Happy Forgings September-quarter profit rises 33% to Rs 97.51 crore

Happy Forgings Limited reported standalone profit after tax of Rs 97.51 crore for the quarter ended September 30, 2026, up 33% from Rs 73.44 crore a year earlier, as revenue from operations rose 33% to Rs 500.75 crore. The quarterly result was approved by the board on November 5, 2026.

How did Happy Forgings perform in the September quarter?

Happy Forgings increased standalone revenue from operations to Rs 500.75 crore in the quarter ended September 30, 2026, from Rs 377.39 crore in the September 2025 quarter and Rs 449.42 crore in the June 2026 quarter. Total income was Rs 509.06 crore, including Rs 8.31 crore of other income, compared with Rs 383.64 crore a year earlier.

Profit before tax rose to Rs 130.61 crore from Rs 98.61 crore in the corresponding previous-year quarter, while total tax expense increased to Rs 33.10 crore from Rs 25.17 crore. This resulted in profit after tax of Rs 97.51 crore, compared with Rs 91.46 crore in the immediately preceding June quarter and Rs 73.44 crore a year earlier.

What drove the change in Happy Forgings' costs and profit?

Happy Forgings' total expenses rose to Rs 378.44 crore in the September 2026 quarter from Rs 285.03 crore a year before, an increase of Rs 93.41 crore alongside the Rs 123.36 crore rise in revenue from operations. Raw-material and component consumption increased to Rs 209.89 crore from Rs 149.10 crore, while employee-benefit expense rose to Rs 40.87 crore from Rs 33.72 crore.

Other expenses reached Rs 110.63 crore, compared with Rs 78.10 crore in the September 2025 quarter, and depreciation and amortisation rose to Rs 27.85 crore from Rs 21.55 crore. Finance costs were Rs 2.97 crore against Rs 1.89 crore a year earlier, while the inventory-change line was a negative Rs 13.77 crore compared with a positive Rs 0.66 crore in the earlier quarter.

Happy Forgings reported basic earnings per share of Rs 10.33 for the September 2026 quarter, up from Rs 7.79 in the September 2025 quarter and Rs 9.70 in the June 2026 quarter. Diluted earnings per share were Rs 10.32, against Rs 7.78 a year earlier; both quarterly per-share figures are not annualised under the filing.

What did Happy Forgings report for the first half ended September 2026?

Happy Forgings reported standalone revenue from operations of Rs 950.17 crore for the half year ended September 30, 2026, compared with Rs 731.19 crore in the corresponding half of the previous year. Half-year profit after tax rose to Rs 188.97 crore from Rs 139.13 crore, while profit before tax increased to Rs 253.25 crore from Rs 187.25 crore.

The half-year increase in profit followed total income of Rs 969.56 crore, up from Rs 747.79 crore, against total expenses of Rs 716.31 crore, compared with Rs 560.54 crore. Raw-material and component consumption was Rs 397.69 crore versus Rs 294.85 crore, and depreciation and amortisation was Rs 54.09 crore versus Rs 42.11 crore in the prior-year half.

Basic earnings per share for the half year were Rs 20.03, compared with Rs 14.76 in the half year ended September 30, 2025. Happy Forgings classifies its business as a single operating segment, manufacturing auto components and engineering parts, so the filing does not provide separate revenue or profit figures by product category.

How did Happy Forgings' balance sheet and cash flow change?

Happy Forgings' total assets rose to Rs 3,043.78 crore as at September 30, 2026 from Rs 2,632.96 crore as at March 31, 2026. Property, plant and equipment increased to Rs 1,240.25 crore from Rs 1,096.87 crore, while capital work-in-progress rose to Rs 369.84 crore from Rs 229.31 crore.

Trade receivables increased to Rs 487.69 crore at September 30 from Rs 394.78 crore at March 31, a rise of Rs 92.91 crore. Inventories were broadly stable at Rs 234.84 crore versus Rs 232.76 crore, while cash and cash equivalents declined to Rs 15.05 crore from Rs 25.63 crore and current investments declined to Rs 155.55 crore from Rs 237.03 crore.

Total borrowings were Rs 528.70 crore at September 30, comprising Rs 99.72 crore of non-current borrowings and Rs 428.98 crore of current borrowings. Current borrowings had been Rs 329.62 crore at March 31, while no non-current borrowing was reported then; total liabilities increased to Rs 758.41 crore from Rs 504.68 crore.

For the half year ended September 30, 2026, net cash from operating activities was Rs 124.46 crore, lower than Rs 217.45 crore in the prior-year half. The cash-flow statement records Rs 88.79 crore of working-capital absorption from trade receivables, compared with a Rs 51.23 crore release a year earlier, while payments for property, plant and equipment including capital work-in-progress were Rs 374.32 crore against Rs 205.27 crore.

What capital plan and shareholder actions did Happy Forgings disclose?

Happy Forgings' board approved Rs 500 crore of capital expenditure for expansion of its existing forging and machining capacity on November 5, 2026. The announcement does not specify a completion date, capacity addition, project location or expected financial contribution from that approved expenditure.

Happy Forgings declared and paid a final dividend of Rs 4 per share for FY2025-26 during the September 2026 quarter, aggregating to Rs 37.75 crore before the tax amount stated in the filing. Shareholders approved the dividend at the annual general meeting on July 27, 2026, and the company reported dividend payments of Rs 37.75 crore in the first-half cash-flow statement.

Happy Forgings also recorded 22,412 exercised options under the Happy Forgings ESOP Scheme 2023 during the September 2026 quarter, following 28,273 exercises in the June quarter. The scheme had granted 392,687 options to eligible employees in the quarter ended September 30, 2023, and the filing records no option forfeitures in the September 2026 quarter.

Conclusion

Happy Forgings delivered higher standalone revenue, profit before tax and profit after tax in both the September quarter and first half, with quarterly profit after tax reaching Rs 97.51 crore and half-year profit reaching Rs 188.97 crore. The result coincided with higher operating costs, a Rs 92.91 crore increase in trade receivables since March, and a rise in total borrowings to Rs 528.70 crore.

The next disclosed item to watch is execution of the board-approved Rs 500 crore expansion of existing forging and machining capacity. Happy Forgings has not disclosed a project timetable, output target or expected financial effect, while the September balance sheet already shows capital work-in-progress of Rs 369.84 crore and first-half capital expenditure payments of Rs 374.32 crore.