Ramkrishna Forgings posted a strong Q2 FY27 performance with revenue at Rs 1,405 crore, up 55% YoY, and a Profit After Tax of Rs 71 crore. Growth was driven by robust order wins of Rs 673 crore and margin expansion to 18.23%. The company is actively deleveraging its balance sheet and remains on track to launch its railway wheels project by December 2026.
Ramkrishna Forgings Q2 Revenue Jumps 55% to Rs 1,405 Crore
Revenue at Rs 1,405 crore, up 55% YoY; Profit After Tax at Rs 71 crore.
Reader Takeaway: Strong order inflow and margin expansion drive growth, though rising shipping costs and working capital remain key focus areas.
What just happened
Ramkrishna Forgings delivered a robust performance for the quarter ended September 30, 2026. Consolidated revenue climbed to Rs 1,405 crore from Rs 908 crore in the same period last year. EBITDA margins improved significantly to 18.23%, compared to 13.5% in Q2 FY26, as the company benefited from improved capacity utilization and a more profitable product mix. Profit after tax rose 47% sequentially to reach Rs 71 crore.
Why this matters
The company’s ability to secure Rs 673 crore in new orders across commercial vehicles, EVs, and farm equipment signals strong demand momentum. Notably, the casting segment recorded a successful entry into the North American export market. Additionally, the progress of the railway wheels joint venture—with initial units under inspection and production slated for December—marks a significant milestone in the company’s portfolio diversification strategy.
Balance Sheet and Capex
Management has maintained its focus on deleveraging, with a total debt reduction of Rs 126 crore in the first half of the fiscal year. The company aims to cut debt by Rs 500 crore by the end of FY27. Meanwhile, the full-year capex guidance stands at Rs 550 crore to support enhanced machining capabilities.
Risks to watch
Investors should monitor the impact of elevated shipping costs, which created a Rs 8-9 crore headwind this quarter. Furthermore, inventory losses of Rs 6-7 crore tied to raw material price adjustments and an increase in working capital by Rs 140 crore (due to shipment delays) are specific operational areas to track in upcoming quarters.
What to track next
The ramp-up of the railway wheels project is the primary operational trigger. Management expects to supply 20,000 to 25,000 wheels within this fiscal year, which will be a key indicator of the venture's contribution to future revenue.