Happy Forgings Limited — PPTs, 09-08-2025: Investor Presentation

Here is the summary of the attached file:

**1. Financial Highlights:**

Q1 FY26 saw resilient performance: Revenue up 3.6% to Rs. 354 Cr, volumes up 3.8%. Gross Profit grew 6.3% with a 57.9% margin. EBITDA (28.6%) and PAT (18.6%) margins remained robust. A strong balance sheet boasts over Rs. 350 Cr liquidity.

**2. Strategic Initiatives & Growth Drivers:**

The company is investing Rs. 80 Cr in FY26 for Passenger Vehicle segment expansion. A significant Rs. 650 Cr capex for new heavy forging capacities, among the largest globally, targets high-weight components for Industrials and Farm Equipment, expected by late FY27. This aligns with portfolio diversification.

**3. Business Developments:**

Domestic business grew 7% year-on-year, driven by healthy demand in Passenger Vehicles, Farm Equipment, and Industrials. New business wins and entry into new segments offset export challenges. Recently, the company commenced supplying SUV crankshafts and expanded machining capacity.

**4. Market Position & Competitive Advantage:**

Happy Forgings is India's 2nd largest producer of commercial vehicle and high-HP industrial crankshafts, and 4th largest in complex, safety-critical forged components. High industry entry barriers, coupled with integrated capabilities and high-tonnage presses, provide a strong competitive edge.

**5. Investor Implications:**

Strong profitability and margins, supported by healthy cash accruals and low leverage, signal positive growth potential. Strategic capex in high-value segments and ongoing capacity expansion are key for long-term value creation, suggesting a favorable outlook.