Ramkrishna Forgings (RKFORGE) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 faced global volatility, tariff impacts, and supply chain disruptions, but domestic business showed resilience, especially in railways and passenger vehicles, with new verticals and product launches supporting growth.

• Board approved unaudited financial results for Q2 and H1 FY26, with statutory auditors expressing an unmodified conclusion.

• 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 approval.

• New vertical in railway castings launched successfully, with strong order inflow and integration into bogey assemblies.

Financial highlights

• Consolidated Q2 FY26 revenue was ₹908 crore, down 10.6% quarter-on-quarter but up 14% YoY; H1 FY26 consolidated revenue was ₹1,92,279 lakh, up 4% YoY.

• Consolidated Q2 FY26 EBITDA was ₹12,254 lakh (13.5% margin), down 17.5% QoQ but up 26% YoY; H1 FY26 EBITDA was ₹27,115 lakh (14.1% margin), up 19% YoY.

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

• One-time losses in Q2 totaled ₹25.26 crore, including forex and tariff impacts.

• Exceptional gain of ₹10,287.33 lakh from sale of Globe All India Services Ltd recognized in H1 FY26.

Outlook and guidance

• Management maintains double-digit full-year revenue growth guidance, expecting significant improvement in H2 as global and US markets recover.

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

• EBITDA margins expected to normalize to 15%-16% for the year, with further upside in Q3 and Q4.

• CapEx cycle largely complete; minimal additional CapEx expected in H2 and FY27.

• Board and management continue to focus on growth through strategic investments, including Mexico acquisition and rail wheel JV.