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H HAPPY FORGINGS LIMITED INVESTOR PRESENTATION Q1 FY27
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2 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 form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world- wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
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3 INVESTOR PRESENTATION ROADMAP 01 Q1 FY27 PERFORMANCE HIGHLIGHTS Delivering Growth With Strengthening Operational Performance 02 COMPANY OVERVIEW Engineering Excellence Across Products, Customers & Markets 03 FORGING SUCCESS: VALUE-CREATING TRANSFORMATION Building Scale, Efficiency & Sustainable Competitive Strength 04 HISTORICAL FINANCIAL PERFORMANCE A Multi-Year Journey of Consistent Growth & Margin Expansion 05 BEYOND FINANCIALS: CREATING LASTING IMPACT Driving Value Through Innovation, People, Sustainability & Governance
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01 Q1 FY27 PERFORMANCE HIGHLIGHTS Delivering Growth With Strengthening Operational Performance 02 COMPANY OVERVIEW Engineering Excellence Across Products, Customers & Markets 03 FORGING SUCCESS: VALUE-CREATING TRANSFORMATION Building Scale, Efficiency & Sustainable Competitive Strength 04 HISTORICAL FINANCIAL PERFORMANCE A Multi-Year Journey of Consistent Growth & Margin Expansion 05 BEYOND FINANCIALS: CREATING LASTING IMPACT Driving Value Through Innovation, People, Sustainability & Governance
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Mr. Ashish Garg 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 healthy 23.1% YoY increase in finished goods sales volumes, while average realisations improved by 3.2% YoY, reflecting continued progress in product mix and value addition. This translated into strong profitability, with Gross Profit, EBITDA and PAT growing by 33.1%, 39.3% and 39.2% YoY, respectively. Growth during the quarter was broad-based across all business segments, reflecting healthy demand across both domestic and export markets. Domestic demand remained strong across the CV, PV, Farm Equipment and Off-Highway segments, resulting in appx. 25% YoY growth, while strengthening demand in export markets led to export revenues increasing by over 30% YoY. The quarter marked another milestone in our profitability journey, with Gross, EBITDA and PAT margins improving YoY and maintained at record levels. EBITDA margin remained above 30% for the fourth consecutive quarter, while PAT margin exceeded 20% for the first time, reflecting the continued benefits of an improving product mix, higher value addition and operating leverage. These outcomes reinforce the structural resilience of our business model and our ability to consistently deliver profitable growth. Diversification gathered momentum during the quarter, with exports contributing 28% of revenue, while Passenger Vehicle and Industrial shares increased to 8% and 16%, respectively. Our incremental order book, largely led by exports, Passenger Vehicles and Industrials, provides visibility on additional annual revenue ramping up to appx. Rs. 950 Crs. over the next 2–3 years. Looking ahead, we remain optimistic about the growth outlook for FY27. Supported by improving industry demand and ramp- up of recently secured business, we expect production and sales volumes to strengthen progressively over the course of the year, enabling better utilisation of our ongoing investments in manufacturing capacity and advanced machining capabilities. Our strategic initiatives also continue to progress well. Installation of equipment for our ultra-heavy component manufacturing facilities is expected to be completed by the end of the financial year, positioning us for the commencement of commercial revenues from FY28 onwards. In parallel, execution of our captive solar power project remains on track and is expected to begin contributing to operating cost efficiencies from FY28. As we continue to invest in expanding our capabilities, strengthening customer relationships and enhancing operational excellence, we remain confident of sustaining profitable growth.“ MESSAGE FROM THE MANAGING DIRECTOR 5
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Q1 FY27: GROWTH ACCELERATES, MARGINS AT RECORD LEVELS 6 Finished Goods Volume (MT) Revenue (Rs. Crs) Realisation/Kg (Rs.) EBITDA (Rs. Crs) PAT (Rs. Crs) Gross Profit (Rs. Crs) 14,457 17,793 Q1FY26 Q1FY27 245 253 Q1FY26 Q1FY27 354 449 Q1FY26 Q1FY27 205 273 Q1FY26 Q1FY27 101 141 Q1FY26 Q1FY27 66 91 Q1FY26 Q1FY27 +23.1% +27.0% 60.7%57.9% 31.3%28.6% 20.4%18.6% +33.1% +39.3% +39.2% +3.2% +276bps +275bps +178bps
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VOLUME GROWTH WITH IMPROVED REALISATION & MARGIN EXPANSION 7 Q1FY27 vs Q1FY26 (Volume and Realisation per Kg) FG Volume (MT) Realisation/Kg (Rs.) Particulars Q1FY26 14,457 245 YoY 23.1% 3.2% Q1FY27 17,793 253 EBITDA/Kg (Rs.) 70 13.1%79 Q4FY26 17,298 245 77
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PRODUCT MIX SECTOR MIX GEOGRAPHY MIX Note: Percentages are rounded off. Totals may not add up to 100% HIGHER VALUE ADDITION, BROADER REVENUE MIX 8 11% 12% 10% 89% 88% 90% FY2026 Q12026 Q12027 Forged Forged & Machined 37% 39% 33% 6% 6% 8% 32% 32% 32% 11% 10% 11% 14% 13% 16% FY2026 Q12026 Q12027 Non-Automotive - Industrials Non-Automotive - Off-Highway Non-Automotive - Farm Equipment Automotive - Passenger Vehicles Automotive - Commerical Vehicles 74% 73% 72% 11% 12% 12% 15% 16% 16% FY2026 Q12026 Q12027 Direct Exports Deemed + Indirect Exports Domestic
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PLANNED ADDITIONS 1 Machining capacities for upcoming Heavy & Near-net forging lines + existing operational assets ALLIED TO CURRENT FORGING CAPACITIES Best-in-class precision machining infrastructure, featuring advanced equipment from global leaders such as Landis and Junker, along with multiple 5-axis machining centres, enabling the machining of a diverse range of crankshaft and non-crankshaft components to tolerances as low as 5 microns ANNUAL CAPCITY : ~1.5 million Crankshafts | ~0.20 million Front Steering Knuckles | ~0.20 million Differential Cases | ~0.24 million Planetary Carriers, Housings & Pinions EXPANDING CAPABILITIES ACROSS THE WEIGHT SPECTRUM 9 1 Planned additions to be operational by FY28; * One Press commissioned in Q1FY27 Note: Capacity represents annual installed capacity as on the last date of relevant financial period. Capacity utilisation is based on the average available capacity for the period. Forging Machining Weight range >> Capacity Utilisation Q1FY27 10kg 20kg 30kg 50kg 70kg 100kg 150kg 250kg 500kg 1,000kg 3,000kg 1 x 14,000T press 1 x 125T Hammer 1 x 8,000T Vertical Upsetter (near-net) 1 x 10,000T press 3 x 8,000T press 1 x 6,300T press 2* x 4,000T press 1 x 3,150T press 1 x 2,500T press 9 x Hammers (1.5T - 5.0T range) 1,52,000 MT (operational) 75,200 MT (operational) + ~35,000 MT (planned) + ~20,000 MT (planned) Progressively Extending Capabilities Into Heavier and Complex Components to Unlock New Growth Opportunities 59% 78% - - PLANNED ADDITIONS 1 OPERATIONAL
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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% Employee Cost 39 32 36 137 Other Expenses 93 72 82 307 EBITDA 141 101 39.3% 133 5.6% 471 EBITDA Margin 31.3% 28.6% 275 bps 31.5% -12 Bps 30.4% Depreciation 26 21 25 89 EBIT 115 81 42.2% 109 5.3% 382 Other Income 11 10 6 31 EBIT Incl. Other Income 126 91 38.2% 115 9.4% 412 Finance Cost 3 2 4 10 Profit Before Tax 123 89 38.3% 111 10.4% 402 Profit Before Tax Margin 27.3% 25.1% 223 bps 26.2% 108 bps 26.0% Tax 31 23 28 100 PAT 91 66 39.2% 84 9.5% 302 PAT Margin % 20.4% 18.6% 178 bps 19.7% 63 bps 19.5% EPS (Diluted) 9.68 6.96 8.84 31.92 PROFIT & LOSS STATEMENT 10
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01 Q4 & FY26 PERFORMANCE HIGHLIGHTS Delivering Growth With Strengthening Operational Performance 02 COMPANY OVERVIEW Engineering Excellence Across Products, Customers & Markets 03 FORGING SUCCESS: VALUE-CREATING TRANSFORMATION Building Scale, Efficiency & Sustainable Competitive Strength 04 HISTORICAL FINANCIAL PERFORMANCE A Multi-Year Journey of Consistent Growth & Margin Expansion 05 BEYOND FINANCIALS: CREATING LASTING IMPACT Driving Value Through Innovation, People, Sustainability & Governance
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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 knuckles, differential housings, transmission parts, pinion shafts, suspension products and valve bodies catering to different industries and customers 3 Manufacturing Facilities 47 years of Manufacturing Excellence 1,52,000 MT Forging capacity* 75,200 MT Machining capacity* 2nd Largest Producer of commercial vehicle and high horse-power industrial crankshafts in India 3rd Largest Engineering-led manufacturer of complex and safety-critical, heavy forged and high-precision machined components in India Diversified Customer Base Across Indian & Global OEMs * Installed capacity as on Jun 30, 2026 About Us OUR VISION To be amongst the top 10 forging and machining companies globally OUR MISSION ▪ State-of-the-art Technology ▪ Deliver more than promised ▪ Respect and encourage people ▪ Inspire innovation and creativity ▪ Care for the environment and society AA/STABLE CRISIL and ICRA Credit Rating Rs. 1,546 Crs FY26 Revenue 30.4% FY26 EBITDA Margin A LEGACY OF EXCELLENCE 12
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1979 Established with a single unit for manufacturing crank arms 2005 Heavy-duty hammers installed for oil engine and motor parts production 2006 Commenced operations at Kanganwal Facility II 2007 Crossed ₹100 Crs in revenue. 2008 Initiated installation of 8,000 tonne forging press and model grinding for 4/6-cylinder crankshafts 2021 Commenced operations at the Dugri facility Installed the 3rd 8,000-tonne forging press line 2023 Crossed ₹1,000 Crs in revenue. Completed IPO and public market listing 2025 Installed and began operations of the 6,300-tonne press along with expansion in machining capacity 2024 Commenced supply of crankshafts for SUVs 14,000 2017 Commissioned the second 8,000- tonne forging press. 8,000 T 2nd 8,000 T 1st 3rd 8,000 T 2018 Crossed ₹500 Crs In Revenue Secured funding through the financial sponsor route from the India Business Excellence Fund III Rs. 500 cr Rs. 1,000 cr 2010-15 Expanded machining capacity and entered commercial vehicles and industrial segments Rs. 100 cr 2026 Commissioned the 10,000-tonne forging press line 10,000 2022 Installed eight dedicated crankshaft manufacturing lines. Commissioned the first 14,000 tonne forging press line BUSINESS EVOLUTION SPANNING 4 DECADES 13
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Forging Fully automated forging press lines and hammers to produce high-quality forged products Metallurgical Facilities Equipped with a range of advanced metallurgical testing & analysis equipment to ensure highest quality in the forging manufacturing process Die Design & Manufacturing Latest technology and tools to offer a wide range of services, including design, prototyping, testing and manufacturing Inspection and Quality Control World class and most advanced metrology room to ensure the highest standards of quality Heat Treatment Facilities Equipped with the latest technology and equipment to provide precise and effective heat treatment processes for our products Machining Advanced software and equipment to ensure that our machining processes adhere to stringent tolerance levels FULLY INTEGRATED CAPABILITIES 14
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Covered Raw Material Yard Metallurgical Testing LabBillet Cutting Section Forging Heat TreatmentMachining Control Cooling Standard Room Final Inspection Packaging & Dispatch COMPLETE PROCESS FLOW 15
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Front Axle Components Rear Axle Component Suspension Products Differential CaseCrankshaft Commercial Vehicles Passenger Vehicles Crankshafts Brake Flange E Axle Components Off-highway Vehicles Farm Equipment PinionCrankshaftAxle Shaft Crown Wheel Bucket Link Crankshaft MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (1/2) 16
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Power Generation Windmill Applications Oil & Gas Railways Planetary CarrierOutput Shaft Housing Connecting RodPiston Pin Crankshaft Valve Bodies 17 MULTI-PRODUCT AND MULTI-INDUSTRY OFFERINGS (2/2)
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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 through increase in direct & indirect exports Increased wallet share from customers by offering additional products to existing customers Track record of consistently building capabilities and infrastructure with a focus on capital efficiency PAVING OUR PATH TOWARDS ACCELERATED VALUE CREATION 18
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Capital-intensive business that involves complex technology, machinery and systems acting as an entry barrier for smaller and unorganized players CAPITAL INTENSIVE BUSINESS Lengthy customer and product approval processes STRATEGIC RESILIENCE Global industry leaders are highly selective in qualifying new suppliers with respect to critical products given the high costs and risks of switching suppliers, especially where product reliability is critical PRODUCT RELIABILITY Difficulty in acquiring new customers without existing relationships SELECTIVE SUPPLIER DYNAMICS Importance of implementing and sustaining quality systems while providing critical & high precision components involving tight tolerances (e.g. tolerance for machined products ranges between 0.005 mm & 0.2 mm) PRECISION IN PRACTICE HIGH ENTRY BARRIERS 19
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1,52,000 MT Total Forging Capacity* 75,200 MT Total Machining Capacity* 2nd Largest Producer of Crankshafts in India for Commercial Vehicle and High Horsepower Industrial applications 47 Years of Engineering Excellence Kanganwal I, Ludhiana (Started in 1995) Kanganwal II, Ludhiana (Started in 2006) Dugri, Ludhiana (Started in 2021) ▪ Second company in India to have 14,000 Tonne press ▪ The ability to forge heavier and complex parts up to 250 kgs to cater to different industries which require heavy and complex parts Continuous Investment in in- house infrastructure ▪ Facilities located near inland container depot facility in Ludhiana and Dedicated Freight Corridor (DFCs) provides cost and logistical advantages Strategic Location of Facilities ▪ Fungible product lines along with vertically integrated facilities helps drive diverse product offering, reduced operating costs and improve productivity Operating Efficiencies * Installed capacity as on Jun 30, 2026 EXPERTISE IN HIGH-TONNAGE PRESSES AND PRECISION MACHINING 20
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Executive Directors Paritosh Kumar Chairman & Managing Director ▪ 47+ Years of experience ▪ Founded Happy Forgings in 1979 ▪ B.A. from S.C. Dhawan Government College, Ludhiana (P.U.) Ashish Garg Managing Director ▪ 19+ Years of experience ▪ Joined Happy Forgings in 2006 ▪ Bachelor’s degree in science (accounting and finance) & a Master’s degree in science (manufacturing systems engineering), University of Warwick, UK Megha Garg Whole-time Director ▪ 10+ Years of experience ▪ Joined Happy Forgings in 2016 ▪ Bachelor’s degree in science (economics) from the University of Nottingham, UK Senior Management Narinder Singh Juneja Chief Operating Officer ▪ 50+ Years of experience ▪ Postgraduate diploma in mechanical engineering, Y.M.C.A. Institute of Engineering, State Board of Technical Education, Haryana Patwinder Singh Chief Operating Officer ▪ ~30 Years of experience ▪ Joined Happy Forgings in 2016 ▪ Bachelor’s Degree in Science, Guru Nanak Dev University and MBA from CSM Institute of Graduate Studies Sushant Pustake Chief Operating Officer ▪ 40+ Years of experience ▪ Joined Happy Forgings in 2025 ▪ Bachelor’s degree in metallurgical engineering, College of Engineering, Pune Pankaj Kumar Goyal Chief Financial Officer ▪ ~24 Years of experience ▪ Joined Happy Forgings in 2013 ▪ Fellow Member of Institute of Chartered Accountants of India Mangesh Shantaram Purandare Chief Marketing Officer ▪ 30+ Years of experience ▪ Joined Happy Forgings in 2019 ▪ Bachelor’s degree in Engineering and MBA from University of Pune G.S. Sandhu Chief Human Resource Officer ▪ 30+ Years of experience ▪ Joined Happy Forgings in 2019 ▪ MBA in HR and Alumnus of ISB (Future CHRO Programme) Brijender Singh Chief Operating Officer ▪ 30+ Years of experience ▪ Joined Happy Forgings in 2026 ▪ B.SC. II (N.M) & Mechanical Engineering from Y.M.C.A. Institute of Engineering ARCHITECTS OF PROGRESS 21
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Use in-house capabilities for product development to tap into industrial market opportunities Enter lightweight forging and machining for passenger vehicle sector Capitalise on increasing demand from international markets to grow exports Expand wallet share and acquire new business by leveraging existing OEM relationships and adding new customers Expand capacity at existing manufacturing facilities Continue to reduce operating costs and improve operational efficiencies Grow inorganically through strategic acquisitions and alliances Growth at Happy Forgings has never been about chasing momentum. It is about making deliberate choices that create value over the long term. NAVIGATING THE PATH TO SUSTAINABLE GROWTH 22
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01 Q4 & FY26 PERFORMANCE HIGHLIGHTS Delivering Growth With Strengthening Operational Performance 02 COMPANY OVERVIEW Engineering Excellence Across Products, Customers & Markets 03 FORGING SUCCESS: VALUE-CREATING TRANSFORMATION Building Scale, Efficiency & Sustainable Competitive Strength 04 HISTORICAL FINANCIAL PERFORMANCE A Multi-Year Journey of Consistent Growth & Margin Expansion 05 BEYOND FINANCIALS: CREATING LASTING IMPACT Driving Value Through Innovation, People, Sustainability & Governance
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A Snapshot of Building Scale, Efficiency & Sustainable Competitive Strength (FY21 to FY26) Scale With value Profitable Growth Financial Strength Capacity Transformation Increasing value addition supported by stronger engineering capabilities and product mix Focused on profitable growth through value addition and operating efficiency Strong cash generation supporting balance sheet strength and strategic growth flexibility Expanding scalable capabilities across high-value and heavy forging opportunities FG Volume 63,105 MT 1.8x Realisations ₹ 245/Kg 1.5x FY21 to FY26 FY21 to FY26 FY21 to FY26 FY21 to FY26 Sales CAGR 21% Gross Profit CAGR 22% EBITDA CAGR 24% PAT CAGR 28% ∆ Gross Margin 215 bps ∆ EBITDA Margin 330 bps ∆ PAT Margin 473 bps Cumulative OCF/EBITDA 64% ROCE 18.2% ROE 15.2% Debt/Equity 0.15x Credit Rating AA Stable Forging Capacity 148,000 MT Machining Capacity 68,000MT Capex Earmarked for Heavy Forgings Capacity ~ ₹ 650 Crs. 1.8X 1.5X 215 Bps 330 Bps ~470 Bps ~70 Bps ~80 Bps 0.08x 2.2X 2.3X FORGING SUCCESS: VALUE-CREATING TRANSFORMATION 24
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165 201 232 243 248 245 FY21 FY22 FY23^ FY24* FY25 FY26 35,534 42,777 50,656 55,379 56,906 63,105 Growth Driven by Increasing Penetration In High-value and Precision-engineered Components ^ FY23 realisation excludes prior period income * FY24 adjusted for higher realization on account of air freight costs recovery on one order Realisations Remained Broadly Stable and Range-bound in FY26 Despite Softening Raw Material Prices FY21 to FY26 1.8x 1.5x SCALING VOLUMES WHILE ENHANCING VALUE ADDITION & REALISATIONS 25 Finished Goods Volume (MT)Realisation/Kg (Rs.) EBITDA/Kg (Rs.) 45 54 63 68 71 75
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^ 10 Year CAGR for the period FY16 – FY26 585 333 159 86 860 472 231 142 1,197 645 341 209 1,358 762 388 243 1,409 817 407 267 1,546 915 471 302 Sales Gross Profit EBITDA PAT FY21 FY22 FY23 FY24 FY25 FY 26 21% CAGR (FY21-26) 10 Year CAGR – 15%^ 22% CAGR (FY21-26) 10 Year CAGR – 17%^ 24% CAGR (FY21-26) 10 Year CAGR – 20%^ 28% CAGR (FY21-26) 10 Year CAGR – 33%^ Rs Crs. 2.6x 2.7x 3.0x 3.5xFY21-26 FY21-26 FY21-26 FY21-26 DELIVERING STRONG & STEADY GROWTH ACROSS FINANCIAL METRICS 26
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57.0% 27.1% 14.8% 54.8% 26.8% 16.5% 53.9% 28.5% 17.4% 56.1% 28.5% 17.9% 58.0% 28.9% 19.0% 59.1% 30.4% 19.5% Gross Margin EBITDA Margin PAT Margin FY21 FY22 FY23 FY24 FY25 FY 26 215 bps (FY21-26) 330 bps (FY21-26) 473 bps (FY21-26) Improving Product Mix and Execution Driving Sustained Profitability Expansion MARGIN EXPANSION DRIVEN BY VALUE ADDITION AND EFFICIENCY 27
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Particulars (Rs. Crs.) FY21 FY22 FY23 FY24 FY25 FY26 ∑ (FY21-FY26) EBITDA 159 231 341 388 407 471 EBITDA Margin (%) 27.1% 26.8% 28.5% 28.5% 28.9% 30.4% Operating Cash Flow 50 92 209 189 292 445 Op. Cash Flow/EBITDA (%) 31% 40% 61% 49% 72% 94% 64% Capex 92 191 175 194 281 461 Cash Accrual and Deployment in Capex Gross Block and Capacity Build-up Since 2021 1,995 1,277 1,393 ✓ Healthy operating cash accruals have largely funded capex ✓ Enabled rapid scaling of manufacturing capacities ✓ Current liquidity surplus of ~Rs. 400 Cr+. ✓ Current liquidity exceeds primary capital raised during IPO Strong Cash Accruals Driven by High Margins and Working Capital Efficiency Supporting Capacity Expansion 547 798 934 1,115 1,351 1,725 FY21 FY22 FY23 FY24 FY25 FY26 Gross Block + CWIP + Intangibles (Rs. Crs.) 3.2x Capacity (in MT) FY21 FY26 Forging 67,000 148,000 Machining 29,500 68,000 STRONG CASH GENERATION FUNDING CAPACITY BUILD-UP 28
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Particulars (Rs Crs.) FY21 FY22 FY23 FY24 FY25 FY26 Net Worth 645 788 988 1,612 1,850 2,128 Borrowings 153 240 219 143 228 330 Trade Payables 38 44 48 56 45 59 Other Liabilities 38 55 71 75 92 116 Total Liabilities 874 1,127 1,326 1,886 2,215 2,633 Net Block + CWIP + Intangibles 455 668 753 870 1,031 1,346 Inventories & Receivables 287 406 478 581 659 628 Cash & Bank + Curr. Liquid Assets 28 1 0 122 226 421 Other Assets 104 52 95 313 299 239 Total Assets 874 1,127 1,326 1,886 2,215 2,633 Debt / Equity 0.24x 0.31x 0.22x 0.09x 0.12x 0.15x Net Debt/EBITDA 0.79x 1.03x 0.64x 0.06x 0.00x -0.19x Robust Balance Sheet with AA Stable Credit Rating Provides flexibility to pursue organic and inorganic growth opportunities Focus on judicious capital allocation and maintaining a strong balance sheet to create value 14.4% 19.9% 23.5% 18.7% 15.2% 15.2% FY21 FY22 FY23 FY24 FY25^ FY26 ROE % 17.5% 21.8% 26.2% 22.7% 18.8% 18.2% FY21 FY22 FY23 FY24 FY25^ FY26 ROCE % 1.2 1.3 1.4 1.3 1.1 1.0 FY21 FY22 FY23 FY24 FY25 FY26 GROSS FIXED ASSETS TURNOVER * Net debt computed by including short term liquid mutual fund investments and short-term fixed deposits along with cash and bank balances ^ Excluding post-tax insurance income of Rs. 4.8 Crs Strong Return Ratios Maintained Through Disciplined Capital Allocation With Further Upside From Utilisation Ramp-up FORTRESS BALANCE SHEET SUPPORTING LONG TERM GROWTH 29
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Forging Capacity (in MT) Machining Capacity (in MT) 67,000 81,000 107,000 120,000 127,000 148,000 FY21 FY22 FY23 FY24 FY25 FY26 29,500 35,500 46,100 51,000 57,000 68,000 FY21 FY22 FY23 FY24 FY25 FY26 2.2xFY21-26 Installed Capacity and Utilisation 2.3xFY21-26 60% 57% 59%58%63%67% 71% 83% 82%87%79%78% Note: Figures represent Annual Installed Capacity as on the last date of the relevant period. Capacity utilisation is based on the average available capacity for the period. BUILDING CAPACIITIES FOR RESILIENT AND SUSTAINABLE GROWTH 30
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01 Q4 & FY26 PERFORMANCE HIGHLIGHTS Delivering Growth With Strengthening Operational Performance 02 COMPANY OVERVIEW Engineering Excellence Across Products, Customers & Markets 03 FORGING SUCCESS: VALUE-CREATING TRANSFORMATION Building Scale, Efficiency & Sustainable Competitive Strength 04 HISTORICAL FINANCIAL PERFORMANCE A Multi-Year Journey of Consistent Growth & Margin Expansion 05 BEYOND FINANCIALS: CREATING LASTING IMPACT Driving Value Through Innovation, People, Sustainability & Governance
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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% Employee Cost 137 125 114 88 69 49 Other Expenses 307 286 260 217 172 126 EBITDA 471 407 388 341 231 159 EBITDA Margin (%) 30.4% 28.9% 28.5% 28.5% 26.8% 27.1% Depreciation 89 77 65 54 38 36 EBIT 382 330 323 287 193 123 Interest 10 8 12 12 7 12 Other Income 31 37 13 6 6 6 Profit Before Tax 402 360 324 280 192 117 Tax 100 92 81 71 50 31 PAT 302 267 243 209 142 86 PAT Margin (%) 19.5% 19.0% 17.9% 17.4% 16.5% 14.8% EPS (Diluted) 31.92 28.37 26.75 23.32 15.90 9.7 ^ In FY25 other income includes insurance income of Rs. 6.4 Crs. (Rs. 4.8 Crs on a post-tax basis included in PAT) PROFIT & LOSS STATEMENT 32
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Assets (Rs. Crs) Mar 31, 2026 Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Non-Current Assets 1,562 1,297 1,144 836 704 Property, Plant and Equipment 1,097 900 742 677 455 Capital work-in-progress 229 116 122 75 212 Intangible Assets 11 8 1 1 2 Intangible assets under development 8 6 5 - - Other Financial Assets & investments 41 151 204 31 8 Other Non-Current Assets 174 115 70 52 28 Current Assets 1,071 919 742 489 423 Inventories 233 232 224 170 184 Trade Receivables 395 427 357 308 222 Cash and Cash Equivalents 26 13 0.6 0.01 0.02 Bank Balances 27 124 121 0.3 1 Other Financial Assets 376 109 8 1 3 Other current assets 15 14 31 10 12 Assets Held for Sale - - 1 1 Total Assets 2,633 2,215 1,886 1,326 1,127 Equity & Liabilities (Rs. Crs) Mar 31, 2026 Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 EQUITY 2,128 1,850 1,612 988 788 Equity Share Capital 19 19 19 18 18 Other Equity 2,109 1,831 1,594 970 770 Non-current liabilities 49 39 32 81 97 Borrowings - - - 58 74 Deferred tax liabilities 49 39 32 23 23 Current liabilities 456 326 242 257 243 Borrowings 330 228 143 160 166 Trade Payables 59 45 56 48 44 Other Financial Liabilities 37 25 28 26 18 Other Current Liabilities 26 19 9 8 5 Provisions 3 5 4 4 3 Liabilities for current tax (net) 0 4 2 11 6 Total Equity & Liabilities 2,633 2,215 1,886 1,326 1,127 BALANCE SHEET 33
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Cash Flow Statement (Rs. Crs) Mar 31, 2026 Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 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 -49 -123 -78 -98 Cash generated from operations 537 376 273 273 135 Direct taxes paid (net of refund) -93 -83 -84 -64 -43 Net cash from operating activities 445 292 189 209 92 Net cash from investing activities -497 -320 -470 -172 -177 Net cash from financing activities 65 40 281 -37 83 Net change in cash and cash equivalents 13 12 0.6 -0.01 -3 Improvement in working capital efficiency during FY26 led to strong cash flow conversion CASH FLOW 34
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01 Q4 & FY26 PERFORMANCE HIGHLIGHTS Delivering Growth With Strengthening Operational Performance 02 COMPANY OVERVIEW Engineering Excellence Across Products, Customers & Markets 03 FORGING SUCCESS: VALUE-CREATING TRANSFORMATION Building Scale, Efficiency & Sustainable Competitive Strength 04 HISTORICAL FINANCIAL PERFORMANCE A Multi-Year Journey of Consistent Growth & Margin Expansion 05 BEYOND FINANCIALS: CREATING LASTING IMPACT Driving Value Through Innovation, People, Sustainability & Governance
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Age Years of Experience Director (Name, Age, Experience) Key Board Highlights Diverse Board in terms of professional and industry experience, age and gender 50% Independent Directors (3 out of 6) 2 Female Directors out of 6 3 committees out of 5 headed by Independent Directors (Audit, NRC and SRC) ~100% attendance of the Board members in Board meetings in FY 2026 ~175+ years of collective experience of Board Members ~100+ Years of collective experience of Independent Directors ~57 years average age of the Board Members Atul Behari Lall Independent Director Rajeswari Karthigeyan Independent Director Ravindra Pisharody Independent Director Area of Expertise 65 30+ 56 30+ 71 ~40 Key Board Memberships • Business Strategy & Operations • Electronics manufacturing services industry • Credit Ratings & appraisal • Financial and economic research • Sales & marketing • Strategy development • Diverse industry experience • Current: Dixon Technologies (MD & Vice Chairman), Max Estates Limited and Aditya Infotech Ltd. • Past: Member of Technical Evaluation Committee for Electronic Manufacturing Services • Current: Craftsman Automation, Sunbeam Lightweighting Solutions Pvt. Ltd. and Belstar Microfinance • Past Role: Associate Director – CRISIL Ratings • Current: Savita Oil Technologies Ltd., Muthoot Finance, Bonfiglioli Transmissions and Kwality Walls (India) Limited • Past: Tata Motors Ltd., Castrol India and Kinara Capital GOVERNANCE: DIVERSE BOARD WITH STRONG INDEPENDENT DIRECTORS 36
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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 governance structures to guide execution. Our focus is now on institutionalising ESG practices by strengthening systems, policies, and processes to ensure consistent implementation and accountability. As a key partner to global OEMs, we remain committed to meeting evolving regulatory and customer expectations through high standards of compliance and responsible business conduct. ENVIRONMENT Energy Management Emissions Management Climate Strategy & Governance Waste Management & Product Stewardship Water Management SOCIAL Labour Practices Health & Safety Human Rights Diversity & Inclusion Community Relations GOVERNANCE ESG/Corporate Governance Supply Chain Management Risk Management Data Protection & Security On the environmental front, we are advancing initiatives to improve resource efficiency, increase the use of cleaner energy, and reduce emissions and waste. These efforts are being undertaken alongside a significant capex cycle, with new capacities under ramp-up. The progress achieved reflects this transition phase, with further gains expected as utilisation stabilises. We continue to foster a safe and inclusive workplace, invest in employee development, and strengthen governance oversight. Our endeavour remains to embed ESG as a core pillar of sustainable growth and long-term value creation.” ESG: KEY INITIATIVES 37
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Cover 100% of our workforce with skill development programs Lower LTIFR by 50% by 2030# Provide human rights and safety training to all raw material suppliers Social Screen suppliers for sustainability alignment Strengthen policies on ethical conduct and compliance Link ESG performance to Board evaluation KPIs Introduce an ESG risk management framework Governance Reduce Scope 1 and Scope 2 emissions by 50% by 2030# Achieve 100% Zero Liquid Discharge implementation across all sites Lower freshwater consumption by 35% by 2031-32# Install a 20 MW solar plant by 2028 Environment 20 MW Captive Solar Power Capacity being built 98,300 tCO2e 7% reduction in Total GHG Emissions (Scope 1 & 2) YoY 9.4 GJ/MT 4% reduction in Energy Intensity YoY Rs. 23.7 Crs Cumulative CSR Expenditure For FY2021-26 ~22,160 Hours Cumulative Employee Training Hours 0.64 LTIFR 100% o Workforce Medical Coverage o Employees covered under PF, ESI and Gratuity o Grievance closure rate in 2024-25 # From Baseline values; ~30 Years Average Experience of Directors 3 Independent Directors 2/6 Board Directors are Women ESG TARGETS AND COMMITMENTS 38
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Education, Training & Livelihoods 60% Healthcare & Community Well- being 24% Environment & Sustainable Infrastructure 8% Others 8% Total CSR Spend – FY2021-2026 Cumulative Spend – Rs. 23.7Cr CSR Spend Details Category Key Projects / Organizations funded Pictures Gallery Education, Training & Livelihoods Healthcare & Community Well-being Environment & Sustainable Infrastructure Others ▪ Developed vocational college for underprivileged girls with Bal Vikas Trust ▪ Constructed Primary Government School at Kanganwal, Ludhiana ▪ Built Government Primary School at Umedpur to improve rural education access ▪ Supported training for hearing-impaired children through Ludhiana Education Society ▪ Supported education for underprivileged children through Noble Foundation ▪ Providing nutrition and care support for students at Ekjot Viklang Bachhon Ka School ▪ Enabled vocational rehabilitation for visually impaired students ▪ Installed dialysis machines and provided free kits for critical care patients ▪ Installed gene sequencing machine at DMC Ludhiana ▪ Provided seven vehicles for emergency and mobile healthcare services ▪ Installed Colour Doppler machine at Nav Durga Charitable Trust ▪ Installed X-ray machine at Bhagwan Ram Charitable Trust for underserved communities ▪ Donated eye testing machine to Saarthi Welfare Society ▪ Contributed to flood relief efforts in Punjab ▪ Maintained a 2.5-acre public park in Sarabha Nagar ▪ Installed solar panels at Jagannath Mega Kitchen ▪ Supported environmental initiatives at Punjab Agricultural University ▪ Set up two bio-compost machines in Leh for the Army ▪ Dhyan Foundation – Animal Welfare ▪ Krishan Balram – Animal Welfare SOCIAL – CSR ACTIVITIES 39
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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 Quality Performance Award FY24 for excellent performance in incoming parts quality by Ashok Leyland Gold award for “Superlative Performance in Agility” – 2024 Ashok Leyland Supplier Summit Received Next Level Quality award by Generac – 2023 (Received in 2024) Received Best Quality Award by Escorts Kubota Limited (2024) Received Supplier Excellence Award for “Quality Performance” by American Axle & Manufacturing - 2024 Received ‘Best Supplier Award’ at the Global supplier meet 2024 from TAFE IATF 16949:2016 accreditation for manufacture of forged and machined components and excluding product design Dugri Facility “Excellence Award” by Escorts Kubota Limited ISO 45001: 2018 & ISO 14001: 2015 accreditation for manufacture of forged and machined components Kanganwal Facility I IATF 16949:2016 accreditation for manufacturing of forged and machined components without product design responsibility and with the extended manufacturing site(s) for Kanganwal Facility I ‘Supplier Excellence Award’ for delivery performance at AAM (American Axle Manufacturing) India Supplier Event 2023 ‘Award for Outstanding Contribution in Gear Business’ at the Annual Supplier Conference 2023 organised by Eicher Engineering Components, VE Commercial Vehicles ISO 14001:2015 & ISO 45001:2018 accreditation for manufacture of forged & machined components excluding product design- Dugri Facility Received ‘The Entrepreneur & Leadership Award’ at the JCB Annual Supplier Conference 2023 Received a certificate of appreciation for supplier Agri machinery under ‘Business Excellence Process/ Digitalisation’ by Escorts Kubota Ltd 2022 2023 2021 2024 & 2025 AWARDS, ACCREDITATIONS AND RECOGNITIONS 40
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IATF 16949:2016 Quality Management System Certification for Automotive Suppliers ISO 9001:2015 Quality Management System ISO 45001:2018 Occupational Health & Safety Management System ISO 14001:2015 Environment Management System ISO 9100:2018 Aerospace Quality Management System CERTIFICATIONS 41
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FOR FURTHER INFORMATION, PLEASE CONTACT CIN: L28910PB1979PLC004008 Mr. Vikas Thakur E: investor.relations@happyforgingsltd.co.in T: +91 99159 51913 www.happyforgingsltd.com COMPANY INVESTOR RELATIONS ADVISOR CIN: U74140MH2010PTC204285 Ms. Ami Parekh/ Mr. Jigar Kavaiya E: ami.parekh@sgapl.net / jigar.kavaiya@sgapl.net T: +91 80824 66052 / +91 99206 02034 www.sgapl.net