Happy Forgings Limited is an Indian manufacturer specializing in heavy forgings and precision machined components, catering to a diverse range of sectors like automotive, farm, and industrial equipment.

In H1FY26, the company reported robust performance with high gross margin (~60%) and EBITDA margin (~31%), showcasing its profitability despite challenges like softening steel prices and global demand fluctuations.

The company's capex of INR 650 crore is on schedule, focusing on expanding capacity and upgrading technologies, which is expected to spearhead the next growth phase by enhancing precision machining technologies.

Exports faced headwinds due to global market weaknesses and tariff uncertainties, affecting volumes, but the domestic market showed strong demand across commercial, farm, industrial, and passenger vehicle sectors.

Happy Forgings maintains strong financial health with nearly 100% operating cash flow conversion, improving working capital, and a substantial liquidity position (₹315 crore) enabling long-term growth initiatives.