RKFORGE
Large CapRamkrishna Forgings Limited
Auto
Ramkrishna Forgings Limited (RKFORGE) is an Indian manufacturer of forged and cast products. It serves diverse sectors including Commercial Vehicles, Railways, Mining, Earth Moving & Farm Equipment, Oil & Gas, and Industrial Components. The company has a global presence with manufacturing facilities in India and Mexico, offering hot, warm, cold, and aluminum forging, casting, and machining solutions.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
medium confidence · 3/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 25/100PAT -72% YoY · Rev +29% YoY · margin expansion · +11% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,217 Cr | +28.5% | +10.7% |
| EBITDA | ₹203 Cr | +107.1% | +25.3% |
| Operating margin | 17.0% | +700 bps | +200 bps |
| PAT | ₹56 Cr | -72.0% | +300.0% |
| PAT margin | 4.6% | -1652 bps | +333 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
RKFORGE reports strong Q4 FY26 with consolidated revenue up 28% YoY and 11% QoQ, driven by robust domestic demand and export recovery. PBT surged 111% YoY and 117% QoQ, reflecting improved business conditions and diversification strategy.
RKFORGE delivered robust Q4 FY26 results, supported by strong domestic demand and recovering exports. The diversification strategy into non-auto sectors like Railways and Energy is yielding tangible results, strengthening the earnings profile. With major capacities commissioned, the focus shifts to utilization ramp-up and operating leverage, positioning the company for continued growth in FY27.
Revenue Break-up FY26 (Standalone)
Latest issuer-disclosed distribution across 6 reported categories.
Diversification into Non-Auto Sectors
Railways, oil & gas, off-highway, and mining segments have emerged as meaningful contributors, strengthening earnings resilience.
Ramp-up of New Capacities
Focus on utilization ramp-up of newly commissioned forging and casting capacities to drive FY27+ earnings.
New Product Wins
New product wins across domestic and export markets are expected to be a key earnings driver.
Railways Opportunity
Assembling Boogies for LHB and Vande Bharat trains presents a significant growth opportunity.
Press Line Capacity (RKFL)
Added Press line Capacity of 3,000MT on January 20, 2026, and 40,000MT on March 06, 2026.
Press Line Capacity (RKCSL)
Added Press line Capacity of 18,000 MT on December 31, 2025.
Casting Capacity (RKFL)
Added Casting Capacity of 28,800 MT on March 31, 2026. An additional 16,200 MT casting capacity to be added in Q1 FY27.
Rail Wheel JV Facility
Asia's 2nd largest wheel manufacturing facility (228,000 forged wheels annual capacity) in Chennai is nearing completion, with commercial operations expected by end of June 2026.
Robust Domestic Demand
Domestic demand remains robust across key segments, supporting healthy capacity utilisation and operational momentum.
Export Market Recovery
Exports have witnessed a recovery, with customer demand reviving steadily despite earlier disruptions.
Healthy Order Book
A healthy order book provides strong revenue visibility for the coming periods.
Operating Leverage
Improving demand conditions and better operating leverage are expected to position the company well for value creation.
Impact from Mexico Subsidiary
Q4 PBT was impacted by ₹4.5 crore loss from the Mexico subsidiary.
Geopolitical and Tariff Disruptions
Exports faced disruption and volatility earlier in the year due to tariff-related developments and geopolitical issues, though recovery is noted.
Execution Risk in New Ventures
Successful ramp-up and profitability of the Rail Wheel JV and Mexico facility are crucial for future earnings.
High Debt Levels
Closing debt (net of cash) was ₹2,172 crore, with peak debt during the year at ₹2,407 crore, indicating significant leverage.
Raw Material Price Volatility
As an auto ancillary, the company is exposed to raw material price fluctuations, though pass-through mechanisms are not explicitly detailed.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The MD's statement explicitly highlights both QoQ and YoY growth for consolidated revenues and PBT, indicating that both sequential momentum and annual performance are critical for assessing the company's trajectory and recovery.
Consolidated Revenue
Consolidated revenues of ₹1,217 crore in Q4 FY26, higher by 11% on a QoQ basis and by 28% on a YoY basis.
Consolidated PBT
Profit Before Tax improved to ₹64 crore in Q4 FY26 as against ₹30 crore in the previous quarter (QoQ 117%) and -₹23 crore in Q4 FY25 (YoY 111%).
Consolidated EBITDA
EBITDA of ₹208 crore in Q4 FY26, up 27% QoQ and 111% YoY.
Forgings Volume
Forgings volume was 38,805 tons in Q4 FY26, up 15% QoQ and 36% YoY.
Strong FY27 Outlook
FY27 is poised to be a strong year for the Company, driven by improving demand and diversification.
Focus on Utilization and Profitability
The company enters the next phase focused on utilisation ramp-up, operating leverage, and profitable growth.
Balance Sheet Deleveraging
A phased deleveraging of the balance sheet is planned over the next 2-3 years to strengthen cash generation.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Rail Wheel JV Commercial Operations | Expected by end of June 2026. | Timely commissioning and initial production ramp-up of the 228,000 forged wheels capacity. |
| Mexico Facility Bulk Production | Expected from second week of May. | Successful commencement of bulk commercial production and its contribution to export revenue and profitability. |
| Capacity Utilization Ramp-up | Forgings 70%, Press 68%, Casting 85% in Q4 FY26. | Improvement in utilization rates across newly added forging and casting capacities to drive operating leverage. |
| Debt Reduction | Closing Debt (net of Cash) ₹2,172 crore. | Progress on phased deleveraging of the balance sheet over the next 2-3 years as guided by management. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
We will be able to maintain our commentary of double-digit growth for the full year.
"we will be able to maintain our commentary of double-digit growth for the full year."
Outcome check: Revenue YoY averaged 15.4% across 2 later quarter(s).
Our wheel plant is confident to start operations from March '26 onwards and trial runs to start from January onwards.
"confident to start operations from March '26 onwards and trial runs to start from January onwards."
The third and fourth quarter is going to be extremely surprising and extremely on the upside of the results.
"third and fourth quarter is going to be extremely surprising and extremely on the upside of the results."
Outcome check: Revenue YoY averaged 15.4% across 2 later quarter(s).
Our newly launched vertical supplying castings to railways is well positioned to scale up meaningfully in the coming quarters.
"well positioned to scale up meaningfully in the coming quarters."
Outcome check: Revenue YoY averaged 15.4% across 2 later quarter(s).
Trend score and candlestick chart
55NeutralSMA20 +7.0% / mo
Technical chart
RKFORGEdaily · 6M+3.6%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 40.
- SMA20 falling (~2.8% over last month) — short-term momentum negative.
- RSI(14) at 40 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 14% off 52W high · 18% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Growth contributes 16/25 to the score.
- Balance sheet contributes 6/15 to the score.
Main drags
- Fair-value margin of safety is negative at -315.6%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Management has 67% delivered/partly-delivered outcomes on 3 checked claims, with 1 adverse claim outcome. It ranks around the 27th percentile of the scored universe and 17th percentile within Auto. Main check: financial discipline is weak at 30/100.
Healthy Trust: 3/4 extracted management claims have outcome checks; 67% were fully delivered and 0 were partially delivered. 1 claim(s) were contradicted or failed. Key concern: 4 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Auto: 17th pctile, median 71 · Large: 16th pctile, median 74
3/4 claims checked. Use as directional, not final.
3/4 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Mixed Trust · medium confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸5 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸4 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 5.6%.
- ▸ROE is low at 2.6%.
- ▸ROCE trend is -4.4%.
Intrinsic value
Fundamentals
Valuation
- P/E
- 122.00
- P/B
- 2.99
- EV/EBITDA
- 12.83
- Market Cap
- 9844.00Cr
Profitability
- ROE
- 2.56%
- ROCE
- 5.60%
- ROA
- 1.00%
- Dividend Y
- 0.37%
Growth (CAGR)
- Revenue 5Y
- 27.00%
- EPS 5Y
- 31.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- -31.00%
Balance Sheet
- Debt/Equity
- 0.74
- Interest Coverage
- 2.98×
- Altman Z
- 3.20
- Book Value
- 181.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 5/5
- OCF
- 840.00 Cr
- EPS TTM
- 3.95
Shareholding
- Promoter Hold
- 43.33%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 35%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.