Happy Forgings Q2 FY26 Profit Rises 2.8% to ₹73.4 Crore

Happy Forgings Limited reported Q2 FY26 net profit of ₹73.4 crore, up 2.8% year on year, while revenue from operations rose 4.4% to ₹377 crore and EBITDA margin improved to 31%. The results mattered because operating profit increased faster than revenue despite modest top-line growth.

What did Happy Forgings report in Q2 FY26?

Happy Forgings reported revenue from operations of ₹377 crore for the quarter ended September 2025, compared with ₹361 crore in Q2 FY25. Revenue was also higher than ₹354 crore reported in Q1 FY26, representing 6.5% quarter-on-quarter growth under the revenue-from-operations measure.

Net profit was ₹73.4 crore, compared with ₹71 crore a year earlier and ₹66 crore in the preceding quarter. The company’s profit before tax stood at ₹99 crore, up 2.1% year on year and 11.2% quarter on quarter. The reported figures indicate a stronger sequential profit performance than the year-on-year comparison.

Some reported quarterly-result data separately placed total income at ₹383.64 crore, up 5.4% sequentially and 2.5% year on year. This figure differs from the ₹377 crore revenue-from-operations number, which is the metric used in the company’s Q2 FY26 revenue comparison.

How did operating profitability change during the quarter?

Happy Forgings reported EBITDA of ₹116 crore in Q2 FY26, an increase of 10.5% from ₹105 crore in Q2 FY25. EBITDA was also 14.9% above the ₹101 crore recorded in Q1 FY26, exceeding the pace of both annual and sequential revenue growth.

The EBITDA margin improved to 31%, from 29% in both Q2 FY25 and Q1 FY26. This was a two-percentage-point improvement on both comparisons. Total expenses were reported at ₹285.03 crore under the total-income presentation, rising 3.5% quarter on quarter and 2.9% year on year.

The margin movement is a relevant part of the quarterly result because it shows that operating profit grew faster than the reported revenue base. However, the available information does not provide a detailed cost-category breakdown behind the margin improvement.

What is Happy Forgings’ capital expenditure plan?

Happy Forgings is executing a capital expenditure programme of ₹650 crore, which was stated to be progressing on schedule. The company expects the planned capacity to become operational around Q3 FY27, according to the Q2 FY26 earnings-call information.

The first phase accounts for ₹550 crore of the planned investment. Of this amount, ₹150 crore is earmarked for wind and farm-equipment applications, while ₹400 crore is intended for heavy-hammer and machining lines. The remaining investment is planned as a subsequent phase linked to utilisation.

The company also disclosed initial pilot orders worth ₹350 crore related to the capex programme. These orders are focused on heavy-hammer lines, wind and farm sectors. The data points to identified demand for the new capability, though the source does not specify the timing of revenue recognition from these orders.

Why do the Q2 FY26 figures matter for investors?

Happy Forgings’ Q2 FY26 results showed moderate revenue growth alongside a larger increase in EBITDA and sequential net profit. The expansion of EBITDA margin to 31% is significant because it supported operating-profit growth of 10.5% year on year, compared with 4.4% growth in revenue from operations.

The stock was reported to have reacted positively after the company announced the quarterly performance. No share-price movement or closing-price data was provided, so the size and duration of that reaction cannot be quantified from the available information.

For investors, the ₹650 crore capex plan is another important factor alongside quarterly earnings. The programme involves investment in heavy forgings, machining, wind and farm-related applications, and its operational schedule around Q3 FY27 provides a defined milestone for assessing execution.

How does the quarter fit into Happy Forgings’ recent performance?

Happy Forgings is an engineering-led manufacturer of heavy-forged and high-precision machined components, including safety-critical products. The company had earlier reported FY24 revenue from operations of ₹1,358 crore, compared with ₹1,173 crore in FY23, representing growth of 16%.

More recently, Happy Forgings reported revenue from operations of ₹449 crore for the quarter ended June 30, 2026, up 27.0% year on year. Operating profit for that quarter was ₹151.94 crore and net income was ₹91.46 crore, according to the provided quarterly-results information.

The company has also scheduled a board meeting on November 5, 2026, to consider unaudited Q2 and half-year FY27 financial results. An earnings call for the Q2 and H1 FY27 results is scheduled for November 6, 2026 at 11:00 AM IST.

Conclusion

Happy Forgings delivered Q2 FY26 revenue from operations of ₹377 crore and net profit of ₹73.4 crore, with EBITDA margin rising to 31%. The quarter reflected faster operating-profit growth than revenue growth, while sequential performance improved across revenue, EBITDA, profit before tax and net profit.

The next disclosed event is the consideration of Q2 and half-year FY27 results by the board on November 5, 2026, followed by the November 6 earnings call. Investors will also have an operational milestone to monitor, as the ₹650 crore capex programme is expected to come on stream around Q3 FY27.