Ramkrishna Forgings' Q2 FY 2025-26 Quarterly Results

Result Summary

• Ramkrishna Forgings Ltd reported a 10.4% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 13.5%.
• Its expenses for the quarter were down by 7.7% QoQ and 0.1% YoY.
• The net profit decreased 180.6% QoQ and decreased 105.0% YoY.
• The earnings per share (EPS) of Ramkrishna Forgings Ltd declined at 0.52 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Ramkrishna Forgings Ltd is engaged in the manufacturing of forged components primarily serving the automotive, railways, and defense sectors. The company specializes in the production of open and closed die forgings, machining, and other value-added services. It is known for its expertise in producing critical high-strength components used in various industries, particularly in commercial vehicles. The company has been actively involved in expanding its production capabilities and enhancing its technological processes. While specific recent developments are not mentioned in the provided data, Ramkrishna Forgings Ltd typically focuses on innovation and meeting industry standards to maintain competitiveness.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), Ramkrishna Forgings Ltd reported a total income of ₹913.28 crores. This represents a decline of 10.4% from the previous quarter (Q1FY26), where the total income was ₹1018.88 crores. Additionally, when comparing year-over-year (YoY) performance, the total income decreased by 13.5% from ₹1056.14 crores in Q2FY25. This decrease in revenue indicates a reduction in sales during the current fiscal period compared to both the previous quarter and the same quarter last year.

Profitability

The company experienced a challenging quarter in terms of profitability. During Q2FY26, Ramkrishna Forgings Ltd reported a loss before tax of ₹5.43 crores, a significant decrease from the profit of ₹23.98 crores recorded in Q1FY26. This shift represents a quarter-over-quarter (QoQ) decline of 122.6%. Comparing year-over-year, the profitability has further deteriorated, with a 104.0% drop from a profit before tax of ₹136.35 crores in Q2FY25. The tax for Q2FY26 was a credit of ₹0.77 crores compared to a tax expense of ₹5.53 crores in Q1FY26 and ₹27.83 crores in Q2FY25, reflecting a YoY decrease of 102.8%. The profit after tax for Q2FY26 was a loss of ₹9.50 crores, a significant decline from a profit of ₹11.79 crores in Q1FY26 and ₹189.77 crores in Q2FY25, leading to a YoY drop of 105.0%.

Operating Metrics

The operating metrics reveal a significant decline in earnings per share (EPS) for Q2FY26, recorded at a loss of ₹0.52. This is a substantial decrease from an EPS of ₹0.65 in Q1FY26 and ₹10.48 in Q2FY25, indicating a YoY decline of 105.0%. Total expenses for the quarter were ₹918.71 crores, which is a decrease of 7.7% from ₹994.91 crores in Q1FY26, and marginally down from ₹919.78 crores in Q2FY25, showing a YoY decrease of 0.1%. Despite the reduction in expenses, the company's financials for the quarter reflect a negative performance in terms of profitability and earnings per share.