Happy Forgings Limited has delivered another quarter of strong financial performance, reporting its unaudited results for the third quarter of FY26 ended December 31, 2025. The auto components manufacturer continues to demonstrate robust operational efficiency and growth trajectory across key financial metrics.

Financial Performance Overview

The company's quarterly performance showcased impressive growth across revenue and profitability parameters. Revenue from operations increased substantially, while maintaining healthy profit margins throughout the reporting period.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Happy Forgings maintained its growth momentum with consolidated performance reflecting strong operational execution. The company achieved revenue from operations of ₹1,12,249.59 lacs compared to ₹1,05,692.24 lacs in the corresponding previous period. Net profit for the nine-month period reached ₹21,807.53 lacs, demonstrating consistent profitability growth.

Strategic Land Acquisition

The Board of Directors approved a significant strategic initiative involving the purchase of approximately 10.5 acres of land at P.O. Rajgarh, Village-Dugri, Ludhiana, Punjab for a consideration of approximately ₹32 crores. This acquisition aligns with the company's expansion plans and strengthens its manufacturing footprint in the region.

Earnings Per Share and Capital Structure

The company reported earnings per share of ₹8.37 on a basic basis and ₹8.36 on a diluted basis for Q3FY26. The paid-up equity share capital stood at ₹1,886.56 lacs with a face value of ₹2 per share. For the nine-month period, basic EPS was ₹23.13 and diluted EPS was ₹23.09.

Expense Management and Operational Efficiency

Total expenses for Q3FY26 were ₹29,579.56 lacs compared to ₹27,412.54 lacs in Q3FY25. The company maintained disciplined cost management while investing in growth initiatives. Employee benefits expense increased to ₹3,438.55 lacs from ₹3,284.70 lacs, reflecting the company's continued investment in human resources.

Board Meeting and Regulatory Compliance

The Board meeting held on February 09, 2026, considered and approved the unaudited financial results along with the Limited Review Report of the Statutory Auditor. The company also approved amendments to the Code of practices and procedures of fair disclosure of UPSI and addressed the Statement of deviation or variation under Regulation 32 of the SEBI(LODR) Regulations, 2015.

Happy Forgings Limited has finalized a long-term lease agreement for land acquisition to establish a solar power plant, marking a significant step in the company's renewable energy expansion. The agreement was executed with multiple landowners in Muktsar, Punjab, following the company's initial announcement regarding solar power plant development in June 2024.

Land Lease Agreement Details

The comprehensive lease arrangement covers approximately 80 acres of land situated in tehsil and district Muktsar, Punjab. The agreement establishes a long-term commitment spanning 29 years and 11 months, providing the company with substantial tenure for solar power plant operations.

Transaction Structure and Compliance

The lease agreement represents an arm's length transaction with no related party involvement. The company has confirmed that none of the landowners have any shareholding relationship with Happy Forgings Limited, nor are they connected to the promoter, promoter group, or group companies.

Key Transaction Characteristics:

• No shareholding arrangements between parties
• Independent landowners with no promoter group connections
• Standard commercial lease terms mutually agreed upon
• Full compliance with regulatory disclosure requirements

Strategic Development Initiative

This land acquisition represents the materialization of Happy Forgings Limited's solar energy project, which was initially disclosed to the exchanges on June 8, 2024. The successful execution of the lease agreement enables the company to proceed with the physical establishment of the solar power plant infrastructure.

The disclosure was made pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, ensuring full transparency with stakeholders regarding this significant corporate development. The agreement provides the necessary foundation for the company's entry into renewable energy generation, complementing its existing business operations.