Q2 profit rises 50.58% as margin improves on faster revenue growth
Costs grew slightly slower than revenue, while a lower tax rate amplified the increase in consolidated net profit.
Filed 30 Oct 2026, 16:23 IST · after market close · Ramkrishna Forgings Ltd (RKFORGE)
Key takeaways
- Consolidated Q2FY27 revenue rose 15.51% sequentially, while operating margin improved 0.27 percentage points to 18.23%.
- Net profit increased 50.58% sequentially as the tax rate fell 1.53 percentage points, despite interest costs rising 7.75%.
- Management said the company secured Rs 673 crore of new orders in Q2FY27, split 48% domestic and 52% export.
Price around the results
Revenue momentum lifted operating profit
Consolidated revenue grew 15.51% sequentially, and operating profit rose 17.28%, indicating modest operating leverage. Expenses increased 15.13%, slightly below revenue growth, which lifted operating margin by 0.27 percentage points to 18.23%. The margin was 5.14 percentage points above the 13.09% median for the 129 Consumer Discretionary peers that had reported.
Lower tax rate amplified profit growth
Profit before tax increased 47.47% sequentially, even as interest costs rose 7.75% and depreciation increased 3.31%. The tax rate fell 1.53 percentage points to 26.05%, helping net profit grow 50.58%, faster than operating profit. Other income accounted for 3.69% of pre-tax profit, so it was not the main driver of the earnings increase.
Orders and added capacity support the operating update
Management said Q2FY27 orders were worth Rs 673 crore, with a four-year programme life; 52% came from exports and 48% from domestic markets. The company said it had added 3,000 MT and 40,000 MT of press-line capacity in January and March 2026, respectively, along with 28,800 MT of casting capacity in March. Management also reported ring-rolling utilisation of 145% in Q2FY27, up from 127% in Q1FY27, and said it targets net zero emissions by 2040.
Results were filed after market close
The results were filed after market close, so there was no immediate market reaction to report. With only sequential comparison available, the key direction was a second-quarter improvement in operating margin from 17.96% in Q1FY27 to 18.23%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,405 cr | ₹1,217 cr | +15.51% |
| Other income | ₹4 cr | ₹3 cr | +24.38% |
| Expenses | ₹1,149 cr | ₹998 cr | +15.13% |
| Operating profit | ₹256 cr | ₹218 cr | +17.28% |
| Operating margin (%) | 18.23% | 17.96% | — |
| Interest | ₹62 cr | ₹57 cr | +7.75% |
| Depreciation | ₹103 cr | ₹99 cr | +3.31% |
| Profit before tax | ₹95 cr | ₹65 cr | +47.47% |
| Tax | ₹25 cr | ₹18 cr | +39.33% |
| Net profit | ₹71 cr | ₹47 cr | +50.58% |
| EPS (₹) | ₹3.88 | ₹2.58 | +50.39% |
Operating margin of 18.23% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 FY27 ring rolling utilization was 145%, compared with 127% in Q1 FY27.
Guidance & outlook
- The company targets net zero emissions by 2040.
- The company targets achieving 100% renewable energy.
- The company targets zero liquid discharge across all plants by 2030.
Expansion
- The company added 3,000 MT of press line capacity in January 2026 and 40,000 MT in March 2026.
- The company added 28,800 MT of casting capacity on March 31, 2026.
- Ramkrishna Casting Solutions added 18,000 MT of press line capacity on December 31, 2025.
New orders
- The company secured new orders worth ₹673 crore in Q2 FY27 with a four-year programme life.
- Approximately 48% of the Q2 orders were domestic and 52% were export orders.
New initiatives
- The company optimized load factors through power demand management and operational efficiency.
- The company increased installed solar capacity by 31% and improved solar generation efficiency.
- The company improved cooling-tower efficiency, generating estimated annual water savings of over 1,000 KL.
- The company is implementing a 9R waste-management framework across all plants.
What to watch
- Whether operating margin holds above 18.23%.
- The pace at which the Rs 673 crore Q2FY27 order book contributes to revenue.
- Whether ring-rolling utilisation remains near 145%.