Happy Forgings Limited advanced its capacity expansion programme during the quarter ended 31 December 2025, increasing machining capacity and moving closer to commissioning a large forging press, as the company positions itself for higher volumes across automotive and industrial segments. The company said machining capacity was expanded to 68,000 tonnes during the quarter, while a 10,000-tonne forging press is being commissioned in the current quarter.
The company also plans to add a 4,000-tonne forging press in the first half of the next financial year, further augmenting its forging capabilities. In addition, the company has signed a long-term lease for 80 acres of land to set up a captive solar power plant, aimed at supporting environmental, social and governance objectives and improving long-term cost efficiency.
“Our capacity expansion initiatives continue to progress as planned,” said Ashish Garg, Managing Director of Happy Forgings Limited. “During Q3FY26, we increased machining capacity to 68,000 MT, in anticipation of an uptick in volumes.”
“We are commissioning the 10,000-ton forging presses in the current quarter and plan to add 4,000-ton press in H1FY27, which will further augment forging capabilities and support future growth,” Garg said.
The capacity additions coincided with higher production volumes during the quarter. Finished goods volumes increased to 16,323 metric tonnes, compared with 14,341 metric tonnes in the corresponding quarter of the previous year, reflecting growth of 13.8 percent. For the nine months ended 31 December 2025, volumes rose to 45,807 metric tonnes from 42,564 metric tonnes a year earlier.
The company reported consolidated revenue from operations of INR 3.91 billion for the quarter, compared with INR 3.54 billion in the same period last year. Revenue for the nine-month period increased to INR 11.22 billion from INR 10.57 billion.
Profit after tax for the quarter rose to INR 790 million from INR 650 million a year earlier. For the nine-month period, profit after tax stood at INR 2.18 billion, compared with INR 2.00 billion in the corresponding period of the previous year.
Earnings before interest, tax, depreciation and amortisation increased to INR 1.20 billion in the quarter from INR 1.01 billion, with the EBITDA margin improving to 30.8 percent from 28.6 percent. For the nine months ended 31 December 2025, EBITDA rose to INR 3.37 billion from INR 3.04 billion, with a margin of 30.1 percent.
“This growth was driven by healthy demand across key domestic end-markets, including Commercial Vehicles, Farm Equipment, and Passenger Vehicles, which more than offset the relatively weaker conditions in export markets,” Garg said.
The company also reported operating cash flow of about INR 3.15 billion during the nine-month period, resulting in cash and financial investments exceeding INR 4.00 billion as of 31 December 2025, providing financial flexibility to support future capital expenditure.
Happy Forgings Limited manufactures complex and safety-critical heavy forged and high-precision machined components for automotive and non-automotive original equipment manufacturers, supplying customers in commercial vehicles, passenger vehicles, farm equipment, off-highway vehicles and industrial equipment.