Ramkrishna Forgings reported a strong set of financial results for Q4 FY26, with consolidated revenues rising 28% year-on-year, supported by robust domestic market performance and resilient international operations. Management also outlined detailed forward-looking guidance during the Q4 FY26 earnings conference call held on May 04, 2026, highlighting expectations across North America operations, domestic segment performance, capital allocation, and capacity utilization for FY27. The domestic macroeconomic environment remained relatively favourable during the quarter, with India continuing to stand out as one of the fastest-growing major economies, supported by resilient consumption, sustained government capex, and improving manufacturing momentum.

Q4 FY26 Financial Performance

The company delivered solid top-line and bottom-line growth in Q4 FY26, with EBITDA margins improving meaningfully on both a year-on-year and quarter-on-quarter basis. Management noted that consolidated profit was impacted by approximately Rs. 10.4 crores due to elimination of profit of Rs. 5.9 crores from subsidiaries and a loss of Rs. 4.5 crores from the Mexico subsidiary. Additionally, the company made an ECL (Expected Credit Loss) provisioning of Rs. 42 crores during the quarter on a prudent basis, in light of income from electricity duty recognised as exceptional income in the prior quarter. The following table summarises the key financial highlights:

FY26 Full-Year Financial Highlights

For the full year FY26, Ramkrishna Forgings reported consolidated revenue of Rs. 4,238 crores, a 5% increase year-on-year compared to Rs. 4,034 crores in FY25. EBITDA for FY26 stood at Rs. 642.70 crores, higher by 15% year-on-year compared to Rs. 559.56 crores in FY25. Profit before tax for FY26 was Rs. 112.58 crores, compared to Rs. 148.79 crores (excluding exceptional items) in FY25, reflecting a 24% decline year-on-year. The Railway business emerged as a key growth pillar, with its share of revenue growing to 7.5% in FY26 from 4.6% in the prior year, and management is targeting double-digit revenue contribution from railways in FY27.

New Order Wins in Q4 FY26

During Q4 FY26, the company secured new orders worth Rs. 594 crores for a program life of four years. The order mix reflects continued progress in the company's diversification strategy, with a near-equal split between automotive and non-automotive segments. The non-automotive energy segment orders were primarily from companies in the energy storage space in North America, which require a mix of forgings and castings. Of the Rs. 323 crores in CV sector orders, more than 50% were from exports and approximately 50% from the domestic market. The breakdown of new order wins is presented below:

Management also noted that Rs. 1,550 crores of orders are scheduled for execution in FY27, comprising both forging and casting businesses on a consolidated basis.

North America and Revenue Growth Outlook

Management indicated that North America performance is anticipated to be a growth year in FY27, with Class 8 truck volumes expected to sustain for at least two years, specifically until Q3 calendar year 2027. Destocking has been observed in North American warehouses over the last three months, with fresh revenues from Class 8 trucks expected to come in significantly from the current quarter onwards. On shipping, management noted that shipping costs have increased by approximately 15% to 20%, with transit times extending by approximately 15 to 20 days, though floating inventory levels are currently in line. On the overall revenue front, management expressed confidence in surpassing previous growth estimates for FY27. The export mix is expected to significantly improve over the next two years, exceeding 40% of overall volumes, which is projected to lead to a considerable improvement in margins.

EBITDA Margins and Trailer Axle Business Targets

Ramkrishna Forgings provided specific margin guidance contingent on energy price pass-through. Management noted that with successful pass-through of energy price increases, margins should improve by at least 100 to 150 basis points over Q4 FY26 levels, with a potential range of up to 250 basis points. All raw material (primarily steel) pricing is on a pass-through basis with a one-quarter lag, while other consumables such as gas are discussed with customers on a yearly basis. The trailer axle segment also carries defined revenue and market share ambitions for FY27. Key guidance parameters are summarised below:

Capital Expenditure and Debt Reduction

On the capital allocation front, management outlined a disciplined approach balancing growth investments with balance sheet strengthening. CapEx for FY27 is expected to be focused on value-added projects and joint venture contributions, including approximately Rs. 50 crores of further equity contribution to the Rail Wheel joint venture. Management indicated that FY28 would be the period for further capacity expansion, though no capex plans for FY28 have been finalised. The following table captures the key CapEx and debt-related guidance:

Capacity Utilization Targets Across Segments

Ramkrishna Forgings has set specific utilization targets across its forging, casting, and cold forging operations for FY27. Overall forging capacity utilization stood at approximately 70% in Q4 FY26, while ring-rolling operated at 121% utilization, consistent with its historical trend of running above 100% without adverse impact on equipment life. The standalone casting business commenced commercial production on March 31, with the new casting capacity expected to contribute Rs. 400-500 crores in additional revenue. Cold forging utilization, currently at approximately 40%, is tied to global market approvals in the passenger vehicle sector. The company targets approximately 80% utilization across its overall capacity of approximately 350,000 tons (forging and casting combined) for FY27.

Rail Wheel Joint Venture and Diversification Strategy

The Rail Wheel joint venture represents a significant milestone in Ramkrishna Forgings' diversification strategy. Commercial production is anticipated by Q1 FY27, with plans to supply 40,000 wheels to Indian Railways during FY27, generating approximately Rs. 400-450 crores in revenue. The plant has a total capacity of 230,000 wheels. Management noted that 300 trial wheels are to be submitted to Indian Railways in June or July, after which continuous supply can proceed. On the passenger vehicle and EV front, management guided for a 10% revenue contribution from the passenger vehicle segment within two years, with EV constituting the primary component of this target. For the aerospace segment, management indicated that while order book contributions could begin by the end of FY27, revenue from titanium and other high-alloy products is not expected before FY29. There are no plans to increase ring-rolling capacity in the current financial year.

Ramkrishna Forgings Limited has allotted 16,000 equity shares to an employee under its Employee Stock Option Plan (ESOP) 2015. The allotment was made to Mr. Sakti Prasad Senapati on May 8, 2026, pursuant to the exercise of options as per the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Details of the Allotment

The transfer of shares will be executed from the Ramkrishna Forgings Limited Employee Welfare Trust to the designated employee. The shares carry a face value of Rs. 2/- per share, with an exercise price of Rs. 80/- per equity share, which includes a premium of Rs. 78/- per equity share. The following table summarises the allotment details:

Scheme and Regulatory Compliance

The issuance follows the Ramkrishna Forgings Limited – Employee Stock Option Plan 2015. The company filed the necessary statement with the National Stock Exchange of India Limited and BSE Limited on December 1, 2015. The key issuance parameters under Regulation 10(c) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 are outlined below:

The shares issued are identical in all respects to the existing shares and rank pari passu with them. No shares were allotted in physical form.

Company Information

Ramkrishna Forgings Limited is listed on both the National Stock Exchange of India Limited and BSE Limited. The registered and corporate office is located at 23 Circus Avenue, Kolkata 700017, West Bengal, India. The company's CIN number is L74210WB1981PLC034281.