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.

Happy Forgings Limited, a key player in the forging industry, has announced its financial results for the quarter ended June 30, 2025, showcasing resilience in a challenging market environment.

Financial Highlights

The company reported a revenue from operations of Rs. 354.00 crores, marking a 3.6% year-over-year increase. Despite market headwinds, Happy Forgings maintained its profitability metrics:

Segment Performance

• Commercial Vehicles: This segment, contributing 39% to the company's revenue, experienced a mid-single digit decline.
• Farm Equipment: Accounting for 32% of revenue, this segment outperformed the overall growth rate of the company.

Strategic Investments and Expansion

Happy Forgings has demonstrated a strong commitment to growth and innovation:

1. Invested Rs. 110.00 crores in new machining lines.
2. Announced a significant CAPEX plan of Rs. 650.00 crores for heavyweight precision components.

New Order Wins

The company secured several notable orders:

• Rs. 250.00 crores from a European farm equipment OEM
• Rs. 300.00 crores for wind energy components
• Rs. 180.00 crores annually for data center applications

Management Outlook

Happy Forgings' management has expressed optimism about the company's future:

• Projected medium-term growth of 15-18%
• Anticipates high single-digit growth in domestic commercial vehicle and farm equipment segments

Conclusion

Happy Forgings Limited has demonstrated its ability to navigate challenging market conditions, maintaining stable margins while securing strategic orders across diverse sectors. The company's investment in new machining lines and ambitious CAPEX plans signal a strong focus on future growth and technological advancement. As the commercial vehicles and farm equipment segments show signs of recovery, Happy Forgings appears well-positioned to capitalize on emerging opportunities in the precision components market.