RKFORGE Q2 FY27 Results Analysis: Revenue Surges 55%, PAT Swings to Profit

Cofacto Research Published October 30, 2026 5 min read

Positive

RKFORGE's Q2 FY27 numbers came in strong. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 30, 2026
Revenue (Q2)	Rs. 1,405.42 Cr (+54.86% YoY)
PAT (Q2)	Rs. 70.59 Cr
EBITDA margin	18.23% (+473 bps YoY)
EPS (Q2)	Rs. 3.88

Quarter Snapshot

Q2 FY27 delivered a 54.86% YoY revenue increase to Rs.1,405.42 Cr with EBITDA margin up 473 bps YoY to 18.23% — the fifth straight quarterly improvement — and PAT swung from a Rs.9.50 Cr loss to Rs.70.59 Cr. Management's FY27 revenue and margin guidance are tracking ahead, though capex has overshot the full-year guide in H1 and the Rail Wheel JV production start slipped. Working-capital build of ~Rs.453 Cr and a net-debt path behind the ~Rs.1,500 Cr end-FY27 target are the key watch items for H2.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue "likely ahead on a depressed base" (SIAM CV +28.7% / PV +30.7% YoY wholesales, per pre-call note, web-sourced, dated)	Ahead	Consol revenue +54.86% YoY, +15.51% QoQ	Played out
Margins "likely compressing sequentially" on energy/shipping/freight	Compressing	EBITDA margin 18.23% vs 17.96% in Q1 — expanded +27 bps	Contradicted
Export mix the swing variable (PV exports −5.2% YoY caution flag)	Watch	No export split disclosed in filing	Not observable
Steel spike lands in H2 via one-quarter lag	H2 headwind	Not yet visible in Q2; inventory build consistent with absorb-then-reprice — open for H2	Not observable in Q2
FX: translation tailwind, net P&L sign quarter-specific	Ambiguous	H1 unrealised FX net gain Rs.11.22 Cr — quarter split not disclosed	Partially
Guidance "broadly intact"; deleveraging "limited room"	On track with slippage risk	Top-line and margin guides On Track; capex Missed; JV timing Missed; net-debt pace Stretch	Partially

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Top-line growth 10–15% FY27	Q3 FY26 earnings call (Jan 2026)	H1 revenue +36.37% YoY — ahead	On Track
EBITDA margin +100–150 bps over FY26 levels (conditional on energy/shipping pass-through)	Q4 FY26 earnings call (May 2026)	H1 margin 18.10% vs FY26 15.17% = +293 bps	On Track
Blended EBITDA margin 17–18% (open-ended)	Q2 FY26 earnings call (Nov 2025)	Q2 FY27: 18.23%	Met
Net debt ~Rs.1,500 Cr by end FY27 (≥Rs.500 Cr reduction)	Q1 FY27 earnings call (Jul 2026)	Filing basis Rs.2,093.29 Cr at Sep-26, −Rs.79.51 Cr in H1 (management basis not derivable from filing) — behind H1 run-rate	Stretch
FY27 capex ~Rs.350 Cr	Q1 FY27 earnings call (Jul 2026); Rs.170.52 Cr PV/press-line approval 24 Jul 2026	H1 PP&E purchases Rs.390.18 Cr — H1 already above the full-year guide	Missed
Rail Wheel JV commercial production from Q2 FY27; 40,000 wheels FY27	Q3/Q4 FY26 calls	JV disclosure dated 30 Oct 2026: "Turnover as on date: Yet to commence commercial production" — timing	Missed
ROCE 12–15% FY27; utilization 80% end-FY27; exports ~35% of revenue with >20% NA/Europe growth; cold forging >70% by Q3 FY27; casting Rs.400–500 Cr and trailer axle Rs.250 Cr FY27	Q1 FY27 / Q4 FY26 calls	Not derivable from this filing (no KPI, geography or segment disclosure) — for the call	Too Early
Margins: "continued quarterly improvement" (open-ended)	Q1 FY27 call (Jul 2026)	Streak extends: 13.50% → 14.9% → 17.1% → 17.96% → 18.23%	Confirmed
Energy/shipping costs not passed on cap EBITDA conversion of gross-margin gains	Q1 FY27 call (Jul 2026)	Derived gross-level margin −116 bps QoQ (54.05% → 52.89%) while EBITDA margin still rose +27 bps	Confirmed
"Worst is behind us" on recurring one-time losses	Q2 FY26 call (Nov 2025)	No exceptional items in Q2/H1 FY27; JV loss cut to Rs.0.68 Cr from Rs.4.85 Cr	Confirmed

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27	Q2 FY27
Consol. EBITDA margin %	13.50	14.9	17.1	17.96	18.23
Total utilization %	—	66–74 (unreconciled in notes)	74	68	not disclosed

Key Investment Insights

Key Positives

Consolidated revenue grew 54.86% YoY and 15.51% QoQ to Rs.1,405.42 Cr
EBITDA margin (ex-other income) expanded 473 bps YoY to 18.23%, the fifth consecutive quarterly improvement
PAT swung from a loss of Rs.9.50 Cr in Q2 FY26 to Rs.70.59 Cr, up 50.58% QoQ
Subsidiaries plus JV swung from a Rs.5.30 Cr PAT drag in Q1 to a +Rs.2.86 Cr contribution; JV loss narrowed to Rs.0.68 Cr from Rs.4.85 Cr a year ago
H1 revenue +36.37% YoY is tracking ahead of management's 10-15% FY27 growth guidance; H1 EBITDA margin +293 bps vs FY26 exceeds the +100-150 bps guide
Net debt (filing basis) reduced Rs.79.51 Cr in H1 to Rs.2,093.29 Cr; net worth grew 9.25% helped by Rs.202.70 Cr warrant proceeds
H1 CFO of Rs.481.51 Cr vs Rs.(5.39) Cr a year ago; CFO/PAT ex-refund of 2.83x
1st interim dividend of Rs.2 per share declared (52.5% of Q2 PAT)

Risk Factors

H1 capex of Rs.390.18 Cr already exceeds the ~Rs.350 Cr full-year FY27 guidance, implying a full-year overshoot
Net-debt reduction of Rs.79.51 Cr in H1 is behind the guided path to ~Rs.1,500 Cr by end FY27, requiring ~Rs.590 Cr+ of H2 reduction at the current run-rate
Working-capital build of ~Rs.453 Cr in H1 (receivables +Rs.230.36 Cr, inventories +Rs.222.80 Cr) pushed CFO/EBITDA ex-refund to 0.70x
Derived gross-level margin slipped 116 bps QoQ to 52.89%, consistent with energy/shipping costs not yet passed through
Rail Wheel JV commercial production missed the Q2 FY27 start target; turnover yet to commence
QoQ EBITDA margin gain decelerated to +27 bps from +85 bps in Q1