Ramkrishna Forgings delivered exceptional financial performance in the June 2026 quarter, with consolidated net profit surging 298% to ₹47 crore compared to ₹12 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents one of the most significant profit growth rates in the company's recent financial history. The dramatic improvement in profitability demonstrates the company's enhanced operational efficiency and market positioning during the quarter. However, this near fourfold surge is primarily attributed to a weak base effect from the extremely low ₹12 crore profit in Q1 FY26, rather than fundamental operational improvements. On a sequential basis, profit after tax declined 16.2% to ₹47 crore from ₹56 crore in the March quarter, reflecting typical quarterly fluctuations.
The company's sales revenue increased by 19.8% to ₹1,217 crore in Q1 FY2027, up from ₹1,015.26 crore in the same quarter of the previous financial year. As reported by Business Standard, this revenue growth indicates strong demand for the company's products and effective market execution. The significant revenue expansion provides a solid foundation for the substantial profit growth achieved during the quarter, with sustained revenue momentum visible through steady volume off-take in both domestic and export markets. On a sequential basis, revenue from operations remained largely unchanged at ₹1,217 crore compared with ₹1,216.78 crore in the March quarter.
EBITDA grew significantly to ₹218 crore, representing a 47% year-on-year increase, with the EBITDA margin expanding to 17.96% from 14.64% in the year-ago quarter. According to the financial data reported by Business Standard, this improvement was primarily driven by improved operating leverage and a better product mix. The company's effective material costs of ₹559.09 crore grew only 12.2% compared to 19.8% top-line growth, demonstrating the company's ability to translate demand into better margins. The total expenses rose at a slower pace than revenue, increasing 16.07% to ₹1,154.77 crore from ₹994.91 crore, demonstrating effective cost management and operational efficiency.
The company announced significant leadership changes with Chaitanya Jalan being redesignated from whole-time director to joint managing director with effect from July 24, 2026. As reported by Business Standard, this leadership restructuring comes as the company prepares for its next phase of growth. Managing Director Naresh Jalan highlighted that the company started FY27 on a strong note, supported by firm domestic demand and healthy export volume growth, with improved operating leverage and favourable business mix contributing to higher profitability.
The board approved a ₹170.52 crore capital expenditure plan to strengthen the company's manufacturing capabilities and deepen its presence in the passenger vehicle segment. As reported by Business Standard, the investment will be used to set up a 4,000-metric-tonne press line and create additional capacity for manufacturing passenger vehicle components, primarily for export markets. The project will add 8,800 metric tonnes of annual production capacity, taking the company's total forging capacity beyond its existing 311,400 metric tonnes. The expansion is expected to be completed by September 2027 and will be financed through a mix of equity and debt. The investment aims to expand the company's footprint in export-oriented passenger vehicle components while augmenting forging capabilities to cater to future demand.
