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Happy Forgings (HAPPYFORGE) investor relations material
Happy Forgings Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.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 export markets and softening steel prices.
Profitability growth outpaced revenue, with Q3 PAT up 22.3% YoY and strong cash generation enabling capacity investments without straining the balance sheet.
Sequential improvement in Q3 over Q2 reinforces growth momentum, positioning for a strong FY26 close.
EPS for Q3 FY26 was 8.36–8.37, with nine-month EPS at 23.09–23.13.
Operating cash flow for nine months was INR 315 crore, with liquid assets exceeding INR 400 crore, supporting growth and capex.
Financial highlights
Q3 FY26 revenue: 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).
Q3 gross profit: INR 230 crore (up 12.2% YoY); nine-month gross profit: INR 663 crore (up 8.5% YoY); gross margins at 58.9% (Q3) and 59.1% (nine months).
Q3 EBITDA: INR 120 crore (up 18.7% YoY); nine-month EBITDA: INR 337 crore (up 10.8% YoY); EBITDA margins at 30.8% (Q3) and 30.1% (nine months).
Realisation per kg for nine months: INR 245 (-1.3% YoY); working capital intensity reduced, supporting robust cash flow conversion.
Basic EPS for Q3 FY26: 8.36–8.37; nine-month EPS: 23.09–23.13.
Outlook and guidance
Expect continued domestic demand momentum and gradual export recovery as global trade dynamics evolve and tariff headwinds moderate.
Visibility of new peak annual business of ~INR 800 crore from FY27, scaling over 2–3 years, 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 expected at INR 400–500 crore; FY27 CapEx projected at INR 400 crore (excluding solar), INR 480 crore (including solar).
Unutilized IPO proceeds of INR 76.47 crore as of December 31, 2025, are temporarily invested in fixed deposits for future equipment purchases.
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