Q1 2026 Happy Forgings Ltd Earnings Call Transcript
Key Points
- Happy Forgings Ltd (NSE:HAPPYFORGE) achieved a revenue of INR350 crores for Q1 FY26, marking a year-on-year growth of 3.6% despite a 3% raw material price correction.
- The company maintained strong gross profit margins at 57.9% and EBITDA margins at 28.6%, indicating robust financial health.
- Domestic business grew by 7% year-on-year, driven by strong demand in sectors like wind energy, power generation, and oil and gas.
- The company is actively expanding its business pipeline, securing new orders from European customers despite tariff-related uncertainties.
- Happy Forgings Ltd is on track with its INR650 crores CapEx plan to enhance production capacities, including the commissioning of new presses, which will increase annual capacity by approximately 20,000 metric tonnes.
- Export segments saw a decline due to continued weakness in commercial vehicle and off-highway and farm equipment segments, as well as tariff-related uncertainty.
- The global commercial vehicle industry is facing challenges, with several large US and European OEMs reporting an 8%-10% decline in unit sales.
- The off-highway segment experienced softness both domestically and globally, with a decline of 10% to 12% in Europe and the US.
- The company faces uncertainty in the export market due to shifts in tariff regimes, particularly affecting indirect impacts on the European market.
- Capacity utilization remains relatively low at 57% to 59%, which could limit operational efficiency and margin improvements until utilization increases.
Ladies and gentlemen, good day and welcome to the Q1 FY26 earnings conference call of Happy Forgings Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Garg, Managing Director from Happy Forgings Limited. Thank you and over to you, sir.
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Thank you. Good morning, everyone, and thank you for joining us today for the quarter 1 FY26 earnings call of Happy Forgings Limited. FY26 has started on a resilient note with positive growth and sustained margins despite of ongoing industry headwinds.
For the quarter ended June 30, 2025, we achieved a revenue of INR350 crores, marking a year-on-year
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