MM Forgings Ltd

Financial Performance

• Q1 FY27 net sales: INR427 crores vs INR369 crores year ago.
• EBITDA: INR82 crores; EBITDA margin: 18%.
• Revenue growth: 16% YoY; PBT growth: 30%.
• One-off land sale gains: INR60 crores sale; INR58 crores net of taxes; INR64 crores gross.
• Domestic 63.5%, exports 36.5%; CV share 71%; machining 67%; forging 33%.
• Sales per ton: INR202,000 vs INR193,000.

Operational Trends & Mix

• Domestic sales share 63.5%; exports 36.5%.
• Geography mix: India 63.5%; U.S. 18%; Europe 14%; South America 4%; Others 1%.
• Machining share of sales: 67%; Forging share: 33%.
• Machining mix expected to stay ~65–68%.
• Labor costs higher in Q1 due to increments; run-rate expected to stabilize.
• Abhinava Rizel: first business; SOP start of production; ramp-up.

Capex & Capacity

• Capex guidance for the year: INR150 crores; replacement capex: INR30–50 crores.
• 16,500-ton forging press to production by end of this fiscal; 4,000-ton press already in production.
• Automation investment so far: ~INR7.5–10 crores; likely INR40–50 crores by year-end.
• Machining capex: total ~INR1,100 crores; last 5 years ~INR625 crores; last 10 years ~INR1,000 crores.
• Capex will be funded largely from internal accruals; no debt beyond ₹750–800 crores planned.
• Guidance: 1Q21-? (capex mix) replacement vs growth; debottlenecking to raise utilization.

Balance Sheet & Liquidity

• Gross debt around INR750 crores; plan to repay ~INR170 crores this year.
• Debt to be drawn later for investments; gross debt expected to stay around current level.
• Land sale proceeds to be used to reduce working capital and capex and borrowings.

Outlook & Guidance

• Turnover guidance of INR1,800–INR1,900 crores for the year.
• Machining mix target around 65–68%.
• QIP enabling resolution discussed; timing not fixed.
• Volumetric targets: ~25,000 tons per quarter minimum for next 2–3 quarters; ramp to 27,000–30,000 per quarter.
• Capacity utilization target around 120,000 tons by year-end.

Q&A Highlights

• U.S. CV tailwinds; hyperscalers driving domestic forging demand.
• Europe demand stable; US share ~18%; growth outlook across regions.
• Capex cadence: strong focus on machining; debottlenecking investments.
• Working capital management: AI tools to reduce inventory; target faster WIP turnover.
• QIP update: board has passed enabling resolution; timing under consideration.

Financial Highlights

• Standalone revenue ₹427.01 Cr, up 16% YoY.
• Consolidated revenue ₹426.76 Cr, up 16% YoY.
• Standalone EBITDA ₹82.33 Cr, up 16% YoY.
• Consolidated EBITDA ₹81.22 Cr, up 14% YoY.
• Standalone PBT ₹36.30 Cr, up 30% YoY.
• Consolidated PBT ₹35.07 Cr, up 26% YoY.
• Standalone PAT ₹91.66 Cr, up 373% YoY.
• Consolidated PAT ₹90.42 Cr, up 375% YoY.
• PAT includes ₹56.25 Cr land-sale profit (exceptional item).

Strategic & Operational Updates

• FY26 momentum improved; export markets resilient; domestic opportunities improving.
• Commissioning of 16,500-tonne press strengthens capabilities and exports.
• Large machined-product programmes ramping up for PV and Off-Highway.
• Focus on productivity, technology upgrades, and automation; inflation mitigation with customers.
• Healthy order pipeline and diversified customer base.
• Strong manufacturing capabilities and sound financial position.
• Export resilience with domestic demand improving.

Leadership & Governance

• Chairman and MD Vidyashankar Krishnan outlines transformation and growth trajectory.

Meeting Details

• Date: 17 August 2026; time not disclosed.
• Type: group analyst/investor conference call; mode not specified.

Participants

• Key company participant: Company Secretary.

Purpose

• Discuss unaudited results for quarter ended 30 June 2026.

Additional Notes

• Audio recording available; link provided in filing.

Asset sale exceptional item

• Exceptional item of ₹56.25 crore (net) arises from sale of assets in Q1 FY27.
• Pertains to sale of land near Oragadam, Chennai.
• Included in unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Requests record and compliance with SEBI LODR regulations.

Appointment & Resignation Details

• Chandrasekar S resigned as Company Secretary and Compliance Officer effective 14 Aug 2026 due to personal commitments.
• Shri S. Muthukrishnan appointed Company Secretary and Compliance Officer (KMP) effective 14 Aug 2026; Fellow ICSI, 18+ years.

Appointment

• Shri. S. Muthukrishnan appointed as Company Secretary and Compliance Officer, effective 14 August 2026.

Profile

• Fellow ICSI member with 18+ years in governance and regulatory affairs.

Role & Authority

• Designated as Key Managerial Personnel for CS & CO responsibilities.

Remuneration & Terms

• Remuneration and terms governed by NRC and Board from time to time.

Identity

• Membership No. F9420.

Governance changes and financial results

• Unaudited standalone and consolidated quarterly results for quarter ended 30 June 2026 approved.
• Limited Review Report on the unaudited results issued by statutory auditors.
• Merger of D V S Industries Private Limited with MM Forgings; restated financials; immaterial impact.
• Appointment of Shri. S. Muthukrishnan as Company Secretary and Compliance Officer, effective 14 Aug 2026.
• Resignation of Shri. Chandrasekar S as Company Secretary and KMP, effective 14 Aug 2026.
• Company operates in a single segment.
• Statutory auditors expressed an unmodified opinion on the results.
• Annexures detailing KMP changes attached.

Meeting Details

• Date and time: Monday, 17 August 2026 at 15:30 IST.
• Type and mode: group conference call; virtual format.
• Organiser: 360 One Capital Market Research.
• Purpose: discuss Q1 FY27 financial performance.

Participants

• Company management: Chairman & Managing Director; Chief Financial Officer.

Additional Notes

• Pre-registration via Diamond Pass for the conference call.