application segments. In the financial year 2025–26, geophysical seabed surveys contributed 27.99% of revenue from operations, oil and gas exploration contributed 27.70%, vibration monitoring contributed 20.22%, and mine and mineral exploration contributed 8.43%.

HGS (India) IPO Objectives

The company proposes to utilise the net proceeds from the issue towards the following objectives:

• Funding capital expenditure requirements.
• Pursuing unidentified acquisitions.
• Towards general corporate purposes.

Financial Performance of HGS (India) Limited