Happy Forgings (HAPPYFORGE) investor relations material

Executive summary

• Achieved record performance in Q3 and nine months FY26, with all-time highs in revenue, gross profit, EBITDA, and PAT, driven by strong domestic demand in commercial vehicles, farm equipment, and passenger vehicles, despite challenging macro conditions and softening steel prices.

• Profitability growth outpaced revenue growth, with Q3 PAT up 22.3% YoY and margins at peak levels, reflecting operational efficiency.

• Maintained strong cash generation and balance sheet, enabling capacity investments and supporting growth initiatives without financial strain.

• Sequential improvement in Q3 over Q2 reinforces growth momentum, positioning for a strong FY26 close.

• Successful IPO completed in December 2023, raising Rs. 40,000.00 lacs via fresh issue and Rs. 60,859.32 lacs via offer for sale; shares listed on NSE and BSE.

Financial highlights

• Q3 FY26 revenue from operations: INR 391 crore (up 10.4% YoY); nine-month revenue: INR 1,122 crore (up 6.2% YoY); Q3 PAT: INR 79 crore (up 22.3% YoY); nine-month PAT: INR 218 crore (up 11.8% YoY, adjusted).

• Q3 gross profit: INR 230 crore (up 12.2% YoY); nine-month gross profit: INR 663 crore (up 8.5% YoY); Q3 EBITDA: INR 120 crore (up 18.7% YoY); nine-month EBITDA: INR 337 crore (up 10.8% YoY).

• Gross margins: 58.9% (Q3), 59.1% (nine months); EBITDA margins: 30.8% (Q3), 30.1% (nine months); PAT margins: 20.2% (Q3), 19.4% (nine months).

• Cash flow from operations for nine months: INR 315 crore; liquid assets exceed INR 400 crore.

• EPS (diluted) for 9MFY26: 23.09; for Q3FY26: 8.36; basic EPS for Q3 FY26: Rs. 8.37; nine-month EPS: Rs. 23.13.

Outlook and guidance

• Expecting continued domestic demand momentum and gradual export recovery as global trade stabilizes and tariff headwinds moderate.

• Visibility of new and incremental peak annual business of INR 800 crore from FY27 onwards, mainly in industrial and passenger vehicles, with two-thirds export-oriented.

• EBITDA margin guidance maintained at 29%-31% over the medium term.

• CapEx for FY26 projected at INR 400-500 crore; FY27 CapEx expected at INR 400 crore (excluding solar), INR 480 crore (including solar).

• Unutilized IPO proceeds of Rs. 7,646.90 lacs as of December 31, 2025, are temporarily invested in fixed deposits, with future deployment planned for equipment purchases.