MM Forgings LimitedCapital Goods & EngineeringMMFL
Q1 FY27 concall · earnings callMM Forgings Limited
Revenue grew 16% on strong domestic and U.S. CV demand, with a strategic push into high-value machining now comprising 67% of sales.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Total Net Sales | ₹427 Cr | 16% | |
| EBITDA | ₹82 Cr | 16% | |
| EBITDA Margin (ex-other income) | 18% | — | |
| PBT Growth (ex-asset sale) | 30% | 30% | |
| Domestic Sales % | 63.5% | — | |
| Machining Mix % | 67% | — | |
| Sales per ton | ₹0.02 Cr | — | |
| Q1 Sales Volume | 20,000 tons | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹374.09 Cr-6.2% YoY-6.1% QoQ | ₹26.55 Cr-20.8% YoY-16.8% QoQ | ₹5.50-60.4% YoY-16.8% QoQ |
| Q2 FY25 | ₹398.26 Cr+0.4% YoY+4.2% QoQ | ₹31.91 Cr-10% YoY+6% QoQ | ₹6.61-55% YoY-47% QoQ |
| Q1 FY25 | ₹382.19 Cr+3.2% YoY-3.8% QoQ | ₹30.11 Cr+3.8% YoY-18.2% QoQ | ₹12.47+3.8% YoY-18.2% QoQ |
| Q4 FY24 | ₹397.49 Cr+2.4% YoY-0.3% QoQ | ₹36.80 Cr+19.5% YoY+9.7% QoQ | ₹15.24+19.5% YoY+9.6% QoQ |
| Q3 FY24 | ₹398.75 Cr— YoY+0.5% QoQ | ₹33.54 Cr— YoY-5.4% QoQ | ₹13.90— YoY-5.4% QoQ |
TL;DR
- Net sales of INR 427 Cr grew 16% YoY with EBITDA at INR 82 Cr.
- Machining mix improved to 67% of sales, driven by recent investments.
- Targeting INR 1,800-1,900 Cr turnover for FY27, with volume aiming for 90,000+ tons.
- Plan to maintain gross debt at ~INR 750 Cr and capex of ~INR 150 Cr.
- Focus on debottlenecking and automation to improve productivity and target 20+% EBITDA margins.
Said on the call
“April onwards itself, we should have run all, I'm happy to say that all the cells at MM Forgings, Machining and Forging are running to the fullest of capability.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Outlook & Mix | Management expects ~18% growth for FY27, targeting INR 1,800-1,900 Cr turnover; machining mix should hover between 65%-68%. |
| Margin Drivers & Costs | Better gross margin driven by higher realizations; personnel costs rose due to increments given in Q1; power/fuel costs elevated due to West Asian conflict. |
| Capex & Capacity | Capex of ~INR 150 Cr, with INR 30-50 Cr for replacement/debottlenecking; heavy investment in machining (INR 625 Cr in last 5 years); 16,500-ton press to be operational by Q4 FY27. |
| Volume & Utilization Targets | Aiming for 90,000+ tons in FY27 (run-rate of 1 lakh tons), with Q2+ targets of 23,000-25,000 tons per quarter; targeting 27,000-30,000 tons per quarter eventually. |
| Debt & Working Capital | Aims to keep gross debt at ~INR 750 Cr; land sale proceeds to reduce working capital and capex borrowings; using AI tools to identify and reduce stuck inventory. |
| Margin Expansion | Sees scope for EBITDA improvement, targeting 20+% margins, aiming to squeeze out 2%-3% from the system. |
Guidance
- Target turnover of INR 1,800-1,900 Cr for FY27 (~18% growth).
- Machining mix expected to hover between 65%-68%.
- Sales volume target of 90,000+ tons for FY27, with a run-rate of 1 lakh tons.
- Gross debt to be maintained at ~INR 750 Cr.
- Capex planned at ~INR 150 Cr for the year.
- Long-term target of reaching INR 3,000 Cr revenue by FY30.
Source
Summary written from the transcript filed by MM Forgings Limited for the call held on 17 Aug 2026; published 22 Aug 2026, 21:57 IST.
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