Mehta Hitech Industries Limited IPO

The company sources a significant portion of the company's raw materials, parts and components, from overseas suppliers. Events such as restrictions on import of raw materials, or changes in tariffs and tax rates, may have an adverse effect on the company's business, results of operations, financial condition and cash flows.

Significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary raw materials could affect the company's estimated costs, expenditures and timelines which may have an adverse effect on the company's business, results of operations, financial condition and cash flows.

The company relies on limited number of suppliers for the company's material requirements which constitutes a significant part of the company's total expenses. Any increase in the prices, availability and quality of materials or loss of these suppliers could adversely affect its reputation, business, results from operations, financial conditions and cash flows.

The land and premises for all the company's Units are taken on lease by the company. Further, the company's Registered and Corporate Office is also taken on lease by the company. If the company is unable to renew existing leases or relocate operations on commercially reasonable terms, there may be an adverse effect on the company's business, financial condition, result of operations and cash flows. Further, any failure or delay in the acquisition of land or an inability to acquire land at acceptable costs or on commercially reasonable terms may adversely affect its business, cash flows, results of operations and financial condition.

The company derives a substantial portion of the company's revenue from the sales in the company's key segments such as Co2 laser equipments, fiber laser equipments, CNC routers and digital printers which contribute, 8.97%, 44.30%, 11.66% and 8.90% of the company's revenue from operations for the six month period ended September 30, 2025 and any loss of sales due to reduction in demand in these segments could adversely affect its business, financial condition, results of operations and cash flows. In addition, the company may not be able to diversify into new product lines which may adversely affect its business, revenue from operations, cash flows and financial condition.

The company is exposed to foreign currency fluctuation risks, particularly in relation to export of the company's products and import of raw materials which may adversely affect its results of operations, financial condition and cash flows.

For the six month period ended September 30, 2025 and for the Fiscal 2025, 2024 and 2023 the inventory level days were 108 days, 93 days, 92 days and 85 days respectively, failures to maintain optimal inventory levels could increase our operating costs or lead to unfulfilled customer orders, either of which could have an adverse effect on the company's business, financial condition, results of operations and prospects.

The company's manufacturing operations including its 13 Manufacturing Units are located in Kathwada GIDC and Sanand GIDC in Ahmedabad District, Gujarat. Further, the company's Proposed Unit is located at Sanand GIDC in Ahmedabad District, Gujarat, which exposes us to risks associated with geographic concentration. Any disruption at these locations could adversely affect its business operations.

The company's operations are subject to high working capital requirements. The company may not be able to obtain adequate financing or generate sufficient cash flow to meet its working capital and liquidity requirements, which would have an adverse effect on the company's business, results of operations and financial position and prospects.

The company has experienced negative cash flows from operating activities in previous Fiscals and cannot assure you that the company will not experience negative cash flows in future periods. Negative cash flows may adversely affect its financial condition, results of operations and prospects.