MM Forgings Raises FY27 Target After Q2 Revenue Climbs 43%

MM Forgings Limited raised its FY27 revenue target to above ₹2,000 crore after revenue from operations increased 42.8% year-on-year to ₹548.4 crore in Q2 FY27, supported by higher volumes and export demand. The company also expects annual sales volume of 90,000 to 95,000 tonnes.

What did MM Forgings report for Q2 FY27?

MM Forgings reported consolidated revenue from operations of ₹548.4 crore for the quarter ended 30 September 2026, up 42.8% from a year earlier. Consolidated total income was ₹550.47 crore, compared with ₹388.89 crore in Q2 FY26, representing growth of 41.5%. The increase also followed a stronger sequential quarter, with total income rising 29.0% from ₹426.76 crore in Q1 FY27.

Consolidated net profit rose 152.0% year-on-year to ₹41.75 crore, while basic earnings per share increased to ₹8.65 from ₹3.83. On a standalone basis, revenue from operations was ₹535.73 crore, compared with ₹376.76 crore a year earlier. Standalone net profit was ₹45.89 crore, against ₹18.47 crore in Q2 FY26, and basic EPS was ₹9.51.

The quarterly result did not include an exceptional item. This is relevant because first-half standalone profit included a ₹64.29 crore gain from a land sale recognised in Q1 FY27. As a result, H1 standalone net profit reached ₹137.45 crore, compared with ₹37.97 crore a year earlier, but the half-year comparison includes this non-recurring gain.

Why has MM Forgings raised its FY27 revenue guidance?

MM Forgings raised its FY27 sales target to above ₹2,000 crore from earlier guidance of ₹1,800 crore after its first-half performance and volume momentum. Management said it expects FY27 sales volume of 90,000 to 95,000 tonnes, with roughly 50,000 tonnes anticipated in the second half. The company had reported Q2 turnover of about ₹551 crore and quarterly volume of 24,200 tonnes, up from 19,700 tonnes in Q1.

Chairman and Managing Director Vidyashankar Krishnan said annual sales should cross ₹2,000 crore and margins should remain broadly similar. The company has also indicated a FY28 revenue target of ₹2,400 crore to ₹2,500 crore. These targets depend on the planned volume ramp-up, product mix and execution of its capacity additions.

The guidance reflects higher activity in exports and heavy forgings, which have supported the revenue trajectory. However, the company operates in automotive-linked segments, including commercial vehicles, where demand can be cyclical. Management's volume and revenue targets therefore remain operational goals rather than reported outcomes.

How did profit move despite stronger quarterly sales?

MM Forgings' consolidated net profit was substantially higher than the year-earlier quarter but lower than Q1 FY27. Q2 consolidated profit of ₹41.75 crore was down 53.8% sequentially from ₹90.42 crore, while total income increased 29.0% over the same period. The sequential comparison is affected by the ₹64.29 crore land-sale gain recognised during Q1.

The absence of an exceptional item in Q2 provides a clearer view of the period's operating performance than the first-half profit total. Management reported EBITDA of about ₹110 crore for Q2, at a margin of about 20%. A separately reported measure placed EBITDA excluding other income at ₹93.5 crore, with a 17.4% margin, compared with 17.3% a year earlier.

The year-on-year increase in profit exceeded the increase in total income, while revenue from operations grew faster than other income. But investors assessing earnings quality will need to distinguish recurring manufacturing profit from the one-time land-sale gain included in H1 numbers.

What are the capacity and balance-sheet issues for investors?

MM Forgings is preparing to commission a 16,500-tonne heavy press in Q4 FY27, but the project has been delayed by about six months. The equipment is important to the company's heavy-forging expansion and its ability to serve larger or more specialised requirements. Its commissioning schedule is therefore a key operating milestone behind the stated FY27 and FY28 plans.

The company also faces working-capital and debt considerations as sales and production volumes increase. Rising working capital and debt levels have been identified as liquidity risks in the available information. Higher receivables, inventory requirements and capital expenditure can increase funding needs even when revenue growth is strong.

The market reacted positively after the results, with the stock reported at ₹630.45 on 6 November 2026, up 19.99% following the announcement. That movement reflected the strong revenue and year-on-year profit growth, while the delayed press, commercial-vehicle cyclicality and balance-sheet execution remain relevant factors for shareholders.

Conclusion

MM Forgings delivered a strong year-on-year Q2 FY27 performance, with consolidated revenue from operations rising 42.8% to ₹548.4 crore and net profit increasing to ₹41.75 crore. The result supported management's decision to raise its FY27 revenue target above ₹2,000 crore, although H1 profit was also lifted by a one-time ₹64.29 crore land-sale gain in Q1.

Investors will watch whether second-half volume reaches the indicated 50,000 tonnes, whether the 16,500-tonne press is commissioned in Q4 FY27, and how working capital and debt evolve during the expansion. Progress on these disclosed measures will help assess the feasibility of the FY27 volume target and FY28 revenue plan.