Ramkrishna Forgings faces Q2 revenue drop, reports net loss

Ramkrishna Forgings Limited announced its Q2 FY '26 earnings, reporting a consolidated revenue of Rs. 907.53 crores, a 10.6% decrease quarter-on-quarter from Rs. 1,015 crores. The company's EBITDA, excluding other income, stood at Rs. 122.54 crores, down 17.5% from Q1 FY '26's Rs. 148.61 crores, with a margin of 13.5%. The company recorded a negative profit after tax, with a loss of Rs. 9.5 crores for the quarter, primarily due to a forex loss of Rs. 6.77 crore on equipment imports, a tariff impact of Rs. 10.75 crore, and losses from Mexico operations (Rs. 3 crore) and a joint venture (Rs. 4.84 crore).

Despite the challenges, Ramkrishna Forgings secured new orders worth Rs. 1,116 crores with a four-year program life, excluding the railway segment. Automotive orders accounted for Rs. 777 crores (69%), railway for Rs. 296 crores (27%), and non-auto for Rs. 43 crores (4%). All order wins, excluding railways, came from international geographies.

The company projects a significant recovery in H2 FY '26, with an expected reduction in debt levels by Rs. 500-600 crores by March '26. Capital expenditure for FY '27 is anticipated to be negligible, less than Rs. 100 crores, as capacity utilization is projected to reach 85%. The casting facility is almost fully booked and expected to be 80-85% utilized next year.