Happy Forgings LimitedQ1 FY27 Results & Financial Update
Happy Forgings Limited: Q1 FY27 consolidated results and company financials – revenue ₹449.42 Cr, PAT ₹91.46 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Happy Forgings Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Happy Forgings initiated fiscal year 2027 with a strong operating performance, posting consolidated quarterly revenue from operations of nearly Rs. 450 crores (Rs. 449.42 crores), representing a 27.0% year-on-year increase compared to the corresponding period of the previous year.
According to management commentary in the investor presentation, revenue expansion was propelled by a 23.1% year-on-year increase in finished goods sales volumes—reaching 17,793 metric tonnes—combined with a 3.2% improvement in average realisations per kilogram to Rs. 253, reflecting progressive shifts toward higher-value product mixes.
Profitability scaled faster than top-line growth due to operating leverage and enriched product realization; gross profit expanded by 33.1% year-on-year to Rs. 273 crores, driving gross margins higher by 276 basis points to 60.7%.
Earnings before interest, tax, depreciation, and amortization (EBITDA) grew 39.3% year-on-year to Rs. 141 crores, maintaining the EBITDA margin above the 30% threshold for the fourth consecutive quarter at 31.3%.
Net profit after tax (PAT) for the quarter rose 39.2% year-on-year to Rs. 91.46 crores, crossing the 20% net profit margin milestone for the first time at 20.4%, supported by a lower relative increase in fixed employee costs and overheads.
Growth during the quarter demonstrated broad-based momentum across diverse end-markets, with domestic demand across commercial vehicles, passenger vehicles, farm equipment, and off-highway segments rising approximately 25% year-on-year, while export demand surged by over 30%.
Profit after tax was ₹91.46 Cr for the reported quarter. EPS was ₹9.68 for the reported quarter.
01 · Business model
What does Happy Forgings do?
Incorporated in July 1979 and headquartered in Ludhiana, Punjab, Happy Forgings Limited is an engineering-led manufacturer specializing in heavy forgings and high-precision machined components.
The company produces a diverse portfolio of critical products including crankshafts, front axle components, rear axle components, steering knuckles, differential housings, transmission parts, pinion shafts, and valve bodies catering to automotive and industrial original equipment manufacturers.
Happy Forgings operates three manufacturing facilities in Ludhiana equipped with heavy-duty forging presses up to 14,000 tonnes and advanced CNC machining lines, positioning the company as India's second-largest commercial vehicle crankshaft producer and third-largest complex component manufacturer.
The operational model integrates in-house design, metallurgical testing, heat treatment, and precision machining, allowing the company to capture higher value-addition across commercial vehicles, farm equipment, passenger vehicles, and industrial sectors.
02 · Historical context
What shaped the business before this quarter
Established in 1979 as a single-unit crank arm manufacturer, the company progressively expanded across four decades, installing heavy-duty hammers in 2005, commissioning Kanganwal Facility II in 2006, and crossing Rs. 100 crores in revenue by 2007.
The company installed its first 8,000-tonne forging press in 2008, added subsequent lines, commissioned the Dugri facility in 2021, and launched its first 14,000-tonne press along with dedicated crankshaft lines in 2022.
After crossing Rs. 1,000 crores in revenue, Happy Forgings completed its initial public offering and public market listing in 2023, followed by the operationalization of a 6,300-tonne press in 2025 and a 10,000-tonne forging press line in 2026.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹449.42 Cr |
| Total income | ₹460.50 Cr |
| Profit before tax | ₹122.64 Cr |
| Profit after tax | ₹91.46 Cr |
| EPS | ₹9.68 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Finished goods sales volumes reached 17,793 metric tonnes in Q1 FY27, marking a 23.1% increase over Q1 FY26 volume of 14,457 metric tonnes.
Realisation per kilogram improved by 3.2% year-on-year from Rs. 245 to Rs. 253, driven by higher value-addition and better product mix realization.
Growth was distributed across domestic markets and export channels, with exports accounting for 28% of revenue, and passenger vehicle and industrial sectors contributing 8% and 16% respectively.
What drove margins
Gross margin expanded by 276 basis points year-on-year to 60.7% (generating Rs. 273 crores in gross profit), aided by favorable product mix changes and value addition.
EBITDA margin stood at 31.3%, expanding by 275 basis points year-on-year, reflecting operating leverage across manufacturing facilities despite higher absolute employee and operational expenses.
05 · Demand, customers & order book
Where demand is coming from
The company's incremental order book, largely driven by export orders, passenger vehicles, and industrial segments, provides visibility on additional annual revenue ramping up to approximately Rs. 950 crores over the next 2 to 3 years.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
In Q1 FY27, commercial vehicles accounted for 33% of revenue, farm equipment for 32%, passenger vehicles for 8%, off-highway vehicles for 11%, and non-automotive industrials for 16%.
Forged and machined components constituted 90% of revenue in Q1 FY27 compared to 88% in Q1 FY26, while unmachined forgings accounted for 10%.
Geography and market mix
Domestic markets contributed 72% of Q1 FY27 revenue, direct exports accounted for 16%, and deemed plus indirect exports represented 12%.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
As of June 30, 2026, total annual installed forging capacity stood at 1,52,000 MT (operating at 59% capacity utilization in Q1 FY27), and total machining capacity stood at 75,200 MT (operating at 78% capacity utilization).
Planned capacity additions include approximately 35,000 MT of forging capacity and 20,000 MT of machining capacity slated to be operational by FY28.
Projects, capex and execution
Installation of equipment for the company's ultra-heavy component manufacturing facilities is progressing toward completion by the end of FY27, setting up commercial revenue commencement from FY28 onwards.
Execution of the company's captive solar power project remains on track to begin contributing to operating cost efficiencies from FY28.
08 · Strategy & new businesses
How the company is trying to change its growth mix
The company continues its transition from a forging-led supplier to a comprehensive precision-machined component manufacturer by leveraging in-house design capabilities and fungible production lines.
09 · Reported developments
What changed operationally
Achieved record quarterly revenue of nearly Rs. 450 crores alongside record gross, EBITDA, and PAT margins.
10 · Management guidance & targets
What management is targeting from here
Management expressed optimism for FY27, expecting production and sales volumes to strengthen progressively over the year, supported by improving industry demand and the ramp-up of recently secured business.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
Credit Rating
The company maintains AA/Stable credit ratings from both CRISIL and ICRA.
12 · Key Q&A
The quarter, answered directly
What does Happy Forgings do?
Incorporated in July 1979 and headquartered in Ludhiana, Punjab, Happy Forgings Limited is an engineering-led manufacturer specializing in heavy forgings and high-precision machined components.
What is the clearest takeaway from Q1 FY27?
Happy Forgings initiated fiscal year 2027 with a strong operating performance, posting consolidated quarterly revenue from operations of nearly Rs. 450 crores (Rs. 449.42 crores), representing a 27.0% year-on-year increase compared to the corresponding period of the previous year.
What drove revenue or demand?
Finished goods sales volumes reached 17,793 metric tonnes in Q1 FY27, marking a 23.1% increase over Q1 FY26 volume of 14,457 metric tonnes.
What mattered most for margins or profitability?
Gross margin expanded by 276 basis points year-on-year to 60.7% (generating Rs. 273 crores in gross profit), aided by favorable product mix changes and value addition.
What changed operationally beyond the headline numbers?
As of June 30, 2026, total annual installed forging capacity stood at 1,52,000 MT (operating at 59% capacity utilization in Q1 FY27), and total machining capacity stood at 75,200 MT (operating at 78% capacity utilization).
What is management guiding or targeting from here?
Management expressed optimism for FY27, expecting production and sales volumes to strengthen progressively over the year, supported by improving industry demand and the ramp-up of recently secured business.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Capacity Milestone: Completion of equipment installation for ultra-heavy component manufacturing facilities by the end of FY27.
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