Happy Forgings Limited, the Ludhiana-based precision forgings manufacturer, reported a 23.5% year-on-year increase in consolidated net profit for the quarter ended March 31, 2026, with PAT rising to ₹83.56 crore from ₹67.63 crore in Q4 FY25. Revenue from operations grew 20.4% year-on-year to ₹423.84 crore from ₹351.97 crore, reflecting strong demand from the commercial vehicle, tractor, and industrial segments that form Happy Forgings’ core customer base.
Q4 FY26 key numbers
Total income for the quarter was ₹429.89 crore against ₹361.99 crore in Q4 FY25. Profit before tax was ₹111.07 crore against ₹89.56 crore — a 24% year-on-year improvement. Total tax expense was ₹27.50 crore, producing the ₹83.56 crore net profit.
Key cost lines for Q4: cost of raw materials and components consumed was ₹157.99 crore against ₹144.48 crore in Q4 FY25 — rising at a slower rate than revenue, indicating improving gross margin. Employee benefits expense was ₹36.39 crore against ₹32.25 crore. Depreciation rose to ₹24.51 crore from ₹20.28 crore, reflecting ongoing capital investment in forging capacity. Finance costs remained minimal at ₹3.81 crore. Other expenses were ₹81.82 crore against ₹71.91 crore.
Total expenses for Q4 were ₹318.82 crore against ₹272.43 crore — growing at 17% against 20.4% revenue growth, confirming positive operating leverage that is driving the margin improvement.
Full year FY26 performance
For the full financial year ended March 31, 2026, consolidated revenue from operations grew 9.7% year-on-year to ₹1,546.34 crore from ₹1,408.89 crore in FY25. Full-year net profit was ₹301.63 crore against ₹267.44 crore in FY25 — a 12.8% year-on-year improvement. Total income for FY26 was ₹1,577.15 crore against ₹1,446.34 crore.
Full-year profit before tax was ₹401.98 crore against ₹359.55 crore in FY25 — an 11.8% improvement. Full-year tax expense was ₹100.35 crore against ₹92.12 crore. Full-year cost of raw materials was ₹606.77 crore against ₹602.78 crore — essentially flat despite 9.7% higher revenues, a strong signal of raw material cost management and product mix improvement. Full-year depreciation rose to ₹89.04 crore from ₹85.72 crore as the company continues to invest in precision forging equipment and machining capabilities.
What drives Happy Forgings
Happy Forgings manufactures precision forgings and machined components for commercial vehicles, tractors, off-highway equipment, and industrial applications — sectors that have seen sustained demand through FY26 driven by India’s infrastructure buildout, agricultural equipment demand, and commercial vehicle replacement cycle. The company’s ability to grow revenue 20.4% in Q4 while keeping raw material cost growth below 10% reflects both volume gains and a shift toward higher-value machined components in the product mix.
The Q4 acceleration — revenue up 20.4% year-on-year against a full-year growth of 9.7% — suggests demand momentum built sharply through the second half of FY26, providing a strong exit rate heading into FY27.
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