M M Forgings reported a significant decline in profitability for the quarter ended December 2025, with consolidated net profit falling 33.82% to ₹17.57 crore compared to ₹26.55 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a substantial decrease in the company's bottom-line performance despite revenue growth during the same period.
The company demonstrated resilience in top-line performance with sales rising 10.67% to ₹412.25 crore in Q3 FY2025-26, as reported by Business Standard. This growth compared favorably to the ₹372.49 crore recorded in the same quarter of the previous financial year, indicating that despite profit challenges, the company maintained its revenue momentum.
Operating profit margin (OPM) declined to 16.82% in the December 2025 quarter from 19.63% in the corresponding quarter of the previous year, as reported by Business Standard. The company's PBDT (Profit Before Depreciation and Tax) decreased 15% to ₹52.22 crore from ₹61.20 crore year-on-year, while PBT (Profit Before Tax) fell 32% to ₹26.07 crore compared to ₹38.55 crore in Q3 FY2024-25.
Vidyashankar Krishnan, chairman and managing director of MM Forgings, attributed the challenging performance to global economic uncertainties, stating that "The global economy remains characterized by a complex and varied landscape. Multiple factors, including ongoing geopolitical tensions, widespread increases in insovereign debt, persistent inflationary pressures, extreme weather conditions, etc., continue to contribute to the uncertainty of the global economic outlook." As per Business Standard, he noted that "The tariff/taxation of the US government is causing huge turmoil to global trade. The Indian automotive sector has faced a notable decline since Q2FY25, which is linked to a lackluster demand forecast across different segments within the domestic market." Despite these challenges, Krishnan emphasized that "MM Forgings exhibited a consistent performance during F25 due to team effort and God's grace."
The company's board has recommended a final dividend of ₹4 per equity share, subject to shareholder approval at the Annual General Meeting, as reported by Business Standard. The final dividend, if declared, shall be payable on or before 29 August 2025. Meanwhile, MM Forgings shares are currently trading at ₹476.15 with a market capitalization of ₹2,359.52 crore and a dividend yield of 0.82%. The stock has shown 52-week high of ₹501.05 and 52-week low of ₹288.10, reflecting its recent volatility amid market challenges.
