RKFORGEBSERamkrishna Forgings LtdMediumNeutral
Announced Mon, 11 May · 14:40 IST

Please find attached Q4 & FY26 Earnings Call Transcript.

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedCfo Debt Reduction RoadmapInvestor Communications View source PDF

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AI summary

Ramkrishna Forgings delivered a strong Q4 FY26 with revenue of Rs. 1,216.78 crores (up 28% YoY) and EBITDA of Rs. 208.19 crores (up 111% YoY), with margins improving to 17.1% (+220 bps QoQ). Full-year FY26 revenue was Rs. 4,238 crores (up 5%) and EBITDA was Rs. 642.70 crores (up 15%). The company secured Rs. 594 crores in new orders during Q4 (56% auto, 44% non-auto) with Rs. 1,550 crores orders to be executed in FY27. Railway business grew to 7.5% of revenue from 4.6% a year ago, with rail wheel JV production commencing Q1 FY27 targeting 40,000 wheels (revenue potential Rs. 400-450 crores). Management expects to reach 85% capacity utilization by FY27 end and improved margins through higher export mix and energy cost pass-throughs. Cold forging utilization at ~40% is expected to reach 75-80% by FY27. FY27 will focus on debt reduction (Rs. 400-500 crores) and capex limited to Rs. 300-400 crores.

Likely market impact

Strong Q4 performance with margin expansion demonstrates operational leverage. Management guided for 100-150 bps further margin improvement driven by higher export mix and cost pass-throughs. FY27 will focus on debt reduction and capacity utilization improvement to 85%.