Ramkrishna Forgings Limited has informed the Exchange about Credit Rating- Revision

CRISIL has downgraded Ramkrishna Forgings' long-term bank loan rating from AA to AA-, while the rating remains on 'Watch with Negative Implications'. The downgrade applies to total bank loan facilities of Rs 1,650 crore, with the short-term rating unchanged at A1+ but also on Watch Negative. The action follows the discovery that the company's inventory was overstated by Rs 50.22 crore in FY24 and Rs 220.52 crore in FY25, which restated operating margins to a much lower 14.4% in FY25. The company is also facing weaker performance due to a slowdown in the commercial vehicle industry, export decline to ~30% of revenue (from 42-43%), and US tariffs impacting 5-6% of turnover. Consolidated external borrowings surged to Rs 2,013 crore (against an expected Rs 754 crore), pushing net debt-to-EBITDA to over 3.5 times from 1.1 times. Of the proposed Rs 204.75 crore promoter infusion via convertible warrants, Rs 50 crore was infused in August 2025, with the balance expected by end of FY26.