Ramkrishna Forgings Limited (RKFORGE) investor relations material

Executive summary

• Q1 FY26 began with challenging macroeconomic conditions, tariff volatility, and sluggish demand, especially from OEMs and export markets.

• Consolidated revenue for Q1 FY26 was ₹1,015 crore, up 6% year-over-year, despite global headwinds.

• New orders worth ₹660–683 crore were secured in Q1, with strong traction in passenger cars, Europe, and Indian Railways.

• Focus remains on enhancing capacity utilization, diversifying revenue streams, and integrating ACIL.

• Board approved re-appointment of internal auditors, a whole-time director, and changes in committee composition.

Financial highlights

• Consolidated revenue for Q1 FY26 was ₹1,015 crore (₹101,526 lakhs), up 6% YoY; standalone revenue at ₹93,669 lakhs.

• EBITDA margin declined to 14.6% (down 220–300 bps YoY); standalone EBITDA margin at 14.4%.

• Profit after tax dropped to ₹12 crore (consolidated PAT margin 1.2%), mainly due to lower realizations and adverse mix.

• One-time impacts included inventory valuation losses, forex losses on imported machinery, and JV-related forex losses, totaling about ₹52 crore.

• Domestic revenue grew 26% YoY, while export revenue declined 19% YoY on a standalone basis.

Outlook and guidance

• Management anticipates gradual margin and profitability recovery, targeting standalone EBITDA margins of 21–22% by FY26–27.

• Volume growth guidance remains at 15–20% for the year, with significant capacity additions in castings and forgings expected by September.

• Second half of FY26 expected to be stronger as new capacities ramp up and market conditions stabilize.

• Ongoing investments in capacity and technology to support future growth, with a focus on EV and non-automotive segments.

• Statutory auditors expressed an unmodified conclusion on both standalone and consolidated results.