Happy Forgings Limited (NSE: HAPPYFORGE; BSE: 544057), a leading Indian manufacturer of high-precision, safety-critical forged and machined components, reported its highest-ever quarterly revenue of ₹501 crore for Q2 FY27, registering year-on-year growth of 32.7%. The performance was supported by higher sales volumes, improved realisations and growth across key business segments.
Finished goods volumes increased 24.8% to 18,754 MT during the quarter, compared with 15,028 MT in Q2 FY26. Realisation improved 6.3% to ₹267 per kg. Gross profit rose 33.8% to ₹305 crore, with the gross profit margin improving 52 basis points to 60.8%. EBITDA increased 32.2% to ₹153 crore, while the EBITDA margin remained stable at 30.6%. Profit after tax grew 32.8% to ₹98 crore, with a margin of 19.5%.
For H1 FY27, revenue from operations increased 29.9% to ₹950 crore. Finished goods volumes grew 24% to 36,547 MT, while realisation improved 4.8% to ₹260 per kg. Gross profit increased 33.5% to ₹577 crore, EBITDA rose 35.5% to ₹294 crore and PAT grew 35.8% to ₹189 crore. EBITDA and PAT margins improved to 30.9% and 19.9%, respectively.
Domestic and export revenues recorded growth of approximately 30% and 36%, respectively, during the first half. Non-automotive businesses, particularly industrial and off-highway applications, contributed to the broad-based performance. Within automotive, passenger vehicles accounted for 9% of the business as previously secured programmes ramped up, while farm equipment and commercial vehicles also registered strong growth.
Commenting on the results, Ashish Garg, Managing Director, said the company’s quarterly revenue crossed ₹500 crore for the first time, supported by higher volumes and improved realisations. He added that the company is seeing continued diversification across end markets and applications, while maintaining healthy profitability. Return on equity improved to 17.1% and return on capital employed to 19.6% during H1 FY27.
The company’s strategic investments, including its ultra-heavy component manufacturing facility and captive solar power project, are progressing as planned and are expected to contribute from FY28. With capacity utilisation approaching peak levels and strong demand visibility, the Board has approved additional capital expenditure of approximately ₹500 crore to expand machining and forging capacities. The investments will support growth in passenger vehicles, industrial applications and commercial vehicle exports.
Happy Forgings Limited is an engineering-led manufacturer of complex, safety-critical heavy forged and high-precision machined components. Its vertically integrated operations cover engineering, process design, testing, manufacturing and supply. The company serves domestic and international OEMs across automotive, farm equipment, off-highway vehicles, oil and gas, power generation, railways and wind energy sectors.
