Ramkrishna Forgings Q2 FY26 Concall Decoded: – ₹9.5 cr loss, tariff tantrums, and management swearing “worst is behind us”

1. Opening Hook

Global tariffs went rogue, forex decided to party at ₹90, and Ramkrishna Forgings ended up reporting a loss—because why should manufacturing ever be boring? Just last quarter, management promised sequential improvement. Q2 responded by doing the exact opposite, courtesy the US, Mexico, currency gods, and some very expensive imported machines.

Yet, amid the chaos, promoters doubled down with warrants, railways suddenly became the golden child, and management sounded oddly cheerful for a company bleeding red ink. Apparently, Q2 was just an unfortunate speed breaker on a smooth highway to glory.

If you’re wondering whether this is genuine cyclical pain or just classic concall optimism, read on—because the real action is in debt, railways, and a very confident “Q3–Q4 will surprise you.”

2. At a Glance

• Revenue ₹908 cr (–10.6% QoQ) – Global slowdown plus tariff drama, no plot twist here.
• EBITDA ₹123 cr (–17.5% QoQ) – Margins slipped faster than export dispatches.
• EBITDA Margin 13.5% – From 14.6% to “please wait till Q3.”
• PAT –₹9.5 cr – Forex and Mexico teamed up efficiently.
• Order wins ₹1,116 cr – Sales weak, PowerPoint strong.
• Debt ~₹2,400 cr – Management promises a diet by March.

3. Management’s Key Commentary

“Geopolitical tensions and tariffs disrupted global demand.”
(Translation: Blame Washington, not Kolkata 😏)

“Tariffs briefly went up to 50%, creating confusion.”
(Translation: Customers froze orders faster than Excel sheets.)

“Domestic market proved supportive after GST rationalization.”
(Translation: Finally, something went right 🇮🇳)

“Q3 and Q4 will be extremely surprising on the upside.”
(Translation: Please don’t extrapolate Q2.)

“We incurred ₹25 crore one-time impact due to forex, tariffs, Mexico and JV.”
(Translation: Strip these out and imagine a happier P&L.)

“Worst is behind us.”
(Translation: Famous last words, but we mean it this time 😏)

4. Numbers Decoded