ALFA Finder
| Revenue (H1 FY27) | ₹978 CrVolume: 44k Tons |
|---|---|
| Market Cap | ₹3,235.1 CrSmall Cap |
| Revenue TTM | ₹1,380.7 CrOperating Income |
| RSI | 64.58Neutral Zone |
Key highlights
- H1 FY27 revenue reached ₹978 crore with a sales volume of 44,000 tons
- Management raised the FY27 revenue target to ₹2,000 crore from the earlier guidance of ₹1,800 crore
- Export share of revenue increased to 34%, driven by a 16.5% contribution from the US market
- Commissioning of the 16,500-tonne heavy forging press is now scheduled for Q4 FY27 following a six-month delay
- EV motor subsidiary Abhinava Risel commenced sales, targeting a ramp-up to 4,000 units monthly
Export Momentum and North American Demand Drive Volume Growth
MM Forgings demonstrated significant volume-led growth in the first half of FY27, achieving a turnover of ₹978 crore on 44,000 tons of sales. The performance was bolstered by the North American Class 8 truck market, which helped increase the US geography share from 12.5% to 16.5%. Overall export share climbed to 34%, reflecting deeper engagement with global MNC OEMs.
In the domestic market, the company benefited from the amalgamation of DVS Industries, which was approved by the NCLT in June 2026. Management has successfully passed on higher steel prices and conversion costs, maintaining a realization rate of approximately ₹2.23 lakhs per ton.
Strategic Capacity Expansion and EV Diversification
- The 16,500-tonne heavy press commissioning is delayed by six months due to foundation plate logistics, now targeted for Q4 FY27.
- Machining mix has improved significantly to 65%, up from approximately 56% in previous periods.
- Abhinava Risel EV subsidiary started selling 300-400 motors monthly in July 2026.
- Management plans to scale EV motor production to 3,000–4,000 units per month over the next few years.
- Total FY27 capital expenditure is pegged at ₹150 crore, split equally between the two halves of the fiscal year.
- Long-term targets for FY28 include reaching sales volumes of 1,05,000–1,10,000 tonnes.
Internal Margin Focus and Cost Efficiency
We have a huge scope on cost reduction ranging anywhere from 30 crores to about 100 crores. You have to all dare to dream, and from that we move on how we can cut costs or improve margins or improve sales. We are consistently thinking about and qualifying how we can improve our margins.
Financial Position and Balance Sheet Challenges
Despite strong operational metrics, MM Forgings faces pressure on its balance sheet with total debt reaching approximately ₹1,200 crore. This exceeds the company's previous internal gross debt cap of ₹800 crore, primarily due to higher working capital requirements to support volume growth and ongoing capital projects. Finance costs saw a slight reduction to ₹19 crore in Q2 despite higher utilization.
The company remains focused on internal accruals to balance the ₹150 crore capex plan for FY27. Management intends to maintain debt at current levels, betting on higher internal accruals from improved H2 volumes to neutralize long-term borrowing impacts.
| Date | Announcement | Amount |
|---|---|---|
| 11 Nov 2026 | Management guidance raising FY27 consolidated revenue targetSource: youtube.com | ₹2,000.00 Cr |
| 05 Nov 2026 | Q2 FY27 unaudited consolidated net profitSource: marketsmojo.com | ₹41.75 Cr |
| 17 Aug 2026 | Management guidance on Q1 FY27 earnings call for FY27 revenueSource: multibagg.ai | ₹1,800.00 Cr |
| 14 Aug 2026 | Q1 FY27 unaudited consolidated net profitSource: marketsmojo.com | ₹89.27 Cr |
| 28 May 2026 | Q4 FY26 audited consolidated net profitSource: torusdigital.com | ₹44.74 Cr |
| 17 Feb 2026 | Management guidance on Q3 FY26 call for 16,500-tonne press annual turnoverSource: stockscans.in | ₹300.00 Cr |
What to watch next
- Commercial commissioning of the 16,500-tonne heavy press by Q4 FY27
- Ramp-up of EV motor sales to 4,000 units monthly from the current 400-unit base
- Execution of the ₹50,000-tonne H2 FY27 sales volume target
- Next quarterly results announcement expected by February 2027
“Our automotive overall exposure is 85%, of which CV alone is 70% and PV is 14%. Off-highway has steadily moved up to 14% mark, slightly dipped this year from 15% to 14% largely because auto grew much faster.”
| Share price | ₹670.05 |
|---|---|
| Market capitalisation | ₹3,235.11 Cr |
| Revenue (annual) | ₹1,589.87 Cr |
| Net profit (annual) | ₹98.67 Cr |
| Revenue (latest quarter) | ₹116.97 Cr-72.18% vs previous quarter |
| Net profit (latest quarter) | -₹48.68 Cr-153.83% vs previous quarter |
| P/E (TTM) | 31.09×Sector 51.6× |
| Promoter holding | 56.34%0.00% QoQ |
| FII holding | 3.1%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Earnings call transcript and investor presentation released by MM Forgings Limited regarding H1 FY27 and Q2 FY27 performance. Market figures from a third-party data provider.
