Conference Call with Happy Forgings Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Castings & Forgings company Happy Forgings announced Q1FY26 results Revenue from Operations: Rs 354 crore, up 3.6% YoY, driven by 3.8% volume growth, stable realisations and robust mix of higher-quality, value-added products across core segments. Gross Profit: Rs 205 crore, up 6.3% YoY, with a margin expansion of 144 bps. EBITDA: Rs 101 crore, up 3.6% YoY, with margins at 28.6%. PAT: Rs 66 crore, up 3.0% YoY, with margins at 18.6%. Ashish Garg, Managing Director, Happy Forgings, said: “Despite persistent headwinds in several end-user industries and a deflationary steel price environment, we delivered a resilient performance in Q1FY26. Finished goods volume grew by ~4% YoY, and revenue from operations recorded a similar growth, supported by stable realisations of Rs 245/kg despite lower input steel prices. Domestic demand remained healthy, particularly in the Passenger Vehicles, Farm Equipment, and Industrial segments, driving ~7% year-on-year growth in our domestic business. In contrast, exports were impacted by sluggish demand in the Commercial Vehicles, Farm Equipment, and Off-Highway segments, as well as uncertainty around tariffs in certain geographies. As a result, offtake in some of our older businesses has declined, although there has been no loss in share of business. However, this impact has been offset by new business wins and our entry into new segments. The Passenger Vehicles and Industrials segments continue to scale up as part of our broader portfolio diversification strategy. Uncertainty in export markets persists, driven by evolving tariff dynamics. While our direct exposure to the US remains limited, the European market could experience disruptions from the spillover effects of recent tariff actions. So far, we have not seen any adverse developments in our prospective business pipeline and, in fact, anticipate securing some new orders from the European region. While tariff-related challenges may moderate revenue growth trends in the broader industry, we are confident of sustaining our margins. We continue to monitor developments closely and await further clarity on the tariff environment. Amid these challenges, where the industry is facing pressure on both growth and margins, we have managed to maintain strong profitability. Gross Profit grew by 6% YoY, outpacing revenue growth, and led to an improvement in Gross margin by ~140 basis points YoY to 57.9%, while EBITDA margin remained robust at 28.6%, comparable to FY25 levels. Our balance sheet remains strong, with liquidity of over Rs 350 crore at quarter-end, positioning us well to navigate volatility and invest in future growth. Our capex plans are progressing as scheduled, aligned with our long-term vision of building differentiated capabilities in niche, high-value product segments.” Result PDF
Castings & Forgings company Happy Forgings announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue from Operations: Rs 352 crore, up 2.5% YoY, backed by a strategic focus on higher quality and value-added product mix across core segments. Gross Profit: Rs 206 crore, up 6.4% YoY, with a 215 bps margin expansion. EBITDA: Rs 102 crore, up 5.3% YoY, with a 76 bps margin improvement. PAT: Rs 68 crore, up 2.8% YoY, with an 19.2% margin. FY25 Financial Highlights: Revenue from Operations: Rs 1,409 crore, up 3.7% YoY. Gross Profit: Rs 817 crore, up 7.3% YoY, with a 193 bps margin expansion. EBITDA: Rs 407 crore, up 4.9% YoY, with margins improving to 28.9%. PAT: Rs 267 crore, up 10.1% YoY. Ashish Garg, Managing Director, Happy Forgings, said: “I am pleased to share the key performance highlights for FY25 and Q4FY25, which reflect our resilience driven by a strategic focus on business diversification, expansion into new verticals, and the pursuit of higher value-add business that contributed to overall growth. In FY25, we delivered our best-ever full-year profitability, with a Gross Profit margin of 58.0%, an EBITDA margin of 28.9%, and an adjusted PAT margin of 18.6%, reflecting consistent profitability improvement over the years. Revenues grew 4.7% yoy on an adjusted basis, despite a ~4% impact from the decline in steel prices. Adjusted EBITDA and PAT grew by 7.4% and 11.2%, respectively. Realisation for the year stood at Rs. 248/kg, 1.5 times higher than 2021 levels. During the year, we announced new orders worth over Rs. 1,600 crore in the PV and Industrial segments, to be executed over the next 5- 8 years, with annual peak sales potential from these orders exceeding Rs. 250 crore. During Q4FY25, we recorded yoy growth of 2.5%, 6.4%, and 5.3% in Revenues, Gross Profit, and EBITDA, respectively, supported by strong and improved Gross Profit and EBITDA margins of 58.7% and 29.1%, respectively. We witnessed encouraging yoy growth in the Industrials, Off-highway, and Farm Equipment segments in Q4FY25. This strong performance was achieved despite significant headwinds, including a double-digit decline in international CV, Farm Equipment, and Off-highway segments, a domestic slowdown in the MHCV segment, and falling steel prices, demonstrating the strength and resilience of our business model. Our balance sheet remains robust, with liquidity of Rs. 356 crore. with one of the lowest DE ratio at 0.1x, supported by strong operating cash flow generation of Rs. ~290 crore. in FY25. This positions us well to support our capex plan over the next three years that can be funded primarily through internal accruals. Reflecting our strong financial position, the Board has recommended a dividend of Rs. 3 per share for FY25, implying a payout ratio of ~11%. We remain committed to our strategic priorities and growth, investing in capabilities to serve diversified segments while pursuing value-accretive opportunities to reinforce our positive trajectory.” Result PDF
Conference Call with Happy Forgings Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Industrial Products company Happy Forgings announced Q3FY25 results Revenue from Operations: Rs 354 crore, up 3.6% YoY, driven by higher realizations and strong growth in Industrials and Passenger Vehicles business segment. Gross Profit: Rs 205 crore, up 8.3% YoY, with a 249 bps margin expansion. EBITDA: Rs 101 crore, up 6.6% YoY, with an 80 bps margin improvement. PAT: Rs 65 crore, up 11.5% YoY, with an 18.2% margin. Ashish Garg, Managing Director, Happy Forgings, said: “We closed Q3FY25 and 9MFY25 on a positive note, navigating headwinds in underlying industry segments and despite a decline in raw material prices. Driven by a ~4% improvement in realizations and a favourable product mix shift, we achieved 3.6% revenue growth in Q3FY25, with Gross Profit, EBITDA, and PAT increasing by 8.3%, 6.6%, and 11.5% YoY, respectively. Increased contribution from Industrials and Passenger Vehicles segment, helped us drive sustainable growth and profitability during this period. As part of our growth and diversification strategy, we have announced a Rs 650 crore investment to establish advanced forging capabilities in the heavyweight components segment which will drive long-term growth in Industrials and Exports segment while delivering strong returns.” Result PDF