Happy Forgings Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Happy Forgings Ltd filed with BSE on 28 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Happy Forgings reported FY26 revenue of Rs.1,546 crores with EBITDA margins at 30.4% and PAT margins at 19.5%, both improving year-on-year, while Q4 FY26 saw sales growth of around 20% and EBITDA and PAT growth of approximately 30% and 24% respectively. Management attributed the performance to volume growth, a higher machining mix, and operational leverage, while noting export weakness in North America and Europe across CV, farm and off-highway segments. The company outlined new order wins of roughly Rs.950 crores executable over the next 2 to 3 years, alongside ongoing capacity expansion in forging and machining and a planned captive solar power plant.
Numbers mentioned
Revenue: Rs.1,546 crores (FY26)
p. 3
“we delivered our highest ever annual profitability with revenues of Rs.1,546 crores”
Ashish Garg, page 3 of the filed PDF · View the filing
EBITDA margin: 30.4% (FY26)
p. 3
“EBITDA margins at 30.4%, expanding by approximately 160 basis points”
Ashish Garg, page 3 of the filed PDF · View the filing
PAT margin: 19.5% (FY26)
p. 3
“PAT margins at 19.5%, improving by approximately 90 basis points year-on-year on an adjusted basis”
Ashish Garg, page 3 of the filed PDF · View the filing
Revenue from operations: Rs.424 crores (Q4 FY26)
p. 6
“For Q4 FY '26, revenue from operations stood at Rs.424 crores, while the full year FY '26 revenue came in at Rs.1,546 crores”
Pankaj Kumar Goyal, page 6 of the filed PDF · View the filing
Gross margin: 59.4% (Q4 FY26)
p. 6
“Consequently, gross margin increased to 59.4% for the Q4 FY '26 and 59.1% for the full year by 70 basis points and 140 basis points, respectively”
Pankaj Kumar Goyal, page 6 of the filed PDF · View the filing
EBITDA: Rs.133 crores (Q4 FY26)
p. 6
“EBITDA for Q4 FY '26 came in at Rs.133 crores, reflecting a strong growth of 30.4% Y-o-Y”
Pankaj Kumar Goyal, page 6 of the filed PDF · View the filing
PAT: Rs.84 crores (Q4 FY26)
p. 6
“PAT for Q4 FY '26 stood at Rs.84 crores, reflecting a strong growth of 23.6% Y-o-Y”
Pankaj Kumar Goyal, page 6 of the filed PDF · View the filing
Cash flow from operations: approximately Rs.445 crores (FY26)
p. 6
“resulting in cash flow from operations of approximately Rs.445 crores for FY '26”
Pankaj Kumar Goyal, page 6 of the filed PDF · View the filing
Finished goods volume growth: 11% (FY26)
p. 3
“Our finished goods volume grew by 11% during the year, while realizations remained broadly stable at Rs.245 per kg despite softening raw material prices”
Ashish Garg, page 3 of the filed PDF · View the filing
New order book: Rs.950 crores
p. 7
“The order book for the new businesses today stands at nearly Rs.950 crores, which will be executed in the next 2 to 3 years”
Ashish Garg, page 7 of the filed PDF · View the filing
Capex deployed: around Rs.460 crores (FY26)
p. 7
“Our ongoing capex program is progressing as planned with a capex of around Rs.460 crores deployed during FY '26”
Pankaj Kumar Goyal, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Volume growth — late-teen · FY27
stated firmly by Ashish Garg
p. 5
“We expect late-teen volume growth for the business while maintaining EBITDA margins broadly in line with FY '26 levels”
Ashish Garg, page 5 of the filed PDF · View the filing
EBITDA margin — broadly in line with FY '26 levels · FY27
stated firmly by Ashish Garg
p. 5
“We expect late-teen volume growth for the business while maintaining EBITDA margins broadly in line with FY '26 levels”
Ashish Garg, page 5 of the filed PDF · View the filing
Capex — Rs.450 crores to Rs.500 crores · FY27
stated firmly by Pankaj Kumar Goyal
p. 7
“Looking ahead, we expect total capex for FY '27 to be in the range of Rs.450 crores to Rs.500 crores, primarily directed towards expanding our high-growth capabilities”
Pankaj Kumar Goyal, page 7 of the filed PDF · View the filing
Capex — Rs.800 crores · next 2 years
stated firmly by Ashish Garg
p. 11
“So next 2 years, planned capex will be in the range of Rs.800 crores.”
Ashish Garg, page 11 of the filed PDF · View the filing
Selling price increase from customers — 3.5% to 4%
stated conditionally by Ashish Garg
p. 9
“we are expecting around 3.5% to 4% increase on selling price from our customers, for which our teams are in discussion”
Ashish Garg, page 9 of the filed PDF · View the filing
Crank shaft revenue contribution — 58% to 60% · FY28-29
stated as an aspiration by Ashish Garg
p. 15
“It is going up to 58% to 60% by FY '28, '29.”
Ashish Garg, page 15 of the filed PDF · View the filing
Forging capacity — 187,000 tons · FY28
stated firmly by Ashish Garg
p. 13
“it will be enhanced to 187,000 tons, addition of almost 26,000 tons from FY '27 to '28”
Ashish Garg, page 13 of the filed PDF · View the filing
Machining capacity — 87,000 tons · FY28
stated firmly by Ashish Garg
p. 13
“Machining side, the capacity will improve from 69,000 tons to 82,000 tons by FY '27 and from 82,000 tons to 87,000 tons by FY '28.”
Ashish Garg, page 13 of the filed PDF · View the filing
Solar power plant benefit — FY28
stated conditionally by Ashish Garg
p. 5
“This initiative is expected to reduce our annual power cost significantly with partial benefits starting from FY '28 and full benefits accruing thereafter.”
Ashish Garg, page 5 of the filed PDF · View the filing
CV segment mix — 27%
stated as an aspiration by Ashish Garg
p. 7
“we will have commercial vehicle contributing around 27% going forward”
Ashish Garg, page 7 of the filed PDF · View the filing
Industrials segment mix — 30%-31%
stated as an aspiration by Ashish Garg
p. 7
“we expect industrials to be a large part of the business, which will be around 30%-31% from 11% right now”
Ashish Garg, page 7 of the filed PDF · View the filing
Passenger vehicle segment mix — 10%
stated as an aspiration by Ashish Garg
p. 7
“Passenger vehicles, we expect improvement from 6% to almost 10% going forward”
Ashish Garg, page 7 of the filed PDF · View the filing
CV market share (MHCV) — 42%
stated as an aspiration by Ashish Garg
p. 16
“we are currently at 32% market share on the CV side, which we expect to go up to 42% on the MHCV side”
Ashish Garg, page 16 of the filed PDF · View the filing
Farm equipment market share — 45%
stated as an aspiration by Ashish Garg
p. 17
“We are currently at 41%, which should improve to around 45%.”
Ashish Garg, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said new order wins of Rs.140 crores were added recently, total new order book stands at Rs.950 crores executable over 2-3 years, with mix shifting toward industrials and PV.
Answered by Ashish Garg
Asked by Pankaj Tibrewal: What is the shape and size of new growth areas over next 2-3 years?
p. 7
“in the last quarter and the last 4 months, we were able to acquire another Rs.140 crores of new businesses across various sectors, largely on the industrial side, which is towards the data center business and also towards the passenger vehicle business”
Ashish Garg, page 7 of the filed PDF · View the filing
Management said besides steel pass-through, they are seeking 3.5-4% price increases for other cost inflation, with some OEM confirmations already received.
Answered by Ashish Garg
Asked by Sahil Sanghvi: What price hikes are being sought from customers to cover input inflation?
p. 9
“besides the steel price, we are expecting around 3.5% to 4% increase on selling price from our customers, for which our teams are in discussion. We have received the confirmation from a few OEMs.”
Ashish Garg, page 9 of the filed PDF · View the filing
Management described export demand as robust with ramp-ups proceeding on schedule and no delays, expecting single-digit growth from European customers.
Answered by Ashish Garg
Asked by Vijay Pandey: How is export demand looking amid the geopolitical scenario?
p. 9
“So the export demand is robust, I must say. And the programs which were done in the last 2 years are taking good shape and are in good demand right now.”
Ashish Garg, page 9 of the filed PDF · View the filing
Management said new businesses in hand have realizations of Rs.340-350/kg versus current average of Rs.240-245/kg, driving medium-term gross margin gains.
Answered by Ashish Garg
Asked by Mihir Vora: What is driving the gross margin improvement given PV, CV and farm mix?
p. 10
“the businesses, if you talk about the Rs.950 crores businesses which are in hand today, if you look at the realization for those businesses, it comes out to Rs.340, Rs.350 a kg”
Ashish Garg, page 10 of the filed PDF · View the filing
Management said the solar plant should begin generating power from Q4 with most benefit accruing the following year.
Answered by Ashish Garg
Asked by Akash: What is the timeline for the solar capex to be operational?
p. 13
“It should start generating from Q4 onwards. And next year, potentially, we should be having 70% to 80% of the benefit for which we have already in the middle of the capex right now.”
Ashish Garg, page 13 of the filed PDF · View the filing
Management said infrastructure should be largely ready by Q4 but development lead times of 6-9 months are still required before revenue starts.
Answered by Ashish Garg
Asked by Prateek Shrivastava: Can the data center-related capex be fast-tracked given the AI infrastructure boom?
p. 14
“we are expecting that by Q4, we'll be ready. But then there is a development lead time and lead times expected as well, which will take 6 to 9 months to start our activities in terms of our revenues.”
Ashish Garg, page 14 of the filed PDF · View the filing
Management said crank shaft contribution has been around 50% and flattish year-on-year but is expected to rise to 58-60% by FY28-29.
Answered by Ashish Garg
Asked by Lakshminarayanan: What is crank shaft's contribution to revenue and how is it expected to trend?
p. 15
“Contribution is nearly 50%, I can say, between FY '25 and FY '26.”
Ashish Garg, page 15 of the filed PDF · View the filing
Management said CV growth of 35-40% is expected on market share gains, with farm equipment market share also expected to improve from 41% to around 45%.
Answered by Ashish Garg
Asked by Nishant Chowhan: How should the high-teens volume growth guidance be broken down by segment?
p. 16
“So CV alone, we are expecting almost 35%, 40% growth this year for us because of the new programs and the new ramp-ups, which is ongoing.”
Ashish Garg, page 16 of the filed PDF · View the filing
Risks flagged
Rising raw material and manufacturing cost inflation due to the U.S.-Iran situation
p. 4
“In recent months, we have seen some increases in raw material prices and in other manufacturing costs due to ongoing U.S. Iran issue.”
Ashish Garg, page 4 of the filed PDF · View the filing
Decline in global CV export markets in North America and Europe
p. 4
“global markets, particularly North America and Europe reported 9% to 10% decline in unit sales and also led to single-digit decline for us as well in our export-dependent CV segment sales”
Ashish Garg, page 4 of the filed PDF · View the filing
Decline in export markets for farm equipment
p. 4
“Export markets declined further during the period.”
Ashish Garg, page 4 of the filed PDF · View the filing
Slower project awards and land acquisition delays affecting off-highway demand
p. 4
“Slower project awards, particularly in roads and highway and other infrastructure segments, along with land acquisition approval-related delays moderated the pace of project execution.”
Ashish Garg, page 4 of the filed PDF · View the filing
Decline in domestic construction equipment sales
p. 4
“This impacted equipment demand during the period and led to a 7% decline in domestic construction equipment sales.”
Ashish Garg, page 4 of the filed PDF · View the filing
Adverse foreign exchange movements affecting other income
p. 6
“Other income was affected by roughly Rs.4.5 crores in Q4 because of adverse foreign exchange movements.”
Pankaj Kumar Goyal, page 6 of the filed PDF · View the filing
Fuel cost increases due to LPG and fuel price hikes
p. 8
“we have seen 30% to 40% hike because LPG and fuel costs have gone up”
Ashish Garg, page 8 of the filed PDF · View the filing
Global uncertainties and input cost inflation as near-term challenges
p. 5
“While global uncertainties and input cost inflation continue to remain near-term challenges, we believe our strong customer relationship, diversified portfolio and operational strengths position us well to navigate the environment effectively.”
Ashish Garg, page 5 of the filed PDF · View the filing
Decline in export CV segment sales this quarter
p. 12
“On the export side, there was a degrowth on the CV side by almost 25%.”
Ashish Garg, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.