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Happy Forgings Results: Latest Quarterly Results & Analysis

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Happy Forgings Ltd. 09 Feb 2026 16:21 PM
Result PDF

Q3FY26 Quarterly Result Announced for Happy Forgings Ltd.

Castings & Forgings company Happy Forgings announced Q3FY26 results

  • Revenue from Operations: Rs 391 crore, up 10.4% YoY, driven by healthy domestic demand and 13.8% YoY finished goods volume growth in Q3.
  • Gross Profit: Rs 230 crore, up 12.2% YoY, with margins expanding by 91 bps.
  • EBITDA: Rs 120 crore, up 18.7% YoY, with margins at 30.8%, representing an expansion of 213 bps.
  • PAT: Rs 79 crore, up 22.3% YoY, with margins at 20.2%, reflecting a 196 bps expansion.

Ashish Garg, Managing Director, Happy Forgings, said: “We are pleased to have delivered a strong performance in Q3FY26, reflected in continued scale-up in revenues and an improving profitability trend. The quarter was marked by peak quarterly EBITDA and PAT margins, underscoring the operating leverage and execution strength of our business model. We expect this momentum to carry into Q4FY26 and extend into FY27.

Volumes grew by 13.8% YoY during Q3FY26, while the revenue from operations stood at Rs391 crore, registering a 10.4% YoY growth. This growth was driven by healthy demand across key domestic endmarkets, including Commercial Vehicles, Farm Equipment, and Passenger Vehicles, which more than offset the relatively weaker conditions in export markets.

During Q3FY26, profitability remained strong, with Gross Margin at 58.9% and EBITDA and PAT Margins at peak levels of 30.8%, and 20.2% respectively, resulting in a 22.3% YoY growth in PAT. For the 9MFY26 period, margins expanded meaningfully, with Gross Margin and EBITDA Margin improving by ~125 bps, while PAT Margin improved by ~100 bps on an adjusted basis, reflecting sustained improvements in operating efficiency

Our capacity expansion initiatives continue to progress as planned. During Q3FY26, we increased machining capacity to 68,000 MT, in anticipation of an uptick in volumes. We are commissioning the 10,000-ton forging presses in the current quarter and plan to add 4,000-ton press in H1FY27, which will further augment forging capabilities and support future growth. Additionally, we have signed a long-term lease for 80 acres of land to set up a captive solar power plant, supporting our ESG objectives while also improving long-term cost efficiency

Looking ahead, we expect domestic demand momentum to remain positive. With the recent developments related to tariffs and trade agreements, we expect tariff-related headwinds to moderate, which should support better performance in export markets. We currently have visibility of incremental business of ~Rs800 crore at peak annual rate, providing confidence in sustaining our growth momentum. A significant portion of this incremental business is aligned with our core diversification focus areas like Industrials, Passenger Vehicles, and Exports, which are expected to scale up within the overall revenue mix and further strengthen diversification of our business.

Our balance sheet remains very strong, supported by robust operating cash flow generation of ~Rs 315 crore during 9MFY26, driven by efficient working capital management. This has resulted in enhanced liquidity, with cash and financial investments now exceeding Rs 400 crore, providing us with significant financial flexibility to support growth, capex, and long-term value creation.”

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Castings & Forgings company Happy Forgings announced Q2FY26 results

  • Revenue from Operations: Rs 377 crore, up 4.5% YoY, driven by 5.2% YoY volume growth in Q2, stable realisations and healthy domestic demand.
  • Gross Profit: Rs 228 crore, up 7.1% YoY, with a margin expansion of ~150 bps.
  • EBITDA: Rs 116 crore, up 9.9% YoY, with margins at 30.7%.
  • PAT: Rs 73 crore, up 10.2% YoY on adjusted basis, with margins at 19.5%.

Ashish Garg, Managing Director, Happy Forgings, said: “We are delighted to report a robust performance for Q2 and H1FY26, highlighted by the highest-ever quarterly gross margin (~60%) and EBITDA margin (~31%). This strong performance underscores our ability to successfully navigate softening steel prices and uneven growth across industry segments and geographies, while continuing to deliver industry-leading profitability, strong cash generation, and a healthy balance sheet that supports sustained investments for long term value creation.

From a growth perspective, volumes rose 5.2% YoY in Q2, and revenue from operations increased 4.5% YoY, driven by healthy demand across domestic Commercial Vehicle, Farm Equipment, Industrial, and Passenger Vehicle segments. Export demand remained muted due to weaker end-market conditions and customer de-stocking amid evolving tariff uncertainties. Gross profit, EBITDA, and adjusted PAT outpaced revenue growth, rising by approximately 7%, 10%, and 10% YoY, respectively, supported by gross and EBITDA margin expansion of around 150 bps each. For H1FY26, the trajectory of volume and revenue growth remained similar to Q2, with margins continuing to strengthen year on year.

Our balance sheet continues to rank among the strongest in the industry. Efficient debtor and inventory management resulted in nearly 100% operating cash flow conversion in H1FY26, reflecting improved working capital and strong operating cash flows. As of September 30, 2025, liquidity stood at around Rs 315 crore, providing ample financial flexibility to pursue long-term growth opportunities. Meanwhile, our Rs 650 crore capex program is progressing on schedule, laying a solid foundation for the next phase of expansion.

Amid global trade realignments and tariff-related headwinds, we continue to strengthen profitability and financial resilience. The ongoing capex cycle is focused on expanding capacity, advancing forging and precision machining technologies, and deepening partnerships with leading domestic and global OEMs. Supported by new business wins and diversification into high-value industrial applications, these investments will further enhance our capabilities and position us for sustainable, broad-based growth in the years ahead.”

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Castings & Forgings company Happy Forgings announced Q1FY26 results

  • Revenue from Operations: Rs 354 crore, up 3.6% YoY, driven by 3.8% volume growth, stable realisations and robust mix of higher-quality, value-added products across core segments.
  • Gross Profit: Rs 205 crore, up 6.3% YoY, with a margin expansion of 144 bps.
  • EBITDA: Rs 101 crore, up 3.6% YoY, with margins at 28.6%.
  • PAT: Rs 66 crore, up 3.0% YoY, with margins at 18.6%.

Ashish Garg, Managing Director, Happy Forgings, said: “Despite persistent headwinds in several end-user industries and a deflationary steel price environment, we delivered a resilient performance in Q1FY26. Finished goods volume grew by ~4% YoY, and revenue from operations recorded a similar growth, supported by stable realisations of Rs 245/kg despite lower input steel prices.

Domestic demand remained healthy, particularly in the Passenger Vehicles, Farm Equipment, and Industrial segments, driving ~7% year-on-year growth in our domestic business. In contrast, exports were impacted by sluggish demand in the Commercial Vehicles, Farm Equipment, and Off-Highway segments, as well as uncertainty around tariffs in certain geographies. As a result, offtake in some of our older businesses has declined, although there has been no loss in share of business. However, this impact has been offset by new business wins and our entry into new segments. The Passenger Vehicles and Industrials segments continue to scale up as part of our broader portfolio diversification strategy.

Uncertainty in export markets persists, driven by evolving tariff dynamics. While our direct exposure to the US remains limited, the European market could experience disruptions from the spillover effects of recent tariff actions. So far, we have not seen any adverse developments in our prospective business pipeline and, in fact, anticipate securing some new orders from the European region. While tariff-related challenges may moderate revenue growth trends in the broader industry, we are confident of sustaining our margins. We continue to monitor developments closely and await further clarity on the tariff environment.

Amid these challenges, where the industry is facing pressure on both growth and margins, we have managed to maintain strong profitability. Gross Profit grew by 6% YoY, outpacing revenue growth, and led to an improvement in Gross margin by ~140 basis points YoY to 57.9%, while EBITDA margin remained robust at 28.6%, comparable to FY25 levels. Our balance sheet remains strong, with liquidity of over Rs 350 crore at quarter-end, positioning us well to navigate volatility and invest in future growth. Our capex plans are progressing as scheduled, aligned with our long-term vision of building differentiated capabilities in niche, high-value product segments.”

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Castings & Forgings company Happy Forgings announced Q4FY25 & FY25 results

Q4FY25 Financial Highlights:

  • Revenue from Operations: Rs 352 crore, up 2.5% YoY, backed by a strategic focus on higher quality and value-added product mix across core segments.
  • Gross Profit: Rs 206 crore, up 6.4% YoY, with a 215 bps margin expansion.
  • EBITDA: Rs 102 crore, up 5.3% YoY, with a 76 bps margin improvement.
  • PAT: Rs 68 crore, up 2.8% YoY, with an 19.2% margin.

FY25 Financial Highlights:

  • Revenue from Operations: Rs 1,409 crore, up 3.7% YoY.
  • Gross Profit: Rs 817 crore, up 7.3% YoY, with a 193 bps margin expansion.
  • EBITDA: Rs 407 crore, up 4.9% YoY, with margins improving to 28.9%.
  • PAT: Rs 267 crore, up 10.1% YoY.

Ashish Garg, Managing Director, Happy Forgings, said: “I am pleased to share the key performance highlights for FY25 and Q4FY25, which reflect our resilience driven by a strategic focus on business diversification, expansion into new verticals, and the pursuit of higher value-add business that contributed to overall growth.

In FY25, we delivered our best-ever full-year profitability, with a Gross Profit margin of 58.0%, an EBITDA margin of 28.9%, and an adjusted PAT margin of 18.6%, reflecting consistent profitability improvement over the years. Revenues grew 4.7% yoy on an adjusted basis, despite a ~4% impact from the decline in steel prices. Adjusted EBITDA and PAT grew by 7.4% and 11.2%, respectively. Realisation for the year stood at Rs. 248/kg, 1.5 times higher than 2021 levels. During the year, we announced new orders worth over Rs. 1,600 crore in the PV and Industrial segments, to be executed over the next 5- 8 years, with annual peak sales potential from these orders exceeding Rs. 250 crore.

During Q4FY25, we recorded yoy growth of 2.5%, 6.4%, and 5.3% in Revenues, Gross Profit, and EBITDA, respectively, supported by strong and improved Gross Profit and EBITDA margins of 58.7% and 29.1%, respectively. We witnessed encouraging yoy growth in the Industrials, Off-highway, and Farm Equipment segments in Q4FY25.

This strong performance was achieved despite significant headwinds, including a double-digit decline in international CV, Farm Equipment, and Off-highway segments, a domestic slowdown in the MHCV segment, and falling steel prices, demonstrating the strength and resilience of our business model.

Our balance sheet remains robust, with liquidity of Rs. 356 crore. with one of the lowest DE ratio at 0.1x, supported by strong operating cash flow generation of Rs. ~290 crore. in FY25. This positions us well to support our capex plan over the next three years that can be funded primarily through internal accruals. Reflecting our strong financial position, the Board has recommended a dividend of Rs. 3 per share for FY25, implying a payout ratio of ~11%.

We remain committed to our strategic priorities and growth, investing in capabilities to serve diversified segments while pursuing value-accretive opportunities to reinforce our positive trajectory.”

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Industrial Products company Happy Forgings announced Q3FY25 results

  • Revenue from Operations: Rs 354 crore, up 3.6% YoY, driven by higher realizations and strong growth in Industrials and Passenger Vehicles business segment.
  • Gross Profit: Rs 205 crore, up 8.3% YoY, with a 249 bps margin expansion.
  • EBITDA: Rs 101 crore, up 6.6% YoY, with an 80 bps margin improvement.
  • PAT: Rs 65 crore, up 11.5% YoY, with an 18.2% margin.

Ashish Garg, Managing Director, Happy Forgings, said: “We closed Q3FY25 and 9MFY25 on a positive note, navigating headwinds in underlying industry segments and despite a decline in raw material prices. Driven by a ~4% improvement in realizations and a favourable product mix shift, we achieved 3.6% revenue growth in Q3FY25, with Gross Profit, EBITDA, and PAT increasing by 8.3%, 6.6%, and 11.5% YoY, respectively. Increased contribution from Industrials and Passenger Vehicles segment, helped us drive sustainable growth and profitability during this period. As part of our growth and diversification strategy, we have announced a Rs 650 crore investment to establish advanced forging capabilities in the heavyweight components segment which will drive long-term growth in Industrials and Exports segment while delivering strong returns.”

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Industrial Products company Happy Forgings announced Q2FY25 results

  • Revenue: Rs 361 crore compared to Rs 343 crore during Q2FY24, change 5.3%.
  • EBIDTA: Rs 105 crore compared to Rs 94 crore during Q2FY24, change 12.4%.
  • PAT: Rs 71 crore compared to Rs 55 crore during Q2FY24, change 29.1%

Ashish Garg, Managing Director said: “I am pleased to share our financial and operational performance for Q2 & H1FY25, where we achieved steady, broad-based improvements across revenue, gross profit, EBITDA and PAT.

For Q2FY25, on an adjusted basis, sales grew by 6.1% YoY, with EBITDA by 14.8% and PAT increased by 23.8%. Realizations rose 3.6% to Rs. 253/Kg in Q2, driven by enhanced value addition in our product mix, despite a decline in steel prices. This reflects HFL’s consistent improvement in the product mix that comprises of highquality, niche, complex and critical machined components, which boosts our realisations and margins. These gains are reflected in our Gross Margin and EBITDA Margin for Q2FY25 which stood at 58.8% and 29.2% respectively, showing YoY growth. This positive yoy improvement is also reflected in absolute headline figures and margins for H1FY25 on an adjusted basis.

In the underlying industry segments, the Commercial Vehicle, Off-Highway, and Industrial sectors are experiencing slowdown in both domestic and export markets, while Farm Equipment is seeing a decline in export markets. Despite these challenges, we have managed to outperform industry growth across most of these segments.

We have successfully expanded our market share through new business while maintaining our share of business in existing accounts. Our focus remains on building a strong pipeline of new opportunities and investing in ramping up our capacities and utilization levels. As market conditions improve, we are confident that we are wellpositioned for accelerated growth.

As we navigate dynamic market conditions, our dedicated approach to maintaining a strong balance sheet and commitment to high-quality, value-accretive growth will support us in delivering industry-leading profit margins and strong return ratios.”

Result PDF

Industrial Products company Happy Forgings announced Q1FY25 results:

  • Revenue from Operations of Rs 341 crore
  • EBITDA of Rs 98 crore
  • EBITDA % of 28.6%
  • PAT of Rs 64 crore
  • Contribution of machined products increased from 82% in Q1FY24 to 87% in Q1FY25
  • Passenger Vehicles stood at 3% in Q1FY25 as compared to 1% in the entire FY24 on the back of new order wins
  • Exports share stood at 18% as compared to 20% in FY24

Commenting on the Q1FY25 performance, Ashish Garg, Managing Director, Happy Forgings, said: “I am pleased to present our performance for Q1FY25, marked by Revenue of Rs 341 crore, EBITDA of Rs 98 crore and PAT of Rs 64 crore.

We achieved a YoY growth of ~3% in finished goods volume and ~4% increase in realisations (despite a reduction in raw material costs) leading to a ~7% growth in revenues. Our realisation and profitability levels in Q1FY25 remained broadly consistent with those reported for FY24. Realisation stood at Rs 245/kg, gross margin at 56.5% and EBITDA margin at 28.6% in Q1FY25. Machining mix remains robust at 87%, supporting our margins. We successfully entered the Passenger Vehicles segment in FY24, and this segment contributed ~3.5% to our topline this quarter.

During the quarter, the underlying industry segments faced challenges, including a temporary slowdown in infrastructure-related activities due to the general elections and a slowdown in European farm equipment and power generation sectors However, our diversification strategy across different segments enabled us to perform well overall.

Our planned capacity expansions are on track. We added 1,500MT of machining capacity during the quarter and will add an additional 4,500MT in Q2FY25, which will lead to a total increase of 6,000MT in machining capacity in H1FY25. Furthermore, 5,000MT of machining capacity is planned to be added in Q3FY25. We have the necessary product approvals, and we expect a simultaneous ramp-up in production enabling us to reap the benefits of increased capacity. This provides us with visibility for stronger performance throughout the remainder of the year.”

Result PDF

Industrial Products company Happy Forgings announced Q4FY24 & FY24 results:

  • Happy Forgings Limited has reported its audited financial results showcasing commendable growth, with the Board recommending a final dividend of Rs 4 per equity share for the financial year ending March 31, 2024.
  • Q4FY24 revenue from operations rose by 14% YoY to Rs 343 crore.
  • The company has achieved a 16% YoY growth in revenues in FY24. Operational excellence is evident through the enhanced EBITDA and PAT percentages of 28.5% and 17.9%, respectively.
  • The return on equity (ROE) for FY24, after certain adjustments, stood resilient at 20.6%, while the return on capital employed (ROCE) after similar adjustments was robust at 26.9%.
  • Happy Forgings has shown an impressive increase in the sale of machined products in FY24, which are higher in value, from 79% to 85%. Additionally, the industrial segment experienced significant growth, contributing 12% to the revenue, up from the previous year's 4%.

Commenting on the results, Ashish Garg, Managing Director said, “We closed FY24 on a positive note registering growth, margin improvement and further diversification of our revenue streams despite slowdown in key industry segments and the Red Sea crisis. We achieved 16% growth in revenues for FY24 driven by exports and industrials business segment.

Margins and profits grew substantially on YoY basis in FY24 as share of machined product sales increased from 79% to 85% of sales and together with favorable change in business mix, helped us improve our gross margins by ~3% and EBITDA margin by ~1.5%. Gross Margin stood at 56.1% and EBITDA improved to 28.5% despite increase in ESOP related costs and export freight costs. These margin improvements helped us achieve 22% growth in EBITDA and 27% growth in PAT on a YoY basis in FY24.

Revenue segment diversification continued as we marked an entry into the Passenger Vehicles segment in both domestic and export market in FY24. With recent order wins in this segment, we demonstrated our ability to expand our wallet share from existing customers, giving us good visibility to achieve the targeted contribution to sales from this segment in the next 2 years. We also witnessed a significant increase in the share of industrial segment from 4% to 12% and exports from 13% to 20% of revenues in FY24.

We continue to expand capacities and planned additions in forging and machining capacities are on track. Our balance sheet strength provides us the flexibility to capitalize on growth opportunities and further improve our returns profile as we deploy capital. The Board has recommended a dividend of Rs. 4 per share for FY24 which effectively means a payout of ~16%.

Looking ahead, we are confident in our ability to sustain this positive momentum and drive further growth and profitability and hope that improvement in underlying business segments will trigger additional growth.”

Result PDF

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