Ramkrishna Forgings (RKFORGE) Q3 24/25 earnings summary

Executive summary

• Achieved robust Q3 performance with consolidated revenue of ₹107,378.18 lakhs, up 8% year-on-year, driven by strong demand in light vehicles, two-wheelers, and export momentum, despite a decline in domestic commercial vehicle volumes.

• Significant order wins of ₹69,700 lakhs in the non-auto segment, including mining, oil & gas, and railways, to be executed over four years.

• Continued diversification into new automotive and non-automotive segments, with strategic focus on new products, customers, and capacity expansion, including entry into two-wheeler and passenger vehicle segments.

• Progress on integration and ramp-up of subsidiaries, including the acquisition of Resortes Libertad (now Ramkrishna Forgings Mexico S.A. de C.V.), and new facilities targeting electric vehicles and international markets.

• Discontinued operations contributed a one-time gain of ₹9,510.39 lakhs from the sale of Globe All India Services Limited.

Financial highlights

• Q3 consolidated revenue reached ₹107,378.18 lakhs, up 7.9% year-on-year; nine-month revenue at ₹308,689.31 lakhs, up 13%.

• Q3 EBITDA was ₹23,152 lakhs, up 5.4% year-on-year; EBITDA margin at 21.6%, with standalone margin at 22.6%.

• Q3 profit after tax from continuing operations was ₹9,961.44 lakhs, up 14.7% year-on-year; nine-month PAT from continuing operations was ₹28,680.69 lakhs.

• Export revenues for nine months were ₹117,200 lakhs, up 9.5% year-on-year, with export share rising to 42.3% of total revenue.

• Net debt at quarter-end was ₹150,400 lakhs, expected to reduce as working capital normalizes.

Outlook and guidance

• Targeting 15% year-on-year volume growth for the next two years, with capacity utilization expected to reach over 80% by Q4 FY26.

• Anticipates further gross margin expansion due to value-added products, new business lines, and automation.

• No significant new CapEx expected in FY26 as current projects complete by July; next major capacity addition planned for FY27.

• Plans to ramp up aluminum forging for EV and hybrid vehicles, and commence offerings for two-wheelers and passenger vehicles.