Ramkrishna Forgings Q2 FY27 results: net profit ₹70.59 crore vs ₹9.50 crore loss, revenue up 54.9%

How did Ramkrishna Forgings perform in Q2 FY27?

Ramkrishna Forgings reported consolidated revenue of ₹1,405 crore for Q2 FY27, up ₹497.89 crore or 54.9% from ₹907.53 crore in Q2 FY26 and ₹188.75 crore or 15.5% from ₹1,217 crore in Q1 FY27. EBITDA was ₹256.23 crore, up ₹133.69 crore or 109.1% year on year and ₹37.76 crore or 17.3% sequentially, while the margin improved 4.7 percentage points year on year to 18.2%.

The company reported profit before tax of ₹95.46 crore in Q2 FY27 against a loss of ₹10.27 crore in Q2 FY26, and a net profit of ₹70.59 crore against a net loss of ₹9.50 crore. Basic EPS was ₹3.88. Sequentially, profit before tax rose ₹30.12 crore or 46.1% and net profit rose ₹23.71 crore or 50.6%. On a standalone basis, revenue was ₹1,255.02 crore and net profit was ₹67.73 crore.

What changed in Ramkrishna Forgings' costs and profit?

Total expenses were ₹1,313 crore in Q2 FY27, up ₹394.77 crore or 43.0% from ₹918.71 crore in Q2 FY26. Cost of materials rose ₹252.25 crore or 57.5% to ₹690.72 crore, other expenses increased ₹127.18 crore or 45.1% to ₹409.35 crore, and depreciation rose ₹22.35 crore or 27.8% to ₹102.73 crore.

Employee cost was ₹77.77 crore, up ₹9.18 crore or 13.4%, while finance costs increased ₹8.22 crore or 15.4% to ₹61.56 crore. Other income declined ₹1.55 crore or 27.0% to ₹4.20 crore. The quarter included an exceptional charge of ₹0.68 crore, compared with a ₹4.84 crore charge in Q2 FY26, while tax was ₹24.87 crore against a ₹0.77 crore credit.

Against Q1 FY27, total expenses rose ₹158.71 crore or 13.7%. Cost of materials increased ₹60.03 crore, other expenses ₹45.70 crore, finance costs ₹4.43 crore and employee cost ₹2.31 crore; depreciation rose ₹3.29 crore, while other income increased ₹0.76 crore. The company reported no exceptional item in Q1 FY27.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹2,622.09 crore, up ₹699.3 crore or 36.4% from ₹1,922.79 crore in H1 FY26. Total income rose ₹697.56 crore or 36.1% to ₹2,629.73 crore, while profit before tax increased ₹153.14 crore to ₹160.19 crore from ₹7.05 crore.

Net profit for the first half was ₹117.47 crore, compared with ₹2.29 crore in H1 FY26, while basic EPS was ₹6.46 against ₹0.13. The company also reported standalone H1 revenue of ₹1,255.02 crore and standalone net profit of ₹67.73 crore.

What do the balance sheet and cash flow show?

Total assets stood at ₹7,728.78 crore on 30 September 2026, compared with ₹7,177.95 crore on 31 March 2026. Total equity was ₹3,594.67 crore against ₹3,290.4 crore, while borrowings fell to ₹2,192.98 crore from ₹2,335.03 crore and cash declined to ₹99.69 crore from ₹162.23 crore. Inventories were ₹1,468.95 crore, trade receivables ₹1,025.29 crore and trade payables ₹1,454.52 crore.

H1 FY27 operating cash flow was ₹481.51 crore, compared with negative ₹5.39 crore in H1 FY26. Investing cash flow was negative ₹447.83 crore against negative ₹481.98 crore, financing cash flow was negative ₹96.22 crore against positive ₹508.46 crore, and capital expenditure was ₹390.18 crore compared with ₹484.64 crore.

How has Ramkrishna Forgings done over the last 8 quarters?

Revenue has increased year on year in each of the last four quarters. It reached ₹1,405.42 crore in Q2 FY27, above ₹1,216.78 crore in Q4 FY26 and ₹1,216.67 crore in Q1 FY27, after bottoming at ₹907.53 crore in Q2 FY26. Net profit also moved higher, reaching ₹70.59 crore in Q2 FY27 from a net loss of ₹9.50 crore in Q2 FY26.

The EBITDA margin has increased for three consecutive quarters, from 13.5% in Q2 FY26 to 17.1% in Q4 FY26, 18.0% in Q1 FY27 and 18.2% in Q2 FY27. Over the broader series, the margin was highest at 21.6% in Q3 FY25 and lowest at 10.4% in Q4 FY25.

What else did the company announce?

The board declared a first interim dividend of ₹2 per share for FY2026-27, payable within 30 days and subject to TDS. The record date was fixed as 6 November 2026. It also appointed Subir Chakraborty and Anurag Vohra as non-executive independent directors for five-year terms from 30 October 2026, subject to shareholder approval.

The board increased the investment limit in rail-wheel joint venture Ramkrishna Titagarh Rail Wheels Limited by ₹56.76 Crores through equity contributions in one or more tranches. It also approved amendments extending the RKF Limited Employee Stock Option Scheme 2023 to employees of subsidiaries, subject to shareholder approval, along with a postal ballot notice and changes to the objects clause of the memorandum of association.

What did Ramkrishna Forgings' management say?

Naresh Jalan, Managing Director, said: “Our focus is now shifted towards improving utilization, increasing productivity, and generating better returns from the assets.” Milind Gandhi, Full-time Director, said: “These orders have a program life of approximately four years and further strengthen our revenue visibility over the coming years.” Jalan also said: “We see strong visibility and a very strong market in next six months.”

Management identified geopolitical tensions, tariff threats, supply-chain disruption, steel and freight costs, delayed price pass-through, railway-wheel validation and currency movements as risks. No analyst concerns were recorded in the earnings-call summary.

How did Ramkrishna Forgings shares react?

After the filing, the stock was up 1.8% after five minutes and 1.4% after 15 minutes, before slipping to a 0.5% decline after 30 minutes. From the pre-results close of ₹645.1, it ended the first tradable session up 7.8% at a reaction-day base price of ₹690.0. The Auto Components & Equipments sector rose 1.6%, leaving the stock 6.2 percentage points ahead of the industry median.

By the next day's close, the stock was up 7.0% from its pre-results close, against a 2.6% gain for the industry median, an excess move of 4.4 percentage points. The Nifty Smallcap 250 rose 1.4% on the reaction day. Earlier results-day moves included gains of 2.7% on 1 August 2025, 2.0% on 1 May 2026 and 0.1% on 24 July 2026.

How did other Auto Components & Equipments companies do?

A total of 45 other Auto Components & Equipments companies were compared for revenue growth, with a median revenue growth of 33.6%. Of those companies, 39 grew more slowly than Ramkrishna Forgings and six grew faster than the company. The comparison was recorded as of 4 November 2026.

Among 46 peers for which profit was compared, 36 reported higher profit. Ramkrishna Forgings’ 54.9% consolidated revenue growth in Q2 FY27 was above the peer median of 33.6%.