Steel price increase may pressure margins
Alloy steel prices are expected to rise by ₹3-4/kg, and while 85% of business has pass-through, there is a lag of 1 month (domestic) to 1 quarter (export), which could temporarily compress margins.
HAPPYFORGE / Q3-FY26 / risks
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Happy Forgings · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
medium
Export recovery may be slower than expected
Direct exports remained subdued due to weak global demand and tariff uncertainties. Management noted only early signs of stabilization, and a meaningful turnaround is not guaranteed.
Tariff clarity on US exports still pending
Management could not provide a clear view on the effective duty rate under Section 232 for exports to the US, stating it depends on customer import classification and remains uncertain.
Heavy component capex ramp-up may take time
The heavy component capex (large crankshafts) will only start contributing meaningfully from FY28-FY29, with real marketing beginning around June-July 2026, posing execution risk.