Happy Forgings Limited — PPTs, 09-02-2026: Investor Presentation

Happy Forgings delivered a strong Q3FY26, with revenue up 10.4% YoY to Rs. 391 Cr and PAT rising 22.3% to Rs. 79 Cr. Volumes grew 13.8% YoY. For 9MFY26, revenue reached Rs. 1,122 Cr (+6.2% YoY), and PAT was Rs. 218 Cr (+9.2% YoY). Growth was primarily driven by robust domestic demand across Commercial Vehicles, Farm Equipment, and Passenger Vehicles, which helped offset softer export conditions.

The company is executing strategic capacity expansion, increasing machining capacity to 68,000 MT in Q3FY26. A 10,000-ton forging press is being commissioned this quarter, with another 4,000-ton press planned for H1FY27. Additionally, a long-term lease for 80 acres was secured to establish a captive solar plant, enhancing cost efficiency and ESG goals.

Key financial metrics highlight Q3FY26 EBITDA margins at a peak of 30.8% and PAT margins at 20.2%, showcasing strong operating leverage. Operating cash flow for 9MFY26 was robust at ~Rs. 315 Cr, bolstering liquidity with over Rs. 400 Cr in cash and financial investments.

Management is optimistic about continued positive domestic demand and anticipates an easing of tariff-related headwinds in export markets. The company has visibility of ~Rs. 800 Cr in incremental business, with a focus on diversifying into Industrials, Passenger Vehicles, and Exports to sustain future growth.