Happy Forgings Limited has announced its audited consolidated financial results for the quarter and year ended March 31, 2026, reporting robust growth in revenue and profitability. The company concluded the fiscal year with its highest-ever annual profitability, supported by strong operational performance and margin expansion.

Q4 FY26 Performance Highlights

During the quarter, the company registered a volume growth of 20.6% year-on-year, resulting in a revenue increase of 20.4% to ₹424 crore. EBITDA grew by 30.4% to ₹133 crore, while PAT increased by 23.6% to ₹84 crore. The management noted that PAT growth lagged EBITDA growth primarily due to adverse foreign exchange movements.

The quarter witnessed healthy margin expansion on both year-on-year and quarter-on-quarter bases. Gross margin, EBITDA margin, and PAT margin improved by 70 basis points, 240 basis points, and 50 basis points year-on-year, respectively. For Q4 FY26, the margins stood at 59.4%, 31.5%, and 19.7%.

FY26 Annual Results

FY26 marked a milestone year for Happy Forgings, with revenue for the year standing at ₹1,546 crore, a 9.8% increase from the previous year. The EBITDA margin expanded by 157 basis points to 30.4%, while the PAT margin improved by 52 basis points year-on-year to 19.5%. The company also reduced working capital intensity, reflecting continued improvement in operational efficiency and healthy cash flow conversion.

The company witnessed healthy traction across commercial vehicles, passenger vehicles, farm equipment, and industrial segments. This was supported by improving demand conditions and increasing value addition. Backed by strong customer engagement, the company is building a robust pipeline of incremental business across existing and new customers, including encouraging business wins in the exports segment.

Strategic Transformation and Outlook

Over the last several years, Happy Forgings has transformed from a conventional forging company into a high-precision engineering company. Forged and machined components now contribute 89% of the revenue mix. Since FY21, this strategic transition has enabled a compounded growth of 21% in revenue and 28% in net profit, while simultaneously doubling manufacturing capacities.

The expansion has been largely funded through strong internal cash generation with limited reliance on external capital. This has enabled the company to maintain a fortress balance sheet, robust return ratios, and liquidity of approximately ₹430 crore. While recent geopolitical developments have led to some increase in raw material and manufacturing costs, the company expects the overall margin impact to remain manageable, supported by existing raw material pass-through arrangements and ongoing customer discussions.

Happy Forgings has announced that its Board of Directors has recommended a final dividend of Rs. 4 per equity share for the financial year ended March 31, 2026. The company has fixed July 20, 2026, as the record date to determine shareholder eligibility for this dividend, which is subject to approval at the upcoming Annual General Meeting (AGM).

The 47th AGM is scheduled to be held on July 27, 2026, at 11:30 A.M. IST via Video Conferencing. Shareholders whose names appear as beneficial owners or members in the company's records at the end of business hours on July 20, 2026, will be entitled to receive the dividend. The payment will be made within 30 days from the date of the AGM.

AGM and Voting Details

The company has established specific timelines for the AGM proceedings. The remote e-voting period will commence on July 24, 2026, at 9:00 A.M. IST and conclude on July 26, 2026, at 5:00 P.M. IST. The book closure period for the AGM is set from July 21, 2026, to July 27, 2026, inclusive.

Key Corporate Actions

The Annual Report for the financial year 2025-26 and the AGM Notice will be sent electronically to members and made available on the company's website.