Happy Forgings Ltd(HAPPYFORGE)

NSE: HAPPYFORGEBSE: 544057

₹ 1,768-2.88%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 16,690 crWebsite: www.happyforgingsltd.comUpdated: 24 Oct 2026

About

Happy Forgings Ltd is an Indian precision forging and machining company that makes crankshafts, front axle beams, and other heavy forged components for commercial vehicles, farm equipment, passenger vehicles, and industrial end-uses. Machined components form 90% of revenues as of Q1 FY27, positioning it toward higher-value precision work across a diversifying customer base.^[1][2]

End-industry revenue mix

Commercial vehicles: 37% of FY26 revenues, the largest segment, spanning domestic MHCV trucks and export markets in Europe and North America.^[3]
Industrial (wind, power generation, oil and gas, data centres): 14% of FY26 revenues; grew to 16% in Q1 FY27, with ~50% YoY growth across domestic and export.^[3][2]
Farm equipment: part of the domestic-led segment; farm equipment market share stood at ~41% in FY26 with a target to reach ~45% in FY27.^[3]
Passenger vehicles: 6% of FY26 revenues, rising to ~8% in Q1 FY27, with more than 70% YoY growth in Q1 FY27; exports more than doubled as secured orders began executing.^[3][2]

Products

Crankshafts are the flagship product; their share of revenues is targeted to rise from ~50% to 58 - 60% by FY28 - 29.^[3]
Front axle beams for MHCV trucks: volumes reached ~2,500 units per month in Q2 FY26, with a full-year FY26 target of 35,000 units.^[4]
Machined (value-added) components formed 90% of revenues in Q1 FY27, up from 88% in Q1 FY26, 89% in FY26, 87% in FY25, and 73% in FY21.^[2][3]
New heavy components (250 kg - 3,000 kg) for energy, data-centre engines, and mining are under development; commercial revenues targeted from FY28 onwards.^[2][3]

Manufacturing capacity and utilisation

Total forging installed capacity: 1,52,000 MT as of Q1 FY27, after commissioning a 4,000-ton press in Q1 FY27 and a 10,000-ton press in Q4 FY26.^[2][3]
Forging capacity utilisation: 59% in Q1 FY27 (vs 82% in 9M FY26, when capacity was lower).^[2][5]
Machining installed capacity: 75,200 MT in Q1 FY27 (up from 68,000 MT in Q3 FY26), at 78% utilisation in Q1 FY27.^[2][5]
An 18,000-ton vertical upsetter line is under commissioning; trials expected from Q3 FY27 with production additions from Q4 FY27.^[2]
A captive solar plant is on track to start generating power from January 2027 (Q4 FY27), with partial benefit in Q4 FY27 and full benefit from FY28.^[2]

Key operating numbers

Finished goods volume: 17,793 MT in Q1 FY27 (+23.1% YoY); full-year FY26 volume was 63,105 MT (+10.9% YoY).^[2][3]
Realisation per kg: Rs. 253/kg in Q1 FY27 (+3.2% YoY); was Rs. 245/kg in FY26 and Q4 FY26.^[2][3]
EBITDA per kg: Rs. 79/kg in Q1 FY27 (+13.1% YoY).^[2]
Export revenue share: 28% in Q1 FY27; direct export share had dipped to 15% in 9M FY26 partly due to reclassification of certain revenues to deemed/indirect exports.^[2][5]
Steel cost pass-through: approximately 85% pass-through with a one-month domestic lag; scrap price declines have aided gross margin improvement alongside product-mix shift.^[5]

Customers and distribution

Market share with a key PV customer rose from 32% to 47% in FY26; an additional production line was added for that customer.^[3]
MHCV CV market share was ~32% in FY26; targeted to rise to ~42% in FY27.^[3]
US exposure (direct and indirect) was ~10% of revenues in H1 FY26; fell ~35 - 40% in Q2 FY26 due to tariff-driven customer destocking.^[4]
CV export revenues de-grew ~12% in Q1 FY27 due to ~one-month transit delays to Europe and Turkey caused by geopolitical rerouting on DDP-basis contracts.^[2]

Order book

Order book representing ~Rs. 950 crores of incremental peak annual revenue, executable over 2 - 3 years; 60% export, predominantly industrial and passenger vehicle programs.^[2]
New businesses in the order book carry average realisations of Rs. 340 - 350/kg, approximately Rs. 90 - 95/kg above the current blended realisation of Rs. 245/kg.^[3]
Rs. 250 crores of the order book relates to heavy data-centre and engine components in the 700 kg - 1.8-tonne range.^[3]
A large European industrial order won in Q4 FY26 worth ~Rs. 150 crore/annum; commencement targeted from FY29.^[3]

Expansion and capex

Capex deployed in FY26: Rs. 461 crores. FY27 capex guided at Rs. 450 - 500 crores; total capex over the next two years planned at Rs. 800 crores including solar.^[3]
Ultra-heavy component manufacturing facility (250 kg - 3,000 kg): equipment installation to complete by end of FY27; commercial revenues from FY28 onwards.^[2]
Forging capacity roadmap: 1,52,000 MT in Q1 FY27, targeted at 161,000 MT by FY27 and 187,000 MT by FY28.^[3][2]
Machining capacity roadmap: 75,200 MT in Q1 FY27, targeted at 82,000 MT by FY27 and 87,000 MT by FY28.^[3][2]
Captive solar plant expanded to 35 AC MW (from 20 MW originally planned); total outlay up to Rs. 170 crores; expected annual power-cost savings of Rs. 25 - 30 crores.^[3][5]

Recent developments

Q1 FY27: 4,000-ton forging press commissioned, adding 4,000 MT forging capacity and 7,200 MT machining capacity.^[2]
Q1 FY27: Selling price increases of ~4.5 - 5% negotiated with domestic OEMs; ~30% of the benefit flowed in Q1, with the remainder from Q2 FY27 onwards. These are permanent increases, the first in three years.^[2]
Q4 FY26: 10,000-ton forging press commissioned, expanding total forging capacity to 148,000 MT.^[3]
Management is actively exploring acquisitions and JVs in energy and aerospace, where technology and approval cycles are long; cautious on CV/farm acquisitions given high valuations.^[2]
EV export ramp to North America commenced December 2025 via indirect exports; PV export to North America ramping from Q2 FY27.^[5][3]

Market Cap

₹16,690 Cr

High / Low

₹2,484 / 914

Stock P/E

53.6

Price / Book

8.3

Book Value

₹226

EPS

₹32.0

No. of Shares

9.44 Cr

ROCE

18.2%

ROE

15.2%

OPM

26.2%

Debt / Equity

0.15

Sales

₹1,546 Cr

Net Profit

₹302 Cr

Promoter holding

78.4%

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