Happy Steels reports 10% rise in September-half profit in 2026

Happy Steels Limited reported profit of Rs 4.092 crore for the half year ended September 30, 2026, up 10% from Rs 3.7171 crore a year earlier, as revenue from operations rose 16% to Rs 54.178 crore. The board approved the unaudited results on November 13, 2026.

How did Happy Steels perform in the September half year?

Happy Steels increased revenue from operations by Rs 7.6695 crore to Rs 54.178 crore in the half year ended September 30, 2026, from Rs 46.5085 crore in the corresponding period of 2025. Other income declined to Rs 62.82 lakh from Rs 1.4225 crore, so operating revenue, rather than other income, accounted for the increase in reported activity.

Happy Steels' profit before tax rose by Rs 16.74 lakh to Rs 5.1975 crore from Rs 5.0301 crore, while profit for the period rose by Rs 37.49 lakh to Rs 4.092 crore from Rs 3.7171 crore. Basic and diluted earnings per share were Rs 2.86, compared with Rs 2.60 a year earlier, on an equity-share face value of Rs 10.

Happy Steels recorded tax expense of Rs 1.1054 crore in the September 2026 half year, down from Rs 1.313 crore in the corresponding 2025 period. The 2026 charge included current tax of Rs 1.1212 crore, a credit of Rs 15.09 lakh for taxes of an earlier year, and deferred tax of Rs 13.51 lakh; the lower tax expense explains why net profit grew faster than profit before tax.

Which costs changed for Happy Steels in the September half year?

Happy Steels' total expenses rose by Rs 6.7078 crore to Rs 49.6087 crore in the half year ended September 30, 2026, broadly in line with the Rs 7.6695 crore increase in operating revenue. The results show no exceptional items or extraordinary items in either of the compared half-year periods.

Material consumed increased to Rs 30.2508 crore from Rs 27.1137 crore, employee-benefit expense rose to Rs 6.5169 crore from Rs 4.8582 crore, and other expenses increased to Rs 12.997 crore from Rs 12.4258 crore. Finance costs rose to Rs 1.6648 crore from Rs 1.0928 crore, while depreciation and amortisation increased to Rs 2.0402 crore from Rs 1.4925 crore.

Happy Steels reported a negative Rs 3.861 crore change in inventories of finished goods and work in progress, compared with negative Rs 4.0819 crore a year earlier. Because this line reduced expenses in both periods, the smaller negative amount provided Rs 22.09 lakh less of an expense reduction than in the September 2025 half year.

Happy Steels operates in one business segment and therefore did not disclose segment-level revenue or profit under Accounting Standard 17, Segment Reporting. Its filing says Indian Accounting Standards do not apply because it is listed on the National Stock Exchange of India SME platform, and the results were prepared under accounting standards prescribed under the Companies Act, 2013.

What did Happy Steels report on cash flow and working capital?

Happy Steels used Rs 19.2262 crore in operating activities during the half year ended September 30, 2026, despite reporting Rs 4.092 crore in profit for the period. The comparable cash-flow column is for the year ended March 31, 2026, when the company reported Rs 5.8104 crore of net cash from operating activities, so the two periods are not like for like.

The September-half operating outflow included a Rs 12.8084 crore increase in other assets, a Rs 8.306 crore increase in trade and other receivables, and a Rs 4.2975 crore increase in inventories. Trade payables and other liabilities decreased by Rs 1.0086 crore, while provisions increased by Rs 17.01 lakh, according to the cash-flow statement.

Happy Steels spent Rs 6.3118 crore on property, plant and equipment and received Rs 31.15 lakh from the sale of such assets. Financing activities generated Rs 26.5533 crore, including Rs 17.9678 crore of share premium net of issue expenses, Rs 3.788 crore of change in capital and Rs 5.4072 crore of net short-term borrowings.

Happy Steels ended the half year with cash and cash equivalents of Rs 2.3437 crore, compared with Rs 1.017 crore at the beginning of the year. The Rs 1.3267 crore increase followed financing inflows that exceeded the reported operating and investing cash outflows.

How has Happy Steels used its initial public offering proceeds?

Happy Steels had used Rs 11.6329 crore of its Rs 25.0008 crore initial public offering proceeds by September 30, 2026, leaving Rs 13.3679 crore unutilised. The company issued 37.88 lakh equity shares with a face value of Rs 10 at Rs 66 each, including a premium of Rs 56 per share, and listed on the NSE Emerge platform on July 16, 2026.

Happy Steels used Rs 4.9815 crore to repay or prepay bank term loans and Rs 3.6161 crore for general corporate purposes. It also used Rs 3.0353 crore for issue-related expenses against an allocation of Rs 3.2449 crore, leaving Rs 20.96 lakh in its public offer account with Axis Bank pending utilisation.

The full Rs 13.1583 crore allocated to additional plant and machinery for the existing manufacturing unit remained unutilised at September 30, 2026. Happy Steels said Rs 13 crore was kept in fixed deposits with AU Small Finance Bank and Rs 15.83 lakh was retained in a monitoring account with Axis Bank pending use for that capital-expenditure purpose.

Happy Steels stated that issue expenses of Rs 3.2449 crore incurred for the offering were adjusted against securities premium received in the initial public offering. The utilisation schedule separately records Rs 3.0353 crore as used by September 30, 2026 and Rs 20.96 lakh as remaining in the public offer account.

Conclusion

Happy Steels' September-half results show that a Rs 7.6695 crore increase in operating revenue translated into a Rs 37.49 lakh increase in profit for the period. Higher material, employee, finance and depreciation costs accompanied the revenue growth, while a Rs 20.76 lakh reduction in tax expense supported the faster rise in net profit than in profit before tax.

The next disclosed item to watch is deployment of the Rs 13.1583 crore earmarked for additional plant and machinery, which was still unutilised on September 30, 2026. The board also took note of Chief Financial Officer Varun Sharma's resignation, effective November 25, 2026, after approving the results on November 13, 2026.