Financial Results Overview

Standalone Financial Position (as at March 31, 2026)

Assets:

  • Total Assets: ₹26,329.55 million (vs ₹22,146.43 million in FY25)
  • Non-current Assets: ₹15,619.61 million (Property, plant and equipment: ₹10,968.71 million; Capital work in progress: ₹2,293.10 million)
  • Current Assets: ₹10,709.94 million (Inventories: ₹2,327.55 million; Trade receivables: ₹3,947.81 million)

Equity and Liabilities:

  • Total Equity: ₹21,282.76 million (Equity share capital: ₹188.70 million; Other equity: ₹21,094.06 million)
  • Non-current Liabilities: ₹489.94 million (Deferred tax liabilities)
  • Current Liabilities: ₹4,556.85 million (Borrowings: ₹3,296.23 million)

Consolidated Financial Position (as at March 31, 2026)

  • Total Assets: ₹26,328.08 million
  • Total Equity: ₹21,281.25 million
  • Total Liabilities: ₹5,046.83 million

Key Financial Metrics

Cash Flow Statement (Consolidated, FY26)

  • Net Cash from Operating Activities: ₹4,446.68 million
  • Net Cash used in Investing Activities: ₹(4,968.29) million
  • Net Cash from Financing Activities: ₹649.32 million
  • Net increase in cash: ₹127.71 million
  • Cash and cash equivalents at year end: ₹257.17 million

ESOP Scheme Activity

HAPPY FORGINGS ESOP SCHEME 2023 (approved July 31, 2023):

  • Options granted in Q2FY24: 332,687 options
  • FY26 Activity:
  • Options exercised: 108,261
  • Options forfeited/lapsed: 2,544
  • Q4FY26 Activity:
  • Options exercised: 22,540
  • Options forfeited/lapsed: Nil

Dividend Recommendation

Board recommended a final dividend of ₹4.00 per equity share (face value ₹2.00) for financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting.

Regulatory Compliance Matters

Labour Code Implementation

Effective November 21, 2025, Government of India notified four labour codes:

  • Code on Wages, 2019
  • Code on Social Security, 2020
  • Industrial Relations Code, 2020
  • Occupational Safety, Health and Working Conditions Code 2020

Central Government notified relevant rules on May 08, 2026. State-level rules yet to be notified. Based on ICAI FAQs and current assessment, no material impact on financial results. Company will monitor developments and account for impact as appropriate.

IPO Fund Utilization

Public Issue Details:

  • Date of Allotment: December 22, 2023
  • Amount Raised: ₹10,086.0 million (₹6,086.0 million Offer for Sale; ₹4,000.0 million Fresh Issue)
  • Monitoring Agency: ICRA Limited

Q4FY26 Utilization:

  • Equipment/Machinery Purchase: ₹171.13 million (reimbursement for amounts incurred from internal accruals in Q4FY25, Q1FY26, and Q2FY26)
  • No deviation/variation in fund usage
  • Total utilized against fresh issue: ₹3,778.23 million
  • Audit Committee and auditors had no comments on fund utilization

Audit Details

Auditor: S.R. Batliboi & Co. LLP (ICAI Firm Registration Number: 301003E/E300005)

Audit Opinion: Unmodified opinion on both standalone and consolidated financial results

Audit Date: May 21, 2026

Subsidiary Information

HFL Technologies Private Limited (wholly-owned subsidiary, incorporated March 16, 2024):

  • Total assets: ₹8.65 million as at March 31, 2026
  • Total revenues: Nil for quarter and year ended March 31, 2026
  • Net loss after tax: ₹0.06 million for year ended March 31, 2026
  • Net cash inflows: ₹1.06 million for year ended March 31, 2026

Document Approval

Financial results reviewed and recommended by Audit Committee and approved by Board of Directors in their meetings held on May 21, 2026.

Additional Information

  • Results prepared in accordance with Indian Accounting Standards (Ind AS)
  • Company operates as single segment (Auto components and Engineering parts)
  • Figures for quarter ended March 31, 2026 are balancing figures between audited full year and unaudited nine months figures