Ramkrishna Forgings Limited announced its Q2 FY26 results, reporting a consolidated revenue of Rs. 907.53 crores. The company secured new orders worth Rs. 1,116 crores, excluding the railway segment. Despite challenges, domestic business is gaining momentum, with efforts yielding positive results. The company is focusing on new product introductions and capacity utilization optimization and further diversification of its revenue base. Outlook is positive for future quarters.
Financial Performance Overview
In Q2 FY26, Ramkrishna Forgings reported a consolidated revenue of Rs. 907.53 crores, which is a 10.6% decrease compared to the previous quarter. EBITDA, excluding other income, was Rs. 122.54 crores with EBITDA margin at 13.5%. The company incurred a consolidated loss of Rs. 9.5 crores during the quarter.
New Orders and Business Segments
The company secured new orders worth Rs. 1,116 crores with a program life of 4 years, excluding the railway segment. 69% of the new orders came from the automotive sector (Rs. 777 crores) and 27% from the railway sector (Rs. 296 crores).
Strategic Developments and Outlook
The Board approved the allotment of warrants to the promoter entity. Domestic business is picking up, and the company is focusing on railway and passenger vehicle segments. Revenue is expected to grow, and the company aims to maintain a double-digit growth for the full year. The company expects significant opportunities in railway sector.
Tariff and Export Impact
International business was affected by tariffs and duties on exports from India and reciprocal tariffs imposed by the U.S., which has impacted sales velocity for international OEM customers. US market projected to improve from Jan-March.
Capex and Capacity Expansion
Most of the capex will be completed by 30th September. Utilization is expected to move to around 85% next year. The company’s casting facility of 45,000 tonnes is almost sold out, with an expected utilization of 80% to 85% next year.
Future Projections
The company is expecting to reduce debts to Rs. 2,400 crores and likely reduce Rs. 600 crores of debt by the end of the financial year. The company is starting trial runs in January and expects commercial production from March onwards. The cold forging operations will increase to close to around 60% plus utilization next quarter and targeting around 80-85% utilization in FY’27.
Source: BSE