M M Forgings Limited Reports 16% Q1 FY27 Sales Growth

M M Forgings Limited reported total sales of ₹427.01 crore in the quarter ended 30 June 2026, a 16% year-on-year increase, supported by domestic and export demand, including the US commercial vehicle market. Reported profit was also affected by a ₹56.25 crore exceptional gain from an asset sale.

What did M M Forgings report for Q1 FY27?

M M Forgings reported sales growth during the first quarter of FY27, with total sales reaching ₹427.01 crore. The company said sales were 16% higher than the corresponding quarter a year earlier. Demand in domestic markets and export markets supported the performance, with the US commercial vehicle segment identified as a contributor.

The company also reported EBITDA of ₹82.33 crore, up 16% year-on-year. The comparable growth rates for sales and EBITDA indicate that the quarter's operating performance improved alongside revenue. However, the reported net-profit movement needs to be read separately because the period included a material exceptional item.

Why did reported profit rise more sharply than operating earnings?

M M Forgings recorded an exceptional gain of ₹56.25 crore, net of tax, from an asset sale in Q1 FY27. The company reported that profit after tax rose 373% year-on-year to ₹91.66 crore. This gain was a one-time item and was separate from the regular manufacturing and sales performance reflected in revenue and EBITDA.

For investors, the distinction matters because operating profitability is generally assessed using recurring measures such as EBITDA and profit before exceptional items. The source also separately cited standalone Q1 FY27 revenue from operations of ₹409.9 crore and standalone net profit of ₹34.2 crore. These figures should not be directly compared with the total-sales and reported-profit figures without accounting for the stated reporting basis and exceptional item.

What is M M Forgings planning for FY27 capacity and spending?

M M Forgings plans capital expenditure of about ₹150 crore during FY27. Of this amount, ₹30 crore to ₹50 crore is earmarked for replacement expenditure, while the balance is intended for growth projects and debottlenecking. The company has identified machining expansion and automation as areas of focus.

Management has said it expects quarterly volumes to be in the range of 23,000 tonnes to 25,000 tonnes from the second quarter onward. It is targeting more than 90,000 tonnes for FY27 and has indicated a potential annualised run rate of 100,000 tonnes. A separate management target referred to an 110,000-tonne volume run rate by the end of the fiscal year.

How does the new press fit into M M Forgings' expansion plans?

A 16,500-ton press was scheduled for commissioning by March 2026. The disclosed potential was annual revenue of ₹300 crore from FY27. The equipment forms part of the company's broader effort to expand capacity and address demand from automotive and commercial-vehicle customers.

The capital programme also includes debottlenecking, which is intended to improve output from existing operations, and automation. These initiatives are relevant because forging businesses must align capacity, machining capability and customer demand. The source does not provide an updated revenue contribution from the new press, so its financial effect beyond the stated potential cannot be measured from the available disclosures.

What are management's FY27 revenue targets and market conditions?

M M Forgings has indicated an FY27 revenue-growth target of 18%, with revenue guidance of ₹1,800 crore to ₹1,900 crore. The company had earlier been associated with a 20% growth expectation, making the currently cited 18% target the relevant disclosed guidance in the source material.

The company is also considering a ₹600 crore qualified institutional placement fundraise, according to the provided update. The material does not state that a fundraise has been completed. Separately, a forecast in the source estimates revenue growth of 7.9% per year over the next three years, compared with 13% for India's metals and mining industry. That forecast is distinct from management's FY27 target.

How should investors read the Q1 FY27 update?

The Q1 update points to growth in sales and EBITDA, while reported net profit benefited from the asset-sale gain. Investors assessing earnings quality may therefore separate recurring operating trends from the ₹56.25 crore exceptional gain. Volume guidance, export-market demand and the pace of capacity additions are also relevant operating indicators.

The latest company update identified in the source is a BSE corporate announcement titled “M M Forgings Limited Reports Operational Performance & Quarterly Growth Update,” published on 9 October 2026. M M Forgings also scheduled a board meeting on 5 November 2026 to consider unaudited standalone and consolidated results for the quarter ended 30 September 2026.

Conclusion

M M Forgings delivered 16% year-on-year Q1 FY27 sales growth to ₹427.01 crore and reported an equivalent increase in EBITDA to ₹82.33 crore. The sharp increase in reported profit included a ₹56.25 crore net-of-tax exceptional gain, meaning the operating result and the asset-sale impact should be considered separately.

The next disclosed milestone is the board's consideration of the quarter ended 30 September 2026 results on 5 November 2026. Investors will be able to assess whether quarterly volumes move toward the stated 23,000-to-25,000-tonne range and whether the FY27 revenue target of ₹1,800 crore to ₹1,900 crore remains unchanged.