Happy Forgings, a Ludhiana-based maker of heavy forgings and precision-machined components for commercial vehicles, farm equipment, industrial and passenger vehicle markets, comes into its September quarter on the back of a record Q1 with revenue of Rs. 449 Cr, up 27.0% YoY. The print will speak to whether EBITDA margins hold above 30% as the full 4.5-5% OEM price increases flow through from Q2, against a late-quarter steel price spike and elevated container freight costs.
| Results date | November 05, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 449 Cr |
| Previous quarter PAT | Rs. 91 Cr |
| Previous quarter EBITDA margin | 31.3% |
| Market cap | Rs. 16,503.21 Cr |
| CMP | Rs. 1,748.2 |
Happy Forgings is scheduled to report its results for the quarter and half year ended September 30, 2026 on November 05, 2026. The earnings conference call is set for the following day.
The Q2 & H1 FY27 earnings conference call is scheduled for Friday, November 6, 2026, at 11:00 AM IST, after the results for the quarter/half year ended September 30, 2026. Speakers are MD Ashish Garg and CFO Pankaj Kumar Goyal, with no price-sensitive information to be disclosed.
The key test this quarter is whether EBITDA margins stay above 30% as the 4.5-5% OEM price increases, of which only about 30% was realized in Q1 FY27, take full effect from Q2 onwards. Domestic demand ran well ahead of the guided high-teen volume growth: SIAM Q2 FY27 domestic CV sales rose 28.7% YoY and PV sales rose 30.7% YoY, while Q1 finished-goods volumes had grown 23.1% YoY to 17,793 MT with realisation at Rs. 253/kg.
Offsetting this, container costs of USD 6,000 per container against a USD 4,500 recovery target weighed on export margins through the quarter, with the Drewry index still roughly 130% above pre-war levels and India-Europe lane rates around $5,000 versus about $1,200 pre-conflict. Steel added a late-quarter squeeze: Mumbai HRC climbed to Rs. 62,000/t by early September, up 25% YoY, and the BigMint benchmark hit a four-year high of Rs. 63,800-63,900/t by mid-September, landing just as the company's 1-month domestic pass-through lag delays recovery.
On exports, EU truck registrations rose 9.8% in H1 2026, but US farm equipment demand stayed in contraction, with AEM retail tractor sales down 8.0% YoY in August. Management has guided FY27 EBITDA margin broadly in line with FY26's 30.4% with potential for further improvement, and expressed confidence in margins upwards of 30% going forward, aided by a 1-1.5% benefit from the 35 MW solar plant hoped operational from January.
The call will also be watched for the status of the inorganic acquisition timeline of 6 to 8 months given in November 2025, with no deal announced through the August-November 2026 window.
Guidance scorecard to interrogate: Management's FY27 guidance items and where things stood after Q1 FY27:
CV export recovery and container cost recovery
Utilization ramp and order book phasing
Management expressed confidence in margins 'upwards of 30% going forward', citing an expected 1-1.5% benefit from power costs once the captive solar plant is operational. At Q2 FY26 it had said it was too early to confirm permanent sustainability of the ~30% EBITDA margin, pending sector performance, product mix, and BOM costs.
The order book stands at Rs. 950 Cr of peak incremental annual revenue, executable over the next 2-3 years (FY27-FY29), with roughly 60% exports and 40% domestic. The breakup is Industrial ~40%, PV 25-30%, CV 25-30%, with new-order realizations of Rs. 340-350/kg versus the current Rs. 240-245/kg.
Management confirmed growth should be funded from internal accruals, with possibly a bridge loan for a year for opening letters of credit. FY27 capex is guided at Rs. 350-400 Cr annually, with the company holding liquidity of approximately Rs. 430 Cr and a Debt/Equity of 0.15x.
In November 2025, management said it was hopeful of closing a deal in the next 6 to 8 months, targeting technology acquisition in areas like titanium and specialized steel grades for aerospace. No deal has been announced in the August-November 2026 window, making it a follow-up item on the upcoming call.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.