M M Forgings (522241) Q2 25/26 earnings summary

Executive summary

• Sales for the period were INR 742 crores, down from INR 773 crores year-over-year, with domestic sales stable and exports declining by INR 28 crores.

• Global economic volatility and geopolitical tensions disrupted supply chains and impacted export momentum, especially in the automotive sector.

• H1FY26 saw modest, market-driven moderation in growth, but operational efficiency and cost optimization supported resilience.

• The company expects FY sales to be close to last year's levels, with H2 projected at INR 750–800 crores.

• U.S. market sales dropped sharply but are expected to rebound from November, with customer restocking underway.

Financial highlights

• Standalone revenue from operations for H1FY26 was ₹726.50 cr, down from ₹757.96 cr in H1FY25; consolidated revenue was ₹746.58 cr, down from ₹780.45 cr.

• Standalone EBITDA for H1FY26 was ₹141.59 cr (17.3% margin, excluding other income); consolidated EBITDA was ₹141.56 cr.

• Standalone PAT for H1FY26 was ₹40.05 cr, down from ₹68.35 cr in H1FY25; consolidated PAT was ₹35.76 cr, down from ₹62.02 cr.

• Sales volume: 37,000 tons vs. 40,000 tons previous half year.

• Net debt at Q2: INR 850 crores, up slightly from INR 843 crores at FY start.

Outlook and guidance

• FY sales expected to match previous year, with H2 improvement driven by U.S. market recovery.

• Order book of INR 300 crores, with INR 200 crores to be realized by FY 2027.

• FY 2027 projected as a breakout year as new assets come online and market conditions stabilize.

• CapEx for H2: INR 70 crores; next year: INR 100–120 crores.

• The company remains focused on operational efficiency, innovation, and cost optimization to sustain long-term growth despite global headwinds.