M M Forgings (522241) Q2 25/26 earnings summary

Executive summary

• Sales for the period were INR 742 crores, down from INR 773 crores year-over-year, with domestic sales stable and exports declining by INR 28 crores.

• Global economic volatility and geopolitical tensions disrupted supply chains and impacted export momentum, especially in the automotive sector.

• H1FY26 saw modest, market-driven moderation in growth, but operational efficiency and cost optimization supported resilience.

• The company expects FY sales to be close to last year's levels, with a rebound anticipated in H2 as U.S. CV market restocks.

• A 16,500-ton press, the world's largest hot forging mechanical press, will be commissioned by March/April, expected to add INR 300 crores in turnover.

Financial highlights

• Standalone revenue from operations for H1FY26 was ₹726.50 cr, down from ₹757.96 cr in H1FY25; consolidated revenue was ₹746.58 cr, down from ₹780.45 cr.

• Standalone EBITDA for H1FY26 was ₹141.59 cr (17.3% margin, excluding other income); consolidated EBITDA was ₹141.56 cr.

• Standalone PAT for H1FY26 was ₹40.05 cr, down from ₹68.35 cr in H1FY25; consolidated PAT was ₹35.76 cr, down from ₹62.02 cr.

• Sales per ton increased to ₹1.93 lakh in H1FY26 from ₹1.80 lakh in FY25.

• Gross debt at end of Q2: INR 1,062 crores; net debt: INR 850 crores.

Outlook and guidance

• FY revenue expected to be similar to previous year, with H2 sales projected at INR 750–800 crores.

• Order book of INR 300 crores, with INR 200 crores to be realized by FY 2027.

• FY 2027 anticipated as a breakout year, with new capacity and market recovery.

• CapEx for H2: INR 70 crores; next year: INR 100–120 crores.

• Capacity utilization expected to rise to 80,000–90,000 tons next year.