M.M. Forgings eyes H2 2025 rebound, sustained growth

M.M. Forgings Limited reported a turnover of INR758 crores for the first half of FY26, with EBITDA at INR142 crores and PAT at INR36 crores. The company noted a drop in North American sales from 16% to 9% due to a slowdown in the Class VIII truck market, leading to inventory pile-up at customer ends. However, management expects US sales to rebound from November 2025, contributing to an H2 turnover of INR750-800 crores. The company aims for FY27 to be a "breakout year" with sales growing by at least INR300 crores over the next 12-18 months.

The company plans to invest approximately INR70 crores in the second half of the current fiscal year and INR100-120 crores in FY27. This includes commissioning a 16,500-ton press by April 2026, projected to add around INR300 crores in annual turnover with higher margins from Q2 FY27. Abhinava Rizel, the EV subsidiary, expects to start manufacturing soon, with an initial potential of INR20-30 crores in annual orders.

M.M. Forgings currently holds around INR850 crores in net debt, which it aims to maintain at current levels, with any significant reduction not expected within the next two years. The company is focusing on strengthening its balance sheet through internal accruals and intends to diversify its product portfolio, including controllers.