Ramkrishna Forgings Targets About 20% Volume Growth In H2 On New Capacity Additions
Speaking to NDTV Profit, MD Naresh Jalan stated that most ongoing projects are expected to be operational by late September to mid-October, leading to high utilisation levels.
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Forged metal component manufacturer Ramkrishna Forgings expects a strong performance in the second half of FY26, targeting around 15 to 20% volume growth during this period, driven by new capacity additions, according to its Managing Director, Naresh Jalan.
Speaking to NDTV Profit, Jalan stated that most ongoing projects are expected to be operational by late September to mid-October, leading to high utilisation levels.
“For FY26, we are looking at the second half of the year to be extremely robust with the kind of capacity addition…. I think about almost all our projects which we are doing ... most are going to be up and running by the end of September or mid-October. So we are looking at very high utilization and targeting almost 15 to 20% volume growth in the second half of the year,” he said.
On the overall outlook, Jalan highlighted that Europe will be a key growth driver for exports not just in FY26 but over the next few years.
“I think not alone for this year, going forward for the next couple of years, Europe will be one of the major destinations for us. While US or the North American operations will remain quite steady, I think with tariffs and other things that are there in place ... it is going to be a temporary downside,” he said, noting that in the long-term, both exports and domestic business will perform well.
According to Jalan, the projected volume growth will also support the company’s top-line growth. He stated that this level of growth is visible and achievable for at least the next two years (FY26 and FY27).
“I think our capacity and other things are in place and I think for FY26 and FY27, we are looking at Rs 15,000 to Rs 20,000 crore growth and we will recalibrate going forward after that,” he added.
In Q1FY26, Ramkrishna Forgings reported a 6% YoY rise in consolidated revenue from operations at Rs 1,015.26 crore compared to Rs 959 crore a year ago. However, Ebitda declined by 12% to Rs 147 crore compared to Rs 169 crore in the same quarter of the preceding fiscal. Margins compressed to 14.6% from 17.6%. The company saw a sharp 78% drop in net profit at Rs 12 crore from Rs 55 crore in Q1FY25.
Shares of Ramkrishna Forgings closed 0.95% lower at Rs 574.1 apiece on the NSE on Tuesday. In comparison, the benchmark Nifty50 closed at 24,649.55, down 73.2 points, or 0.3%.
