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Earnings Call Transcript

Happy Forgings Earnings Call Transcript: Key Takeaways

Q2 revenue ~₹502 Cr (+32.7%) and PAT ₹98 Cr (+32.8%), volume-led. H1 operating cash flow only ₹124 Cr. Margin guidance is qualitative, implying FY26-level margins.

Happy Forgings Q2 FY27 concall: date, live audio and summaryConcall page →
Highlights
Revenue growthQ2 revenue ~₹502 Cr, +32.7% YoY; volume-led, recurring.
MarginsQ2 EBITDA 30.6%; H1 up 127bps; FY27 guided roughly FY26 levels.
Order book~50% of order book is exports; ~₹300 Cr secured data-centre orders.
Demand visibilityStrong CV, farm, industrial demand; ~₹300 Cr data-centre orders secured.
Management confidenceOver-optimistic; repeated 'strong' claims, vague on margin numbers.

Growth

Volume-led: volume +24.8%, realisation +6.3%. EBITDA ₹153 Cr (+32.2%), margin 30.6%.

Outlook

₹500 Cr capex phased FY28–FY29. ~₹500 Cr orders targeted by FY27-end. Margins similar to FY26.

Risks

Margin answers lacked numbers. H1 OCF just ₹124 Cr. ₹300 Cr new debt. Exports ~50% of order book.

Last quarter's promises, checked

Delivered

  • Guided high-teen volume growth → Q2 volume +24.8% (= BEAT)
  • Guided margin 'upwards of 30%' → Q2 EBITDA 30.6% (= BEAT)

Partly delivered

  • Guided Q2 price-hike benefit → realisation +6.3% vs Q1 +3.2% (= PARTIAL)
  • Guided margins ~FY26 levels → Q1 31.3%, Q2 30.6%; FY26 base not disclosed (= PARTIAL)

Missed

  • Guided self-funded, bridge loan only → ₹300 Cr new bank debt (= MISS)
  • Guided 'very strong' cash flow → H1 OCF ₹124 Cr vs H1 PAT ₹189 Cr (= MISS)
  • Guided capex ₹350–400 Cr/yr → H1 capex ₹378 Cr (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: HAPPYFORGE. Summary written with AI assistance from the document.

Read the document ↗

Happy Forgings Ltd: key numbers

Share price
₹1,694.50
Market cap
₹15,996 Cr
Revenue (annual)
₹1,546 Cr
Net profit (annual)
₹301.6 Cr
P/E (TTM)
45.5×Sector 50.0×
Promoter holding
78.44%-0.02% QoQ
FII holding
2.37%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

More from Happy Forgings Ltd

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19:11 IST BSE
Capacity Expansion

Happy Forgings Capacity Expansion: ₹500 Cr Investment

Happy Forgings plans to add about 24,000 MT forging and 14,000 MT machining capacity by FY29. The ₹500 Crore investment is funded through internal accruals and debt.

Value
₹500.0 Cr
Execution
FY28 and FY29, phased
forging capacity
24000.0 MTPA