According to the management, steel cost pass-through happens with a lag of one-month/one-quarter in domestic/export businesses, so the full impact of price hikes would reflect in Q2FY27. Motilal Oswal Financial Services expects Happy Forgings to record revenue/Ebitda/profit after tax CAGR of 25%/28%/30% over FY26-29, supported by new order wins, higher realizations, an improving mix, operating leverage, and benefits of the captive solar plant that will come on stream in FY28. It sees Ebitda margin expanding to 33% by FY29.
