HGS (India) IPO

HGS (India) Limited manufactures geophones, geophone strings, seismic cables, geophysical connectors and related parts and accessories used to record and transmit ground vibration signals for seismic surveys. Its products are used in oil and gas exploration, mineral exploration, defence research, vibration monitoring, geophysical seabed surveys, earthquake seismology and academic research. The company was established in 1986 as Geosource India Limited, in technical and financial collaboration with Geosource Inc (USA), and took its present name in 1992 after Geosource Inc was bought out by HGS Inc (USA). It manufactures at Manesar, Haryana, sells largely to overseas seismic contractors and oil companies under the brand "HG", and is recognised as a 100% Export Oriented Unit by the Noida Special Economic Zone.

The company builds electromechanical sensors and cabling to customer specification and sells them to seismic contractors, oil companies and research institutions, overwhelmingly for export — exports were 84.22% of revenue from operations in FY26, against 59.15% in FY25 and 63.17% in FY24 (RHP risk factors). Two product lines carry the business: geophone strings and harnesses at 66.29% of FY26 revenue from operations, and seismic cables at 20.39%. Revenue is concentrated in a small number of buyers — the top ten customers were 72.58% of FY26 revenue from operations and the single largest customer 21.79%. Manufacturing is backward-integrated, with in-house extrusion and cable lines and 16 injection moulding machines for components, although 73.65% of raw material purchased in FY26 was imported, so the company sits long on foreign currency on the sales side and short on the input side. A wholly owned Dutch subsidiary, HGS Products B.V., set up in 2015, provides global sales support. The company carries effectively no debt: long-term borrowings were nil at every balance sheet date presented, and short-term borrowings were Rs 0.01 lakh at 31-03-2025 and nil at all other dates.