Ramkrishna Forgings Reports Q2 FY26 Loss Amid Challenging Global Environment

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:

Forex losses of Rs. 6.77 crores on imported equipment
Tariff impact of Rs. 10.75 crores
Loss of Rs. 3.00 crores from Mexico operations
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:

Sector	Order Value (Rs. crores)	Percentage
Automotive	777.00	69.00%
Railway	296.00	27.00%
Non-auto	43.00	4.00%

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:

Domestic market showing strong traction post-GST cut
New customer wins in North America and oil & gas sectors
Railway segment gaining momentum with orders for fully finished assembled bogey frames
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.59%	-2.82%	-4.32%	-22.64%	-44.34%	+379.62%

Ramkrishna Forgings Limited has issued regulatory clarifications regarding its recently approved ₹199.92 crore preferential warrant issue following queries from stock exchanges. The company submitted detailed clarifications on December 23, 2025, addressing specific points raised by BSE Limited and National Stock Exchange of India Limited regarding the Extraordinary General Meeting (EGM) held on December 12, 2025.

EGM Approval and Overwhelming Support

The EGM, conducted from 11:30 AM to 12:04 PM IST on December 12, 2025, saw exceptional shareholder support for the preferential issue of convertible warrants to promoter Chaitanya Jalan. The meeting was chaired by Mr. Lalit Kumar Khetan, Whole-time Director & CFO, with 55 members participating through video conferencing.

EGM Details:	Information
Meeting Date:	December 12, 2025
Meeting Duration:	11:30 AM to 12:04 PM IST
Attendance:	55 members
Mode:	Video Conferencing/OAVM
Chairman:	Mr. Lalit Kumar Khetan

Voting Results and Shareholder Confidence

The special resolution received overwhelming approval with 255 members participating in the voting process. The results demonstrated strong shareholder confidence in the company's strategic direction.

Voting Summary:	Details
Total Voters:	255 members
Remote E-voting:	241 members
EGM Electronic Voting:	14 members
Votes in Favour:	1,10,55,73,96 shares (99.91%)
Votes Against:	1,04,799 shares (0.09%)
Approval Status:	Passed with requisite majority

Warrant Issue Parameters

The approved preferential issue involves 34,00,000 fully convertible warrants to promoter Chaitanya Jalan at ₹588.00 per warrant, raising a total of ₹199.92 crore.

Issue Parameters:	Details
Number of Warrants:	34,00,000
Issue Price:	₹588.00 per warrant
Total Fundraise:	₹199.92 crore
Allottee:	Chaitanya Jalan (Promoter)
Conversion Ratio:	1 warrant = 1 equity share (₹2.00 face value)
Conversion Period:	Within 18 months from allotment

Revised Fund Utilization Timeline

Following stock exchange queries, the company has clarified the timeline for fund utilization. The funds will be deployed in tranches as warrant conversions occur.

Fund Utilization:	Amount (₹ Crores)	Timeline
Debt Repayment:	149.94	Within 24 months from receipt
General Corporate Purposes:	49.98	Within 24 months from receipt
Total:	199.92	Maximum 24 months

Updated Shareholding Pattern

The company has provided revised shareholding details following regulatory clarifications. Post-conversion, the promoter group's stake will increase from 43.13% to 44.47%.

Shareholding Changes:	Pre-Issue	Post-Conversion
Chaitanya Jalan:	16,82,900 shares (0.93%)	50,82,900 shares (2.74%)
Riddhi Portfolio Pvt Ltd:	6,05,57,039 shares (33.45%)	6,15,32,039 shares (33.17%)
Total Promoter Group:	7,80,69,606 shares (43.13%)	8,24,44,606 shares (44.47%)

Regulatory Compliance and Oversight

The preferential issue complies with SEBI ICDR Regulations, 2018, with all regulatory requirements being met. The clarifications were submitted pursuant to applications filed with stock exchanges for in-principle approval. India Ratings & Research Private Limited continues as the Monitoring Agency to oversee fund utilization, as mandated for issues exceeding ₹100.00 crore.

The warrant holders will pay 25% of the warrant price at subscription, with the balance due at conversion. This strategic fundraising initiative positions the company to strengthen its balance sheet through debt reduction while maintaining financial flexibility for future growth opportunities in the forging industry.