Financial Performance
Happy Forgings Limited reported strong financial results for FY 2025-26 with standalone revenue growing 9.8% YoY to ₹1,546.34 crore and net profit increasing 12.8% to ₹301.63 crore. EBITDA rose 15.7% to ₹470.69 crore with margins expanding to 30.4% from 28.9% in FY25. The company maintained healthy profitability with gross margin at 59.1% and PAT margin at 19.5%.
Operational Highlights & Expansion
The company commissioned a 10,000-tonne forging press and advanced its ₹650 crore capital expenditure program focused on heavy components (250-3,000 kg range). Forging capacity stood at 148,000 MT with 59% utilization, while machining capacity expanded to 68,000 MT with 82% utilization. Sales volume reached 63,105 MT with realization of ₹245/kg. The company expects incremental business visibility of approximately ₹950 crore over the next 2-3 years across industrial, passenger vehicle, and export segments.
Corporate Actions & Capital Structure
The Board proposed a final dividend of ₹4 per share (200%) for FY26, amounting to ₹37.74 crore, subject to shareholder approval at the 47th AGM on July 27, 2026. The company maintained a strong balance sheet with net worth of ₹2,128 crore, debt-to-equity ratio of 0.15x, and liquidity buffer of ₹431 crore. Borrowings increased to ₹329.62 crore to fund working capital and expansion needs.
Regulatory Compliance & Governance
The company paid fines of ₹14,160 each to BSE and NSE for minor non-compliance with SEBI LODR Regulations regarding Nomination and Remuneration Committee composition for 6 days in May 2025, noted as inadvertent. The board composition includes 6 directors (3 executive, 3 independent) with 33% women representation. Credit ratings were reaffirmed at AA/Stable by both CRISIL and ICRA for ₹485 crore bank facilities.
Subsidiary & ESG Initiatives
HFL Technologies Private Limited, the wholly-owned subsidiary, reported net worth of ₹86.10 lakh with no revenue. The company spent ₹7.0 crore on CSR activities focused on education (₹5.6 crore) and healthcare, including construction of a government school and vocational college for women. ESG achievements included 7% YoY reduction in GHG emissions, 100% zero liquid discharge, and 6.5 MW renewable energy capacity with a 20 MW solar plant under development.
Shareholding & Employee Benefits
Promoter holding remained strong at 78.48% with 99.999% shares in dematerialized form. The ESOP scheme issued 108,261 shares during FY26 with ₹2.46 crore expense recognized. Employee benefits included a funded gratuity plan with LIC showing net liability of ₹68.66 lakh. The company maintained zero cases under POSH Act and had a Lost Time Injury Frequency Rate of 0.6 for workers.