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Earnings Call Transcript

M M Forgings Earnings Call Transcript: Key Takeaways

MM Forgings delivered robust Q1 revenue growth of 16% YoY, driven by strong US CV market demand and a higher machining mix, though reported PAT was significantly inflated by a one-time ₹64 Cr land sale gain.

Guidance and delivery
Management target Revenue 18.0% FY27
Highlights
Revenue growth16% YoY growth driven by US export recovery and machining mix.
MarginsStructural expansion expected from higher machining mix and automation efforts.
Order bookGaining traction from hyperscalers and EV components for four-wheelers.
Demand visibilityStrong visibility in US Class 8 trucks and domestic CV/Passenger cars.
Management confidenceHigh optimism regarding US CV market and internal capacity debottlenecking.

Growth

16% YoY revenue growth led by machining share rising to 67%; EBITDA margins remained steady at 18% excluding other income.

Outlook

Targeting 18% YoY revenue growth (₹1,800-1,900 Cr) for FY27; aiming for 110,000 tons volume run-rate by fiscal year-end.

Risks

High power and fuel costs persist; rising freight expenses and working capital intensity remain key operational headwinds.

Last quarter's promises, checked

Delivered

  • Commission 16500-ton press in FY27 → Commissioned (BEAT)
  • Commission 4000-ton press → Commissioned (BEAT)
  • Improve machining mix → Share rose to 67% (BEAT)

Partly delivered

  • FY27 Revenue growth 20% → Current guidance 18% (PARTIAL)
  • Utilization target 90k-100k tons → Aiming for 110k run-rate by year-end (PARTIAL)

Missed

  • Cap gross debt at ₹1200 Cr → Reported ₹750-800 Cr (MISS/Restated target)
Source

Earnings Call Transcript filed with BSE, NSE: MMFL. Summary written with AI assistance from the document.

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M M Forgings Ltd: key numbers

Share price
₹616.15
Market cap
₹2,975 Cr
Revenue (annual)
₹1,590 Cr
Net profit (annual)
₹98.67 Cr
P/E (TTM)
17.6×Sector 53.6×
Promoter holding
56.34%+0.00% QoQ
FII holding
2.44%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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20:23 IST BSE
Financial Results

M M Forgings Q4 FY26 Results: Net Profit ₹44.7 Cr, Up 41.5% YoY

M M Forgings Ltd reported revenue from operations of ₹429 Cr (+16.1% YoY) and net profit of ₹44.7 Cr (+41.5% YoY) for Q4 FY26.

Key figure
Net profit ₹44.7 Cr · +41.5% YoY