M M Forgings (522241) Q3 25/26 earnings summary

Executive summary

• Sales grew 11.3% year-over-year and 7% sequentially in Q3 FY 2026, driven by volume growth, improved sales realization, and export recovery, especially in the U.S. and Europe, despite global volatility and tariff uncertainties.

• Management expects a strong revenue outlook for FY 2027, supported by domestic CV market recovery, new product launches, and cost control measures.

• Focus on operational efficiency, innovation, and cost optimization supported margins and business continuity.

• Maintained a robust balance sheet and long-term strategic outlook to capitalize on emerging opportunities.

• Abhinava Rizel (EV subsidiary) is close to customer acquisition, with a cash burn rate of about INR 1 crore/month and plans to expand product offerings.

Financial highlights

• Standalone revenue from operations for YTD Dec FY'26 was ₹1,131.83 crore, up from ₹1,122.20 crore in YTD Dec FY'25.

• Gross margin for Q3 FY 2026 increased to 56.34% from 53.57% in Q3 FY 2025.

• Standalone EBITDA for YTD Dec FY'26 was ₹218.69 crore, down from ₹243 crore in YTD Dec FY'25.

• Standalone PAT for YTD Dec FY'26 was ₹65.80 crore, compared to ₹100.06 crore in YTD Dec FY'25.

• Consolidated revenue from operations for YTD Dec FY'26 was ₹1,160.22 crore, with EBITDA at ₹214.12 crore.

Outlook and guidance

• Management targets at least INR 300 crore revenue growth in FY 2027, with 15-20% overall growth expected, driven by both domestic and export markets.

• Gross margins and EBITDA margins are expected to improve in FY 2027, supported by cost savings in interest and power.

• CapEx for FY 2027 is planned at INR 150-170 crore, with a focus on automation, productivity, and cost reduction.

• The 16,500-ton press is expected to reach full revenue potential (INR 300 crore) in 2-3 years.

• The company remains well-positioned to deliver sustainable value, supported by a robust balance sheet and a clear long-term strategic outlook.