🎯Ramkrishna Forgings Ltd. - Q1FY26 Concall Summary 🎯 🌍 Operating Environment • 🇺🇸 US tariffs: 25% on PV/LV, 10% on CVs (effective Aug 1); Q1 outflow ₹6 Cr → ~50% pass-through secured, rest under talks • NA exposure: Only ~20% shipments directly to US; ~80% routed via 🇲🇽 Mexico (USMCA shield) • Global: Customer caution, muted output; risk of 🇨🇳 rare-earth supply squeeze • India: Weak CV industry volumes, but RKFL outperformed; early recovery signs 💰 Financials & Profitability • Revenue ₹1,015 Cr (+6% YoY) • EBITDA ₹149 Cr | Margin 14.6% (–300 bps YoY) • PAT ₹12 Cr (vs ₹55 Cr YoY) • Profitability hit (~₹52 Cr): Realization & mix: ₹40 Cr (–₹8/kg domestic; –₹5/kg exports) Inventory valuation loss (steel correction) FX losses: ₹6.7 Cr (JV) + ₹5 Cr (RKFL) • Net debt ~₹1,800 Cr → Target ₹1,400–1,500 Cr by FY26-end • Promoter warrants >₹200 Cr (25% upfront on nod, rest by FY26-end) 📦 Orders & Mix • New wins ₹660 Cr (life ~4 yrs): Exports ₹502 Cr: PVs ₹307 Cr (incl. US OEMs), CVs ₹195 Cr (Europe) Domestic ₹158 Cr: Off-highway ₹99 Cr, CVs ₹59 Cr Railways ₹23 Cr (1 yr) • PV exports now >₹300 Cr, gaining share • Europe CV expected to rival NA by FY27 🚆 Railways & JV • Undercarriage assemblies: Approval to supply; FY26 rev +₹50–75 Cr; FY27 target ₹300+ Cr • Vande Bharat: Protos by Oct’25; supply 64 bogies (2 trainsets) by Mar’26 • Rail wheels JV (with Titagarh): Commissioning Jan’26, samples by Q4 FY26 FY27 target 40,000 wheels; guaranteed 80,000+ offtake Phase-1 capex ~₹1,600 Cr (70:30 D/E); equity infused ~₹370 Cr 🏭 Capacity, Capex & Segments • Forgings: 2,68,400 T; new 8,000T & 3,000T presses adding ~43,000 MT FY26 • Mexico: Machining live; forgings/castings shipped from India; revenue FY27+ • Aluminium forgings: 3,000T press by Q2/Q3 FY26; growth leg for EV/non-ferrous • Castings: Existing >90% utilized; new 40,000 MT plant trials in 2 weeks; H2 ramp-up → topline to double; 16–17% margin • FY26 capex: ₹300–350 Cr + ₹115 Cr (JV share) 📈 Margins, Outlook & Guidance • Q1 = trough; adjusted margins would be ~17–17.5%, PAT ~₹57–58 Cr • Recovery path: Standalone EBITDA margin back to 21–22% by Q4 FY26/Q1 FY27; consolidated 100–150 bps lower (castings dilution) • Castings margin stable at 16–17% • Other expenses trimmed → efficiency benefits to sustain 🌐 Geography & Demand • North America: Weak near term; tariff manageable via Mexico + pass-through; full-year tariff hit ₹20–25 Cr if sustained • Europe: Strong growth, esp. CV; revenue share to equal NA by FY27 • India: Better CV performance than peers; strong traction in railways ⚠️ Risks & Watchpoints • US tariffs (duration & pass-through) • China rare-earth restrictions • Steel price swings & inventory losses • Castings drag on consolidated margins • Rail wheel JV execution & approvals If you enjoy this concall, Repost ♻️ and help me to grow #RKFI #rkforge #Q1FY26 #Q1_FY26 #Trending #Trendingnow #Q1FY26results #Concallsummary