Ramkrishna Forgings Limited FY26 Annual Report Summary
Financial Performance Highlights
Ramkrishna Forgings reported mixed FY26 results with standalone revenue growth of 3.32% to ₹3,754.92 crore but a significant 78.47% decline in PAT to ₹86.51 crore. The sharp profit decline was primarily due to exceptional items including ₹969.27 lakhs loss versus FY25's exceptional gain of ₹10,287.33 lakhs from the sale of Globe All India Services Limited. Consolidated performance showed revenue of ₹4,238.08 crore and PAT of ₹71.80 crore.
Capital Structure & Corporate Actions
The company raised ₹201.97 crore through preferential warrant issues to promoters, with ₹100.80 crore raised from converting 6.4 lakh warrants into equity shares. Authorized share capital increased to ₹68.25 crore post-amalgamation with ACIL Limited. The company declared an interim dividend of ₹1 per share (50%) involving a cash outflow of ₹18.18 crore, with no final dividend proposed.
Operational & Expansion Activities
Production metrics included 43,626 tons of forgings production and 26,372 tons from ring rolling lines. The company expanded its footprint with new plants in Pune (Chakan Industrial Estate) and Gurugram (IMT Manesar), operating 11 plants total across Jharkhand, West Bengal, Maharashtra, and Haryana. Capacity utilization averaged 52% during the year with significant new product development across various manufacturing processes.
Subsidiaries & Joint Ventures
Key subsidiaries included Ramkrishna Casting Solutions Limited (revenue ₹651.95 crore, PAT ₹23.71 crore), Ramkrishna Forgings LLC (revenue ₹142.80 crore, loss ₹0.62 crore), and Ramkrishna Forgings Mexico (revenue ₹10.66 crore, loss ₹10.15 crore). The 51% joint venture Ramkrishna Titagarh Rail Wheels Limited reported losses of ₹17.85 crore and has not commenced operations. The group provided significant support including ₹524.79 crore shortfall undertaking and ₹37.50 crore bank guarantees for the joint venture.
Significant Events & Transactions
The company completed multiple corporate actions including the amalgamation of Multitech Auto and Mal Metalliks with RK Casting Solutions effective January 1, 2024, and acquired Resortes Libertad in Mexico for ₹3.47 crore. Exceptional items totaled ₹94.25 crore, comprising labor code implementation impact (₹10.43 crore), electricity duty recovery receivable (₹52.32 crore), and trade receivable provisions due to geopolitical disruptions and US tariffs (₹42.05 crore).
Financial Position & Borrowings
Total borrowings stood at ₹177.16 crore (standalone) and ₹233.50 crore (consolidated). Property, plant and equipment net block increased to ₹289.29 crore with capital work-in-progress of ₹187.96 crore. The company maintained strong credit ratings with CRISIL AA- for long-term facilities and A1+ for short-term facilities.
Governance & Compliance
The company faced minor SEBI non-compliance with a gap exceeding 120 days between board meetings, resulting in fines of ₹10,000 each paid to BSE and NSE. Key management changes included reappointment of Lalit Kumar Khetan as Whole-time Director and appointment of Chetan Rameshchandra Desai as Non-Executive Independent Director.
Outlook & Strategy
The domestic CV sector is expected to grow 4-6% in FY27 led by M&HCV segment supported by infrastructure spending, while the US truck sector is estimated to grow to USD 364.99 billion by 2034 at 6.80% CAGR. The company has proposed transfer of ₹100 lakhs to General Reserve and carry forward ₹1,47,378.87 lakhs as retained earnings.