MM Forgings targets ₹2,000 crore by FY27 via 16,500T press

What MM Forgings is building in Chennai

MM Forgings Ltd, a Chennai-based automotive component manufacturer, is stepping up its capacity expansion with a new hot forging press that it says will be the world’s largest in its category. The company’s Chairman and Managing Director, Vidyashankar Krishnan, has linked the project to a revenue ambition of around ₹2,000 crore by FY27, supported by higher volumes and a broader product mix for global commercial vehicle makers.

The expansion is built around heavier, large-format forged parts, where customers typically need consistent quality, higher tonnage capability, and scale. The company has also laid out a wider investment plan that includes another press and additional machining, aimed at lifting overall installed capacity and improving utilisation.

The 16,500-ton press: size, supplier, and timeline

Krishnan said MM Forgings is setting up a 16,500-ton hot forging press with an investment of ₹230 crore. The press is manufactured in Russia, and the company expects it to be operational by the end of the year, with other updates indicating commissioning targets between June and August 2026. The company has also communicated an internal target of June, while acknowledging commissioning could slip to July-August.

The company positioned the project as a step-change in capability. Krishnan noted that the largest forging press currently in operation is a 16,000-ton press at Bharat Forge, making MM Forgings’ planned installation a higher-capacity unit.

What the new line will make

According to Krishnan, the 16,500-ton press will largely cater to crankshafts and higher-weight front axle beams. The same management commentary indicated expected turnover from the line could rise to about ₹300 crore at scale.

However, the revenue ramp is not expected to be immediate. One update noted that the 16,500-ton press is unlikely to make a meaningful revenue impact until FY29, reflecting the time typically required for customer approvals, stabilisation, and reaching full utilisation in heavy forging programs.

A second press and the push to 150,000 tonnes capacity

Alongside the 16,500-ton press, MM Forgings is commissioning a 4,000-ton press. Management commentary indicates that the two presses together are expected to take total installed capacity to around 150,000 tonnes.

The company’s current operating levels were described at about 70,000 to 75,000 tonnes, with expectations to end the current fiscal around 72,000 to 75,000 tonnes. For FY27, the company has guided for utilisation to cross 90,000 tonnes, with internal stretch goals ranging from 100,000 to 110,000 tonnes. Another stated goal for FY27 is sales of 100,000 tonnes.

Capex plan and balance sheet references

For FY27, MM Forgings has earmarked capex of ₹160 crore, with flexibility to scale up to ₹200 crore depending on customer demand and internal accruals. Management commentary tied this spend to completing the 16,500-ton and 4,000-ton presses and adding machining capacity.

The company’s total debt was cited at around ₹1,200 crore, with expectations that it would remain broadly stable.

Demand drivers: domestic CV stability and a US rebound watch

The company’s FY27 volume and growth plans are linked to two demand narratives: steady domestic commercial vehicle demand and an expected rebound in the US commercial vehicle market. One update highlighted that US Class 8 truck orders rose significantly in February 2026, supporting expectations of a recovery.

MM Forgings has also guided for a 20% revenue growth target in FY27, describing it as a potential return to a higher-growth phase if demand conditions hold.

Revenue outlook: near-term guidance and FY27 ambition

Krishnan projected that revenues could reach ₹1,800 to ₹1,900 crore in the current fiscal year, with a possible upside to ₹2,000 crore if market conditions are favourable. Separately, management commentary referenced expectations of “₹1,800 crore plus” revenue with operating margins in the 17% to 18% band for the coming year.

The company’s longer-term ambition remains centred on reaching around ₹2,000 crore by FY27, underpinned by higher tonnage, incremental capacity, and improved product capability for heavier components.

Cost actions: 100% green power and expected savings

MM Forgings said it has been using 100% green power since January 18, 2026. The company estimated annual savings of about ₹15 crore from this shift.

For investors, this update is important because it connects sustainability actions to measurable cost outcomes, rather than treating it as a standalone ESG statement.

Operating performance signals: Q3 growth and order book

The company reported Q3 FY26 sales growth of 11.3% year-on-year and a 7% sequential improvement. The update attributed the quarter’s performance to a 3% volume increase and higher average sales realisation.

On visibility, one report cited a current order book of ₹300 crore, with ₹200 crore expected in FY27. It also referenced the EV subsidiary Abhinava Rizel as nearing ₹20 to ₹30 crore in annual orders.

Key numbers at a glance

Why the expansion matters for the forging industry

A larger press changes the type of parts a forging company can bid for, especially in heavy commercial vehicle applications where higher tonnage capability can be a gating factor. MM Forgings’ focus on crankshafts and higher-weight axle beams signals intent to compete for heavier programs, including from international commercial vehicle manufacturers.

At the same time, the company’s own disclosures suggest investors should separate capacity installation from financial impact. With commentary indicating a material revenue contribution may take until FY29, the near-term story is more about commissioning execution, customer qualification cycles, and utilisation ramp-up.

Conclusion

MM Forgings has set out a clear capacity expansion plan centered on commissioning a 16,500-ton press and an additional 4,000-ton press, lifting installed capacity to about 150,000 tonnes. The company is targeting higher utilisation in FY27, guiding for 20% revenue growth and keeping an eye on domestic demand and a US commercial vehicle rebound.

The next key milestones are the commissioning timeline for the new presses, the pace of utilisation moving beyond 90,000 tonnes, and the progression of the new line toward its stated ₹300 crore potential over the following years.