M M Forgings (522241) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw resilient performance amid global volatility, with total income at INR 358 crores and consolidated revenue at ₹361.65 cr, both down year-over-year.

• EBITDA for the quarter was INR 72 crores (standalone ₹71.64 cr; consolidated ₹71.06 cr), lower than last year.

• Profit after tax stood at INR 22 crores (standalone ₹22.34 cr; consolidated ₹19.19 cr), down from last year.

• Strategic focus on operational efficiency, innovation, and cost control supported results despite headwinds.

• Sales volume was 17,780 tons, with production at 18,000 tons, both lower than the previous quarter.

Financial highlights

• Standalone revenue for Q1FY26 was ₹348.81 cr, down from ₹368.52 cr in Q1FY25; consolidated revenue was ₹361.65 cr, down from ₹382.19 cr.

• Standalone EBITDA was ₹71.64 cr (down from ₹78.41 cr); consolidated EBITDA was ₹71.06 cr (down from ₹78.67 cr).

• Standalone PAT was ₹22.34 cr (down from ₹32.43 cr); consolidated PAT was ₹19.19 cr (down from ₹30.11 cr).

• Export sales contributed 40.2% of revenue, with ₹137 cr from exports.

• Depreciation increased to INR 22.5 crores from INR 19 crores; finance cost rose to INR 18.3 crores from INR 14.5 crores.

Outlook and guidance

• Management remains cautiously optimistic, focusing on cost control and sales growth despite near-term headwinds.

• No specific sales guidance due to volatility from US tariffs and global uncertainties.

• Margins expected to hold with a 200 basis point upward bias, depending on product mix and volumes.

• Revenue from new capacities expected to start from Q4 FY26 to Q1 next year.