Happy Forgings Ltd
NSE:HAPPYFORGE
Happy Forgings Ltd
In the bustling industrial town of Ludhiana, India, Happy Forgings Ltd. emerges as a key player in the world of crafting precision-engineered forged components. Since its inception, the company has honed the art of transforming raw materials into intricate parts used in various applications, from automotive to industrial machinery. By employing advanced forging techniques, Happy Forgings adds value to steel and other metals, leveraging heat and pressure to shape them into components that meet the rigorous standards of its clients. This blend of tradition and cutting-edge technology allows the company to maintain a strong foothold in a competitive market, where quality and precision are paramount.
The lifeblood of Happy Forgings’ business model flows through its diverse product portfolio, catering to both domestic and international markets. With a keen focus on innovation and efficiency, the company has ingrained quality control and process optimization into its operations, ensuring that each component it produces is synonymous with reliability. This commitment to quality not only reinforces longstanding relationships with its clientele but also opens doors to new market opportunities across the globe. As a result, Happy Forgings generates revenue through the strategic sale of these highly engineered components, which are essential to various high-stakes industries, supporting its growth trajectory and solidifying its reputation as a trusted supplier in the global forging landscape.
In the bustling industrial town of Ludhiana, India, Happy Forgings Ltd. emerges as a key player in the world of crafting precision-engineered forged components. Since its inception, the company has honed the art of transforming raw materials into intricate parts used in various applications, from automotive to industrial machinery. By employing advanced forging techniques, Happy Forgings adds value to steel and other metals, leveraging heat and pressure to shape them into components that meet the rigorous standards of its clients. This blend of tradition and cutting-edge technology allows the company to maintain a strong foothold in a competitive market, where quality and precision are paramount.
The lifeblood of Happy Forgings’ business model flows through its diverse product portfolio, catering to both domestic and international markets. With a keen focus on innovation and efficiency, the company has ingrained quality control and process optimization into its operations, ensuring that each component it produces is synonymous with reliability. This commitment to quality not only reinforces longstanding relationships with its clientele but also opens doors to new market opportunities across the globe. As a result, Happy Forgings generates revenue through the strategic sale of these highly engineered components, which are essential to various high-stakes industries, supporting its growth trajectory and solidifying its reputation as a trusted supplier in the global forging landscape.
Strong Margins: Happy Forgings posted its highest-ever quarterly gross margin of about 60% and an EBITDA margin of around 31%, despite challenging global demand.
Revenue Growth: Q2 FY26 revenue rose to INR 377 crores, up 4.5% year-on-year, with H1 FY26 revenue at INR 731 crores.
Profit Outpaces Revenue: Profit after tax grew 10% year-on-year in Q2 to INR 73 crores, outpacing revenue growth due to margin expansion.
Domestic Market Strength: Domestic demand, especially in commercial vehicles, farm, and industrial segments, drove growth while exports remained weak due to global headwinds.
Healthy Cash Flow: Nearly 100% operating cash flow conversion in H1 FY26 and cash liquidity of about INR 315 crores support strong financial flexibility.
CapEx & Growth Initiatives: INR 650 crores CapEx program is on track, focused on diversification and capacity expansion, with INR 350 crores in new industrial and heavy orders already in hand.
Export Weakness: Exports, especially to the US and Europe, dipped due to customer destocking and high tariffs, with modest expectations for near-term recovery.
Guidance: Management expects growth momentum to improve from next year with new projects and CapEx-driven diversification.
