Ramkrishna Forgings Limited, a leading Indian forging company, reported a consolidated loss of Rs. 9.5 crores in the second quarter of fiscal year 2026, primarily due to forex losses and tariff impacts. The company's revenue declined by 10.6% to Rs. 907.53 crores compared to the previous quarter, reflecting the challenging global business environment.

Key Financial Highlights

• Revenue: Rs. 907.53 crores (down 10.6% quarter-on-quarter)
• EBITDA: Rs. 122.54 crores (excluding other income, down 17.5% quarter-on-quarter)
• EBITDA Margin: 13.5% (down 110 basis points from Q1 FY26)
• Net Loss: Rs. 9.5 crores

Factors Impacting Q2 Performance

The company's performance was affected by several factors:

1. Forex losses of Rs. 6.77 crores on imported equipment
2. Tariff impact of Rs. 10.75 crores
3. Loss of Rs. 3.00 crores from Mexico operations
4. Loss of Rs. 4.84 crores from joint venture operations

New Order Wins

Despite the challenging quarter, Ramkrishna Forgings secured new orders worth Rs. 1,116 crores with a program life of 4 years. The order breakdown is as follows:

Management Commentary

Mr. Naresh Jalan, Managing Director of Ramkrishna Forgings, stated, "The worst is behind us. We are confident that the third and fourth quarters will be extremely surprising and on the upside of the results."

Future Outlook

The company expects significant recovery in the second half of FY26:

1. Domestic market showing strong traction post-GST cut
2. New customer wins in North America and oil & gas sectors
3. Railway segment gaining momentum with orders for fully finished assembled bogey frames
4. Casting facility expected to reach 80-85% utilization in FY27

Debt Reduction Plans

The company plans to reduce its debt by Rs. 500-600 crores by March 2026, supported by improved cash flows and promoter infusion.

Conclusion

While Ramkrishna Forgings faced headwinds in Q2 FY26, the management remains optimistic about the company's prospects for the second half of the fiscal year. The diversification strategy and new order wins are expected to drive growth and improve financial performance in the coming quarters.

Investors and stakeholders will be closely watching the company's execution of its plans and the realization of projected improvements in the next two quarters.

Ramkrishna Forgings Limited, a leading manufacturer of forged components, has announced that its Board of Directors has approved a request from Ramkrishna Rail Infrastructure Private Limited (RRIPL) to be reclassified from the 'Promoter Group' category to the 'Public' category of shareholders.

Request Details

RRIPL currently holds 65,00,000 equity shares, representing 3.59% of Ramkrishna Forgings' total equity share capital. The entity has stated that it is not directly or indirectly associated with the company's business operations and does not have any control over the management or policy decisions.

Rationale and Compliance

In its rationale, RRIPL confirmed that:

• It is not engaged in the management or operations of Ramkrishna Forgings in any manner.
• None of the members of the Promoter & Promoter Group of Ramkrishna Forgings controls more than one-half of the total voting power of RRIPL or controls the composition of RRIPL's Board.

The Board noted that RRIPL meets all criteria specified under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations for reclassification.

Approval Process

The reclassification request is subject to the following approvals:

1. Receipt of no-objection from the Stock Exchanges
2. Approval from the shareholders of Ramkrishna Forgings

Next Steps

Ramkrishna Forgings will undertake the application process to the Stock Exchanges in due course. The company will also seek shareholder approval as required by regulations.

This move is part of Ramkrishna Forgings' ongoing efforts to align its shareholding structure with the current operational realities of the company. The reclassification, if approved, may potentially impact the company's shareholding pattern and could have implications for future corporate actions.

Investors and stakeholders should note that this reclassification is subject to regulatory and shareholder approvals, and the final outcome may affect the company's ownership structure.