Ramkrishna Forgings (RKFORGE) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 was marked by global challenges including geopolitical tensions, supply chain disruptions, currency volatility, and tariffs, but also saw resilience with consolidated revenue reaching ₹908 crore and strong domestic traction, especially in railways and new verticals.

• Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2025, with an unmodified conclusion from statutory auditors.

• Secured new contracts worth ₹1,116 crore in Q2 and ₹1,800 crore in H1 across Auto, Non-Auto, and Railways, reflecting diversification.

• Preferential issue of up to 3.4 million convertible warrants to a promoter at ₹588 per warrant, aggregating to ₹199.92 crore, subject to approvals.

• New vertical in railway castings launched, showing promising initial traction.

Financial highlights

• Consolidated Q2 FY26 revenue was ₹907.53 crore, down 10.6% quarter-on-quarter but up 14% YoY; H1 FY26 consolidated revenue was ₹1,92,279 lakh, up 4% YoY.

• EBITDA (excluding other income) for Q2 FY26 was ₹12,254 lakh (13.5% margin), up 26% YoY; H1 FY26 EBITDA was ₹27,115 lakh (14.1% margin), up 19% YoY.

• Consolidated net loss of INR 9.5 crore in Q2 due to forex losses, tariffs, and operational losses in Mexico and JV, but H1 FY26 consolidated net profit after tax was ₹19,433.14 lakh.

• Exceptional gain of ₹10,287.33 lakh from sale of Globe All India Services Ltd recognized in the period.

• Cash and cash equivalents increased to ₹3,711.58 lakh (consolidated) as of September 30, 2025.

Outlook and guidance

• Management maintains full-year double-digit revenue growth guidance, expecting significant improvement in Q3 and Q4, with EBITDA margins expected to normalize to 15%-16% for the year.

• Volume growth of 18–20% expected in H2 FY26, driven by strong order pipeline and new product launches, especially in railways and European exports.

• CapEx largely completed; new capacities to drive higher utilization and revenue.

• Board and management continue to focus on growth through strategic investments, including recent acquisition in Mexico and joint venture in rail wheels.

• No explicit forward-looking financial guidance provided in statutory filings.