Sales tonnage (9M FY26)
58,057 tons
+3% YoY
Sales volume for the first nine months of FY26.
MMFORGINGS
Other
10 Feb 2026
M M Forgings Ltd — Q3 FY26
MM Forgings delivered a decent Q3 FY26 with 11.3% YoY revenue growth, driven by 3% volume improvement and better realizations.
✓ Verified against BSE filing
2-Min Summary
MM Forgings delivered a decent Q3 FY26 with 11.3% YoY revenue growth, driven by 3% volume improvement and better realizations. Export markets, especially the US, showed sequential recovery after eight months of weakness, while Europe contributed through market share gains. Gross margins improved 3% YoY to 56.3% in 9M FY26, but EBITDA margin remained around 17% due to rising power and labor costs. Management guided for ₹300 crore revenue growth in FY27 from existing operations, supported by a strong domestic CV cycle (10% growth expected) and export recovery. Interest costs are targeted to drop from ₹80 crore run-rate to ₹55 crore via swaps and rate negotiations, while power cost savings of ₹15 crore are expected from green energy. The 16,500-ton press will contribute minimally in FY27. Key risk: competitive domestic pricing and potential US tariff volatility could pressure margins.
Key Numbers
Machining mix (9M FY26)
53%
-5pp YoY
Machining as a percentage of revenue declined due to lower export machining.
Export share
30%
flat YoY
Exports contributed 30% of sales in 9M FY26.
Net debt (Dec 2025)
₹1,050 crore
flat vs Sep 2025
Long-term debt ₹550 crore, short-term ~₹500 crore.
Management Guidance
FY27 revenue growth of ₹300 crore
Management expects revenue to increase by ₹300 crore in FY27 from FY26 exit run-rate, driven by export recovery (₹50-75 crore from US) and domestic volume growth.
revenueInterest cost reduction to ₹55 crore run-rate
Interest costs expected to drop from current ₹80 crore run-rate to ₹55 crore in FY27 via interest rate swaps and lower domestic rates.
marginsPower cost savings of ₹15 crore in FY27
Shifting to green power is expected to save ₹15 crore in FY27.
marginsCapex of ₹150-170 crore in FY27
Capital expenditure for FY27 is planned in the range of ₹150-170 crore, primarily for ongoing projects.
capexKey Risks
US tariff uncertainty
Effective tariff under Section 232 could range from 18% to 25%, impacting export competitiveness. Management noted fine print is not yet out.
high · analyst_questionCompetitive domestic pricing pressure
Domestic market pricing is tight, with competitors offering price reductions, limiting margin expansion despite higher machining mix.
medium · management_commentaryEuro depreciation risk on forex swaps
If the euro depreciates sharply against the rupee, the company could lose on its interest rate swaps, though export earnings provide a natural hedge.
medium · analyst_questionSlow ramp-up of 16,500-ton press
The new press will contribute minimal revenue in FY27; full potential of ₹300 crore revenue is expected only by FY29, delaying returns on capex.
medium · management_commentaryNotable Quotes
We expect our interest rate to come down to in the region of 55 crores for the next year or slightly lower... from around a run rate of 80 crores this year.
We would expect a 75 cr increase in sales because of the return of exports particularly the US market 50 to 75 crores.
If the euro depreciates with regard to the rupee, we will gain. If the euro appreciates with regard to the rupee, we will lose.