Happy Forging Limited · NSE:HAPPYFORGE
Happy Forging — Happy Forgings — Q1 FY27 Earnings Presentation
42 slides from Happy Forging's earnings presentation, August 2026
Slide 1: Investor Presentation Q1 FY27
INVESTOR PRESENTATION Q1 FY27
Slide 2: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), prepared by Happy Forgings Limited (the “Company”), are intended solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not
Slide 3: Investor Presentation Roadmap
INVESTOR PRESENTATION ROADMAP Q1 FY27 PERFORMANCE HIGHLIGHTS 01 Delivering Growth With Strengthening Operational Performance COMPANY OVERVIEW 02 Engineering Excellence Across Products, Customers & Markets FORGING SUCCESS: VALUE-CREATING TRANSFORMATION 03 Building Scale, Efficiency & Sustainable Comp
Slide 4: Q1 FY27 Performance Highlights
Q1 FY27 PERFORMANCE HIGHLIGHTS 01 Delivering Growth With Strengthening Operational Performance COMPANY OVERVIEW 02 Engineering Excellence Across Products, Customers & Markets FORGING SUCCESS: VALUE-CREATING TRANSFORMATION 03 Building Scale, Efficiency & Sustainable Competitive Strength HISTORICAL FI
Slide 5: Message from the Managing Director
MESSAGE FROM THE MANAGING DIRECTOR Commenting on the results, Mr. Ashish Garg, Managing Director, Happy Forgings Limited, said: “We have commenced FY27 on a strong note, with quarterly revenue reaching a record high of nearly Rs.450 Crs., up 27.0% YoY and 6.0% sequentially. Growth was driven by a he
Slide 6: Q1 FY27: Growth Accelerates, Margins at Record Levels
Q1 FY27: GROWTH ACCELERATES, MARGINS AT RECORD LEVELS Finished Goods Volume (MT) Realisation/Kg (Rs.) Revenue (Rs. Crs) +23.1% +3.2% +27.0% 253 17,793 449 354 14,457 245 Q1FY26 Q1FY27 Q1FY26 Q1FY27 Q1FY26 Q1FY27 Gross Profit (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) 57.9% +276bps 60.7% 28.6% +275bps
Slide 7: Volume Growth with Improved Realisation & Margin Expansion
VOLUME GROWTH WITH IMPROVED REALISATION & MARGIN EXPANSION Q1FY27 vs Q1FY26 (Volume and Realisation per Kg) Particulars Q1FY26 Q4FY26 Q1FY27 YoY FG Volume 23.1% 14,457 17,298 17,793 (MT) Realisation/Kg 3.2% 245 245 253 (Rs.) EBITDA/Kg 13.1% 70 77 79 (Rs.) 7
Slide 8: Higher Value Addition, Broader Revenue Mix
HIGHER VALUE ADDITION, BROADER REVENUE MIX PRODUCT MIX SECTOR MIX GEOGRAPHY MIX 14% 13% 16% 10% 15% 16% 16% 11% 11% 11% 12% 12% 32% 32% 32% 6% 6% 8% 89% 88% 90% 37% 39% 33% 74% 73% 72% FY2026 Q12026 Q12027 Non-Automotive - Industrials FY2026 Q12026 Q12027 11% 12% 10% Non-Automotive - Off-Highway Non
Slide 9: Expanding Capabilities Across the Weight Spectrum
EXPANDING CAPABILITIES ACROSS THE WEIGHT SPECTRUM Progressively Extending Capabilities Into Heavier and Complex Components to Unlock New Growth Opportunities 10kg 20kg 30kg 50kg 70kg 100kg 150kg 250kg 500kg 1,000kg 3,000kg Utilisation Weight range >> Capacity Q1FY27 PLANNED ADDITIONS 1 1 x 125T Hamm
Slide 10: Profit & Loss Statement
PROFIT & LOSS STATEMENT Consolidated P&L (Rs. Crs) Q1FY27 Q1FY26 YoY Q4FY26 QoQ FY 2026 Revenue from Operations 449 354 27.0% 424 6.0% 1,546 Raw Material Cost & Change in Inventories 177 149 172 632 Gross Profit 273 205 33.1% 252 8.4% 915 Gross Profit Margin 60.7% 57.9% 276 bps 59.4% 133 bps 59.1% E
Slide 11: Company Overview
Q4 & FY26 PERFORMANCE HIGHLIGHTS 01 Delivering Growth With Strengthening Operational Performance COMPANY OVERVIEW 02 Engineering Excellence Across Products, Customers & Markets FORGING SUCCESS: VALUE-CREATING TRANSFORMATION 03 Building Scale, Efficiency & Sustainable Competitive Strength HISTORICAL
Slide 12: A Legacy of Excellence
A LEGACY OF EXCELLENCE About Us Incorporated in July 1979, Happy Forgings Limited is an Indian manufacturer specializing in designing and manufacturing heavy forgings and high-precision machined components Manufactures high precision products such as crankshafts, front axle carriers, steering knuckl
Slide 13: Business Evolution Spanning 4 Decades
BUSINESS EVOLUTION SPANNING 4 DECADES 8,000 T Rs. 100 cr 1st 1979 2005 2006 2007 2008 Established with a single Heavy-duty hammers Commenced operations at Crossed ₹100 Crs in Initiated installation of 8,000 unit for manufacturing installed for oil engine and Kanganwal Facility II revenue. tonne forg
Slide 14: Fully Integrated Capabilities
FULLY INTEGRATED CAPABILITIES Forging Machining Die Design & Manufacturing Fully automated forging Advanced software and equipment to Latest technology and tools to offer a press lines and hammers to produce ensure that our machining processes wide range of services, including design, high-quality f
Slide 15: Complete Process Flow
COMPLETE PROCESS FLOW Covered Raw Material Yard Billet Cutting Section Metallurgical Testing Lab Forging Machining Heat Treatment Control Cooling Standard Room Final Inspection Packaging & Dispatch 15
Slide 16: Multi-Product and Multi-Industry Offerings (1/2)
MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (1/2) Commercial Vehicles Farm Equipment Rear Axle Component Crown Wheel Suspension Products Front Axle Components Pinion Differential Case Crankshaft Crankshaft Axle Shaft Passenger Vehicles Off-highway Vehicles Crankshafts Bucket Link Crankshaft Brake Fla
Slide 17: Multi-Product and Multi-Industry Offerings (2/2)
MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (2/2) Power Generation Railways Crankshaft Piston Pin Connecting Rod Windmill Applications Oil & Gas Valve Bodies Planetary Housing Output Shaft Carrier 17
Slide 18: Paving Our Path Towards Accelerated Value Creation
PAVING OUR PATH TOWARDS ACCELERATED VALUE CREATION Transition from a forging led player to a leading manufacturer of machined components in India In-house design capabilities & fungible production lines have led to a diverse product offering, continuous value addition Increasing global presence thro
Slide 19: High Entry Barriers
HIGH ENTRY BARRIERS CAPITAL INTENSIVE BUSINESS STRATEGIC RESILIENCE SELECTIVE SUPPLIER DYNAMICS Capital-intensive business that involves Lengthy customer and product Difficulty in acquiring new customers complex technology, machinery and approval processes without existing relationships systems acti
Slide 20: Expertise in High-Tonnage Presses and Precision Machining
EXPERTISE IN HIGH-TONNAGE PRESSES AND PRECISION MACHINING Kanganwal I, Ludhiana (Started in 1995) Kanganwal II, Ludhiana (Started in 2006) Dugri, Ludhiana (Started in 2021) 1,52,000 MT Total Forging Capacity* 75,200 MT Total Machining Capacity* Continuous Investment in in- 47 Years house infrastruct
Slide 21: Architects of Progress
ARCHITECTS OF PROGRESS Executive Directors Paritosh Kumar Ashish Garg Megha Garg Chairman & Managing Director Managing Director Whole-time Director ▪ 47+ Years of experience ▪ 19+ Years of experience ▪ 10+ Years of experience ▪ Founded Happy Forgings in 1979 ▪ Joined Happy Forgings in 2006 ▪ Joined
Slide 22: Navigating the Path to Sustainable Growth
NAVIGATING THE PATH TO SUSTAINABLE GROWTH Growth at Happy Forgings has never been about chasing momentum. It is about making deliberate choices that create value over the long term. Use in-house capabilities for Enter lightweight forging Expand wallet share and Capitalise on increasing demand produc
Slide 23: Forging Success: Value-Creating Transformation
Q4 & FY26 PERFORMANCE HIGHLIGHTS 01 Delivering Growth With Strengthening Operational Performance COMPANY OVERVIEW 02 Engineering Excellence Across Products, Customers & Markets FORGING SUCCESS: VALUE-CREATING TRANSFORMATION 03 Building Scale, Efficiency & Sustainable Competitive Strength HISTORICAL
Slide 24: Forging Success: Value-Creating Transformation
FORGING SUCCESS: VALUE-CREATING TRANSFORMATION A Snapshot of Building Scale, Efficiency & Sustainable Competitive Strength (FY21 to FY26) Scale With value Profitable Growth Financial Strength Capacity Transformation FY21 to FY26 FY21 to FY26 FY21 to FY26 FY21 to FY26 63,105 MT Sales CAGR 21% Cumulat
Slide 25: Scaling Volumes While Enhancing Value Addition & Realisations
SCALING VOLUMES WHILE ENHANCING VALUE ADDITION & REALISATIONS Growth Driven by Increasing Penetration In High-value and Precision-engineered Components Realisation/Kg (Rs.) EBITDA/Kg (Rs.) Finished Goods Volume (MT) FY21 to FY26 63,105 1.8x 55,379 56,906 50,656 42,777 35,534 248 243 245 232 201 1.5x
Slide 26: Delivering Strong & Steady Growth Across Financial Metrics
DELIVERING STRONG & STEADY GROWTH ACROSS FINANCIAL METRICS 21% CAGR (FY21-26) 22% CAGR (FY21-26) 24% CAGR (FY21-26) 28% CAGR (FY21-26) 10 Year CAGR – 15%^ 10 Year CAGR – 17%^ 10 Year CAGR – 20%^ 10 Year CAGR – 33%^ FY21-26 2.6x FY21-26 2.7x FY21-26 3.0x FY21-26 3.5x Rs Crs. 1,546 1,409 1,358 1,197 9
Slide 27: Margin Expansion Driven by Value Addition and Efficiency
MARGIN EXPANSION DRIVEN BY VALUE ADDITION AND EFFICIENCY 215 bps (FY21-26) 330 bps (FY21-26) 473 bps (FY21-26) 57.0% 58.0% 59.1% 54.8% 53.9% 56.1% 30.4% 27.1% 26.8% 28.5% 28.5% 28.9% 19.5% 17.4% 17.9% 19.0% 14.8% 16.5% Gross Margin EBITDA Margin PAT Margin FY21 FY22 FY23 FY24 FY25 FY 26 Improv
Slide 28: Strong Cash Generation Funding Capacity Build-up
STRONG CASH GENERATION FUNDING CAPACITY BUILD-UP Strong Cash Accruals Driven by High Margins and Working Capital Efficiency Supporting Capacity Expansion Particulars (Rs. Crs.) FY21 FY22 FY23 FY24 FY25 FY26 ∑ (FY21-FY26) EBITDA 159 231 341 388 407 471 1,995 Cash Accrual EBITDA Margin (%) 27.1% 26.8%
Slide 29: Fortress Balance Sheet Supporting Long Term Growth
FORTRESS BALANCE SHEET SUPPORTING LONG TERM GROWTH Strong Return Ratios Maintained Through Disciplined Capital Allocation With Further Upside From Utilisation Ramp-up Particulars (Rs Crs.) FY21 FY22 FY23 FY24 FY25 FY26 ROE % Net Worth 645 788 988 1,612 1,850 2,128 23.5% 19.9% 18.7% 15.2% 15.2% 14.4%
Slide 30: Building Capacities for Resilient and Sustainable Growth
BUILDING CAPACIITIES FOR RESILIENT AND SUSTAINABLE GROWTH Installed Capacity and Utilisation Forging Capacity (in MT) Machining Capacity (in MT) FY21-26 2.2x FY21-26 2.3x 148,000 127,000 120,000 107,000 81,000 67,000 68,000 57,000 51,000 46,100 35,500 29,500 60% 67% 63% 58% 57% 59% 71% 78% 79% 87% 8
Slide 31: Historical Financial Performance
Q4 & FY26 PERFORMANCE HIGHLIGHTS 01 Delivering Growth With Strengthening Operational Performance COMPANY OVERVIEW 02 Engineering Excellence Across Products, Customers & Markets FORGING SUCCESS: VALUE-CREATING TRANSFORMATION 03 Building Scale, Efficiency & Sustainable Competitive Strength HISTORICAL
Slide 32: Profit & Loss Statement
PROFIT & LOSS STATEMENT Profit and Loss (Rs. Crs) FY26 FY25^ FY24 FY23 FY22 FY21 Revenue from Operations 1.546 1,409 1,358 1,197 860 585 Raw Material Cost & Change in Inventories 632 592 597 551 388 252 Gross Profit 915 817 762 645 472 333 Gross Profit Margin (%) 59.1% 58.0% 56.1% 53.9% 54.8% 57.0%
Slide 33: Balance Sheet
BALANCE SHEET Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Assets (Rs. Crs) Equity & Liabilities (Rs. Crs) 2026 2025 2024 2023 2022 2026 2025 2024 2023 2022 Non-Current Assets 1,562 1,297 1,144 836 704 EQUITY 2,128 1,850 1,612 988 788 Property, Plant and Equipment
Slide 34: Cash Flow
CASH FLOW Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Cash Flow Statement (Rs. Crs) 2026 2025 2024 2023 2022 Profit before tax 402 360 324 280 192 Adjustments for depreciation and other items 78 65 72 71 40 Operating profit before working capital changes 480 424 396 351 232 Changes in working capital 58
Slide 35: Beyond Financials: Creating Lasting Impact
Q4 & FY26 PERFORMANCE HIGHLIGHTS 01 Delivering Growth With Strengthening Operational Performance COMPANY OVERVIEW 02 Engineering Excellence Across Products, Customers & Markets FORGING SUCCESS: VALUE-CREATING TRANSFORMATION 03 Building Scale, Efficiency & Sustainable Competitive Strength HISTORICAL
Slide 36: Governance: Diverse Board with Strong Independent Directors
GOVERNANCE: DIVERSE BOARD WITH STRONG INDEPENDENT DIRECTORS 65 56 71 Key Board Highlights (Name, Age, Experience) 30+ 30+ ~40 Diverse Board in terms of professional and industry experience, age and gender Director 50% Independent Directors (3 out of 6) 2 Female Directors out of 6 Rajeswari Karthigey
Slide 37: ESG: Key Initiatives
ESG: KEY INITIATIVES Director’s Statement “As we continue our journey as a listed organisation, we are strengthening the integration of Environmental, Social and Governance (ESG) principles into our strategy and operations. During the year, we formalised our ESG roadmap with clear priorities and gov
Slide 38: ESG Targets and Commitments
ESG TARGETS AND COMMITMENTS Environment Social Governance Screen suppliers for sustainability Reduce Scope 1 and Scope 2 emissions by Cover 100% of our workforce with skill alignment 50% by 2030# development programs Strengthen policies on ethical conduct Achieve 100% Zero Liquid Discharge
Slide 39: Social – CSR Activities
SOCIAL – CSR ACTIVITIES Total CSR Spend – FY2021-2026 CSR Spend Details Category Key Projects / Organizations funded Pictures Gallery ▪ Developed vocational college for underprivileged girls with Bal Vikas Trust ▪ Constructed Primary Government School at Kanganwal, Ludhiana Others ▪ Built Government
Slide 40: Awards, Accreditations and Recognitions
AWARDS, ACCREDITATIONS AND RECOGNITIONS Best Quality Performance Award 2025 – By Dana Incorporated Dun & Bradstreet ‘Business Excellence Awards 2025’: Automobiles - OEM & Components (Mid-Corporate) Special Appreciation Award at Mahindra Supplier Excellence Awards - March 2025 2024 Quality Performanc
Slide 41: Certifications
CERTIFICATIONS IATF 16949:2016 ISO 9001:2015 Quality Management System Quality Management System Certification for Automotive Suppliers ISO 45001:2018 ISO 14001:2015 ISO 9100:2018 Occupational Health & Safety Environment Management System Aerospace Quality Management System Management System 41
Slide 42: For Further Information, Please Contact
FOR FURTHER INFORMATION, PLEASE CONTACT CIN: L28910PB1979PLC004008 COMPANY Mr. Vikas Thakur E: investor.relations@happyforgingsltd.co.in T: +91 99159 51913 www.happyforgingsltd.com CIN: U74140MH2010PTC204285 INVESTOR RELATIONS Ms. Ami Parekh/ Mr. Jigar Kavaiya ADVISOR E: ami.parekh@sgapl.net / jigar