Ramkrishna Forgings Ltd (RKFL) expects exports to improve quarter-on-quarter through 2026-27 (FY27) and account for around 35 per cent of revenue, supported by new business wins and recovering demand in North America and Europe. According to Joint Managing Director Chaitanya Jalan, the company aims to raise export share to around 35 per cent in FY27 and above 40 per cent by FY28. This recovery comes after exports declined 19.9 per cent to ₹1,186.55 crore in FY26 from ₹1,482.09 crore in FY25, with their share falling to 31.6 per cent from 40.8 per cent.
In Q1FY27, standalone revenue from operations rose 17.1 per cent year-on-year to ₹1,097.22 crore, while export revenue increased 11 per cent both year-on-year and sequentially to ₹353.87 crore. As reported by Business Standard, the share of exports improved to 32.3 per cent in the quarter. North American revenue increased 11.8 per cent year-on-year and 6.5 per cent sequentially to ₹222.25 crore, while European revenue rose 9.6 per cent year-on-year and 19.5 per cent sequentially to ₹128.41 crore.
Jalan noted that the past two years were very poor in terms of North America and Europe, with considerable volatility in both markets. According to the company's assessment, the situation looks fairly stable now, with good order inflows from both regions. RKFL has operated in North America for around 15 years, while Europe opened up more substantially for the company over the past seven to eight years. The company is pursuing passenger vehicle opportunities in North America and seeing traction in the commercial vehicle business in Europe.
The export recovery is expected to help RKFL absorb capacity created through investments of around ₹1,500–1,700 crore over the past two years. As reported by Business Standard, overall capacity utilisation stood at 68 per cent in Q1 after new lines were commissioned towards the end of FY26. Jalan expects investments undertaken in FY25 to reach 70–80 per cent utilisation during FY27, while capacity added in FY26 should attain similar levels by the fourth quarter.
Passenger vehicles form another growth avenue for RKFL. According to the company's projections, automotive products currently contribute around 80 per cent of total revenue, with commercial vehicles accounting for about 90 per cent of automotive revenue and passenger vehicles and two-wheelers making up the remaining 10 per cent. Over the next three to four years, RKFL expects automotive products to account for 70–75 per cent of total revenue, with passenger vehicles contributing 20–25 per cent of automotive revenue. The company secured ₹228 crore of passenger vehicle orders and ₹50 crore of two-wheeler orders during Q1, covering four-year programmes primarily for transmission and differential components.
