Happy Forgings Ltd Q4 FY26 Results

We delivered a strong performance in Q4 FY26, concluding the financial year on a high note. During the quarter, we registered volume growth of 20.6% YoY, resulting in revenue growth of 20.4% and EBITDA growth of 30.4%. PAT grew by 23.6% and lagged EBITDA growth primarily due to adverse Fx movements. The quarter also witnessed healthy margin expansion on both YoY and QoQ basis, driven by strong execution, improving product mix and operating leverage. Gross margin, EBITDA margin and PAT margin improved by 70 bps, 240 bps and 50 bps YoY respectively, with margins for the quarter standing at 59.4%, 31.5% and 19.7% respectively. FY26 marked another milestone year in our journey as we delivered our highest-ever annual profitability. Revenue for the year stood at ₹1,546 Crs., while EBITDA margin expanded by 157 bps to 30.4% and PAT margin improved by 52 bps YoY to 19.5%. We also reduced working capital intensity, reflecting continued improvement in operational efficiency and healthy cash flow conversion. During the year, we witnessed healthy traction across commercial vehicles, passenger vehicles, farm equipment and industrial segments, supported by improving demand conditions and increasing value addition. Backed by strong customer engagement, we continue to build a robust pipeline of incremental business across existing and new customers, including encouraging business wins in the exports segment. While recent geopolitical developments have led to some increase in raw material and manufacturing costs, we expect the overall margin impact to remain manageable, supported by existing raw material pass-through arrangements and ongoing customer discussions for recovery of other manufacturing cost inflation. Supported by our ongoing capacity expansion, strong order visibility and growing export opportunities, we believe the Company is well positioned to deliver growth ahead of its long-term historical trajectory during the current fiscal, subject to a stable macroeconomic and geopolitical environment. Over the last several years, we have successfully transformed ourselves from a conventional forging company into a high-precision engineering company, with forged and machined components now contributing 89% of our revenue mix. Since FY21, this strategic transition has enabled a compounded growth of 21% in revenue and 28% in net profit, while simultaneously doubling manufacturing capacities. This expansion has been largely funded through strong internal cash generation with limited reliance on external capital, enabling us to maintain a fortress balance sheet, robust return ratios and liquidity of ~₹430 Crs. Our healthy cash generation and balance sheet strength continue to provide significant flexibility to support future growth and long-term value creation.