Happy Forgings reported robust Q2 & H1 FY26 performance.

Q2 finished goods volume rose 5.2% YoY, with revenue from operations up 4.5% YoY.

Growth was driven by healthy domestic demand across Commercial Vehicle, Farm Equipment, Industrial, and Passenger Vehicle segments, though exports remained subdued.

The company's significant ₹650 Cr capex program for heavy forgings is on schedule, expanding capacity for higher-weight components in industrial and farm equipment sectors, with facilities expected by FY27. An additional ₹80 Cr capex is planned for the Passenger Vehicle segment.

Strategic focus includes deepening OEM partnerships and diversifying into high-value industrial applications.

Notably, the company achieved its highest-ever quarterly gross margin (~60%) and EBITDA margin (~31%), reflecting efficient operations.

For Q2 FY26, gross profit increased ~7% YoY, EBITDA ~10% YoY, and adjusted profit after tax ~10% YoY.

Management highlighted strong cash generation with nearly 100% operating cash flow conversion in H1 FY26 and ample liquidity of ~₹315 Cr for long-term growth.