Harsha Engineers International Limited, a leading player in precision engineering and manufacturing, has announced a significant development that reflects its growing business momentum. On April 26, 2025, the company disclosed to the stock exchanges that it has entered into a Letter of Intent (LOI) with a leading multinational group company engaged in the manufacturing of AC compressors.

The LOI marks a strategic supply agreement where Harsha Engineers will manufacture and supply stamping products to this multinational entity. As per the company’s filing, the agreement will be effective from April 26, 2025, and is slated to cover an initial period of five years. The estimated value of the deal stands at approximately ₹18 crores per annum, reinforcing Harsha Engineers’ strong position in the precision components industry.

This LOI is particularly notable because the entity awarding the contract is domestic, despite being a multinational player. The nature of the order involves the recurring supply of specialized stamping products, a core capability area for Harsha Engineers. The agreement's structure and recurring nature provide the company with enhanced revenue visibility over the medium term.

According to the disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular dated November 11, 2024, Harsha Engineers emphasized that no promoters or group companies have any interest in the awarding entity. Additionally, the transaction does not constitute a related party transaction.

This move by Harsha Engineers demonstrates their strategic focus on expanding their domestic partnerships while tapping into the supply chains of large multinational corporations. The domestic sourcing of components like stamping products is increasingly becoming a priority for many multinational manufacturing companies operating in India, aligning well with government initiatives like 'Make in India' and self-reliant manufacturing ecosystems.

The official announcement, signed by Kiran Mohanty, Company Secretary and Chief Compliance Officer of Harsha Engineers International Limited, highlights the following key points:

• The initial five-year term of the agreement provides stability and a solid foundation for scaling up supply operations if required.

• The estimated contract size of ₹18 crores annually could translate to a total value of approximately ₹90 crores over the five-year period.

• This deal underscores the company’s competitive manufacturing capabilities and its ability to meet stringent quality and supply requirements of global leaders.

Looking ahead, the successful execution of this LOI will not only enhance Harsha Engineers' top-line growth but will also solidify its reputation as a preferred supplier in precision engineering domains like stamping for critical applications such as AC compressors.

It’s important to note that the actual contract based on this LOI is expected to be formalized shortly. The company will likely provide further updates regarding specific terms, volumes, and operational roll-outs once the definitive agreement is signed.

About Harsha Engineers International Limited:
Harsha Engineers is a diversified engineering company providing comprehensive and innovative solutions across multiple sectors, including automotive, industrial, renewables, and infrastructure. Known for its robust quality standards, innovative engineering solutions, and customer-centric approach, the company continues to expand its footprint across domestic and international markets.

With this development, Harsha Engineers' outlook for FY2025-26 looks even more promising, and investors are keenly watching how this opportunity will translate into stronger financial performance in the upcoming quarters.

In summary, this LOI is a strategic milestone for Harsha Engineers, showcasing its ability to forge strong partnerships, secure sizable contracts, and strengthen its leadership in the specialized engineering manufacturing segment.

Investors and stakeholders can expect detailed updates once the definitive agreement is finalized and operational execution begins.

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