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