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Happy Forgings (HFL)’s Q2FY26 performance exceeded our estimate on all fronts. While domestic farm/PV/industrials continue to do well, HFL’s domestic CV biz. may likely gain strength ahead. Weak macro scenario continues to weigh on HFL’s exports.

About the stock: AIA Engineering (AIA) is India's largest manufacturer and supplier of high chrome wear, corrosion and abrasion resistance castings used in cement, mining and thermal power plants (or mills). Products include tube mill internals (grinding media, shell liners,...

Despite a weak quarter primarily due to global uncertainties, BFL's diversified streams of revenue across geographies and new businesses & verticals have led to a resilient performance. Standalone revenue for Q1FY26, de-grew by 10% YoY due to weak export revenue....

Happy Forgings (HFL)’s 2QFY25 result was encouraging as it reported a healthy EBITDA margin of 29.2% (+190bp YoY, est. 28%) led by a higher mix of machining and industrial segment.

Adjusted PBT at Rs 126.3 crore was in line estimates, but APAT missed estimates on higher tax provisions.

We met BHFC’s management team recently to understand the company’s growth outlook in the coming years. the robust order backlog of INR54b in defense exports to be executable over the next three years.

Ramkrishna Forgings Ltd (RKFL) missed revenue estimates by 5.8% but due to in-line adjusted margin
on a healthy rise in gross margins, APAT too met estimates.

AIAE: Soft quarter, volume growth uncertain; cut to HOLD. BOB Essential Commodities Index: How prices look in Jan'24. SYRMA: Margin slide continues; retain HOLD. BRIT: Faster volume growth to boost profitability

Bharat Forge’s (BHFC) Q1FY24 standalone EBITDA margin was resilient at 26%, though EU operations turned EBITDA positive to 4.4% as against being in loss last quarter. Standalone revenue beat expectations despite this being a weak quarter for domestic CVs, with industrial exports driven by defence business execution driving revenue up QoQ as against CV segment exports remaining flattish QoQ.

AIA Engineering (AIAE) reported strong Q1FY24 earnings with EBITDA up 39% YoY to INR 3.4bn. This was led by 9.1% YoY/5% YoY growth in volumes/realisations and 480bps YoY EBITDA margin improvement to 27.7%. Sharp improvement in EBITDA margin was on favourable product mix and decline in other expenses.