Auto ancillary stock jumps 5% after receiving ₹140 Cr order to supply crankshafts

A leading castings & forgings manufacturer has clinched a significant order worth Rs. 140 crore for supplying crankshafts to passenger vehicle makers, marking a strategic expansion in its business portfolio. The deal spans from fiscal year 2026 to 2031, with projected peak annual revenues potentially surpassing Rs. 50 crore by fiscal year 2028, signalling robust growth and market potential.

Share Price Movement 

The share price of Happy Forgings Limited went up by 5.1 percent to Rs. 1,102 per share on Monday, an increase from its previous close of Rs. 1,047 per share. The market capitalisation now stands at approximately Rs. 9,794.95 crore as of December 16, 2024.

What Happened 

Happy Forgings Limited (HFL) has received an order from an Indian passenger vehicle manufacturer to supply crankshafts for the domestic passenger vehicle segment. Valued at INR 140 crore, the order spans from FY26 to FY31, with peak annual revenues expected to reach INR 27 crore. Investments in advanced manufacturing capabilities have positioned HFL to meet rising demand in the automotive sector.

Q2 Financial Highlights

According to its recent filing, in the quarter ending September 2024, Happy Forgings’s consolidated revenue from operations has increased by 5.24 percent YOY from Rs. 343 crore in Q2 FY24 to Rs. 361 crore in Q2 FY25 and increased by 5.86 percent QoQ from Rs. 341 crore in Q4 FY24. 

The company’s consolidated net profit has increased by 29 percent, from Rs. 55 crore in Q2 FY24 to Rs. 71 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 10.9 percent QoQ from Rs. 64 crore.

Market Outlook 

The global forging and machining markets are expected to continue growing steadily, with a projected CAGR of 5.1% for forging and 5.2% for machining. The non-automotive sector, including farm equipment and industrial machinery, is set to expand significantly, reaching approximately $47.4 billion and $18.0 billion, respectively, by 2029. In India, the automotive sector remains a key driver, holding a substantial share of the forging market by both volume and value, and is anticipated to grow due to increased demand and rising income levels.

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Shareholding Pattern

As of the September 2024 shareholding pattern, Happy Forgings Limited is primarily held by the promoters at 78.6 percent, foreign institutional investors hold 2.27 percent, and the public with 1.99 percent.

About Company 

Happy Forgings Limited, a leading Indian manufacturer, specialises in producing complex and safety-critical heavy forged and high-precision machined components. Founded in 1979, the company ranks as the fourth largest engineering-led manufacturer in India based on forging capacity, with a reputation for quality and innovation.

Established in 1979, Happy Forgings began its journey with the production of bicycle crank arms. Today, it operates three state-of-the-art manufacturing facilities equipped with advanced forging presses, including a 14,000-ton forging press commissioned in 2023. The company primarily serves original equipment manufacturers (OEMs) across various sectors such as automotive, oil and gas, power generation, railways, and wind turbines. Its product range includes steering knuckles, front axle beams, bevel gears, and counter shafts, essential for multiple industrial applications.

In 2023, Happy Forgings made a strategic move by launching its Initial Public Offering (IPO) and entering the passenger vehicle segment. The IPO, scheduled for December 19, 2023, offers shares priced between Rs 808 and Rs 850 each, marking a significant milestone in the company’s growth trajectory.

Happy Forgings emphasises a vertically integrated approach, managing engineering, process design, testing, manufacturing, and supply chain to deliver high-quality products tailored to meet specific client needs. This commitment to quality and innovation cements Happy Forgings’ position as a leader in the forging industry.

Written By Fazal Ul Vahab C H 

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