Results - Analysis
Happy Forgings As on : 05-Aug-26  10:48

On consolidated basis

Quarter ended June 2026 compared with Quarter ended June 2025.

Net sales (including other operating income) of Happy Forgings has increased 27.03% to Rs 449.42 crore.  Operating profit margin has jumped from 28.59% to 31.34%, leading to 39.26% rise in operating profit to Rs 140.86 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 41.56% to 40.78%.   Employee cost decreased from 9.15% to 8.40%.   Other expenses fell from 20.45% to 20.23%.   

Other income rose 7.05% to Rs 11.08 crore.  PBIDT rose 36.27% to Rs 151.94 crore.  Provision for interest rose 33.04% to Rs 3.06 crore.  

PBDT rose 36.34% to Rs 148.88 crore.  Provision for depreciation rose 27.69% to Rs 26.24 crore.  

Profit before tax grew 38.34% to Rs 122.64 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 31.18 crore, compared to Rs 22.96 crore.  Effective tax rate was 25.42% compared to 25.90%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 39.23% to Rs 91.46 crore.  

Promoters' stake was 78.46% as of 30 June 2026 ,compared to 78.54% as of 30 June 2025 .  

Full year results analysis.

Net sales (including other operating income) of Happy Forgings has increased 9.76% to Rs 1546.34 crore.  Operating profit margin has jumped from 28.87% to 30.44%, leading to 15.73% rise in operating profit to Rs 470.68 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 42.45% to 39.88%.   Employee cost increased from 8.79% to 8.98%.   Other expenses rose from 20.12% to 20.20%.   

Other income fell 17.73% to Rs 30.81 crore.  PBIDT rose 12.91% to Rs 501.49 crore.  Provision for interest rose 39.04% to Rs 10.47 crore.  Loan funds rose to Rs 329.62 crore as of 31 March 2026 from Rs 227.99 crore as of 31 March 2025.  Inventories rose to Rs 232.76 crore as of 31 March 2026 from Rs 232.42 crore as of 31 March 2025.  Sundry debtors were lower at Rs 394.78 crore as of 31 March 2026 compared to Rs 426.54 crore as of 31 March 2025.  Cash and bank balance declined from Rs 136.56 crore as of 31 March 2025 to Rs 52.94 crore as of 31 March 2026.  Investments rose to Rs 237.03 crore as of 31 March 2026 from Rs 79.58 crore as of 31 March 2025 .  

PBDT rose 12.46% to Rs 491.02 crore.  Provision for depreciation rose 15.55% to Rs 89.04 crore.  Fixed assets increased to Rs 1,326.80 crore as of 31 March 2026 from Rs 1,015.98 crore as of 31 March 2025.  Intangible assets increased from Rs 14.53 crore to Rs 19.10 crore.  

Profit before tax grew 11.80% to Rs 401.98 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 100.35 crore, compared to Rs 92.12 crore.  Effective tax rate was 24.96% compared to 25.62%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 12.78% to Rs 301.63 crore.  

Equity capital increased from Rs 18.85 crore as of 31 March 2025 to Rs 18.87 crore as of 31 March 2026.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 78.48% as of 31 March 2026 ,compared to 78.57% as of 31 March 2025 .  

Cash flow from operating activities increased to Rs 444.67 crore for year ended March 2026 from Rs 292.33 crore for year ended March 2025.  Cash flow used in acquiring fixed assets during the year ended March 2026 stood at Rs 461.26 crore, compared to Rs 280.85 crore during the year ended March 2025.  

Other highlights

The company allotted 28,273 equity shares to employees pursuant to the exercise of stock options under the Employee Stock Option Scheme. Consequently, the paid-up share capital increased from Rs 18.87 crore to Rs 18.88 crore.

In Q1 FY27, Finished Goods Volume increased to 17,793 MT, up 23.1% from 14,457 in Q1 FY26.

Realisation grew by 3.2% to Rs 253/kg in Q1 FY27, reflecting continued progress in product mix and value addition.

Machined products contribution increased to 90% of revenues in Q1 FY27 from 88% in Q1 FY26.

In Q1 FY27, Commercial Vehicles contributed 33% to revenue, Passenger Vehicles 8%, Farm Equipment 32%, Industrials 16%, and Off-Highway Vehicles 11%.

EBITDA/kg increased 13.1% YoY to Rs 79.

Management Comments :
Mr. Ashish Garg, Managing Director, Happy Forgings, said: 'We have commenced FY27 on a strong note, with quarterly revenue reaching a record high of nearly Rs.450 Crs., up 27.0% YoY and 6.0% sequentially. Growth was driven by a healthy 23.1% YoY increase in finished goods sales volumes, while average realisations improved by 3.2% YoY, reflecting continued progress in product mix and value addition. This translated into strong profitability, with Gross Profit, EBITDA and PAT growing by 33.1%, 39.3% and 39.2% YoY, respectively. Growth during the quarter was broad-based across all business segments, reflecting healthy demand across both domestic and export markets. Domestic demand remained strong across the CV, PV, Farm Equipment and Off Highway segments, resulting in appx. 25% YoY growth, while strengthening demand in export markets led to export revenues increasing by over 30% YoY. The quarter marked another milestone in our profitability journey, with Gross, EBITDA and PAT margins improving YoY and maintained at record levels. EBITDA margin remained above 30% for the fourth consecutive quarter, while PAT margin exceeded 20% for the first time, reflecting the continued benefits of an improving product mix, higher value addition and operating leverage. These outcomes reinforce the structural resilience of our business model and our ability to consistently deliver profitable growth. Diversification gathered momentum during the quarter, with exports contributing 28% of revenue, while Passenger Vehicle and Industrial shares increased to 8% and 16%, respectively. Our incremental order book, largely led by exports, Passenger Vehicles and Industrials, provides visibility on additional annual revenue ramping up to appx. Rs. 950 Crs. over the next 2'3 years. Looking ahead, we remain optimistic about the growth outlook for FY27. Supported by improving industry demand and ramp-up of recently secured business, we expect production and sales volumes to strengthen progressively over the course of the year, enabling better utilisation of our ongoing investments in manufacturing capacity and advanced machining capabilities. Our strategic initiatives also continue to progress well. Installation of equipment for our ultra-heavy component manufacturing facilities is expected to be completed by the end of the financial year, positioning us for the commencement of commercial revenues from FY28 onwards. In parallel, execution of our captive solar power project remains on track and is expected to begin contributing to operating cost efficiencies from FY28. As we continue to invest in expanding our capabilities, strengthening customer relationships and enhancing operational excellence, we remain confident of sustaining profitable growth.'

Happy Forgings : Consolidated Results

Quarter ended Year ended Particulars 202606 202506 Var.(%) 202603 202503 Var.(%) Net Sales (including other operating income) 449.42 353.80 27.03 1,546.34 1,408.89 9.76 OPM (%) 31.34 28.59 275 bps 30.44 28.87 157 bps OP 140.86 101.15 39.26 470.68 406.70 15.73 Other Inc. 11.08 10.35 7.05 30.81 37.45 -17.73 PBIDT 151.94 111.50 36.27 501.49 444.15 12.91 Interest 3.06 2.30 33.04 10.47 7.53 39.04 PBDT 148.88 109.20 36.34 491.02 436.62 12.46 Depreciation 26.24 20.55 27.69 89.04 77.06 15.55 PBT 122.64 88.65 38.34 401.98 359.56 11.80 Share of Profit/(Loss) from Associates 0 0 - 0 0 - PBT before EO 122.64 88.65 38.34 401.98 359.56 11.80 EO Income 0 0 - 0 0 - PBT after EO 122.64 88.65 38.34 401.98 359.56 11.80 Taxation 31.18 22.96 35.80 100.35 92.12 8.93 PAT 91.46 65.69 39.23 301.63 267.44 12.78 Minority Interest (MI) 0 0 - 0 0 - Net profit 91.46 65.69 39.23 301.63 267.44 12.78 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 91.46 65.69 39.23 301.63 267.44 12.78 EPS (Rs)* 9.69 6.96 39.23 31.96 28.34 12.78 * EPS is on current equity of Rs 18.88 crore, Face value of Rs 2, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

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