MM Forgings Limited has released the complete transcript of its analyst and investor conference call held on March 5, 2026, providing comprehensive insights into the company's Q3FY26 performance and future growth strategy. The call was conducted as part of the Auto Ancillaries Virtual Investor Conference organized by Emkay Global Financial Services Limited.

Conference Call Overview

The investor conference call focused on MM Forgings' unaudited financial results for the quarter and nine-month period ended December 31, 2025. Chairman and Managing Director Vidyashankar Krishnan led the discussion alongside CFO Venkatakrishnan, addressing key operational and strategic developments.

Management Outlook and Growth Strategy

Chairman Vidyashankar Krishnan expressed optimism about the company's prospects, projecting strong recovery in Q4 and targeting 20% growth for the next fiscal year. The management highlighted that despite facing challenges from delayed customer projects and macroeconomic conditions, the company is well-positioned for significant expansion.

"We should be able to easily do 20% growth in the next coming year. We have the parts and the orders for that," stated Krishnan during the call. The company has consistently invested up to ₹1,000 crores over the last 5 years, creating a strong foundation for future growth.

Capacity Expansion and Operational Updates

MM Forgings is commissioning a 16,500-ton press with an internal target of June, though completion may extend to July-August. Additionally, a 4,000-ton press is being commissioned, taking the total capacity to 150,000 tons. The company expects to achieve 70,000 to 75,000 tons utilization in the current fiscal, with projections to cross 90,000 tons next year.

Market Recovery and Segment Performance

The management noted strong recovery in the US market, with Class 8 truck orders showing significant improvement in February. The US market, which had declined from 16-17% to 9% of total sales, is expected to return to previous levels. The company's product portfolio focuses on what management calls "ABC parts" - Axle arms/knuckles, Beams (front axle), and Crankshafts, along with Connecting rods.

Cost Optimization Initiatives

MM Forgings has implemented several cost-saving measures, including transitioning to green power from January 18, 2026, resulting in expected annual savings of ₹15 crores. Combined with interest cost reductions of ₹30-35 crores, the company anticipates total savings of ₹45-50 crores annually.

Regulatory Compliance and Transparency

The transcript release forms part of MM Forgings' compliance obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has formally notified both the National Stock Exchange of India Limited and Bombay Stock Exchange Limited about the transcript availability, demonstrating its commitment to transparency with stakeholders.

The comprehensive transcript provides detailed responses to investor queries covering capacity utilization, market dynamics, export prospects, and strategic initiatives, offering stakeholders valuable insights into the company's operational performance and future direction.

MM Forgings Limited has released the official transcript of its Q3FY26 post-results earnings conference call held on February 17, 2026, providing detailed insights into the company's performance and strategic outlook. The automotive forging company demonstrated resilience with stable operational performance amid challenging global economic conditions.

Conference Call Highlights and Management Commentary

Chairman and Managing Director Vidyashankar Krishnan highlighted the company's reasonably good quarter performance, with sales growing 11.3% year-on-year and sequential improvement of 7% in Q3. The growth was primarily driven by volume improvements of approximately 3% compared to Q3FY25, along with positive changes in average sales realization.

Export Market Recovery and US Outlook

The management reported encouraging signs in export markets after weakness in the first eight months of the year. The US market showed sequential improvement with customers returning after running down inventory levels. Management expects partial impact in Q4FY26 with full benefits materializing from Q1FY27 onwards as new production programs commence.

Europe registered healthy improvement in product mix, resulting from market share gains and new program launches. The company anticipates ₹50-75 crore increase in sales from export recovery, particularly from the US Class 8 truck segment.

Cost Management and Interest Reduction Strategy

MM Forgings announced significant cost reduction initiatives, particularly targeting interest expenses. The company implemented interest rate swaps shifting term loans from rupee to euro, expecting to reduce interest costs from the current ₹80 crore run rate to ₹55 crore in FY27.

Additional cost savings include ₹15 crore reduction in power costs through transition to green energy and operational efficiency improvements. Combined with other initiatives including PNG adoption, the company targets ₹40-45 crore total savings.

Capacity Expansion and Future Growth

The company's 16,500-ton press commissioning is progressing with expected commercial production by March-April 2026. While immediate revenue contribution will be minimal in FY27, the press offers ₹300 crore revenue potential over 2-3 years. Current year capex stands at ₹137 crore of planned ₹175 crore, with FY27 capex projected at ₹150-170 crore.

Management expressed confidence in delivering ₹300 crore revenue growth in FY27 from existing capacity, driven by domestic CV market recovery, export improvements, and new product launches including crankshafts for passenger vehicle customers.

Production Mix and Regulatory Compliance

The company maintained its product mix with forging at 47% and machining at 53% for nine months FY26, compared to 42% forging and 58% machining in the corresponding previous period. Management expects machining mix to improve as most new orders are machining-focused.

MM Forgings fulfilled regulatory obligations under SEBI LODR Regulation 30 by releasing the conference call transcript on February 19, 2026, ensuring transparency for stakeholders and maintaining compliance with stock exchange requirements.