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 announced its unaudited financial results for the third quarter of FY26, ended December 31, 2025. The forging components manufacturer reported mixed performance with revenue decline but maintained profitability despite facing regulatory challenges.

Financial Performance Overview

The company's standalone financial results showed revenue from operations of ₹939.60 crores for Q3FY26, representing a decline from ₹967.56 crores in Q3FY24. For the nine-month period ended December 31, 2025, revenue stood at ₹2,677.07 crores.

Exceptional Items Impact

The company recorded an exceptional item of ₹9.41 crores in Q3FY26 related to the implementation of New Labour Codes effective November 21, 2025. This one-time impact resulted from estimated increase in provision for employee benefits arising from past service cost. The Government of India consolidated multiple existing labour legislations into four unified Labour Codes, requiring immediate recognition under Ind AS 19.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company demonstrated stronger performance with net profit of ₹34.99 crores compared to ₹200.37 crores in the corresponding previous period. The significant difference in nine-month comparatives was attributed to prior period adjustments and restatements.

Warrant Allotments and Capital Raising

Ramkrishna Forgings undertook significant capital raising activities during the period:

Inventory Discrepancies Resolution

The company completed its fact-finding study regarding inventory discrepancies identified in April 2025. Independent External Agencies confirmed that discrepancies in Work-In-Progress inventory were due to accounting errors and process gaps, not fraud. The study concluded that no additional adjustments were required beyond those already accounted for at March 31, 2025.

Corporate Governance Updates

The Board of Directors, in their meeting held on January 27, 2026, approved the quarterly results and revised several company policies including Related Party Transactions Policy, Business Responsibility and Sustainability Policy, and Policy on Prevention of Sexual Harassment at the Workplace. The board meeting was conducted from 2:00 PM to 3:45 PM IST.