Ramkrishna Forgings Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Ramkrishna Forgings Ltd filed with BSE on 30 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Ramkrishna Forgings reported consolidated revenue of Rs 1,217 crores for Q1 FY27, up 19.84% year-on-year, with EBITDA margin improving to 17.96% from 17.11% in the previous quarter. Profit after tax grew to Rs 46.88 crores from Rs 11.7 crores a year earlier, and net debt was reduced to Rs 1,900 crores from Rs 1,990 crores in the prior quarter. Management described order wins of Rs 278 crores from the automobile segment and Rs 15 crores from the Metro segment of Indian Railways during the quarter.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: Rs. 1,217 crores (Q1 FY27)
p. 5
“Consolidated revenue for the quarter stood at Rs. 1,217 crores, which is flat quarter-on-quarter, and it has registered a growth of 19.84% year-on-year.”
Lalit Khetan, page 5 of the filed PDF · View the filing
EBITDA excluding other income: Rs. 218.47 crores (Q1 FY27)
p. 5
“EBITDA excluding other income stood at Rs. 218.47 crores, that is up by 47% year-on-year and 5% quarter-on-quarter, while EBITDA margin improved to 17.96% from 17.11% in the previous quarter, reflecting better operating leverage and improved product mix.”
Lalit Khetan, page 5 of the filed PDF · View the filing
Profit before tax: Rs. 65.34 crores (Q1 FY27)
p. 5
“Profit before tax for the quarter stood at Rs. 65.34 crores versus Rs. 23.9 crores year-on-year, and while profit after tax for the quarter stood at Rs. 46.88 crores versus Rs. 11.7 crores year-on-year, reflecting a growth of 172% and 297%, respectively.”
Lalit Khetan, page 5 of the filed PDF · View the filing
Order wins from automobile segment: Rs. 278 crores (Q1 FY27)
p. 5
“During First quarter FY27, we have secured business worth Rs. 278 crores with a program life of four years from automobile segment.”
Milesh Gandhi, page 5 of the filed PDF · View the filing
Order wins from Metro segment of Indian Railways: Rs. 15 crores (Q1 FY27)
p. 5
“The company also won new orders worth Rs. 15 crores from Metro segment of Indian Railways.”
Milesh Gandhi, page 5 of the filed PDF · View the filing
Net debt: Rs. 1,900 crores (Q1 FY27)
p. 17
“So, last quarter, if you remember INR1,990 crores was the net debt, and it is Rs. 1,900 crores of net debt this quarter.”
Lalit Khetan, page 17 of the filed PDF · View the filing
Revenue from Mexico: Rs. 6 crores (Q1 FY27)
p. 8
“Already this quarter, I think close to around Rs. 6 crores revenues have come from Mexico in terms of our top-line.”
Naresh Jalan, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
ROCE — 12% to 15% · FY27
stated firmly by Lalit Khetan
p. 9
“So, this year what we are looking at somewhere between 12% to 15% ROCE this we will end, and next year in FY28 we will target 20% ROCE.”
Lalit Khetan, page 9 of the filed PDF · View the filing
Export revenue share — 35% of consolidated revenue · FY27
stated conditionally by Naresh Jalan
p. 9
“So, we are looking at almost 35% revenue on a consol balance sheet coming from exports, for a full year basis.”
Naresh Jalan, page 9 of the filed PDF · View the filing
Export growth — 20% plus growth · FY27
stated conditionally by Naresh Jalan
p. 14
“Yes, we are looking at almost 20% plus growth in terms of exports.”
Naresh Jalan, page 14 of the filed PDF · View the filing
Cold forging capacity utilization — more than 70% · third quarter
stated conditionally by Naresh Jalan
p. 13
“I think by almost third quarter we will be more than 70% capacity utilization in cold forging.”
Naresh Jalan, page 13 of the filed PDF · View the filing
Net debt reduction — reduce at least Rs. 500 crore of leverage · this financial year
stated firmly by Lalit Khetan
p. 17
“Yes, we have already guided in our last call, we will reduce at least Rs. 500 crore of leverage in this financial year and we are on track of that.”
Lalit Khetan, page 17 of the filed PDF · View the filing
Capex outflow — around Rs. 350 crores · this year
stated firmly by Lalit Khetan
p. 18
“Investment towards Rail JV, the first phase is almost complete, another Rs. 20 crores to Rs. 30 crores from our side will go, and total guidance for the capex in this year is somewhere around Rs. 350 crores.”
Lalit Khetan, page 18 of the filed PDF · View the filing
Revenue target — Rs. 8,000 crores · FY29
stated as an aspiration by Naresh Jalan
p. 22
“I think with last year's performance and now continuing improving on that performance, I think we have got delayed by one-year and I think we are on track right now with FY29 target as Rs. 8,000 crores.”
Naresh Jalan, page 22 of the filed PDF · View the filing
Revenue CAGR — 22% to 25% · next three years
stated as an aspiration by Naresh Jalan
p. 22
“Yes. Around 22% to 25% CAGR we will have for next three years.”
Naresh Jalan, page 22 of the filed PDF · View the filing
Working capital days improvement — debtor days by at least five to 10 days, inventory days by another five days, creditors' days by another 10 days
stated as an aspiration by Lalit Khetan
p. 21
“As we have set the target to improve debtor days by at least five to 10 days, inventory days by another five days, and increase the creditors' days by another 10 days.”
Lalit Khetan, page 21 of the filed PDF · View the filing
Rail wheel bulk production start — full-fledged supply to Railways · September or October
stated conditionally by Naresh Jalan
p. 8
“But with our working right now, we expect bulk production to start, hoping to full-fledged supply to Railways for their contractual demand by September or October latest from month-on-month basis.”
Naresh Jalan, page 8 of the filed PDF · View the filing
Gross margin sustainability
stated as an aspiration by Naresh Jalan
p. 26
“No, I think this margin is sustainable margin and you will see improvement on it going forward.”
Naresh Jalan, page 26 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said utilization will improve every quarter going forward, following a strong first quarter.
Answered by Naresh Jalan
Asked by Pranav Jain: Whether utilization will improve across the next three quarters given guidance for higher utilization by year end.
p. 8
“Yes, I think gradually you will see every quarter, Q-on-Q, there will be considerable utilization.”
Naresh Jalan, page 8 of the filed PDF · View the filing
Management said it aspires to higher margins but declined to guide profitability given cost pressures, noting a 100 bps sequential margin improvement.
Answered by Naresh Jalan
Asked by Kaushik Jhawar: Whether the company can return to the 22% margins seen when export share was high.
p. 9
“As an entrepreneur, we always see possibility of higher margins. Who does not want to earn higher margins?”
Naresh Jalan, page 9 of the filed PDF · View the filing
Management named geopolitical issues causing shipping delays and rising energy prices as the main risk to profitability.
Answered by Naresh Jalan
Asked by Hardik Chheda: What factors could help or hurt margins going forward.
p. 11
“Only risk, which we are looking at is the geopolitical issues, which is leading to shipping delays.”
Naresh Jalan, page 11 of the filed PDF · View the filing
Management attributed the gap between gross and EBITDA margin improvement to unrecovered energy and shipping costs rather than price alone.
Answered by Naresh Jalan
Asked by Vinil Shah: Whether the EBITDA margin improvement was purely from price increases rather than operating leverage.
p. 13
“I think because of the better product mix and other things, that is the reason there is increase.”
Naresh Jalan, page 13 of the filed PDF · View the filing
Management said there is currently zero exposure to aerospace, with RFQ quoting underway and capacity being built.
Answered by Naresh Jalan
Asked by Abhishek Jain: What is the current contribution and outlook for the aerospace/defense segment.
p. 15
“I think we have zero exposure right now to any aerospace activity right now.”
Naresh Jalan, page 15 of the filed PDF · View the filing
Management said no major capex decision will be made until FY28 when there is clearer order book visibility in new verticals.
Answered by Naresh Jalan
Asked by Kumar Saurabh: Whether 80% utilization by FY27 end represents peak capacity and what the next capex plan is.
p. 18
“And we will only announce any major capex by end of FY28 when we have a clear visibility in terms of order book and approvals in place in these verticals.”
Naresh Jalan, page 18 of the filed PDF · View the filing
Management estimated around Rs 9,000 crores of sales at 100% utilization using an asset turn of 2.5x, though full utilization is unlikely.
Answered by Lalit Khetan
Asked by Jayesh Gandhi: What sales could be generated from the current net block at full capacity.
p. 19
“So, if you look at asset turn of 2.5, it will be somewhere around Rs. 9,000 crores of sales on this if we have a 100% capacity utilization.”
Lalit Khetan, page 19 of the filed PDF · View the filing
Management said the target has been delayed by one year and is now expected in FY29.
Answered by Naresh Jalan
Asked by Bharat C. Shah: When the company expects to reach the previously targeted Rs 8,000 crore turnover.
p. 22
“I think we have got delayed by one-year and I think we are on track right now with FY29 target as Rs. 8,000 crores.”
Naresh Jalan, page 22 of the filed PDF · View the filing
Management clarified the JV only covers wheel manufacturing, while RKFL has its own separate railway order book.
Answered by Naresh Jalan
Asked by Harsh Shah: Whether all railway-related opportunity is routed through the wheels JV.
p. 24
“JV is only for manufacturing of wheels. It is doing nothing else except manufacturing of wheels.”
Naresh Jalan, page 24 of the filed PDF · View the filing
Management said the passenger vehicle segment is roughly split 50-50 between ICE and EV customers.
Answered by Milesh Gandhi
Asked by Saket: What proportion of the passenger vehicle order book is EV versus ICE.
p. 25
“In our passenger vehicle segment, I would say around 50%-50%, we are serving both the things.”
Milesh Gandhi, page 25 of the filed PDF · View the filing
Management called the decline a one-off tied to producing lower-realization components to build utilization on new capacity.
Answered by Naresh Jalan
Asked by Karan Gupta: Why casting division realizations declined quarter-on-quarter.
p. 26
“No, this is one-off, I think because of the new capacity, which has come up, just to have some utilization improvement, we have done some components, which did not give us the exact right realization.”
Naresh Jalan, page 26 of the filed PDF · View the filing
Management said currency movements are fully passed through in contracts and do not affect margins either way.
Answered by Naresh Jalan
Asked by Bharat C. Shah: Whether the margin improvement came from currency depreciation or from operational leverage.
p. 27
“Bharat bhai, rupee depreciation is entirely passed on. I think currency gain is for us every quarter we have to pass on, all our contracts are currency pass-on basically.”
Naresh Jalan, page 27 of the filed PDF · View the filing
Risks flagged
Geopolitical issues causing shipping delays and working capital pressure
p. 11
“Only risk, which we are looking at is the geopolitical issues, which is leading to shipping delays.”
Naresh Jalan, page 11 of the filed PDF · View the filing
Rising energy prices as a major cost lever affecting profitability
p. 11
“Energy is one of the biggest ingredients in overall our forging setup, may it be for steelmaking or whether it is for forging as such.”
Naresh Jalan, page 11 of the filed PDF · View the filing
War escalation pushing energy prices beyond control
p. 11
“So, energy happens to be one of the biggest cost levers, and with the war if it goes escalates and energy prices goes beyond control, I think that is one of the major risk, which we are running in terms of our profitability.”
Naresh Jalan, page 11 of the filed PDF · View the filing
No hedging mechanism for steel prices, exposing company to spot price fluctuation
p. 20
“No, steel price cannot be hedged. Steel price, I think there is no hedging system for steel price.”
Naresh Jalan, page 20 of the filed PDF · View the filing
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