Ramkrishna Forgings reported a sharp rise in consolidated net profit to ₹46.88 crore for the quarter ended June 30, 2026 (Q1FY27), compared to ₹11.79 crore in the corresponding period of the previous year. The company’s revenue from operations climbed to ₹1,216.67 crore from ₹1,015.26 crore year-on-year, while the EBITDA margin expanded significantly to 17.96% from 14.64%, reflecting improved operational efficiency and cost management.

The Board of Directors, meeting on July 24, 2026, approved the unaudited standalone and consolidated financial results for Q1FY27. The results were reviewed by joint statutory auditors S.R. Batliboi & Co. LLP and S.K. Naredi & Co. LLP pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board also approved a capital expenditure of ₹170.52 crore for setting up a 4000 metric tonnes press line and expanding capacity for passenger vehicle components.

Financial Performance

The company demonstrated strong top-line and bottom-line growth in Q1FY27. Consolidated revenue from operations increased by approximately 20% year-on-year. Operating profitability improved markedly, with EBITDA rising to ₹2.2 billion (₹219.99 crore derived from margin expansion on revenue) from ₹1.5 billion in the prior year quarter.

Standalone net profit stood at ₹52.18 crore for the quarter, up from ₹21.51 crore in Q1FY26. Standalone revenue from operations was ₹1,097.22 crore, compared to ₹936.69 crore in the prior year period. The improvement in profitability is attributed to higher volume realization and effective cost controls across its forging and casting segments.

Capital Expenditure and Capacity Expansion

In a strategic move to diversify its product portfolio and enhance manufacturing capabilities, the board approved a capital expenditure of ₹170.52 crore. This investment will fund the setup of a 4000 metric tonnes press line and a new project for manufacturing components for passenger vehicles, targeting the export market. The proposed capacity addition of 8,800 MT is expected to be operational by September 2027. The existing forging capacity stands at 3,11,400 MT with 68% utilization, while casting capacity is 28,800 MT at 78% utilization. The project will be financed through a mix of equity and debt.

Corporate Governance Updates

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 will extend until November 8, 2029, with no change in remuneration. Additionally, the company re-appointed M/s. Singhi & Co., Chartered Accountants as internal auditors for FY2026-27 based on the Audit Committee’s recommendation.

What the Numbers Show

The near four-fold increase in consolidated net profit, coupled with a significant expansion in EBITDA margins, indicates strong operating leverage. The ability to grow revenue by nearly 20% while improving margins suggests that the company is successfully passing on cost pressures or benefiting from favorable product mix shifts. The substantial capex approval signals management’s confidence in future demand, particularly in the passenger vehicle segment, which aligns with global automotive trends.

Ramkrishna Forgings and Titagarh's joint venture is set to commence rail wheel production in August, according to a report by Business Line. The development signals a significant operational milestone for the partnership, which is focused on the domestic rail components manufacturing space.

Joint Venture Rail Wheel Production

The joint venture between Ramkrishna Forgings and Titagarh is poised to enter the rail wheel manufacturing segment, with production scheduled to begin in August. This move positions the partnership as a participant in India's growing rail infrastructure ecosystem.

The commencement of rail wheel production represents a key operational development for the joint venture. Rail wheels are a critical component in the broader rail supply chain, and domestic manufacturing capacity in this segment has been an area of strategic focus for Indian industry. No further financial details, production targets, or capacity figures were disclosed in the source report.