M M Forgings (522241) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 performance was resilient despite global volatility, with total income at INR 358 crores and consolidated revenue at ₹361.65 cr, reflecting a year-over-year decline.

• EBITDA for the quarter was INR 72 crores (standalone ₹71.64 cr, consolidated ₹71.06 cr), with margins moderating due to softer demand and higher costs.

• Profit after tax stood at INR 22 crores (standalone ₹22.34 cr, consolidated ₹19.19 cr), down from previous year.

• Strategic focus remained on operational efficiency, innovation, and cost control to support long-term growth.

• Sales volume was 17,780 tons, with production at 18,000 tons, both lower than previous periods.

Financial highlights

• Standalone revenue for Q1FY26 was ₹348.81 cr, consolidated revenue ₹361.65 cr; standalone EBITDA at ₹71.64 cr, consolidated EBITDA at ₹71.06 cr.

• Standalone PAT was ₹22.34 cr, consolidated PAT ₹19.19 cr; export sales contributed ₹137 cr, or 40.2% of sales.

• Depreciation increased to INR 22.5 crores; finance cost rose to INR 18.3 crores.

• CapEx for the quarter was INR 55 crores; full-year CapEx expected at INR 150-200 crores.

• Net term loans increased by INR 30 crores, with year-end net term loans expected around INR 50 crores.

Outlook and guidance

• Management remains cautiously optimistic, with no specific sales guidance due to US tariffs and global uncertainties.

• Focus on cost control and sales push during the expected consolidation phase over the next two years.

• Margins expected to hold at current levels with a 200 basis point upward bias, depending on volumes and product mix.

• Revenue from new capacities expected to start from Q4 FY26 to Q1 FY27.