Ramkrishna Forgings Limited (RKFORGE)

Automobile and Auto Components · Auto Components · NSE · Updated 15 July 2026

₹563.5 ↓ 15.26% (1Y)

🎯 Key Takeaways

Ramkrishna Forgings Limited is in a clear growth phase, transitioning from a mature cash cow to a high-investment expansion stage driven by capacity additions and order book momentum. Management is actively scaling operations in casting and trailer axles while targeting margin expansion through operational efficiency and energy cost pass-through.
Revenue grew 1.9% QoQ to ₹1,074 in Q3FY25.
⚠️ Rising net leverage to 4.64x from 2x in FY24, driven by capex-funded debt increases, as highlighted by India Ratings.

Market Cap

₹10,390

P/E Ratio

22.4

Div Yield

0.00%

Promoter

0.0%

✨ Ask AI About RKFORGE 📊 Interactive Charts

📖 The Story

Ramkrishna Forgings Limited is in a clear growth phase, transitioning from a mature cash cow to a high-investment expansion stage driven by capacity additions and order book momentum. Management is actively scaling operations in casting and trailer axles while targeting margin expansion through operational efficiency and energy cost pass-through. The company is leveraging strong order inflows and utilization improvements to drive profitability, though it faces near-term credit and margin pressures from debt-funded capex and inventory adjustments.

📰 What's Happening

In Q4 FY26, RKFORGE reported revenue of ₹1,216.78 crores (up 28% YoY) and EBITDA of ₹208.19 crores (up 111% YoY), with profit before tax surging 117% QoQ to ₹64.33 crores. The company secured ₹1,550 crores of new orders for FY27, targeting casting capacity utilization of 85-90% by FY27 year-end and trailer axle revenue of ₹250 crores with 10% market share. Standalone casting operations commenced in March 2026, expected to contribute ₹400-500 crores in incremental revenue at 15-16% margins. Debt reduction of ₹400-500 crores is targeted for FY27, capex is capped at ₹300-400 crores for FY27, and export mix is expected to improve beyond current 40% volume share. Utilization at 80%+ is projected to improve margins by 100-150 bps if energy costs are passed on.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	892	892	981	1,058	1,023	1,005	1,054	1,074
Operating Profit	196	197	210	226	236	216	235	235
OPM %	21.8%	21.5%	20.9%	21.2%	21.3%	20.7%	22.1%	21.6%
Net Profit	68	79	82	87	94	81	190	100
EPS	₹4.28	₹4.91	₹5.14	₹5.02	₹5.19	₹4.48	₹10.49	₹5.51

Revenue growth has accelerated, with Q4 FY26 revenue up 28% YoY to ₹1,216.78 crores and full-year FY26 revenue reaching ₹4,238 crores (15% YoY growth). EBITDA margin expanded significantly to 17.1% in Q4 FY26 from prior periods, supported by operational improvements and higher utilization. Profitability has rebounded strongly, with PBT up 117% QoQ in Q4 FY26. However, earlier quarters showed flat revenue growth and modest margin expansion, indicating the turnaround is now gaining momentum. The company is transitioning from stable but flat growth to a phase of accelerated expansion driven by new capacity and order book execution.

🔮 Management Outlook & What's Next

Management expects FY27 revenue growth to continue, with casting capacity utilization targeted at 85-90% by FY27 year-end and trailer axle revenue to reach ₹250 crores with 10% market share. Utilization in press segments is expected to hit 85% by FY27 year-end, improving margins by 100-150 bps if energy costs are passed on. Export mix is projected to improve beyond current 40% volume share. Capex for FY27 is capped at ₹300-400 crores, primarily for JV contributions and maintenance, with no new capex plans for FY28 yet. Debt reduction of ₹400-500 crores is targeted for FY27 to enhance financial flexibility.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Auto Components

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Samvardhana Motherson International Limited	1.37 L Cr	30.6	—	—	—
Bosch Limited	1.11 L Cr	55.0	—	—	—
Bharat Forge Limited	91,463	99.6	—	—	—
UNO Minda Limited	64,785	66.7	—	—	—
Schaeffler India Limited	62,984	67.0	—	—	—
Tube Investments of India Limited	55,168	47.4	—	—	—
MRF Limited	54,558	31.1	—	—	—
Balkrishna Industries Limited	41,530	23.4	—	—	—
Endurance Technologies Limited	35,848	44.7	—	—	—
Sona BLW Precision Forgings Limited	35,667	58.5	—	—	—

🔗 Peer Stock Analyses

MOTHERSON BOSCHLTD BHARATFORG UNOMINDA SCHAEFFLER

⚠️ Risk Factors

1. Rising net leverage to 4.64x from 2x in FY24, driven by capex-funded debt increases, as highlighted by India Ratings. 2. Margin pressure from reduced high-margin exports and inventory overstatement causing a ₹2,026 million net adverse impact on EBITDA. 3. Execution risk in scaling new casting operations and achieving targeted utilization of 85-90% by FY27 year-end. 4. Dependence on energy cost pass-through to sustain margin improvement, which remains uncertain amid input cost volatility.

📋 Recent Filings

🧠 Analyst's Read

RKFORGE is transitioning into a high-growth phase supported by strong order book execution, capacity expansion, and margin improvement initiatives, but near-term credit metrics and margin pressure from inventory adjustments pose headwinds. Investors should monitor FY27 debt reduction progress, casting utilization ramp-up, and whether energy cost pass-through sustains margin gains. The company's ability to convert new orders into revenue and manage leverage will be critical to sustaining its growth trajectory.

Based on filing content and financial data. Not a recommendation.

Read the full analysis

Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.

2 free AI queries per day.

✨ Deep Dive with AI on RKFORGE

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

📡 Get AI alerts when RKFORGE files new disclosures

Track RKFORGE filings, board meetings, and corporate actions. Free email alerts at 5 PM.

Track RKFORGE — Free

Free account · 2 AI queries/day