India · Delayed Price · Currency is INR Ramkrishna Forgings Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY 2026 delivered strong revenue and margin growth, driven by robust domestic demand and improved international performance. Capacity utilization is set to rise, with new orders in energy and EVs, and a focus on debt reduction and margin expansion in FY 2027.
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Q3 FY 2026 delivered 2% YoY and 21% QoQ revenue growth, with EBITDA up 29% YoY and margin improvement. Domestic business surged, railways and PV segments gained traction, and exports are set to recover with new orders and capacity ramp-up.
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Q2 FY 2026 saw revenue and margins decline due to global headwinds, tariffs, and one-time losses, but domestic growth and new orders in railways and international markets support a strong H2 recovery. Debt is set to reduce, CapEx is nearly complete, and management maintains double-digit growth guidance.
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Q1 FY 2026 saw revenue growth but sharp margin and profit declines due to steel price drops, adverse mix, and forex losses. New orders and capacity additions support a positive outlook, with margins expected to recover to historical levels by FY 2027.
Fiscal Year 2025
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Q4 revenue declined 3% YoY, with EBITDA and margins impacted by inventory discrepancies, but PAT rose due to a deferred tax credit. FY25 saw 9% revenue growth, major capacity additions, and strong new orders. Debt reduction, margin recovery, and robust growth are expected in FY26.
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A one-time inventory recording discrepancy was identified, with a 4-5% net worth impact expected. Independent agencies are investigating, and promoters will infuse funds to cover any shortfall, ensuring minority shareholder protection.
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Q3 saw 8% revenue and 14.7% profit growth year-on-year, with strong order wins in non-auto exports and ongoing margin expansion. Capacity ramp-up and diversification continue, while net debt remains elevated but is expected to normalize as working capital improves.
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Achieved record quarterly revenue and strong profit growth, driven by new product launches, capacity expansion, and robust order wins, especially in North America and EV segments. Confident in 15%-20% annual growth, with CapEx and debt expected to normalize as new initiatives ramp up.
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Q1 FY2025 saw 4% revenue growth and adjusted EBITDA margin of 23.1%, with strong order inflows totaling INR 1,679 crore across geographies. Volume growth guidance of 15%-20% for FY2025 is reaffirmed, despite ongoing shipping cost pressures and a one-off expense impacting net profit.