Happy Forgings (HAPPYFORGE) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue reached Rs 501 Cr, up 32.7% YoY; H1 revenue was Rs 950 Cr, up 29.9%, on volume and realization growth.

• H1 EBITDA rose 35.5% to Rs 294 Cr and PAT rose 35.8% to Rs 189 Cr; margins improved YoY.

• Board approved Rs 500 Cr of phased forging and machining capacity expansion, supported by order-book and demand visibility.

Financial highlights

• Q2 FY27 revenue was Rs 50,074.96 lakh, up from Rs 37,738.55 lakh; EBITDA was Rs 153 Cr and PAT was Rs 9,750.39 lakh.

• H1 FY27 revenue was Rs 95,017.19 lakh, up from Rs 73,118.89 lakh; EBITDA was Rs 294 Cr and net profit was Rs 18,896.52 lakh.

• H1 gross profit rose 33.5% to Rs 577 Cr; PBT was Rs 25,324.06 lakh, up from Rs 18,724.70 lakh.

• Finished-goods volume rose 24.8% to 18,754 MT in Q2 and 24.0% to 36,547 MT in H1; realizations increased 6.3% to Rs 267/kg and 4.8% to Rs 260/kg, respectively.

• Diluted EPS was Rs 10.32 in Q2 FY27 and Rs 19.99 in H1 FY27.

Outlook and guidance

• Improving demand, healthy order books and ramp-up of secured business support confidence in meeting or exceeding FY27 volume-growth guidance.

• FY27 profitability margins are expected near FY26 levels; EBITDA per kg is expected to hold or improve in H2 despite cost pressures.

• Rs 500 Cr of added capacity is planned in phases during FY28–FY29, including ~24,000 MT/year of forging and ~14,000 MT/year of machining capacity.

• North American PV wins are expected to contribute from Q3 FY27; ultra-heavy manufacturing and captive solar projects are expected to contribute from FY28.