Ramkrishna Forgings (RKFORGE) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw improved performance with consolidated revenue of ₹1,099 crore, up 21% QoQ, and PBT of ₹30 crore versus a loss of ₹5 crore in the previous quarter.

• Mixed results amid global volatility, with opportunities from supply chain diversification and strong domestic growth drivers.

• Strong domestic business and resilient global operations drove results, with new orders worth ₹680 crore secured in Q3 across Auto and Non-Auto segments.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved, with statutory auditors expressing an unmodified conclusion.

• Strategic focus on domestic capability, product diversification, and capacity expansion is yielding stability and growth.

Financial highlights

• Consolidated Q3 FY26 revenue was ₹1,099 crore, up 21% QoQ and 12% YoY; EBITDA increased 33% QoQ and 29% YoY to ₹163 crore; EBITDA margin at 14.9%.

• Profit after tax was ₹13.6 crore after exceptional provisioning; adjusted PAT would have been ₹24 crore versus ₹21 crore YoY.

• Standalone revenue from operations for the quarter was ₹93,959.50 lakhs; consolidated net profit was ₹1,356.89 lakhs.

• Gross margin contracted to 45% due to product mix and higher rejections, but power and fuel costs improved from efficiency gains and renewable energy.

• Exceptional items included a one-time provision of ₹1,043.39 lakhs (consolidated) due to the New Labour Codes.

Outlook and guidance

• Management expects 10%-15% annual top-line growth for the next three years, driven by a strong order book and capacity ramp-up.

• Production ramp-up at the casting facility and commissioning of aluminum forging and Mexico machining facilities are expected to drive Q4 and FY27 growth.

• Double-digit sales growth anticipated from the railway segment within two years, with commercial production of railway wheels starting Q2 FY27.

• Exports expected to recover, targeting 35% of revenue in FY27, with new customer additions in North America and Europe.

• Guidance for double-digit full-year growth in FY26 reaffirmed.