Happy Forgings Limited Earnings Summary — Q1 FY2027
Happy Forgings Reports Strong Q1 Performance with 27% Revenue Growth and 39% Net Profit Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 6 consecutive quarters.
- Revenue of ₹449 Cr is 27.0% higher year-on-year.
- Revenue has compounded at 12.7% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹91 Cr is 39.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 15.8% annualised across the period.
- Operating margin stands at 31.3% in Q1 FY2027.
- Operating margin expanded by 275 bps year-on-year.
- Over the last two years operating margin has expanded by 276 bps.
- PBT margin is 27.3%.
- Expense growth of 22.1% remained below revenue growth of 27.0%.
- Operating profit of ₹141 Cr is 39.2% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 85/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 449 | 424 | 391 | 377 | 354 | 352 | 354 | 361 | 341 | 343 |
| Expenses | Stable | 309 | 291 | 271 | 262 | 253 | 250 | 253 | 256 | 244 | 246 |
| Operating Profit | Improving | 141 | 133 | 120 | 116 | 101 | 102 | 101 | 105 | 98 | 97 |
| Operating Margin | Stable | 31.3% | 31.5% | 30.8% | 30.7% | 28.6% | 29.1% | 28.6% | 29.2% | 28.6% | 28.3% |
| Other Income | Volatile | 11 | 6 | 8 | 6 | 10 | 10 | 7 | 13 | 8 | 7 |
| Interest | Improving | 3 | 4 | 2 | 2 | 2 | 2 | 2 | 2 | 1 | 1 |
| Depreciation | Improving | 26 | 25 | 22 | 22 | 21 | 20 | 19 | 20 | 18 | 16 |
| Profit Before Tax | Improving | 123 | 111 | 104 | 99 | 89 | 90 | 87 | 97 | 86 | 87 |
| Tax | Improving | 31 | 28 | 25 | 25 | 23 | 22 | 22 | 26 | 22 | 22 |
| Net Profit | Improving | 91 | 84 | 79 | 73 | 66 | 68 | 65 | 71 | 64 | 66 |
| Net Margin | Stable | 20.4% | 19.7% | 20.2% | 19.5% | 18.6% | 19.2% | 18.2% | 19.8% | 18.7% | 19.2% |
Key Takeaways
- Revenue from operations grew robustly by 27.0% year-on-year to ₹449.4 Cr, driven by demand for heavy-forged components.
- Consolidated Net Profit rose by 39.2% YoY to ₹91.5 Cr, outpacing revenue growth due to operational efficiencies.
- EBITDA margins remain industry-leading, though the calculated Profit Before Tax margin dipped slightly QoQ to 27.3%.
- Raw material costs as a percentage of revenue increased to 41.8% in Q1 FY27 compared to 37.3% in the preceding quarter.
- The company continues to maintain a lean subsidiary structure with HFL Technologies Private Limited incurring a negligible loss of ₹0.21 lacs.
- Finance costs increased YoY from ₹2.3 Cr to ₹3.1 Cr, reflecting investments in capacity expansion.
Management Guidance
Management remains focused on transitioning toward higher-margin machined products and diversifying the customer footprint beyond the heavy commercial vehicle sector.
Sentiment Shift
Improving
Strong double-digit growth in both revenue and profit suggests a continuation of the multi-year growth trajectory with improved operating leverage.
Outlook
The company is positioned for high-quality compounding, supported by high capacity utilization and a strategic shift towards complex, safety-critical precision-machined components.
From the Annual Report (Key Quotes)
“The management reviews the performance of the group as a single operating segment in accordance with Ind AS-108.”
“Profit for the period/year increased significantly to ₹9,146.13 lacs for the quarter ended June 30, 2026.”
Official Quarterly Documents
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This summary is AI-generated from Happy Forgings Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.