Happy Forgings Accelerates Expansion; 10,000-Tonne Forging Press Set for Commissioning!

Happy Forgings Limited continued advancing its strategic capacity expansion programme during the quarter ended 31 December 2025, strengthening its manufacturing capabilities to support growing demand across automotive and industrial segments. The company increased its machining capacity to 68,000 metric tonnes during the quarter and is nearing commissioning of a 10,000-tonne forging press, scheduled to become operational in the current quarter.

The upcoming commissioning of the 10,000-tonne press marks a key milestone in the company’s growth roadmap. In addition, Happy Forgings plans to install a 4,000-tonne forging press in the first half of FY27, further enhancing forging strength, operational flexibility and its ability to cater to larger and more complex components.

Alongside capacity investments, the company is reinforcing its sustainability strategy. It has signed a long-term lease for approximately 80 acres of land to establish a captive solar power plant. This initiative is expected to support environmental, social and governance objectives while improving long-term energy cost efficiency and reducing carbon intensity.

Managing Director Ashish Garg stated that expansion initiatives are progressing as planned. He noted that the increase in machining capacity during Q3 FY26 was undertaken in anticipation of higher production volumes, and that the commissioning of the 10,000-tonne press, followed by the planned 4,000-tonne addition, will significantly strengthen the company’s forging platform and long-term growth potential.

Operational performance during the quarter reflected the benefits of rising domestic demand. Finished goods volumes increased to 16,323 metric tonnes, up 13.8 percent from 14,341 metric tonnes in the corresponding quarter of the previous year. For the nine months ended 31 December 2025, volumes reached 45,807 metric tonnes compared with 42,564 metric tonnes in the prior year period.

Consolidated revenue for the quarter stood at INR 3.91 billion, compared with INR 3.54 billion a year earlier. For the nine-month period, revenue increased to INR 11.22 billion from INR 10.57 billion. Profit after tax rose to INR 790 million during the quarter, up from INR 650 million in the corresponding period last year. Nine-month profit after tax improved to INR 2.18 billion from INR 2.00 billion.

EBITDA for the quarter increased to INR 1.20 billion from INR 1.01 billion, with margins expanding to 30.8 percent. For the nine-month period, EBITDA rose to INR 3.37 billion, with a margin of 30.1 percent. According to the company, performance was supported by strong domestic demand in commercial vehicles, farm equipment and passenger vehicles, which helped offset softer export market conditions.

Operating cash flow during the nine-month period reached approximately INR 3.15 billion, resulting in cash and financial investments exceeding INR 4.00 billion as of 31 December 2025. This financial position provides the company with flexibility to continue funding capital expenditure and future growth initiatives.

With capacity additions progressing and financial performance strengthening, Happy Forgings is positioning itself to capture long-term opportunities in both domestic and global forging markets.