NSE: HINDCOMPOS · BSE: 509635
HINDUSTAN COMPOSITES LTD.
Makes friction materials including brake linings, brake pads, clutch facings and discs for the automotive, railway and industrial sectors from plants at Paithan and Bhandara in Maharashtra. This Composite Products business accounted for 84% of FY26 segment revenue. The board has approved selling the entire Friction Business Undertaking to Rane (Madras) Limited on a slump sale basis for Rs 370 crore cash, pending shareholder approval via postal ballot and expected to close by 30 September 2026. After the sale, the continuing business consists of an Investment segment at 10.6% of FY26 segment revenue and a Commodity Trading segment at 5.4%. Materials are the largest cost at 42% of revenue, followed by other operating expenses at 25.1%, employee costs at 12.5%, depreciation at 3.2% and capex at 5.9% of revenue. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Composite Products (84%), Investment (11%), Trading in Commodity (5%). Auto components manufacturer exiting its main friction business via slump sale
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 233 | 283 | 298 | 325 | 375 |
| EBITDA (ex other income) | 33 | 41 | 51 | 46 | 53 |
| margin % | 14.2 | 14.4 | 17.2 | 14.2 | 14.0 |
| Owners' profit | 0 | 0 | 0 | 0 | 0 |
| EPS, as reported (₹) | 14.63 | 18.60 | 23.30 | 23.70 | 21.06 |
| ROE % · ROCE % | 2.4 · 2.6 | 3.0 · 3.4 | 3.5 · 4.1 | 3.2 · 3.9 | 2.7 · 3.4 |
| Debt / equity (x) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash from operations | 5 | 16 | 40 | 30 | 21 |
| Capex | (7) | (7) | (36) | (21) | (22) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 77 | 82 | 89 | 87 | 89 | 95 | 105 | 20 |
| Profit before tax | 10 | 14 | 10 | 11 | 8 | 9 | 14 | 2 |
| Net profit | 9 | 11 | 6 | 7 | 5 | 7 | 12 | 9 |
| EPS (₹) | 6.29 | 7.43 | 4.11 | 5.05 | 3.58 | 4.52 | 7.92 | 5.88 |
Exhibit 3: Segment revenue, FY26
| Segment | Revenue, ₹ crore | Share % |
|---|---|---|
| Composite Products | 315 | 84.0 |
| Investment | 40 | 10.6 |
| Trading in Commodity | 20 | 5.4 |
| Total, before eliminations | 375 | 100.0 |
Exhibit 4: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| SAMVRDHNA MTHRSN INTL LTD | 1,66,707 | 38.1 | 3.82 | 14.8 | 9.4 | 8.2 | 17.1 | 9.0 |
| BOSCH LIMITED | 1,34,520 | 56.9 | 9.06 | 33.0 | 18.7 | 24.1 | 15.6 | 17.9 |
| BHARAT FORGE LTD | 84,295 | 119.4 | 8.82 | 30.4 | 11.4 | 13.2 | 21.6 | 8.8 |
| UNO MINDA LIMITED | 62,653 | 52.0 | 8.63 | 28.8 | 17.7 | 15.7 | 25.3 | 10.4 |
| SCHAEFFLER INDIA LIMITED | 57,518 | 45.9 | 9.36 | — | 10.4 | 14.1 | — | 19.4 |
| SONA BLW PRECISION FRGS L | 52,988 | 76.1 | 8.64 | 46.0 | 10.3 | 12.9 | — | 25.1 |
| TUBE INVEST OF INDIA LTD | 40,753 | 67.2 | 2.87 | 15.8 | 7.9 | 12.4 | 30.3 | 10.6 |
| ENDURANCE TECHNO. LTD. | 32,042 | 33.0 | 4.68 | 15.7 | 13.9 | 15.6 | 17.4 | 13.2 |
Exhibit 5: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 16.6 | 25.0 | 32 of 119 | 74% |
| P/B | 0.5 | 3.3 | 5 of 117 | 97% |
| ROCE | 3.4 | 12.6 | 105 of 125 | 16% |
| ROE | 2.7 | 11.7 | 99 of 117 | 16% |
| Debt / Equity | 0.0 | 0.3 | 1 of 117 | 85% |
| EBITDA margin | 12.7 | 12.2 | 56 of 118 | 53% |
| Revenue growth | (77.0) | 20.2 | 113 of 113 | 0% |
| Profit growth | 16.4 | 24.4 | 62 of 115 | 47% |
| Market cap | 536 | 1455 | 80 of 126 | 37% |
Exhibit 6: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 27 Oct 2026 · Board meeting set for September 2026 results | results | low | — | — |
| 12 Oct 2026 · Board declares special interim dividend of Rs. 21 per share | corporate actions | high | — | — |
| 12 Oct 2026 · Special Interim Dividend of Rs 21 per share declared, record date 16 Oct 2026 | corporate actions | high | — | — |
| 12 Oct 2026 · Board declared Special Interim Dividend of Rs 21 per share for FY 2026-27 | corporate actions | high | — | — |
| 12 Oct 2026 · Special Interim Dividend of 420% declared; Record date 16 October 2026 | corporate actions | high | — | — |
| 10 Oct 2026 · Quarterly dematerialisation compliance certificate filed with exchanges | compliance | minimal | — | — |
| 1 Oct 2026 · Board meeting on 12 Oct to consider Special Interim Dividend | corporate actions | medium | — | — |
| 30 Sept 2026 · Secretarial Auditor appointed for 5 years at 62nd AGM | management changes | medium | — | — |
| 30 Sept 2026 · 62nd AGM voting results: all 7 resolutions passed, Rs 2/share dividend approved | board shareholder meetings | low | — | — |
| 30 Sept 2026 · 62nd AGM results: all 7 resolutions passed, Rs.2 dividend declared | board shareholder meetings | low | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.