Happy Forgings Limited, a prominent Indian manufacturer of high-precision, heavy-duty forged and machined components, reported its consolidated financial results for the quarter ended June 30, 2025. The company delivered a steady performance during the quarter, registering growth across key metrics despite continued challenges in the global business environment.
For Q1 FY26, the company posted revenue from operations of ₹354 crore, reflecting a 3.6% increase compared to the same period last year. This growth was supported by a 3.8% rise in production volumes, coupled with sustained demand for value-added products and stable pricing. Gross profit stood at ₹205 crore, up 6.3% year-on-year, with gross margins improving by 144 basis points to 57.9%, indicating enhanced operational efficiencies.
EBITDA for the quarter came in at ₹101 crore, also up by 3.6% compared to the previous year. The EBITDA margin remained robust at 28.6%, underscoring the company’s ability to maintain profitability amid cost pressures. Profit After Tax (PAT) rose 3.0% year-on-year to ₹66 crore, with a PAT margin of 18.6%, further highlighting the strength of its financial performance.
Managing Director Ashish Garg commented on the results, stating that despite a deflationary trend in steel prices and persistent headwinds in some end-use sectors, the company delivered a resilient first quarter. He noted that finished goods volumes rose approximately 4% year-on-year, and realisations remained stable at ₹245 per kg, which helped maintain revenue growth.
Mr Garg added that domestic demand remained strong across key sectors such as Passenger Vehicles, Farm Equipment, and Industrials, resulting in nearly 7% growth in local business. However, exports were relatively weaker, impacted by reduced demand in the Commercial Vehicle and Off-Highway segments and uncertainty caused by tariff developments in several international markets.
Although some mature export programs saw a decline in offtake, Happy Forgings successfully retained all existing business shares. The company also secured new orders and made gains in emerging segments, helping offset the weaker export performance. Its strategic focus on diversifying into the Passenger Vehicle and Industrial sectors is beginning to yield positive results.
Looking ahead, the company is keeping a close watch on potential tariff impacts, particularly in European markets. Despite the current challenges, management stated that the order pipeline remains strong, with no cancellations or delays reported. In fact, the company expects to win additional business from European OEMs as it continues to expand its global footprint.
In terms of business mix, machined products accounted for 88% of total revenue, up from 87% in the same quarter last year. The sector-wise revenue split was led by Commercial Vehicles at 39% (down from 42%), followed by Farm Equipment at 32% (up from 31%), Passenger Vehicles at 6% (up from 3%), Industrials at 13% (up from 11%), and Off-Highway Vehicles at 10% (down from 12%). Geographically, domestic sales made up 84% of the total, with direct exports contributing 16%.
Happy Forgings continues to position itself as one of India’s most engineering-focused producers of critical, high-precision forged and machined components. Operating on a vertically integrated model that spans engineering, design, manufacturing, and supply chain, the company serves both domestic and global OEMs across automotive and non-automotive sectors. These include Commercial and Passenger Vehicles, Farm Equipment, Off-Highway Vehicles, Oil & Gas, Power Generation, Railways, and Wind Energy. Committed to its long-term strategy, the company is actively investing in expanding its capacity and capabilities in niche, high-margin segments.
