Happy Forgings Limited , a leading manufacturer of high-precision, safety-critical, heavy-forged, and machined components, has announced robust financial results for the second quarter and first half of fiscal year 2026, while also addressing recent regulatory compliance matters.

Financial Highlights

For Q2 FY26, Happy Forgings reported:

• Revenue from operations of ₹377.00 crore, up 4.5% year-over-year (YoY)
• EBITDA of ₹116.00 crore, a 9.9% increase YoY, with margins expanding to 30.7%
• Net profit of ₹73.00 crore, up 10.2% YoY on an adjusted basis
• Highest-ever quarterly gross margin at ~60%

For H1 FY26, the company achieved:

• Revenue from operations of ₹731.00 crore, a 4.1% increase YoY
• EBITDA of ₹217.00 crore, up 6.9% YoY, with margins at 29.7%
• Net profit of ₹139.00 crore, a 6.7% increase YoY on an adjusted basis

Operational Performance

The company reported a 5.2% YoY increase in finished goods volume for Q2 FY26, reaching 15,028 MT. For H1 FY26, the volume growth was 4.5% YoY, totaling 29,485 MT. Realization per kg remained relatively stable at ₹251.00 for Q2 and ₹248.00 for H1 FY26.

Segment Performance

Happy Forgings maintained a diverse revenue mix across various sectors:

The company's domestic sales contributed 84% of total revenue in H1 FY26, with direct exports accounting for the remaining 16%.

Regulatory Compliance

Happy Forgings disclosed that it received notices from BSE and NSE regarding non-compliance with Regulation 19(1) and 19(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The non-compliance pertained to the composition of the Nomination and Remuneration Committee for the quarter ended June 2025.

In response, the company:

1. Acknowledged the non-compliance was not willful
2. Paid the imposed fine of ₹14,160.00 (including 18% GST) to both exchanges
3. Confirmed that necessary steps have been taken to strengthen processes and avoid future inadvertent delays

Management Commentary

Ashish Garg, Managing Director of Happy Forgings Limited, stated, "We are delighted to report a robust performance for Q2 and H1 FY26, 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."

He added, "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 H1 FY26, reflecting improved working capital and strong operating cash flows."

Future Outlook

The company is progressing with its ₹650.00 crore capex program, focusing on expanding capacity, advancing forging and precision machining technologies, and deepening partnerships with leading domestic and global OEMs. Happy Forgings aims to enhance its capabilities and position itself for sustainable, broad-based growth in the coming years.

As the company continues to navigate global trade realignments and tariff-related headwinds, it remains committed to strengthening profitability and financial resilience while pursuing long-term growth opportunities.

Happy Forgings Limited , a leading manufacturer of high-precision, safety-critical, heavy-forged, and machined components, has announced robust financial results for the second quarter of fiscal year 2026, showcasing significant improvements in profitability and operational efficiency.

Financial Highlights

For Q2 FY26, Happy Forgings reported:

• Total income of ₹383.36 crore, up from ₹336.41 crore in the previous quarter
• Net profit of ₹73.36 crore, compared to ₹27.14 crore in the prior quarter
• Revenue from operations of ₹377.00 crore, up 4.5% year-over-year (YoY)
• EBITDA of ₹116.00 crore, a 9.9% increase YoY
• Highest-ever quarterly gross margin at 60.3%, expanding by 150 basis points YoY
• EBITDA margin improved to 30.7%, up from 29.2% in Q2 FY25

For the half-year period:

• Total income reached ₹719.77 crore compared to ₹647.28 crore in the previous year
• Net profit increased to ₹100.50 crore from ₹36.76 crore

Operational Performance

The company's strong financial performance was underpinned by:

• A 5.2% YoY increase in finished goods volume, reaching 15,028 MT
• Stable realizations at ₹251.00/kg, despite softening steel prices
• Healthy demand across domestic Commercial Vehicle, Farm Equipment, Industrial, and Passenger Vehicle segments

Management Commentary

Mr. Ashish Garg, Managing Director of Happy Forgings Limited, stated, "We are delighted to report a robust performance for Q2 FY26, 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."

Balance Sheet Strength

The company's financial position remains strong:

• Nearly 100% operating cash flow conversion in H1 FY26
• Liquidity of approximately ₹315.00 crore as of September 30, 2025
• Ongoing ₹650.00 crore capex program progressing on schedule

Future Outlook

Happy Forgings is focusing on:

• Expanding capacity and advancing forging and precision machining technologies
• Deepening partnerships with leading domestic and global OEMs
• Diversifying into high-value industrial applications

The company's strategic investments and focus on technological advancements are expected to enhance its capabilities and position it for sustainable, broad-based growth in the coming years.

Dividend and IPO Proceeds

• Happy Forgings declared and paid a final dividend of ₹3.00 per share for FY 2024-25, totaling ₹25.90 crore (net of tax).
• The company utilized ₹94.66 crore from IPO proceeds for equipment and machinery purchases.
• ₹76.47 crore of IPO proceeds remain unutilized and are temporarily invested in fixed deposits.

Happy Forgings Limited continues to demonstrate resilience and growth in a challenging market environment, leveraging its strong manufacturing capabilities and strategic focus on high-value segments to deliver value to its stakeholders.