Ramkrishna Forgings shares jump 10% after Q2 results, stock surge 35% in 2026

Ramkrishna Forgings shares jumped 10% after the company swung to a Q2 FY27 profit of Rs 70.59 crore from a year-earlier loss, with revenue climbing to Rs 1,405.42 crore and EBITDA more than doubling to Rs 256.23 crore — the stock has now surged 35% in 2026 as operational turnaround plays out.

• Ramkrishna Forgings Q2 profit: Rs 70.59 crore vs year-earlier loss — a complete earnings turnaround driven by operational improvements
• Revenue: Rs 1,405.42 crore; EBITDA: Rs 256.23 crore — EBITDA more than doubled YoY, indicating strong operating leverage as volumes recovered
• Stock up 35% in 2026 and 10% today — market increasingly pricing in a sustained multi-quarter earnings recovery

Ramkrishna Forgings is a Kolkata-based precision forgings manufacturer supplying the commercial vehicle, railways, and industrial machinery segments. The company's turnaround from a loss-making position to profitability in Q2 FY27 is driven by a combination of recovering commercial vehicle volumes (CV sales have rebounded strongly in India in 2026), improved pricing power for forged components, and management's cost rationalization efforts from prior quarters.

The EBITDA margin expansion — implied by EBITDA more than doubling while revenue grew at a lower rate — is the most positive signal from these results. Higher margins signal operational leverage kicking in: fixed costs are being absorbed across higher volume, expanding the contribution margin per unit. For a capital-intensive forgings manufacturer, sustained EBITDA margins above 15-18% are typically required to generate meaningful free cash flow after servicing debt and maintaining equipment.

The 35% year-to-date gain and 10% today suggest the market has been tracking this turnaround and continues to believe in the trajectory. For investors who missed the initial re-rating, the key question is whether further upside exists from current levels — which depends on whether the commercial vehicle and railways demand cycle sustains into FY28, and whether Ramkrishna can expand its product mix into higher-value industrial forgings for exports.

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