Investor presentation
HAPPYFORGE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Happy Forgings delivered strong Q4 FY26 results with 20.6% volume growth and 20.4% revenue growth year-on-year. For the full year FY26, revenue stood at ₹1,546 Crores with 9.8% growth, while EBITDA grew 15.7% to ₹471 Crores and PAT increased 12.8% to ₹302 Crores. The company achieved its highest-ever annual profitability with EBITDA margin expanding by 157 bps to 30.4% and PAT margin improving to 19.5%. Gross margin for FY26 was 59.1%. Since FY21, the company has delivered 21% revenue CAGR and 28% PAT CAGR while transforming its product mix with forged and machined components now contributing 89% of revenue. The company has a fortress balance sheet with cash liquidity of ₹430 Crores, debt-to-equity of just 0.15x, and AA Stable credit rating from both CRISIL and ICRA. Management guided for growth ahead of historical trajectory in FY27, supported by capacity expansion for heavy forgings (commissioning expected FY27) and growing export opportunities.
Strong operational performance with margin expansion signals improving profitability and execution capability. The fortress balance sheet and robust cash generation provide flexibility for growth investments. Management's guidance for growth ahead of historical trajectory is positive for shareholders, though geopolitical headwinds on raw material costs warrant monitoring.