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 has successfully completed its Extraordinary General Meeting (EGM) and approved the preferential issue of convertible warrants worth ₹199.92 crore with overwhelming shareholder support. The EGM, held on December 12, 2025, through video conferencing, saw the participation of 55 members and concluded with the approval of the special resolution for warrant issuance to promoter Chaitanya Jalan.

EGM Proceedings and Approval

The EGM was conducted from 11:30 AM to 12:04 PM IST on December 12, 2025, with Mr. Lalit Kumar Khetan, Whole-time Director & CFO, chairing the meeting. The company had extended remote e-voting facility from December 9 to December 11, 2025, with insta-poll voting available during the EGM for members who had not cast their votes remotely.

Voting Results and Shareholder Support

The special resolution received exceptional support from shareholders, with detailed voting results demonstrating strong confidence in the company's strategic direction. A total of 255 members participated in the voting process, comprising both remote e-voting and electronic voting during the EGM.

Key Details of the Approved Preferential Issue

The shareholders approved the issuance of 34,00,000 fully convertible warrants to promoter Chaitanya Jalan at ₹588 per warrant, raising a total of ₹199.92 crore.

Fund Utilization Strategy

The company has outlined a clear deployment plan for the raised funds:

1. Debt Repayment: Approximately ₹149.94 crore (75%) will be utilized for repayment or pre-payment of outstanding borrowings
2. General Corporate Purposes: Up to ₹49.98 crore (25%) will be allocated for general corporate purposes

Impact on Shareholding Structure

Post-issue, assuming full conversion of warrants, the shareholding pattern will witness the following changes:

Regulatory Compliance and Oversight

The preferential issue complies with SEBI ICDR Regulations, 2018, with scrutinizer Raj Kumar Banthia of MKB Associates confirming the voting process adherence to regulatory requirements. India Ratings & Research Private Limited has been appointed as the Monitoring Agency to oversee fund utilization, as mandated by SEBI regulations for issues exceeding ₹100.00 crore.

The warrant holders will pay 25% of the warrant price at subscription, with the balance due at conversion. The issue price of ₹588.00 per warrant exceeds the minimum price calculated as per SEBI ICDR Regulations, ensuring compliance with regulatory requirements.

This strategic fundraising initiative positions Ramkrishna Forgings to strengthen its balance sheet through debt reduction while maintaining financial flexibility for future growth opportunities in the forging industry.