M M Forgings (522241) investor relations material

Executive summary

• Q1 FY27 saw significant improvement in both domestic and export markets, with strong momentum in the U.S. and Indian CV, tractor, and passenger car segments.

• Export markets remained resilient, while domestic opportunities showed strong improvement.

• Large machined-product programs are ramping up, with increased focus on Passenger Vehicles and Off-Highway segments.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, following Audit Committee recommendations.

• Emphasis remains on operational excellence, technology upgrades, and managing inflationary pressures.

Financial highlights

• Total sales reached INR 427 crores, up from INR 369 crores year-over-year, with EBITDA at INR 82 crores gross and INR 75 crores net of other income.

• Standalone PAT surged 373% to ₹91.66 crore, driven by a one-time profit on land sale.

• Sales per ton increased to INR 202,000 from INR 193,000 sequentially.

• Gross margin improved by over 350 basis points sequentially, driven by better realization and product mix.

• Standalone and consolidated total expenses for Q1 FY27 were ₹39,070.38 lakhs and ₹39,168.78 lakhs, respectively.

Outlook and guidance

• Management expects 18% revenue growth for FY27, targeting turnover of INR 1,800–1,900 crores.

• Capacity utilization is set to rise, with sales volume expected to cross 90,000 tons this year and challenge 110,000 tons next year.

• EBITDA margin improvement targeted to exceed 20% through cost optimization and productivity gains.

• Healthy order pipeline, diversified customer base, and strong manufacturing capabilities support sustainable growth and profitability.

• CapEx of INR 150 crores planned for FY27, with INR 30–50 crores for replacement and the rest for growth and debottlenecking.