Ramkrishna Forgings Limited, a leading manufacturer of forged components, has released its financial results for the second quarter of fiscal year 2026, revealing a significant decline in profitability despite stable revenue.

Financial Highlights

For Q2 FY26, Ramkrishna Forgings reported:

• Consolidated revenue of ₹90,753.00 lakhs, down 13.9% from ₹1,05,362.87 lakhs in Q2 FY25
• EBITDA of ₹12,254.00 lakhs, with an EBITDA margin of 13.5%, compared to 15.7% in Q2 FY25
• Net loss of ₹949.66 lakhs, a sharp decline from a profit of ₹13,960.00 lakhs in Q2 FY25

Operational Performance

The company's performance was impacted by several factors:

• Volume decline: Total sales volume decreased to 41,384 tons in Q2 FY26 from 57,577 tons in Q2 FY25
• Realisation pressure: Average realisation per ton fell to ₹2.19 lakhs from ₹2.52 lakhs in the same quarter last year

Management Commentary

Chaitanya Jalan, Wholetime Director of Ramkrishna Forgings, commented on the results: "The second quarter presented challenges in terms of market demand and pricing pressures. However, we remain focused on operational efficiency and long-term growth strategies."

Future Outlook

The company expects:

• Volume growth of 18-20% in H2 FY26, supported by a strong order pipeline
• Continued focus on expanding its product portfolio and geographical presence

Balance Sheet Position

As of September 30, 2025:

Recent Developments

• The company allotted 9,75,000 warrants at an issue price of ₹2,100.00 each, raising ₹5,118.75 lakhs as warrant subscription money
• A joint petition for the amalgamation of certain subsidiaries was filed with the National Company Law Tribunal, Kolkata Bench

Ramkrishna Forgings continues to navigate through a challenging market environment, focusing on operational improvements and strategic initiatives to drive future growth.

Ramkrishna Forgings Limited , a leading manufacturer in the forging industry, has announced significant corporate actions including a preferential warrant issue and a reclassification request from a promoter group entity.

Preferential Warrant Issue

The Board of Ramkrishna Forgings has approved the issuance of up to 34,00,000 convertible warrants to promoter Mr. Chaitanya Jalan at Rs 588.00 per warrant, aggregating to Rs 199.92 crores. Key details of the warrant issue include:

• Conversion period: Within 18 months
• Shareholder approval: Required at an Extraordinary General Meeting scheduled for December 12, 2025
• Impact on promoter shareholding: Post-conversion, the promoter's shareholding would increase from 1.68% to 3.48%

The company has also appointed India Ratings and Research Private Limited as the monitoring agency for proceeds utilization.

Reclassification Request

Separately, Ramkrishna Rail Infrastructure Private Limited (RRIPL), a promoter group entity, has requested reclassification from the promoter group category to the public category shareholder.

Key Details of the Reclassification Request

Reasons for Reclassification

RRIPL has provided several reasons to support its reclassification request:

1. No involvement in business operations
2. Lack of management involvement
3. No rights to appoint directors or control company decisions
4. Holds less than 10% voting rights
5. No control over company affairs
6. Absence of special rights or board representation
7. Not a key managerial person

Compliance Commitment

RRIPL has committed to comply with applicable Securities and Exchange Board of India (SEBI) regulations necessary for maintaining public category status.

Next Steps

The reclassification request will be considered by Ramkrishna Forgings' Board of Directors at their upcoming meeting scheduled for November 12, 2025. The board will evaluate the request based on the reasons provided and ensure compliance with relevant SEBI regulations.

Additionally, the company has approved quarterly results for the period ended September 30, 2025.

These corporate actions, if approved and implemented, could potentially alter the shareholding structure and capital position of Ramkrishna Forgings Limited. Shareholders and market participants will be watching the outcomes of these developments and any subsequent regulatory filings.