Ramkrishna Forgings achieved zero fatalities and a zero Lost Time Injury Frequency Rate (LTIFR) during Financial Year 2025-26, marking a significant milestone in its occupational health and safety performance. The forging manufacturer also reported a 9.40% reduction in total Scope 1 and Scope 2 greenhouse gas (GHG) emissions compared to its FY2022-23 base year, reinforcing its commitment to environmental stewardship. These outcomes were detailed in the company’s Business Responsibility & Sustainability Report (BRSR), which received reasonable assurance from TÜV SÜD South Asia Pvt Ltd.

The report, covering the period from April 1, 2025, to March 31, 2026, highlights that exports accounted for 31.60% of the company’s total revenue from operations. Ramkrishna Forgings operates across 23 locations nationally, including 11 plants and 12 offices, and serves customers in 18 international markets. The company’s paid-up capital stands at ₹3628.98 Lakhs. Oversight for sustainability initiatives is managed by Lalit Kumar Khetan, Whole-time Director & Chief Financial Officer, in consultation with management.

Environmental and Safety Performance

Ramkrishna Forgings has set ambitious targets to achieve Net Zero emissions by 2040 and transition to a 100% renewable energy mix by 2033. During FY2025-26, the company completed the commissioning of a 10.24 MW rooftop solar power plant at its Saraikella and Dugni facilities in Jamshedpur, Jharkhand. This addition increased its total installed renewable energy capacity by 17.3%. Additionally, the company entered into a Power Purchase Agreement for 30 MW of solar power under a captive generation scheme, effective from FY2028-30.

In terms of water management, the company achieved Zero Liquid Discharge (ZLD) across the majority of its manufacturing units in Jamshedpur. It installed 295 KLD Effluent Treatment Plants (ETP) and 242 KLD Sewage Treatment Plants (STP), resulting in a 40% year-on-year increase in recycled wastewater. The company also reduced water procurement from third parties by 18%.

Governance and Social Initiatives

The company maintained robust governance standards, with 97% of permanent employees trained on the Code of Conduct and 99% trained on Human Rights and ESG principles. No complaints regarding sexual harassment, discrimination, child labor, or forced labor were reported during the financial year. The Board of Directors includes 18% women representation, with independent directors constituting 55% of the board.

Ramkrishna Forgings continued its community engagement through the Ramkrishna Foundation, focusing on infrastructure, healthcare, and education in Jharkhand and West Bengal. Key initiatives included installing streetlights along 16 km of roads, constructing borewells and water purifiers, and renovating government schools. The company also hired 27 persons from local villages as permanent employees during the year, bringing the cumulative total to 145 hires from these communities as of March 31, 2026.

What the Numbers Show

The divergence between operational scale and safety outcomes is notable: despite operating 11 plants and employing over 9,000 individuals (including workers), the company recorded zero fatalities and zero LTIFR. This suggests that the implemented safety matrix, Behavior-Based Safety (BBS) system, and ISO 45001:2018 certification coverage across more than 90% of plants are effectively mitigating workplace risks. Furthermore, the 9.40% reduction in GHG emissions against the base year, coupled with significant investments in solar capacity, indicates tangible progress toward its 2040 Net Zero target, reducing long-term regulatory and climate-related financial risks.

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

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.