Ramkrishna Forgings (RKFORGE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered strong operational and financial performance, driven by robust domestic demand, export growth, and disciplined execution across a diversified portfolio, including expansion into Railways, Oil & Gas, Mining, and industrials.

• Strategic initiatives included near-complete integration of casting operations, commissioning of new capacities, and a focus on asset utilization and operating leverage.

• Expansion into non-ferrous forgings for Aerospace and Semiconductor industries is underway.

• Unaudited standalone and consolidated financial results for Q1 FY27 were approved, with continued revenue and profit growth year-over-year.

Financial highlights

• Consolidated revenue for Q1 FY27 was ₹1,217 crore, up 19.84% year-over-year and flat sequentially.

• EBITDA (excluding other income) reached ₹218.47 crore, up 47% year-over-year, with margin improving to 17.96%.

• Profit before tax was ₹65.34 crore, up from ₹23.9 crore YoY; profit after tax was ₹46.88 crore, up from ₹11.7 crore YoY.

• Gross margin reached 54.07% for the quarter.

• Basic EPS (consolidated) for Q1 FY27 was ₹2.58, up from ₹0.65 in Q1 FY26.

Outlook and guidance

• Targeting 12%-15% ROC for FY27 and 20% for FY28.

• Exports expected to contribute 35% of consolidated revenue for the year, with export revenue at an all-time high and export growth guidance of 20%+ for FY27.

• CapEx for FY27 guided at ₹350 crore, with net debt reduction target of ₹500 crore for the year.

• No major new CapEx planned until FY28; current capacity sufficient for growth.

• Capital expenditure of ₹170.52 crore approved for a new 4000-tonne press line and passenger vehicle components, targeting export market expansion by September 2027.