Happy Forgings Limited was incorporated as Happy Forgings Private Limited at Jalandhar, Punjab as a private limited company on July 2, 1979, and was later converted to a public limited company on April 1, 1998. The company has established itself as a prominent player in the Indian forging industry, specializing in the design and manufacturing of complex and safety-critical heavy forged and high-precision machined components.
Happy Forgings is recognized as the 4th largest manufacturer of complex and safety-critical, heavy-forged, and precision-machined components in India by forging capacity. The company operates as an engineering-led manufacturer, producing a wide range of forged and machined products such as crankshafts, front axle beams, steering knuckles, differential cases, transmission parts, planetary carriers, suspension brackets, and valve bodies across industries for a diversified base of customers.
Happy Forgings Limited engages in the manufacture of forgings and related components, offering heavy forged and machined products including bicycle pedals, brake flanges, bushes, bull gears, camshafts, crankshafts, connecting rods, crown wheels, differential cases, front axle beams, steering knuckles, differential cases, semi-machined transmission parts, planetary carriers, pinion shafts, piston pins, ring gears, suspension brackets, and valve bodies. The company serves manufacturers of heavy commercial vehicles, farm equipment, off-highway and industrial equipment, as well as machinery for oil and gas, aerospace, defense, power generation, railways, and wind turbine industries.
Happy Forgings has demonstrated progress in its diversification strategy, reducing its dependence on the commercial vehicle segment, which declined to 38% of revenue in FY25 from 43% in the previous year. The industrial segment increased its contribution to 14% from 11%, while passenger vehicles grew to 4% from 1%. Machined products contributed 87% of the company's output during FY25.
The company has continuously expanded its manufacturing capabilities over the years. In 2006, it commissioned operations at Kanganwal Facility II unit, and in 2008, commissioned its first 8,000 ton forging press. The company installed model grinding technology for manufacturing four and six cylinder crankshafts in 2009, and commissioned its second 8,000 ton forging press in 2017. In 2021, the company installed its third 8,000 ton forging press line and commenced Dugri Facility operations. In 2022, it commissioned its first 14,000 ton forging press line and installed 8 dedicated lines for manufacturing crankshafts.
Happy Forgings exports its products to Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, the United Kingdom, and the United States. Founded in Ludhiana, Punjab, Happy Forgings has established itself as a key supplier to domestic and global original equipment manufacturers, producing critical components for automotive, farm equipment, off-highway, and industrial sectors including oil and gas, power generation, railways, and wind turbine industries.
For the full year ended March 2025, net profit rose 10.07% to ₹267.44 Crore compared to ₹242.98 Crore in the previous year. Sales rose 3.73% to ₹1,408.89 Crore in FY25 compared to ₹1,358.24 Crore in FY24. The company achieved its best-ever profit margins in FY25, with gross profit margin of 58.0%, EBITDA margin of 28.9%, and profit after tax margin of 19.0%.
- Revenue (FY25): ₹1,408.89 Crore
- Net Profit (FY25): ₹267.44 Crore
- EBITDA Margin (FY25): 28.9%
- PAT Margin (FY25): 19.0%
- Volume (FY25): 56,906 metric tons
- Realization per kg (FY25): ₹248
For the quarter ended March 2025, net profit rose 2.81% to ₹67.63 Crore compared to ₹65.78 Crore in the previous year. Sales rose 2.51% to ₹351.97 Crore in Q4 FY25 compared to ₹343.34 Crore in Q4 FY24.
The market capitalization of Happy Forgings Ltd is ₹8,889.82 Crore as of June 16, 2025. The P/E (price-to-earnings) ratio is 33.24 and the P/B (price-to-book) ratio is 5.51. The current dividend yield is 0.32%.
The company maintained a strong balance sheet with liquidity of ₹356 Crore and a debt-to-equity ratio of 0.1x, supported by operating cash flow generation of approximately ₹290 Crore during FY25. The debt to equity ratio for FY25 stood at 0.0, indicating the company is debt-free.
Happy Forgings successfully completed its Initial Public Offering (IPO) in December 2023, raising ₹1,008.6 Crore, including a fresh issue of ₹400 Crore. As of December 31, 2024, ₹152.76 Crore has been utilized for prepayment of borrowings, ₹171.13 Crore allocated for plant and machinery (with ₹14.95 Crore used as of Q3 FY25), and ₹53.94 Crore for general corporate purposes (fully utilized in FY24). The remaining unutilized IPO funds of ₹156.17 Crore are currently parked in fixed deposits for future use.
The 52-week high of Happy Forgings Ltd is ₹1,299.95 and the 52-week low is ₹724.10. The company shows an annual revenue growth of 14%, pre-tax margin of 24%, and ROE of 15%. The company is debt-free and has a strong balance sheet, enabling it to report stable earnings growth across business cycles.
Despite facing significant challenges in key sectors, including a decline in international commercial vehicles and domestic slowdowns, the company achieved a 4.7% increase in revenue and its highest-ever profitability, driven by strong performance in the passenger and industrial segments. A robust balance sheet, characterized by a low debt-to-equity ratio and healthy cash flow, underpins its optimistic outlook for long-term growth.
The company continues to focus on expanding its production capacity, enhancing technological capabilities, and leveraging its diversified customer base to navigate market challenges while positioning itself for sustained growth in the forging and machining sector.
