Revision of Credit Ratings of the Company by India Ratings & Research
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
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India Ratings & Research has downgraded Ramkrishna Forgings' long-term credit rating to 'IND AA-' with Stable Outlook from 'IND AA'. The short-term rating has been affirmed at 'IND A1+'. The downgrade reflects weak credit metrics in FY26, with adjusted consolidated net leverage rising to 4.64x amid ongoing capex and moderation in EBITDA margins. A key concern was the discovery of inventory over-statement of INR 2,205.2 million as of March 2025 (total net adverse impact of ~INR 2,026 million after tax). The company's consolidated revenue grew 5.1% to INR 42,381 million in FY26, but profitability was impacted by lower export margins. The rating derives comfort from diversified business profile and expected improvement in FY27 with promoter warrant infusion and tax refunds helping reduce debt.
The downgrade signals elevated credit risk due to high leverage and inventory accounting issues, which could increase borrowing costs. However, the Stable Outlook suggests no immediate further deterioration is expected, and the affirmed short-term rating maintains near-term liquidity confidence.