MM Forgings Limited has filed its quarterly compliance certificate with stock exchanges, fulfilling regulatory requirements under SEBI depositories regulations for the quarter ended 31 March 2026.

Regulatory Compliance Filing

The Chennai-based forging company submitted the compliance certificate on 11 April 2026 to both the Bombay Stock Exchange and National Stock Exchange of India. The filing was made pursuant to Regulation 74(5) of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018.

Registrar Confirmation

Cameo Corporate Services Limited, serving as the company's Registrar and Transfer Agent, provided the underlying confirmation certificate dated 06 April 2026. The registrar confirmed that all securities received from depository participants for dematerialization during the quarter were properly processed and either accepted or rejected to the depositories.

The confirmation certificate verified several key compliance aspects:

• Securities comprised in the certificates have been listed on stock exchanges where earlier issued securities are listed
• Security certificates received for dematerialisation were mutilated and cancelled after due verification
• Depository names were substituted in the Register of Members as registered owners within the required 15-day timeframe

Corporate Information

MM Forgings Limited operates from its corporate office at SVK Towers in Chennai's Guindy Industrial Estate. The company maintains certifications to IATF 16949:2016 and ISO 9001:2015 standards, reflecting its commitment to quality management systems in automotive and general manufacturing sectors.

Stock Exchange Details

The company's securities are traded on major Indian stock exchanges with specific security codes for investor reference. The compliance filing ensures transparency in the dematerialization process and adherence to regulatory frameworks governing depositories and participants in the Indian capital markets.

MM Forgings Limited has received credit rating reaffirmation from CARE Ratings Limited for its bank facilities, maintaining stable outlook across all rated instruments. The Chennai-based auto components manufacturer announced the rating action on April 11, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

CARE Ratings reaffirmed ratings for MM Forgings' bank facilities totaling ₹1,297.22 crore across multiple categories:

The ratings reflect reductions in facility amounts compared to previous assessments, indicating the company's debt optimization efforts.

Financial Performance Analysis

MM Forgings demonstrated resilient financial performance despite challenging market conditions. The company's total operating income remained relatively stable at ₹1,525 crore in FY25 compared to ₹1,563 crore in the previous year, reflecting muted demand in the domestic commercial vehicle sector.

The PBILDT margin improved to 19.41% in FY25 from 18.73% in FY24, driven by cost rationalization and favorable product mix with better machining coverage.

Business Strengths and Market Position

MM Forgings maintains a strong market position with several key advantages:

• Established Track Record: Operating in forging business since 1974 with over 25 years of client relationships
• Diverse Geographic Presence: FY25 sales comprised 61% domestic, 16% US, 12% Europe, and 11% other countries
• Manufacturing Capacity: Combined capacity of 130,000 MT as of December 31, 2025, increased from 110,000 MT in 2024
• Product Range: Supplies closed-die hot forgings in various steel grades with part weights ranging from 0.10 kg to 120 kg

Rating Constraints and Risk Factors

CARE Ratings identified several constraining factors affecting the company's credit profile:

Capital Structure Concerns

The company's overall gearing increased to 1.33x as of March 31, 2025, from 1.18x in FY24, reflecting debt-funded capacity expansion. The multi-year capex cycle involved investments of approximately ₹850 crore over three years, with ₹610 crore funded through debt.

Industry and Client Dependencies

• High dependence on cyclical automotive industry with 76% revenue from commercial vehicle segment
• Client concentration risk with top 10 customers contributing 62% of total operating income in 9MFY26
• Exposure to raw material price volatility, with steel billets comprising 45%-50% of production costs

Recent Performance Challenges

The 9MFY26 period presented operational challenges due to elevated geopolitical tensions and tariff-related uncertainties in the US market. These factors led to moderation in US volumes during Q2 and Q3, though the impact was partially offset by improved order inflows from Europe and other regions.

Outlook and Rating Sensitivities

CARE Ratings maintained a stable outlook, expecting MM Forgings to sustain a healthy business risk profile in the medium term. The rating agency outlined specific factors that could influence future rating actions:

Positive Rating Drivers:

• Significant increase in total operating income with sustained ROCE improvement above 15%
• Overall gearing improvement below 0.80x and total debt/PBILDT below 3x

Negative Rating Drivers:

• Sharp sales volume decline resulting in capacity under-utilization
• Deterioration in overall gearing beyond 1.5x on gross debt basis
• Significant reduction in liquid investments

The company maintains adequate liquidity with ₹218 crore in liquid investments and cash as of March 31, 2025, supporting its debt servicing capabilities and operational requirements.