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 successfully completed the allotment of convertible warrants to promoter Mr. Chaitanya Jalan, marking a significant milestone in the company's capital raising initiative.

Warrant Allotment Completed

The Capital Market Committee of the Board of Directors approved the allotment of 34,00,000 warrants on January 14, 2026, following all necessary approvals. The allotment details are as follows:

Conversion Terms and Timeline

Each warrant is convertible into one equity share of Rs 2.00 face value within 18 months from the allotment date. The warrant holder can exercise conversion rights in one or more tranches during this period. The balance 75% of the warrant exercise price must be paid at the time of conversion to equity shares.

If the warrant holder fails to exercise the conversion option within the 18-month period, the warrants will lapse and the 25% upfront payment will be forfeited by the company.

Impact on Shareholding Structure

The warrant allotment will significantly impact the promoter's shareholding upon conversion:

*Assuming full conversion of all warrants

Regulatory Approvals and Compliance

The allotment was completed after obtaining all necessary approvals:

• Board of Directors approval on November 12, 2025
• Shareholders approval at Extraordinary General Meeting on December 12, 2025
• In-principle approval from BSE Limited and National Stock Exchange of India Limited on January 5, 2026

The company has ensured compliance with Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable regulations.

Reclassification Request Status

Separately, the company continues to evaluate the reclassification request from Ramkrishna Rail Infrastructure Private Limited (RRIPL), a promoter group entity holding 65,00,000 equity shares (3.59%), seeking reclassification from promoter group to public category shareholder status.

The successful completion of this warrant allotment strengthens Ramkrishna Forgings' capital position and provides the company with additional financial resources for its growth initiatives. The paid-up equity share capital remains unchanged until the warrants are converted into equity shares.