Ramkrishna Forgings Limited has filed its quarterly monitoring agency report for the period ended December 31, 2025, detailing the utilization of proceeds from its preferential issue of convertible warrants. The report, prepared by India Ratings & Research Private Limited, confirms compliance with regulatory requirements under SEBI guidelines.

Issue Details and Fund Utilization

The company's preferential issue comprised 9,75,000 convertible warrants priced at INR 2,100 per warrant, including a premium of INR 2,098. The monitoring report reveals key financial details of the fund utilization:

The company received the upfront consideration of INR 525 per warrant on August 14, 2025, representing 25% of the total warrant value. The remaining 75% (INR 1,575 per warrant) will be collected when warrant holders exercise their conversion option during the 18-month tenure.

Fund Deployment and Compliance

According to the monitoring agency report, the entire amount of INR 51.19 crores received during the quarter was allocated for debt repayment as originally disclosed. The funds were specifically used for working capital loan repayment, including working capital demand loans and associated interest payments.

India Ratings & Research Private Limited confirmed no deviation from the stated objectives and reported compliance with all regulatory requirements. The monitoring agency noted that all utilization aligned with disclosures made in the offer document.

Regulatory Framework and Oversight

The monitoring report was filed pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company maintains transparency by making the report available on its website at www.ramkrishnaforgings.com , ensuring stakeholder access to utilization details.

The preferential issue was structured with two primary objectives: debt repayment (INR 153.57 crores) and general corporate purposes (INR 51.18 crores). The monitoring agency confirmed that the means of finance for disclosed objects remained unchanged, with no material deviations requiring additional shareholder approval.

Company Background and Promoter Details

Ramkrishna Forgings Limited operates in the manufacture and sale of forged components sector. The company's promoter group includes Naresh Jalan, Chaitanya Jalan, Rashmi Jalan, Radhika Jalan, Mahabir Prasad Jalan, Riddhi Jalan, and Riddhi Portfolio Private Ltd. The monitoring agency report indicates no unfavorable events affecting the viability of stated objectives during the reporting period.

Ramkrishna Forgings Limited held its Q3FY26 earnings conference call on January 27, 2026, providing comprehensive insights into quarterly performance and future growth prospects. The management discussed financial results, new order wins, and strategic initiatives during the analyst interaction hosted by IIFL Capital Services Limited.

Consolidated Financial Performance

The company reported strong consolidated performance for Q3FY26, demonstrating sequential improvement across key metrics:

New Order Wins and Business Mix

During Q3FY26, the company secured significant new orders worth ₹680 crores with a program life of 4 years. The order composition reflects the company's diversification strategy:

Railway Business Momentum

The railway segment emerged as a key growth driver with substantial progress in bogie assemblies. Managing Director Naresh Jalan highlighted that bulk supplies to Indian Railways have commenced, with the company qualifying for significant orders. The railway segment now contributes 7.3% of business in 9-month FY26, with management targeting double-digit revenue contribution within the next 2 years.

Capacity Utilization and Expansion Updates

The company's forging capacity utilization stood at 66% in Q3FY26, with management expecting improvement to 80-85% by the end of FY26. Key capacity developments include:

Revenue Growth Guidance

Management provided optimistic growth projections, with Naresh Jalan stating expectations of 10-15% year-on-year revenue growth for the next consecutive 3 years. The company anticipates maintaining export contribution at around 35% of total revenue in FY27, with domestic business comprising 65%.

Market Outlook and Strategic Focus

The management expressed confidence in North American market recovery, stating that "the worst is behind" for exports. The company is actively pursuing passenger vehicle segment opportunities, targeting 10% revenue contribution from PV segment by FY28. Additionally, the European Free Trade Agreement is expected to enhance competitiveness in European markets by eliminating existing duties.