Ramkrishna Forgings reported a significant turnaround in profitability for the first quarter of fiscal year 2027 (Q1FY27), with profit after tax (PAT) surging 297% year-on-year to ₹46.88 crore. The company’s consolidated revenue stood at ₹1,217 crore, remaining flat quarter-on-quarter but growing 19.84% year-on-year. Earnings per share and operating margins expanded notably, driven by improved product mix and higher utilization rates. The disclosure was filed with the Bombay Stock Exchange and the National Stock Exchange of India Limited on July 30, 2026, providing investors with the full transcript of the earnings conference call held on July 24, 2026.

The filing complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Rajesh Mundhra, Company Secretary and Compliance Officer, signed the disclosure. The transcript reveals management’s confidence in sustained growth, citing robust domestic demand and improving export volumes from North America and Europe. Key strategic updates include the ramp-up of new forging and casting facilities and entry into high-value non-ferrous segments like aerospace and robotics.

Financial Highlights

Management highlighted strong operational leverage during the quarter. EBITDA excluding other income rose 47% year-on-year to ₹218.47 crore, while EBITDA margin improved to 17.96% from 17.11% in the previous quarter. Profit before tax increased to ₹65.34 crore from ₹23.9 crore year-on-year.

Order Wins and Strategic Expansion

The company secured new business worth ₹278 crore from the automobile segment, with a program life of four years. Approximately 82% of these orders are from the passenger vehicle segment, and 18% from the two-wheeler segment, all domestic. Additionally, Ramkrishna Forgings won ₹15 crore in orders from the Metro segment of Indian Railways. Managing Director Naresh Jalan noted that the company is expanding into non-ferrous products such as aluminum, titanium, Inconel, and nimonic grades for aerospace, robotics, and semiconductors. While aluminum forging has already begun bulk production, significant revenue from other non-ferrous segments is expected in 12–18 months.

Debt Reduction and Future Outlook

Ramkrishna Forgings reduced its net debt by ₹100 crore in the quarter, bringing it down to ₹1,900 crore from ₹1,990 crore in the previous quarter. The company aims to reduce leverage by at least ₹500 crore in FY27, targeting a net debt of ₹1,500 crore by year-end. Capital expenditure for the year is guided at around ₹350 crore, including investments in the Rail Wheel JV. Naresh Jalan stated that the company is now on track to achieve a revenue target of ₹8,000 crore by FY29, representing a compound annual growth rate (CAGR) of 22–25% over the next three years. Export revenue is expected to contribute nearly 35% of total consolidated revenue, marking the highest ever export contribution for the company.

Ramkrishna Forgings reported a consolidated net profit of ₹46.88 crore for the quarter ended June 30, 2026 (Q1FY27), marking a sharp year-on-year increase of 297.6% from ₹11.79 crore in Q1FY26. The significant earnings growth was propelled by a 19.8% rise in revenue from operations to ₹1,216.67 crore and an expansion in EBITDA margin to 17.96% from 14.64%, reflecting improved operational efficiency and favorable product mix shifts. This strong financial performance underscores the company’s ability to leverage higher volume realization while managing costs effectively, benefiting shareholders through significantly enhanced earnings per share.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 24, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Joint statutory auditors S.R. Batliboi & Co. LLP and S.K. Naredi & Co. LLP reviewed the results. During the same meeting, the board re-designated Mr. Chaitanya Jalan from Whole-Time Director to Joint Managing Director, effective July 24, 2026, subject to shareholder approval at the 44th Annual General Meeting. His tenure extends until November 8, 2029, with no change in remuneration.

Financial Performance

Ramkrishna Forgings demonstrated robust top-line and bottom-line growth in Q1FY27. Consolidated revenue climbed to ₹1,216.67 crore from ₹1,015.26 crore in the corresponding period of the previous year. Standalone net profit stood at ₹52.18 crore, up from ₹21.51 crore in Q1FY26, while standalone revenue reached ₹1,097.22 crore against ₹936.69 crore previously. Profit Before Tax (PBT) improved to ₹65 crore in Q1FY27 compared to ₹24 crore in Q1FY26.

The improvement in profitability is attributed to higher volume realization and effective cost controls across its forging and casting segments. Domestic markets contributed ₹735.07 crore (20.3% YoY growth) while export markets contributed ₹353.87 crore (11.0% YoY growth). North America remained the largest export destination with ₹222.25 crore, followed by Europe at ₹128.41 crore.

Order Wins and Capacity Expansion

The company secured new orders worth ₹293 crore in Q1FY27, comprising ₹278 crore from the Automobile segment and ₹15 crore from the Railways metro segment. Within the auto segment, approximately 82% of orders were from Passenger Vehicles (PV) and 18% from Two-Wheelers (2W), reflecting continued progress in diversification.

The board approved a capital expenditure of ₹170.52 crore for setting up a 4000 metric tonnes press line and expanding capacity for passenger vehicle components targeting the export market. This investment aims to add 8,800 MT of capacity, expected to be operational by September 2027. Currently, Ramkrishna Forgings has a forging capacity of 3,11,400 MT at 68% utilization and a casting capacity of 28,800 MT at 78% utilization. Casting volumes surged by 84.8% YoY to 8,593 tons, while forging volumes grew by 4.0% to 47,012 tons.

Corporate Governance and ESG

In addition to the leadership re-designation, the board re-appointed M/s. Singhi & Co., Chartered Accountants as internal auditors for FY2026-27 based on the Audit Committee’s recommendation. The company also amended its Whistle Blower Policy during the meeting. On the sustainability front, Ramkrishna Forgings reported a 39% increase in renewable energy consumption and a 7% decrease in energy intensity quarter-on-quarter. The company achieved 99.9% training coverage for permanent employees on ESG principles and 99.8% on human rights, aligning with its goal to train 100% of employees by 2025.

What the Numbers Show

The near four-fold increase in consolidated net profit, coupled with significant EBITDA margin expansion, indicates strong operating leverage. The ability to grow revenue by nearly 20% while improving margins suggests successful passage of cost pressures or favorable product mix shifts. The substantial capex approval signals management’s confidence in future demand, particularly in the passenger vehicle segment, which supports long-term growth prospects. The diversification into casting operations and non-auto sectors like railways and oil & gas is broadening the growth platform, reducing dependency on traditional commercial vehicle cycles.