Happy Forgings Q1 FY26: Revenue ₹354cr, PAT ₹66cr

Results snapshot for the quarter ended June 30, 2025

Happy Forgings Limited reported its consolidated financial results for Q1 FY26 (quarter ended June 30, 2025), showing modest topline growth and stable profitability ratios. Revenue from operations was reported at ₹353.80 crore, which the company also presented as ₹354 crore after rounding. The quarter’s performance was supported by higher volumes and stable realisations, even as the company flagged a deflationary steel price environment and headwinds across some end-user industries. Net profit (PAT) came in at ₹65.69 crore, broadly aligned with the company’s rounded disclosure of ₹66 crore.

The company operates in the castings and forgings space, supplying high-precision, heavy-duty forged and machined components. Management commentary highlighted that the product mix continued to skew towards higher-quality, value-added products across core segments. The reported metrics also point to stable margins, which matters for investors tracking how effectively manufacturers protect profitability during raw material price cycles.

Revenue growth driven by volumes and steady pricing

For Q1 FY26, revenue from operations stood at ₹353.80 crore, up 3.61% year-on-year (YoY) from ₹341.47 crore. On a quarter-on-quarter (QoQ) basis, revenue was stated to be up 0.52% from ₹351.97 crore. Alongside the revenue number, the company disclosed that finished goods volume increased 3.8% YoY to 14,457 metric tonnes (MT) from 13,933 MT.

Realisation was reported at ₹245 per kg and described as flat, indicating that growth was largely volume-led rather than price-led. The company also said revenue growth was supported by a robust mix of value-added products. In its commentary, it added that domestic demand remained healthy, particularly in Passenger Vehicles, Farm Equipment, and Industrial segments, contributing to about 7% YoY growth in the domestic business.

Profitability: gross margin improvement, EBITDA steady

Happy Forgings reported gross profit of ₹205 crore, up 6.3% YoY, with gross profit margin improving by 144 basis points to 57.9%. The company linked this to operational efficiencies and the ability to hold pricing steady at ₹245 per kg despite softer input steel prices.

EBITDA was reported at ₹101 crore, up 3.6% YoY, with an EBITDA margin of 28.6% described as stable and comparable to FY25 levels. PAT was reported at ₹66 crore (₹65.69 crore in detailed figures), up about 3.0% YoY, with a PAT margin of 18.6% stated to be stable.

QoQ movement: modest top-line, softer PAT

While YoY growth remained positive, QoQ trends in some profit lines were negative in the detailed numbers. Profit before tax (PBT) was ₹88.64 crore, down QoQ from ₹89.56 crore, even as it rose 3.29% YoY from ₹85.82 crore. Net profit (PAT) was ₹65.69 crore, down QoQ from ₹67.63 crore, while rising 2.96% YoY from ₹63.80 crore.

The company’s disclosures also included PBDT of ₹43.50 crore, up QoQ from ₹42.21 crore and up 8.67% YoY. Operating profit was stated at ₹12.65 crore, up 1.36% QoQ from ₹12.48 crore and up 40.87% YoY.

Cost lines and operating structure reflected in quarterly table

The quarterly table for the period ended June 2025 showed total operating expense at ₹273.21 crore and depreciation/amortisation at ₹20.55 crore. Selling, general and administrative expenses were ₹32.09 crore. Other operating expenses totalled ₹71.69 crore.

These line items provide context to the company’s ability to maintain an EBITDA margin of 28.6% in a quarter it described as being impacted by headwinds and steel price deflation. Stable realisations combined with volume growth and gross margin improvement were central to the quarter’s outcome.

Key numbers table: Q1 FY26 performance and comparisons

Order inflows: ₹730 crore of new business

Happy Forgings said it secured new orders worth ₹730 crore across various sectors. While the disclosure did not detail the order conversion timeline, such announcements are typically monitored for visibility into future utilisation and revenue mix. For an auto and industrial-facing manufacturer, order wins also matter in assessing how demand is tracking across end markets.

The company’s commentary indicated that product mix continued to support financial outcomes, with emphasis on higher-quality and value-added products across core segments. This aligns with the reported gross margin expansion to 57.9%.

Management commentary and operating environment

Ashish Garg, Managing Director, said the company delivered a resilient performance despite persistent headwinds in several end-user industries and a deflationary steel price environment. The company added that finished goods volume grew by about 4% YoY, and revenue from operations rose in a similar range, supported by stable realisations.

The statement also pointed to healthy domestic demand in Passenger Vehicles, Farm Equipment, and Industrial segments. For investors, the mention of stable realisations at ₹245/kg is a key data point because it suggests the company maintained pricing discipline even as input costs softened.

Why the quarter matters for investors tracking margins

The most notable element in the disclosures is the combination of moderate revenue growth with improving gross margins and stable EBITDA margin. Gross profit rose faster than revenue, leading to a 144 bps improvement in gross margin to 57.9%. At the same time, EBITDA margin held at 28.6%, indicating operating discipline despite the environment described by management.

PAT growth was positive YoY but declined QoQ in the detailed numbers, which is relevant for investors comparing momentum across quarters. The company’s focus on value-added products and steady realisations, along with volume growth, were the key levers cited behind the quarter’s results.

Conclusion

Happy Forgings reported Q1 FY26 revenue from operations of about ₹354 crore and PAT of about ₹66 crore, supported by 3.8% YoY volume growth and flat realisations at ₹245/kg. Gross margin expanded to 57.9% and EBITDA margin stayed at 28.6%, even as management flagged end-market headwinds and steel price deflation. The company also disclosed new orders worth ₹730 crore, which investors will track for execution and delivery timelines in subsequent quarters.