Happy Forgings Limited has filed its quarterly monitoring agency report for Q3FY26 with stock exchanges, prepared by ICRA Limited as the appointed monitoring agency. The report, dated February 04, 2026, confirms that the utilization of IPO proceeds remains aligned with the stated objects of the issue without any material deviations.

IPO Proceeds Utilization Status

The company's IPO, which concluded in December 2023, raised net proceeds of ₹377.823 crore after excluding issue-related expenses. The monitoring report shows systematic progress in fund deployment across the three main objects of the issue.

Equipment Purchase Progress and Timeline

The purchase of equipment, plant and machinery represents the largest component of the IPO proceeds allocation. The company has completed this object partially, with ₹94.657 crore already deployed. The remaining ₹76.469 crore is expected to be utilized during FY2026, representing a delay of 3-12 months from the original timeline of FY24-FY25.

The company had initially planned expenditure across FY2024 and FY2025, utilizing ₹41.953 crore in FY2025 and ₹52.704 crore in Q2FY2026. The monitoring agency noted no adverse comments regarding this timeline adjustment.

Deployment of Unutilized Funds

The company has deployed its unutilized proceeds of ₹76.502 crore in fixed deposits with AU Bank, earning returns of 8.20% per annum. These deposits mature on January 16, 2026, and have generated earnings of ₹1.568 crore during the quarter, bringing the total market value to ₹78.070 crore.

Completed Objects

Two of the three IPO objects have been fully completed:

Prepayment of Borrowings: The company successfully completed the prepayment of ₹152.760 crore toward outstanding borrowings as planned in FY24.

General Corporate Purpose: The allocated ₹53.937 crore was fully utilized in Q3FY24 and Q4FY24 for various operational expenses including:

• Electricity bills to PSPCL: ₹7.754 crore
• Raw material purchases: ₹20.803 crore
• Payment of taxes, services, and expenses: ₹25.380 crore

Regulatory Compliance and Monitoring

ICRA Limited, appointed as the monitoring agency through an agreement dated December 08, 2023, confirmed that all utilization aligns with the offer document disclosures. The report states no requirement for shareholder approval as no material deviations were observed from the expenditures disclosed in the offer document.

The monitoring agency emphasized that the report provides an objective view based on information from the issuer and does not constitute commentary on the quality of issue objects or assurance on spending outcomes. The company's audit committee and board of directors have provided no additional comments on the monitoring report.

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.