Motilal Oswal Wealth Management has highlighted Happy Forgings and Siemens Energy as notable picks for the week of August 10, 2026. Both firms reported significant revenue and profit growth in their recent quarters, supported by healthy order backlogs. Investors are tracking how these companies manage project execution and margin sustainability in the current economic climate.
Motilal Oswal Wealth Management recently spotlighted Happy Forgings and Siemens Energy, citing strong performance in their latest quarterly filings. These observations come as both companies navigate rising demand in their respective engineering and energy sectors, underpinned by robust order books.
Happy Forgings: Efficiency and Expansion
Happy Forgings delivered strong numbers in the first quarter of fiscal year 2027, with revenue growing 27% year-on-year to reach Rs 449 crore. A key point for investors is the company’s operating efficiency, reflected in its EBITDA margin of 31.3%, an improvement of 280 basis points. The company has sustained margins above 30% for four consecutive quarters, indicating a stable ability to manage costs and maintain a favorable product mix.
Looking ahead, the company is preparing for future growth through capacity expansion. Management has indicated plans for a captive solar project that is expected to further support margin improvement starting in fiscal year 2028. The company is also banking on new demand from the passenger vehicle and industrial sectors to maintain its momentum. Investors may monitor whether the company can successfully translate its current order book of approximately Rs 9.5 billion into consistent revenue growth over the coming quarters.
Siemens Energy: Record Order Pipeline
Siemens Energy India also reported a positive performance for the third quarter of fiscal year 2026. The company’s revenue rose by 39.3% to Rs 2,486 crore, while profit after tax jumped 67.8% to Rs 441 crore. The highlight for the company is its record order backlog, which stood at Rs 19,331 crore as of June 2026. This significant pipeline provides clear visibility for future revenue.
The company is strategically positioning itself to benefit from long-term themes, including grid modernization, the shift toward renewable energy, and the growing demand for power from data centers. As industrial decarbonization gains speed, the company’s power transmission and generation businesses appear to be key beneficiaries. The challenge for shareholders will be to watch how efficiently the company executes these large-scale projects, as delays in infrastructure implementation could affect timelines.
Risks and Monitorables
While the growth outlook for both companies is supported by their recent results, investors should remain aware of potential risks. For Happy Forgings, rising input costs remain a factor that could place pressure on profit margins if not managed effectively. Similarly, both companies face risks related to project execution, where delays or cost increases on large orders could impact the bottom line. Additionally, macroeconomic volatility and global supply chain shifts could influence the demand environment. The key for investors will be to track the pace of order execution and the ability of both firms to defend their profit margins against any potential rise in operational costs.