Ramkrishna Forgings Reports 6% Revenue Growth in Q1 Amid Challenging Market Conditions
Ramkrishna Forgings Limited announced Q1 financial results with consolidated revenue of ₹101,525.59 lakhs, up 6% year-over-year. EBITDA margin improved to 14.6%, a 298 basis points increase. Net profit decreased to ₹1,178.63 lakhs. The company secured new orders worth ₹683.00 crore across automotive, non-automotive, and railway segments. Production reached 46,473 MT with 69% capacity utilization. Management expects margin improvements in the second half of the year.

*this image is generated using AI for illustrative purposes only.
Ramkrishna Forgings Limited, a leading forging company in India, has announced its financial results for the first quarter, showcasing resilience in the face of global economic headwinds.
Financial Highlights
The company reported consolidated revenue from operations of ₹101,525.59 lakhs in Q1, marking a 6% increase compared to ₹95,948.26 lakhs in the same quarter of the previous year. This growth comes despite challenges in the export market due to tariff uncertainties.
Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹14,861.00 lakhs, with an EBITDA margin of 14.6%. This represents a significant improvement of 298 basis points compared to the EBITDA margin of 12.9% in the corresponding quarter of the previous year.
The company's consolidated net profit for the quarter was ₹1,178.63 lakhs, down from ₹5,473.42 lakhs in the same period last year. This decline in profit can be attributed to various factors, including increased operational costs and challenging global market conditions.
Operational Performance
Ramkrishna Forgings demonstrated strong operational performance with a total production of 46,473 MT during the quarter, indicating a capacity utilization of 69% on an annualized basis. The company's ring rolling facility showed particularly impressive performance, operating at 130% utilization.
Order Book Strengthens
The company secured new orders worth ₹683.00 crore during the quarter, spanning across automotive, non-automotive, and railway segments. The breakdown of these orders is as follows:
Segment | Order Value (₹ crore) |
---|---|
Export | 502.00 |
Domestic | 158.00 |
Railway | 23.00 |
Management Commentary
Mr. Naresh Jalan, Managing Director of Ramkrishna Forgings, commented on the results: "Amid a challenging global macroeconomic environment and export slowdown due to tariff uncertainties, we have achieved consolidated revenues of ₹1,015.00 crore in Q1, reflecting a 6% year-on-year increase. Our order book has strengthened with new contracts worth ₹683.00 crore secured across the Auto, Non Auto and Railways segments."
He further added, "The consolidated EBITDA margin for the quarter stood at 14.6%, with expectations of margin improvement in the second half. Following the successful integration of ACIL into RKFL and the commissioning of new capacity in the prior fiscal year, our focus remains on progressively enhancing overall capacity utilization."
Future Outlook
The company remains optimistic about sustained improvements in business performance and further diversification of revenue streams. Management expects margin improvements in the second half, driven by enhanced capacity utilization and a strong order book.
Ramkrishna Forgings continues to focus on expanding its product offerings and market presence. The company's recent investments in specific technologies for forgings and castings are expected to increase its forging capacity to 333,400 MT per annum and casting capacity to 62,400 MT per annum on a consolidated level.
With a clear strategy to de-risk its business by reducing dependency on single products or clients, Ramkrishna Forgings is well-positioned to navigate the current market challenges and capitalize on future growth opportunities in the auto and non-auto segments.
Historical Stock Returns for Ramkrishna Forgings
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-2.88% | -9.47% | -15.79% | -29.07% | -33.27% | +1,646.68% |