MM Forgings Limited Q2 profit rises 134% as revenue grows 42%

MM Forgings Limited reported standalone profit after tax (PAT) of Rs 46 crore in Q2FY27, up 134% from Rs 19 crore in Q2FY26, as revenue increased 42% to Rs 551 crore. MMF's H1FY27 PAT of Rs 137 crore included a Rs 56 crore net-of-tax exceptional gain from a Q1FY27 land sale near Oragadam.

How did MMF perform in Q2FY27?

MMF reported higher revenue, operating profit and net profit in Q2FY27 than in Q2FY26. Total revenue rose by Rs 162 crore to Rs 551 crore from Rs 389 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 53% to Rs 111 crore from Rs 72 crore, while profit before tax (PBT) rose 139% to Rs 65 crore from Rs 27 crore.

MMF's PAT increased by Rs 27 crore to Rs 46 crore in Q2FY27, and earnings per share rose 148% to Rs 9.51 from Rs 3.83. EBITDA grew by Rs 39 crore, while PBT rose by Rs 38 crore from the lower Q2FY26 base of Rs 27 crore. The presentation reports standalone figures but does not give a separate breakdown of cost, interest or tax movements behind the quarterly changes.

What does MMF's H1FY27 profit include?

MMF's reported H1FY27 PAT of Rs 137 crore includes a Rs 56 crore profit, net of tax, on the sale of land near Oragadam in Q1FY27. The company classified this gain as an exceptional item, meaning the reported first-half PAT comparison includes a disclosed non-operating land-sale gain alongside the business results.

MMF's H1FY27 revenue increased by Rs 219 crore to Rs 978 crore, while EBITDA rose by Rs 49 crore to Rs 193 crore. PBT increased by Rs 110 crore to Rs 165 crore, compared with Rs 55 crore in H1FY26. Reported PAT was Rs 99 crore higher year on year, but the presentation identifies Rs 56 crore of the H1FY27 amount as the net-of-tax Q1FY27 exceptional gain.

The land-sale gain was recognised in Q1FY27, whereas Q2FY27 PAT was Rs 46 crore. Therefore, the Q2FY27 comparison with Rs 19 crore in Q2FY26 reflects the reported quarterly result without the specifically disclosed Q1FY27 land-sale item. MMF does not provide an adjusted H1FY27 PAT figure in the presentation.

How did MMF's geographic sales mix change?

MMF's Q2FY27 sales mix became more domestic than in Q2FY26, with domestic revenue accounting for 67% of overall sales against 64% a year earlier. Export revenue represented 33% of Q2FY27 sales, down from 36% in Q2FY26. The presentation gives rounded percentages rather than domestic and export revenue values in rupees.

India represented 67% of Q2FY27 sales, followed by the United States at 16%, Europe at 13%, South America at 3% and other regions at 1%. In Q2FY26, India accounted for 64%, the United States 13%, Europe 18%, South America 4% and other regions 1%. Europe's share fell by five percentage points, while India and the United States each rose by three percentage points.

MMF's first-half mix changed less than its quarterly mix. Domestic sales accounted for 64% of H1FY27 revenue, compared with 65% in H1FY26, while exports accounted for 36%, compared with 35%. The Q2FY27 domestic share of 67% was therefore above the 64% H1FY27 share, while the 33% quarterly export share was below the 36% first-half share.

What is MMF planning for H2FY27?

MMF says large machined-product programmes were ramping toward their full potential in H1FY27, while it increased its focus on diversification. The chairman identified expansion beyond non-auto and heavy-duty segments, including passenger-vehicle forgings, as part of this H2FY27 direction. The presentation provides no revenue, profitability or capital-expenditure target for these programmes.

Management also says MMF is exploring organic and inorganic growth opportunities while pursuing cost optimisation, operational efficiency and resilience in H2FY27. These plans follow H1FY27 revenue of Rs 978 crore and EBITDA of Rs 193 crore. The chairman cited ongoing global trade uncertainty, foreign tariffs and selective export drag as factors affecting international order visibility, particularly in Class 8 commercial truck markets.

Export exposure makes those conditions relevant to MMF's disclosed sales mix, as exports accounted for 33% of Q2FY27 sales and 36% of H1FY27 sales. The chairman described the order pipeline, customer base, manufacturing capabilities and financial position positively, but MMF did not disclose an order-book value, customer count, production-volume goal or earnings guidance for H2FY27.

Conclusion

MMF delivered a higher reported Q2FY27 standalone result, with revenue rising 42% to Rs 551 crore, EBITDA increasing 53% to Rs 111 crore and PAT growing 134% to Rs 46 crore. First-half revenue and EBITDA also rose to Rs 978 crore and Rs 193 crore, respectively, but H1FY27 PAT of Rs 137 crore included the Rs 56 crore net-of-tax exceptional gain on the Q1FY27 land sale near Oragadam.

The next development to watch is execution in H2FY27 as machined-product programmes ramp up and MMF expands its focus into passenger-vehicle forgings and other segments. Management's plan is being pursued while global trade uncertainty, tariffs and Class 8 truck-market export conditions remain unresolved, with exports representing 36% of H1FY27 sales.