Happy Forgings (HAPPYFORGE) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 449 crore (₹44,942.23 lakhs) and PAT of INR 91 crore (₹9,146.94 lakhs), up 27% and 39.2% year-over-year, respectively.

• Finished goods volumes rose 23.1% YoY and realizations per kg improved by 3.2% to INR 253/kg.

• Growth was broad-based across all business segments and geographies, with domestic revenue up ~25% YoY and export revenue up over 30% YoY.

• Continued diversification of revenue mix, with increasing contributions from industrials and passenger vehicles; exports contributed 28% of revenue.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved and reviewed by the Board and statutory auditors.

Financial highlights

• Revenue from operations grew 27% YoY to INR 449 crore (₹44,942.23 lakhs); PAT grew 39.2% YoY to INR 91 crore (₹9,146.94 lakhs).

• Gross profit rose 43.1% YoY to INR 273 crore; gross margin expanded by 276 bps to 60.7%.

• EBITDA increased 39.3% YoY to INR 141 crore; EBITDA margin improved by 275 bps to 31.3%.

• EPS (Diluted) for the quarter stood at ₹9.68, compared to ₹6.96 in Q1 FY26.

• Machining share increased to 90% of revenue from 88% YoY.

Outlook and guidance

• Expecting high-teen volume growth for FY 2027, with EBITDA margins to remain above 30%.

• Full benefit of negotiated price increases with OEMs to reflect from Q2 FY 2027.

• Captive solar power project to contribute from Q4 FY 2027/FY28, supporting margins.

• New business streams and capacity expansions to drive growth from FY 2029 onwards.

• Incremental order book, led by exports and new segments, provides visibility for additional annual revenue of ~INR 950 crore over the next 2-3 years.