M M Forgings (522241) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw strong sales growth, with total sales at INR 427 crores, up 16% year-over-year, driven by robust demand in both domestic and export markets, especially the U.S. commercial vehicle sector.

• Operational stability and improved business momentum were maintained despite global volatility and trade challenges.

• Large machined-product programs ramped 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.

• Commissioning of a 16,500-tonne press is expected to enhance capabilities and export potential.

Financial highlights

• Revenue grew 16% year-over-year to INR 427 crores; EBITDA up 16% to INR 82.33 crores; PBT up 30% year-over-year.

• Standalone PAT surged 373% to INR 91.66 crores, 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, attributed to higher realization and a better machining mix.

• Basic and diluted EPS (consolidated) for Q1 FY27 stood at ₹18.73, up from ₹3.98 in Q1 FY26.

Outlook and guidance

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

• Capacity utilization is expected to rise, with sales volume projected 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.

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