Happy Forgings
Happy Forgings Q2 FY26 earnings call: Revenue & Margins
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
Revenue growth is expected to resume with new capex projects and ramp-ups planned from Q3 and Q4 FY26 onwards. Revenues are expected to grow in coming quarters with several ramp-ups planned; Q4 FY26 should be better than prior quarters.
From Happy Forgings's Q2 FY26 earnings-call transcript · updated 26 Aug 2026.
Revenue & Sales Performance
- Revenue growth is expected to resume with new capex projects and ramp-ups planned from Q3 and Q4 FY26 onwards.
- Company has generated INR 80 crores of new orders in H1 FY26 with better realizations.
- Volume growth in domestic market witnessed 10% YoY increase; exports saw a marginal dip.
- Export business is expected to improve with destocking largely done and customers planning a 50% rebound next year.
- Capex of INR 650 crores is on track, with initial pilot orders worth INR 350 crores in hand, focused on heavy hammer lines, wind, and farm sectors.
- New business segments like passenger vehicles and off-highway machinery will contribute to growth.
2 more points management made on revenue & sales performance
Profitability & Margins
See what Happy Forgings said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Happy Forging Limited is executing a strategic capex program of INR 650 crores, progressing well and expected to be operational around Q3 FY27.
- The capex is planned in two phases: INR 550 crores in the first phase (INR 150 crores for wind and farm equipment, INR 400 crores for heavy hammer and machining lines) and the balance in subsequent phase tied to utilization.
- Around INR 250 crores of the capex is allocated specifically for machining capabilities, to be invested in two phases based on utilization achieving 70%-80%.
- INR 350 crores of annual orders are already in hand aligned with this capex, covering sectors like heavy tractor, wind, and farm equipment.
2 more points management made on capital expenditure plans
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Fundraising & Capital Structure
See what Happy Forgings said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- The company has an existing orderbook of approximately INR 350 crores related to the INR 650 crores capex project, primarily for wind, farm equipment, and heavy hammer lines.
- Of the INR 650 crores capex, INR 550 crores will be invested in the first phase, with INR 150 crores dedicated to wind and heavy tractor programs, and INR 400 crores toward large hammer and machining lines.
- Around INR 250 crores of the capex is allocated for machining, planned in two phases with ramp-up depending on utilization levels.
- The company is actively working on converting pilot orders and expects faster order conversion once infrastructure is fully operational in the next 2-3 quarters.
2 more points management made on order book & pipeline
Happy Forgings — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹424 Cr, net profit ₹84 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Happy Forgings's management said in earlier quarters
Frequently Asked Questions
What were Happy Forgings Q2 FY26 results?
Revenue growth is expected to resume with new capex projects and ramp-ups planned from Q3 and Q4 FY26 onwards. Revenues are expected to grow in coming quarters with several ramp-ups planned; Q4 FY26 should be better than prior quarters.
What is Happy Forgings share price analysis?
Happy Forgings currently shows a neutral. The stock trades at a P/E of 63.8 with a market cap of ₹20,875 Cr. Investors should review the full earnings analysis for detailed insights.
Is Happy Forgings planning capital expenditure?
Happy Forging Limited is executing a strategic capex program of INR 650 crores, progressing well and expected to be operational around Q3 FY27.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.