Ramkrishna Forgings reported consolidated net revenue of ₹1,098 crores in Q3 FY2026, a 2% increase year-over-year. EBITDA stood at ₹163 crores, up 29% year-over-year. The company secured new orders worth ₹680 crores, with 66% from the automotive sector. Railway segment demonstrating strong momentum. Looking at double-digit sales growth in next 2 years.
Financial Performance
In Q3 FY26, Ramkrishna Forgings reported consolidated net revenue of ₹1,098 crores, a 2% increase compared to ₹1,074 crores in Q3 FY25. On a Q-on-Q basis, revenues increased by 21% compared to ₹908 crores in Q2 FY26. EBITDA, excluding other income, was ₹163 crores, a 29% increase year-over-year from ₹126 crores in Q3 FY25. The EBITDA margin for the quarter was 14.9%. Profit after tax was ₹13.6 crores, after an exceptional provision of gratuity and leave expenses of ₹10.43 crores.
Order Book and Diversification
The company secured new orders worth ₹680 crores during the quarter with a program life of four years. Approximately 66% of these orders came from the automotive sector, while 34% were from non-automotive segments. Auto orders included ₹406 crores from the CV segment, around ₹26 crores from the passenger vehicle segment, and ₹18 crores from the EV segment. Non-auto orders included ₹230 crores from the oil and gas segment.
Railway Business
The railway segment is demonstrating strong momentum. Bogie assemblies are a key value addition. Bulk supplies have started to Indian Railways. The company has qualified for bulk orders and expects demand worth ₹2,000 crores in the coming year. Aim to be double-digit sales in next 2 years.
Capacity and Utilization
Aluminum forging has been successfully commissioned. The casting facility is ready and is under trial run, with commercial production expected in Q4 FY26. The company is focused on driving higher utilization levels in coming quarters. Capacity utilization is at 66% and aiming to increase to 80-85%.
North America and Europe
North America build rates have slowed down but seeing traction coming back. Expect 10% Y-o-Y increase in build rate and consumption from existing clients. Adding new clients to compensate for losses. Expects numbers back to normal in FY’27. Europe contributing 30-35% to exports sales.
Future Outlook
The company is targeting approximately 35% of sales from exports and 65% from domestic market in the coming year FY’27. It expects approximately 10% plus revenue to come from PV segment in the next two years. Expect CAGR to 15% for the next 3 years. The company is focused on improving utilization and margin.
Source: BSE
