Happy Forgings Reports Record Quarterly Performance With 27% Revenue and 39% PAT Growth in Q1 FY27
Happy Forgings Limited, a manufacturer of high-precision, safety-critical, heavy forged and machined components across India, has announced its consolidated financial results for the quarter ending June 30, 2026. The company reported significant growth across various metrics driven by robust demand in domestic and export markets.The results highlight strong profitability improvements as revenue grew by 27.0% year-on-year (YoY) to ₹449 crores. Gross Profit increased by 33.1% YoY to ₹273 crores, while EBITDA rose 39.3% YoY to ₹141 crores. Net Profit After Tax (PAT) saw a substantial rise of 39.2% YoY, reaching ₹91 crores.
Consolidated Financial Performance at a Glance
The company maintained improving margins across the quarter. The Gross Profit Margin reached 60.7%, up 276 basis points (bps), while the EBITDA Margin expanded to 31.3%. PAT margin improved by 178 bps, standing at 20.4% for Q1FY27.The consolidated financial performance across quarters and fiscal years is summarized below:
| Consolidated P&L (Rs. Cr) | Q1FY27 | Q1FY26 | YoY Change | FY26 | FY25 |
|---|---|---|---|---|---|
| Revenue from Operations | 449 | 354 | 27.0% | 1,546 | 1,409 |
| Gross Profit | 273 | 205 | 33.1% | 915 | 817 |
| Gross Profit Margin | 60.7% | 57.9% | 276 bps | 59.1% | 58.0% |
| EBITDA | 141 | 101 | 39.3% | 471 | 407 |
| EBITDA Margin | 31.3% | 28.6% | 275 bps | 30.4% | 28.9% |
| PAT | 91 | 66 | 39.2% | 302 | 267 |
| PAT Margin % | 20.4% | 18.6% | 178 bps | 19.5% | 19.0% |
Operational Metrics and Market Mix Trends
The company’s operational efficiency is reflected in the finished goods metrics. Finished Goods Volume reached 17,793 MT in Q1FY27, an increase of 23.1% from 14,457 MT recorded in Q1FY26. Realization stood at ₹253/kg in Q1FY27, a growth of 3.2% compared to Q1FY26.Detailed volume and realization data are provided below:
| Particulars | Q1FY27 | Q1FY26 | YoY Change | FY26 | FY25 |
|---|---|---|---|---|---|
| Finished Goods Volume (MT) | 17,793 | 14,457 | 23.1% | 63,105 | 56,906 |
| Realisation/Kg (Rs.) | 253 | 245 | 3.2% | 245 | 248 |
In terms of product portfolio, the contribution from machined products increased to 90% in Q1FY27, up from 88% in Q1FY26. Diversification across sectors showed momentum, with Industrials and Passenger Vehicles contributing notably more compared to the previous year. Commercial Vehicles contributed 33% in Q1FY27, down from 39% in Q1FY26.
The sector mix breakdown is as follows:
- Farm Equipment remained stable at 32%.
- Passenger Vehicles increased its contribution to 8%, up from 6% in Q1FY26.
- Industrials rose to 16% from 13% in Q1FY26.
- Off-Highway Vehicles increased to 11% from 10% in Q1FY26.
The geography mix shows:
| Market Segment | Contribution (Q1FY27) | Contribution (Q1FY26) |
|---|---|---|
| Domestic, Deemed & Indirect Exports | 72% | 73% |
| Direct Exports | 16% | 16% |
Management Commentary
Ashish Garg, Managing Director of Happy Forgings Limited, commented on the results, stating that FY27 commenced strongly. The quarter’s revenue, reaching nearly ₹450 Crores, reflected a 27.0% YoY increase and sequential growth, driven by the 23.1% rise in finished goods sales volumes and improved realisations.He noted that the strong profitability results were achieved through broad-based growth across domestic and export markets. Domestic demand remained robust in CV, PV, Farm Equipment, and OffHighway segments, while export revenues increased by over 30% YoY.
Garg highlighted that the continuous improvement in margins—including EBITDA margin remaining above 30% for the fourth consecutive quarter and PAT margin exceeding 20% for the first time—reinforces the structural resilience of the business model and higher value addition.
The company saw diversification accelerate, with exports contributing 28% of revenue. Furthermore, Passenger Vehicle (PV) and Industrial shares increased to 8% and 16%, respectively. The Management noted that incremental order book strength, particularly from exports, PV, and Industrials, provides visibility for an additional annual revenue estimated up to ₹950 Crores over the next two to three years.
Looking ahead, the management expressed optimism for FY27, expecting production and sales volumes to strengthen progressively due to improving industry demand and secured business ramp-up. Strategic initiatives include completing the installation of equipment for ultra-heavy component manufacturing facilities by the end of the financial year, with commercial revenues anticipated from FY28 onwards. Similarly, the captive solar power project is on track and expected to contribute to operating cost efficiencies starting in FY28.
HAPPYFORGE Stock Price Movement
Happy Forgings Limited shares edged higher today, finishing the trading session at ₹1703.4 after gaining 0.58%. The stock maintained strong momentum throughout the day, trading within a range of ₹1620.7 and ₹1727 as 341,972 shares were transacted.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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