Full Year 2026 Happy Forgings Ltd Earnings Call Transcript
Key Points
- Happy Forgings Ltd (NSE:HAPPYFORGE) reported its highest ever annual profitability with revenues of INR1,546 crores and EBITDA margins at 30.4%, reflecting strong business execution.
- The company achieved a significant sales growth of around 20% year-on-year in Q4 FY26, with EBITDA and PAT growth of approximately 30% and 24%, respectively.
- Happy Forgings Ltd expanded its machining capacity to 68,000 metric tons and commissioned a new 10,000-tonne forging line, indicating strategic investments in capacity expansion.
- The company has a strong order book of INR950 crores, expected to be executed over the next two to three years, showcasing robust future growth prospects.
- Happy Forgings Ltd maintains a strong balance sheet with a AA rated stable credit rating, providing significant financial flexibility for future growth initiatives.
- Global markets, particularly North America and Europe, reported a 9% to 10% decline in unit sales, impacting the company's export-dependent CV segment sales.
- The domestic off-highway segment experienced a 7% decline in construction equipment sales due to slower project awards and land acquisition delays.
- Export markets in Europe and the US are expected to remain broadly stable, with challenges persisting in the export market segments across CV, farm, and off-highway.
- The company faces ongoing challenges with input cost inflation and global uncertainties, which may impact near-term financial performance.
- Despite strong domestic growth, the export market segments are weathering challenges and may only show moderate signs of recovery.
Ladies and gentlemen, good day, and welcome to the Q4 and FY26 earnings conference call of Happy Forgings Limited. (Operator Instructions) Please note that this conference is being recorded.
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 the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Ashish Garg, Managing Director, Happy Forgings Limited. Thank you, and over to you, sir.
Good morning, and a very warm welcome to all of you to Happy Forgings Limited quarter 4 FY26 earnings call. With me, I have Mr. Pankaj Kumar Goyal, CFO of the company; Strategic Growth Advisors, our Investor Relations company. I trust everyone has had the chance to review our financial statements and investor presentations for quarter 4 and FY26, which we
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