Earnings call Transcript

Happy Forgings delivered its highest ever annual profitability in FY26 with revenue of Rs.1,546 crores (up 9.8% YoY), EBITDA margins at 30.4% (improved ~160 bps), and PAT margins at 19.5% (improved ~90 bps). Q4 FY26 was the best quarterly performance with revenue of Rs.424 crores, 20% sales growth, and 31.5% EBITDA margin. The company commissioned a new 10,000-ton forging line in Q4 and expects a 4,000-ton press in H1 FY27. Management guided for late-teen volume growth in FY27 while maintaining EBITDA margins in line with FY26 levels. A new order book of Rs.950 crores (with realization of Rs.340-350/kg vs current Rs.245/kg) will be executed over 2.5-3 years, diversifying into data center, heavy engine, and PV segments. Planned capex is Rs.450-500 crores for FY27 and Rs.800 crores over 2 years. The company expects market share gains in CV (32% to 42%) and farm equipment (41% to 45%).