Happy Forgings Reports Robust Growth in Q4 FY26, With Volumes Up 21% and Revenue Rising 20%

Happy Forgings Reports Robust Growth in Q4 FY26, With Volumes Up 21% and Revenue Rising 20%​

Happy Forgings Limited, a prominent manufacturer of high-precision, safety-critical, heavy-forged, and machined components in India, announced its audited consolidated financial results for the quarter and full year ending March 31, 2026. The company reported strong execution in Q4 FY26, with significant year-over-year (YoY) increases across key metrics.

The company’s financial performance demonstrated robust growth in the quarter, driven by increased volumes and improved operating efficiency.

Financial Performance Highlights

The audited consolidated Profit & Loss figures for the quarter and year ending March 31, 2026, are detailed below:


Quarterly and Annual Growth Drivers

For the quarter ending March 31, 2026, the company reported that Revenue from Operations increased 20.4% YoY to ₹424 crore. This quarterly growth was supported by 20.6% YoY volume growth, leading to a 21.9% YoY rise in Gross Profit to ₹252 crore. EBITDA saw a significant jump of 30.4% YoY, reaching ₹133 crore, while the PAT rose 23.6% YoY to ₹84 crore.

On an annual basis (FY26), Revenue from Operations grew 9.8% YoY to ₹1,546 crore, supported by 10.9% YoY volume growth. Gross Profit increased 11.9% YoY to ₹915 crore, and EBITDA rose 15.7% YoY to ₹471 crore.

Management Commentary

Mr. Ashish Garg, Managing Director, stated that Happy Forgings Limited delivered a strong performance in Q4 FY26. He noted that the quarter’s revenue growth of 20.4% and EBITDA growth of 30.4% were primarily driven by the 20.6% volume increase.

He highlighted that margin expansion was strong, with Gross margin, EBITDA margin, and PAT margin improving by 70 bps, 240 bps, and 50 bps YoY, respectively, standing at 59.4%, 31.5%, and 19.7% for the quarter.

For the full fiscal year 2026, the company achieved its highest-ever annual profitability, with revenue standing at ₹1,546 crore. Mr. Garg added that EBITDA margin expanded by 157 bps to 30.4%, and PAT margin improved by 52 bps YoY to 19.5%.

The company noted its transformation from a conventional forging company to a high-precision engineering company, where forged and machined components now contribute 89% of its revenue mix. This strategic shift has facilitated a compounded growth of 21% in revenue and 28% in net profit since FY21. The company also reported reducing its working capital intensity and maintaining a robust liquidity of approximately ₹430 crore.

Operational Mix and Trends

Operational data indicates steady performance across various segments:


In terms of product mix, the contribution of machined products increased to 91% of revenues in Q4 FY26, and reached 89% in FY26. Realizations remained stable and range-bound at Rs. 245/kg in FY26.

The sector mix showed minor shifts:

• Commercial Vehicles: Declined marginally to 37% in FY26 from 38% in FY25.
• Passenger Vehicles: Increased to 6% in FY26 from 4% in FY25.
• Farm Equipment: Remained stable at 32% in both FY26 and FY25.
• Industrials: Maintained stability at 14% in both FY26 and FY25.
• Off-Highway Vehicles: Declined marginally to 11% in FY26 compared to 12% in FY25.

Geographically, the company's contribution in FY26 was sourced from Domestic, Deemed & Indirect Exports, and Direct Exports, accounting for 74%, 11%, and 15% respectively. This compares to 71%, 11%, and 18% in FY25.

HAPPYFORGE Stock Price Movement​

Happy Forgings Limited shares today gained momentum, rallying 5.20% to settle at ₹1450. The stock surged on a volume of 157,730 shares, successfully hitting an all-time 52-week high of ₹1470.