HVAX Technolog.

HVAX Technologies Limited, founded by two friends in 2010, has grown from a humble beginning to a thriving enterprise. Over 15 years, the company's revenue has expanded from ₹0 to ₹130 crores, with employee strength increasing from 2 to over 130. Assets have grown from ₹3.27 lakhs at inception to ₹131 crores today. The company experienced a revenue dip only once in 2013-14, falling from ₹9.5 crores to ₹6.5-7 crores, but has since shown steady growth without degrowth.

For the full financial year 2025, HVAX Technologies reported a total income of ₹131.42 crores, marking a strong 22.29% YoY growth. EBITDA stood at ₹18.97 crores, a 31.52% YoY increase, with the EBITDA margin improving by 101 basis points to 14.44%. Net profit for the year reached ₹11.04 crores, up 29.69% YoY, and the net profit margin improved by 48 basis points to 8.40%. For the second half of FY25, total income was ₹84.94 crores, with an EBITDA margin of 13.92% and a net profit margin of 8.50%.

The company primarily serves the Pharma industry, accounting for 95-98% of its revenues. However, HVAX sees immense growth potential in diversifying into other sectors such as hospitals, data centers, semiconductors, and solar. Management plans to venture into these industries slowly and steadily, with hospitals being the immediate focus for the next year. The global cleanroom industry market is estimated at $8-10 billion, growing at a CAGR of 6-7%.

The significant improvement in gross margins over the last 2-3 years is attributed to better inventory management and increased operational efficiency. These efforts have helped cut delivery and execution times, contributing to improved financial results. Management believes these margin levels are sustainable and expects them to increase further, aiming to keep the EBITDA margin at or slightly above last year's levels.

The company's capital is primarily deployed in working capital, with minimal capital expenditure. HVAX is actively evaluating like-minded companies for potential acquisitions or collaborations, with the expectation of acquiring a few companies or taking substantial stakes within the next 1-2 years. The remaining ₹11 crores from IPO proceeds will be utilized for cash flow and these strategic acquisitions. Management expects positive cash flow from operating activities starting this year.

HVAX has evolved from an HVAC contractor to a turnkey cleanroom integrator, providing complete facility setup for drug manufacturing plants. Their services encompass air quality, pressure control, air changes, humidity, and temperature control. The company plans to introduce IoT and Artificial Intelligence into its cleanroom systems in the coming year, enabling 24/7 real-time performance monitoring and predictive maintenance alerts to ensure zero downtime.

Currently operating in almost 25 countries, HVAX is expanding its reach into MENA (Middle East and North Africa) and GCC (Gulf Cooperation Council) regions, and exploring the Latin-American market. The company has a strong base in Africa, where 16-17% of its revenue originates, and is working with the Ministry of Health in African countries to target design-build hospitals, leveraging government PLI schemes. HVAX has prior experience, having successfully executed a 300-bedded hospital in Nairobi.

HVAX Technologies Limited, as a listed entity, does not manufacture in-house. Instead, it sources 20-22% of its products from a sister concern company, which is 50% owned by the founders, to ensure timely delivery of critical items. The significant increase in trade receivables and debtor days (from 86 to 199 days) is primarily due to 60-65% of the billing for FY25 occurring in the last quarter, a pattern observed historically in the company's second half performance.