Ramkrishna Forgings FY26 Results: PAT drops 78% YoY
Ramkrishna Forgings reported a 78.47% YoY drop in PAT to ₹8,650.53 lakhs for FY26, despite a 15.75% rise in EBITDA to ₹56,642.88 lakhs. Revenue grew 3.32% to ₹3,75,492.46 lakhs, but export sales fell 19.94%. Higher finance costs and provisions for credit losses drove the profit decline.
*this image is generated using AI for illustrative purposes only.
Ramkrishna Forgings reported a significant decline in profitability for the financial year ended March 31, 2026, with profit after tax (PAT) falling 78.47% year-on-year to ₹8,650.53 lakhs. The sharp drop contrasts with operational improvements, as EBITDA from operations increased by 15.75% to ₹56,642.88 lakhs, signaling that the profit erosion was primarily driven by non-operating factors rather than core business performance.
The company’s revenue from operations grew modestly by 3.32% to ₹3,75,492.46 lakhs in FY26, up from ₹3,63,429.92 lakhs in FY25. However, this top-line growth was unevenly distributed across geographies. Export sales contracted sharply by 19.94% to ₹1,18,655.36 lakhs, reflecting sluggish demand in key markets like North America due to tariff impacts. Conversely, domestic demand provided a buffer, with domestic segment revenues rising to ₹2,56,837.10 lakhs from ₹2,15,220.90 lakhs the previous year, aided by a 12.86% improvement in medium and heavy commercial vehicle (M&HCV) sales.
Financial Performance Breakdown
| Metric | FY26 (₹ Lakhs) | FY25 (₹ Lakhs) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 3,75,492.46 | 3,63,429.92 | 3.32 |
| EBITDA | 56,642.88 | 48,934.43 | 15.75 |
| Profit Before Tax (PBT) | 11,671.02 | 22,356.91 | (47.80) |
| Profit After Tax (PAT) | 8,650.53 | 40,182.01 | (78.47) |
Despite the rise in EBITDA, the EBITDA margin compressed to 15.08% in FY26 from 13.46% in FY25 when calculated on net sales, though the Directors’ Report cites a margin of 15.33% against 16.81% previously. The primary drag on profitability was the surge in finance costs, which jumped 20.03% to ₹17,606.22 lakhs from ₹14,667.90 lakhs, attributable to an 11.8% increase in borrowings. Consequently, the interest coverage ratio declined slightly to 3.22x from 3.34x.
What the Numbers Show
A critical divergence exists between the company’s operating leverage and its bottom-line realization. While operating expenses as a percentage of net sales improved to 84.92% from 86.54%, indicating better cost control in production, this efficiency gain was entirely offset by higher interest outflows and exceptional items. Notably, the FY25 PAT figure included an exceptional gain of ₹10,287.33 lakhs from the sale of Globe All India Services Limited and a deferred tax credit of ₹18,847.91 lakhs related to the merger with ACIL Limited. Excluding these one-time benefits, the underlying operational profitability remains robust, but the current year’s results were further weighed down by a ₹4,204.84 lakhs provision for expected credit losses on trade receivables due to geopolitical disruptions and tariff uncertainties.
Capital Structure and Dividends
The company’s total net debt increased by 17.16% to ₹1,63,878.17 lakhs as of March 31, 2026, pushing the net debt-to-equity ratio to 0.50x from 0.46x. Shareholders’ funds grew by 8.79% to ₹3,27,477.87 lakhs, supported by proceeds from preferential warrant issuances. The Board declared an interim dividend of ₹1.00 per equity share, amounting to a cash outflow of approximately ₹1,818.35 lakhs, marking the final dividend for FY26.
Historical Stock Returns for Ramkrishna Forgings
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.83% | +0.78% | +20.11% | +36.15% | +32.94% | +302.60% |
How might the ongoing tariff uncertainties in North America impact Ramkrishna Forgings' export strategy and revenue mix in FY27?
What specific measures is management planning to implement to mitigate the rising finance costs associated with the 11.8% increase in borrowings?
Could the provision for expected credit losses on trade receivables signal a broader deterioration in customer creditworthiness or supply chain stability?
17
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
