Ramkrishna Forgings (RKFORGE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered strong operational and financial performance, driven by robust domestic demand, export growth, and disciplined execution across a diversified portfolio.

• Strategic initiatives and expansion into new segments such as Railways, Oil & Gas, Mining, Aerospace, and Semiconductors supported resilience and growth.

• Expansion of casting operations, commissioning of new capacities, and development of non-ferrous forgings broadened the growth platform.

• Board approved capital expenditure for capacity expansion and re-designation of a key director.

Financial highlights

• Consolidated revenue for Q1 FY27 was ₹1,217 crore, up 19.84% year-over-year and flat quarter-on-quarter.

• EBITDA (excluding other income) stood at ₹218.47 crore, up 47% year-over-year, with margin improving to 17.96%.

• Profit before tax was ₹65.34 crore (up 172% YoY); profit after tax was ₹46.88 crore (up 297% YoY).

• Gross margin reached 54.07% in Q1 FY27.

• Basic EPS (consolidated) for Q1 FY27 was ₹2.58, up from ₹0.65 in Q1 FY26.

Outlook and guidance

• Targeting 12%-15% ROC for FY27 and 20% for FY28, with optimism for sustained growth from domestic demand, export revival, and expanded capacity.

• Exports expected to contribute 35% of consolidated revenue for the full year, with export revenue at its highest ever.

• CapEx guidance for FY27 is around ₹350 crore, with net debt targeted to reduce to ₹1,500 crore by year-end.

• Capital expenditure of ₹170.52 crore approved for a new 4000-tonne press line and passenger vehicle components, targeting export market expansion by September 2027.

• No major new CapEx planned until FY28; current capacity sufficient for near-term growth.