MM Forgings Ltd
NSE:MMFL
MM Forgings Ltd
MM Forgings Ltd. engages in the manufacture of steel forgings. The company is headquartered in Chennai, Tamil Nadu and currently employs 3,703 full-time employees. The firm is a manufacturer of automotive components. The firm operates in one segment: manufacture of steel forgings. Its products include sprocket, flange housing, connecting rod, connecting rod integral, rail forging, hub, knuckle-1, knuckle-2, front axle beam, universal joint cross, steering arm, planetary wheel carrier, pivot arm, upper arm shaft, front axle beam, shifter fork and rear axle spindle, yoke shaft, double yoke, crankshaft 2cylinder, crankshaft single cylinder, crankshaft 3cylinder, crankshaft 6cylinder. The Company’s manufacturing plants are located at Singampunari Sivagangai District, Viralimalai Pudukkottai District and Karainaithangal Village Kanchipuram District, all within the state of Tamil Nadu. The firm has its machining plant in Kursi Road, Barabanki situated in the state of Uttar Pradesh.
MM Forgings Ltd. engages in the manufacture of steel forgings. The company is headquartered in Chennai, Tamil Nadu and currently employs 3,703 full-time employees. The firm is a manufacturer of automotive components. The firm operates in one segment: manufacture of steel forgings. Its products include sprocket, flange housing, connecting rod, connecting rod integral, rail forging, hub, knuckle-1, knuckle-2, front axle beam, universal joint cross, steering arm, planetary wheel carrier, pivot arm, upper arm shaft, front axle beam, shifter fork and rear axle spindle, yoke shaft, double yoke, crankshaft 2cylinder, crankshaft single cylinder, crankshaft 3cylinder, crankshaft 6cylinder. The Company’s manufacturing plants are located at Singampunari Sivagangai District, Viralimalai Pudukkottai District and Karainaithangal Village Kanchipuram District, all within the state of Tamil Nadu. The firm has its machining plant in Kursi Road, Barabanki situated in the state of Uttar Pradesh.
Sales Growth: Q3 FY '26 sales grew 11.3% year-on-year and 7% sequentially, driven by higher volumes and better sales realization.
Export Recovery: Exports, especially to the U.S., showed a sequential improvement after a weak start to the year, with further recovery expected to accelerate from Q1 FY '27.
Gross Margin Dynamics: Gross margin improved by 3% year-on-year, reaching 56.34% for Q3 FY '26 due to better mix, though there were earlier concerns about cost and mix impacts.
Cost Reduction Efforts: Management is implementing significant cost-saving initiatives targeting power and interest expenses, aiming for combined annual savings of INR 40–50 crores in FY '27.
Interest Cost Down: Interest costs are projected to sharply decline from INR 80 crores in FY '26 to INR 55 crores in FY '27, due to interest rate swaps and lower domestic rates.
CapEx & Capacity: FY '26 CapEx is expected to close at around INR 175 crores, with INR 137 crores already spent; similar CapEx levels planned for FY '27 as the new 16,500 ton press is commissioned.
Machining Mix Fluctuation: Machining mix dropped to 53% (from 58%), but management expects it to rise as most new orders are for machined components.
Positive Outlook: Management projects strong revenue and margin improvement in FY '27, with anticipated volume growth of 15–20% driven by export rebound and domestic CV upcycle.
