Ramkrishna Forgings (RKFORGE) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 began with significant challenges from new U.S. tariffs, macroeconomic volatility, and sluggish demand, but consolidated revenue rose 6% YoY to ₹1,015 crore.

• New orders worth ₹683 crore were secured across Auto, Non-Auto, and Railways, with a strong focus on passenger vehicles and increased European penetration.

• Domestic performance improved, capacity additions are underway, and ACIL integration was completed.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved, with both revenue and profit reported for the period ended June 30, 2025.

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

Financial highlights

• Consolidated revenue for Q1 FY26 was ₹1,01,526 lakhs, up 6% YoY; standalone revenue at ₹93,669 lakhs, also up 6%.

• EBITDA margin fell to 14.6% (consolidated), down 220-300 bps YoY; standalone EBITDA margin at 14.4%.

• Profit after tax dropped to ₹1,179 lakhs (consolidated) and ₹2,151 lakhs (standalone), mainly due to lower realization, adverse mix, and forex losses.

• Forex losses and inventory valuation corrections contributed to a total profitability impact of about ₹52 crore.

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

Outlook and guidance

• Management expects margin recovery as steel prices stabilize and new capacities ramp up, with EBITDA margin improvement in H2 FY26.

• Margins are projected to return to 21%-22% standalone and 20%-21% consolidated by Q4 FY26 or Q1 FY27.

• Volume growth guidance remains at 15%-20% for the year, with a strong second half anticipated.

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