Ramkrishna Forgings Sees Quarterly Margin Expansion

Ramkrishna Forgings reported strong operating performance in Q2 FY27, with consolidated revenue increasing 54.9% year-on-year to ₹1,404 crore, compared with ₹908 crore in the corresponding quarter last year. Revenue also grew 15.5% sequentially from ₹1,217 crore in Q1 FY27. EBITDA nearly doubled to ₹256 crore from ₹123 crore a year ago, while EBITDA margin expanded to 18.23% from 13.5% in Q2 FY26. Management attributed the improvement to better capacity utilisation, an improved product mix and operating efficiency. Profit before tax stood at ₹294 crore, compared with a loss of ₹10 crore in the year-ago quarter. During the October 2026 concall, management indicated that the company is targeting incremental margin expansion of around 30–40 basis points over the coming quarters. However, it clarified that achieving its aspiration of crossing previous peak margins may take time and is not expected immediately in the next quarter. The company is also witnessing strong demand across domestic and international markets. Management expects H2 FY27 to perform better than H1 and highlighted a strong pipeline of RFQs and new customer inquiries. The company secured new orders worth ₹673 crore during Q2, across commercial vehicles, electric vehicles, light vehicles and farm equipment, with an estimated programme life of around four years. Exports accounted for 52% of these order wins. On the expansion front, FY27 capital expenditure guidance has been increased to approximately ₹550 crore from the earlier ₹350 crore, primarily towards machining and value-added capabilities. Investors will monitor order execution, capacity utilisation, margin expansion and the impact of elevated shipping and raw material costs. Disclosure: I do not hold any position or financial interest in the mentioned stock.