Happy Forgings Q2 FY26 Concall Decoded: Forging Ahead While the World Cools 🔩🔥
1. Opening Hook
Even as global demand sputtered and U.S. tariffs threw a spanner in the export machine, Happy Forgings turned in margins shinier than its crankshafts. With a 60% gross margin and 31% EBITDA margin, the company proved that precision pays — and that resilience is as much about machining as it is about mindset.
Managing Director Ashish Garg sounded almost serene while announcing record profitability and a ₹650 crore capex project that could forge the next growth cycle. If global OEMs are destocking, Happy’s counter is restocking confidence. Let’s break down the call that turned steel into strategy.
2. At a Glance
Metric
Q2 FY26
YoY Growth
Comment
Revenue
₹377 Cr
+4.5%
Slow but steady amid weak exports
EBITDA
₹116 Cr
+10%
Margin magic: 30.7%
PAT
₹73 Cr
+10%
Profit rising faster than topline
Gross Margin
60%
+150 bps
Premium mix showing strength
EBITDA Margin
31%
+150 bps
Among highest in Indian auto ancillaries
H1 Revenue / PAT
₹731 Cr / ₹139 Cr
+4% / +7%
Stable first half
Debt/Equity
<0.1x
—
Balance sheet built like a tank
Cash Liquidity
₹315 Cr
—
Fuel for capex & potential M&A
Even with exports wobbling, Happy Forgings stayed cash-positive, capex-ready, and margin-proud.
3. Management Highlights
“We achieved our highest-ever gross margin of 60% and EBITDA margin of 31%.” (That’s not a typo — it’s execution.)
“88% of our revenues come from value-added machining.” (Commodity risk? Outsourced to history.)
“₹650 crore capex progressing well — heavy hammer & wind/farm lines operational from FY27.” (Forging’s version of a moonshot.)
“Generated ₹80 crore new orders in H1 FY26; ₹350 crore annual orders already tied to new capex.” (Demand pipelines stronger than supply chains.)
