Happy Forgings (HAPPYFORGE) Q4 24/25 earnings summary

Executive summary

• Achieved record profitability and stable growth in FY25, with gross margin at 58%, EBITDA margin at 28.9%, and PAT margin up to 19% despite a 4% top-line impact from lower steel prices.

• Revenue grew 4.7% YoY (adjusted), supported by diversification, higher value-add businesses, and new orders exceeding INR 1,600 crores in Passenger Vehicles and Industrials, with annual peak revenue potential of INR 250 crores.

• Board recommended a final dividend of INR 3 per equity share for FY25, with a payout ratio of ~11%.

• Audited standalone and consolidated financial results for FY25 were approved with an unmodified audit opinion from statutory auditors.

• No deviation or variation in the utilization of IPO funds; all proceeds are being used as per the stated objectives.

Financial highlights

• FY25 revenue grew 4.7% YoY (adjusted) to INR 1,409 crore, with EBITDA up 7.4% to INR 407 crore and PAT up 11.2% to INR 263 crore; PAT margin reached 19%.

• Q4 FY25 revenue was INR 350 crore (+2.5% YoY), EBITDA INR 102 crore (+5% YoY), and PAT INR 68 crore (PAT margin 19.2%).

• Realization per kg improved to INR 248, up from INR 243, and is 1.5x higher than FY21.

• Standalone net profit for FY25 was INR 26,757.46 lacs, with consolidated net profit at INR 26,743.63 lacs.

• Cash and liquid investments at INR 356 crore; cash from operations after working capital and taxes at INR 292 crore.

Outlook and guidance

• Medium-term organic growth expected at 15%-18% annually, supported by new orders and market expansion.

• Realization per kg projected to reach INR 275-280 over the next 4-5 years, driven by higher-margin businesses.

• CapEx plan of up to INR 650 crore over the next 2-3 years, with INR 80 crore for Passenger Vehicle segment and INR 300-400 crore for FY26 including solar investments.

• Unutilized IPO proceeds of INR 12,917.30 lacs are temporarily invested in fixed deposits.