Hello everyone, on behalf of IIFL Capital, I welcome you all to the 3Q FY26 results conference call of Ramkrishna Forgings. I also welcome the senior management of Ramkrishna Forgings.

We have with us Mr. Naresh Jalan - Managing Director, Mr.

Chaitanya Jalan - Whole-Time Director, Mr. Lalit Khetan - Whole-Time Director & CFO, Mr.

Milesh Gandhi - Whole-Time Director, Mr. Rajesh Mundra - VP Finance & Company Secretary.

Now I'll hand over the call to the management. Over to you, sir.

Thank you, Joseph. Good evening, everyone, and thank you for joining us on this call to discuss the Q3 9-month FY26 earnings.

I trust all of you have had a chance to review the earnings document that we have shared earlier today. Q3 FY26 was a mixed quarter marked by a combination of emerging opportunities and continued volatility in global operating environment.

Geopolitical tension, more frequent headlines around tariff actions, and evolving trade alignments continue to affect sentiments. This was further compounded by currency volatility and elevated input cost.

Notwithstanding these challenges, the quarter also presented meaningful opportunities. Customers across Europe and Asia are increasingly recognizing the strategic importance of diversifying supply chains, creating incremental engagement and new business prospects for us across multiple regions.

In contrast, the domestic operating environment has been much more conducive for growth. Strong macroeconomic fundamentals, including steady industrial activity, resilient IIP growth, moderating inflation, and a stable interest rate environment have contributed to a healthier and more predictable business climate.

The GST rate rationalization implemented in September played a meaningful role in reviving customer sentiment in the automotive segment, and following a period of subdued demand, lower and lower tax rates and reduced on-road prices across vehicle category have resulted in sharp rebound in demand. Over the past few years, we have been deliberately pursued a strategic agenda to deepen and diversify our domestic footprint through targeted investments, product innovations, and capability enhancement.

As part of this effort, we also identified adjacent growth segment, mostly notably railways and passenger vehicles. Railway segment in particular is demonstrating strong momentum for us.

We are currently focused on scaling output and expanding our penetration within this segment. Our products are now being integrated into bogie assemblies.

At the same time, we are seeing encouraging traction in the passenger vehicle segment and expect to participate more meaningfully in this upcycle through increasing penetration and expanding the range of products that we offer. Now let me share some financial highlights for the quarter.

For Q3 FY26, we reported consolidated net revenue of 1,098 crore, ₹1,098 crore, higher by 2% on year-on-year basis compared to 1,074 crore in Q3 FY25. On Q-on-Q basis, revenues were higher by 21% compared to ₹908 crore in Q2 FY26.

Strong performance in domestic market supported by resilient performance in international market has helped us to deliver 21% Q-on-Q top-line growth. EBITDA, excluding other income, is ₹163 crore in Q3, higher by 29% year-on-year compared to EBITDA of 126 crore in Q3 FY25.

On Q-o-Q basis, EBITDA was higher by 33% compared to ₹123 crore in Q2 FY26. The EBITDA margin is 14.9% for the quarter and is higher by 140 basis points quarter-on-quarter.

Profit after tax is 13.6 crore after exceptional provisioning of gratuity and leave on account of new labor code of ₹10.43 crore. Otherwise, it could have been 24 crore compared to INR 21 crore in Q3 FY25.

Our confidence in quarters ahead is due to multiple growth levers. Operations have already ramped up, and we now focus on driving higher utilization.

Our aluminum forging has been successfully commissioned and commercial production has been commenced. Our casting facility is ready and is under trial run and shall commission commercial production in Q4 FY26, and we remain confident of ramping up utilization levels in coming quarter.

The machining facility in Mexico is nearing commissioning and is expected to become operational shortly, and further strengthening our global manufacturing footprint. Additionally, our rail wheel joint venture remains on track and with the commencement of trial production anticipated in the end of Q4 FY26.

With that, I would like to hand over the proceeding to Mr. Milesh Gandhi, Whole-Time Director.

Thank you, and over to you, Milesh.

Thank you, Lalit. I would like to brief that during the quarter three, the company secured new orders worth ₹680 crores with a program life of 4 years.

Approximately 66% of these orders were from the automotive sector, and the balance 34% were from the non-automotive segments, reflecting continued progress in our company's diversification strategy. In Q3 FY26, auto orders amounting to ₹406 crores is from the CV segment, around 26 crores is from the passenger vehicle segment, that is the PV segment, and ₹18 crores is from the EV segment.

In Q3 FY26, non-auto orders amounting to ₹189 crores, out of the 230 crores, is from the oil and gas segment. Would also like to mention a few more details.

Against our railway business, the bogie assemblies, which is a good value addition as assembly supplies, along with our core items, frames and bolsters, bulk supplies have started going to Indian Railways. With our solid launch and ramp-up, we have qualified for bulk orders, and Indian Railways has started showing a demand worth 2,000 crores itself for the forthcoming demand.

Would also like to add upon, with the current European Union free trade agreement, this will further help us, and Europe will be more keen in buying forged and cast parts from India. The current duties that were levied will be over, and we will become more attractive to the customers over our other competitors.

That's from my side. Thank you.

Thank you, Milesh. Now I hand over the proceedings for Q&A, and hand over to moderator for the Q&A session.

Good afternoon, sir. Thank you so much for the opportunities.

Sir, we have received new orders of 680 crores, and what is the mix between domestic and export? How does the order pipeline look for Q4 and beyond?

Out of the 680 crore order that we have received, mainly this order is coming mainly from the domestic market on the maximum side. Around 60% of it is coming from the domestic side, 40% is from the export side.

Way forward, our order books are still strong, and with all our capacity that we are adding up to, this is helping us to fetch more orders and make sure our capacity is utilized in a better way.

Sir. I think domestic revenue also increased to nearly 67%-68% in 9-month FY26 compared to 59% in FY25.

If you look at also North America exports has been declined to 55% compared to 71% in last 9-month FY25. How do you look at domestic as well as North America export side over the medium term, we are strategically shifting to domestic because of this tariffs?

Secondly, railway business has nearly 7.3% of business in 9-month FY26. I think we are in the progress of forged wheels JV and bogie assemblies.

It's in trial productions. What is the targeted revenue contributions from railway side in the next 3 to 5 years?

The wheel production, I think it's not part of the strategy right now. Wheel production sales is going to come into the JV, and we are right now not building any sales from the wheels right now.

Bogie, assembled bogie sales, we are looking at a strong sales number, and I think railway, we are looking at double-digit sales in next 2 years' time. While we continue to grow in other platforms also and improve our capacity utilization, railway is going to form a strong pillar of growth for us, and our order book from railways is extremely strong.

In terms of North America and India pre-mix, I think tariff is nothing to do with the change in pre-mix right now. Overall demand scenario and the build rate in North America has slowed down in the past year, but now we are seeing traction coming back, and I think as the build rate improves, our North America customers and sales are intact, and it is going to continue to grow as the build rate improves.

Sir. Sir, I think forging capacity utilization came down to 66% in Q3 FY26 compared to last Q3 of 79%.

It's because of the demand softness or a ramp-up in new capacities? How do you look at, I think, new capacities of aluminum forging, casting, and Mexico machinings are under commissionings.

How do you look at utilization levels over next 2 years, sir?

No, I think right in the opening statement, as Milesh has said, every quarter, I think we are going to strongly push on terms of utilization, and with the order wins we have, all the new capacities which are coming up has been backed by equal number of orders. Basically, the time taken for approval and stabilization of the capacity, that itself is taking time to get to the real numbers for the capacity utilization.

So 66% of the utilization which you see right now is basically on the total capacity which has already been commissioned. Like for aluminum forging, only couple of months we have been able to go for production.

As we ramp up this capacity to full utilization, I think within next 8 to 10 months, you will see full utilization. Similarly, in cold forging, where we have almost 25,000 tons of capacity, we have right now at a utilization level of 40% because customer approvals and other things are still at one stage or other coming in.

Every month it's on a improvement, and we are looking at almost when we close the next financial year, we will be almost at 80%-85% utilization. Specific to capacities, utilizations are low, and as such in overall scenario, you're seeing 66% utilization in the overall increased capacity utilization.

If you compare to the capacity which was earlier there, utilizations have remained same or increased from thereon.

Sir. Sir, my last question.

I think we have planned around 500 to 600 crore kind of debt reductions by end of this year. How much we have achieved as of now, sir?

Debt as on date is about 2,250 crore. If you look at [unclear] about 2,600 crore.

We have achieved already 350 crore of debt reduction in this quarter, and we hope to achieve this debt number to below 2,000 crore, maybe 1,900 crore by the end of financial year '26.

Got it, sir. Thank you.

Hello. Am I audible?

Yes, you're audible.

Yeah. Congratulations that you're improving on quarter-on-quarter basis.

Just wanted to know one thing that as we know that our domestic sales is now going up, and export sales is more or less a little bit going down only. Realization-wise, do you think that domestic sales realization can cover up the export sales drop?

No, I don't think domestic sales can cover up in terms of the entire realization in terms of export sales. I think in the overall traffic when you see in terms of the order wins which we have had, we don't foresee that in coming quarters our exports will be considerably down.

I think you will be able to see in coming days our exports also considerably improving. We are looking at upward in terms of realization in overall between domestic and exports together.

In isolation, domestic also will improve in terms of our realization, but we don't foresee any drastic drop in terms of our exports.

Okay. Good, good.

Thank you, thank you. Another thing is like you said you are not considering that railway wheels sales in your project shown.

When do you think it can considerably come in as in revenue from which financial year onwards? No,

in terms of railway wheel, revenue is going to come from FY27 onwards itself. Because it is in the joint venture, we have not considered it in as a revenue in terms of our RKFL console balance sheet.

We have not taken it as a revenue right now. We will see post the project is commissioned and commercial production starts, we'll take a legal view in terms of how the consolidation is going to happen in terms of revenue of the JV.

Oh. Maybe from Q1?

Anticipate in Q1 or Q2?

No, I think commercial production is going to start from Q2 onwards.

Okay. How the utilization you're anticipating?

Currently, it sits for 74%, total capacity of what you have, right? How do you see it ramping up over the next few quarters?

Like when do you see...

I think we have a very strong order book in terms of RKFL between casting and forgings. We feel that going forward, we will be able to, as every quarter, improve in terms of our utilization.

I cannot put a number to it, but with the order book we have, we are looking at a very strong consolidation and strong performance in terms of our utilization in coming months.

I think the same thing on the depreciation also we can consider the current run rate or it'll be increasing from now on?

Can you repeat your question, please?

No, the more you say that you are ramping up on your capacity, depreciation also will be in the same range of you're going to do the same range of depreciation also in the coming quarters, or it'll be like more or less?

Lalit, can you answer this question?

Depreciation is almost going to be in the same range because one or two machines which are under capitalization, so that will give it a marginally increase. In Q4, we don't see an increase in depreciation.

Maybe from Q1 little bit, but that is not significant. No,

that's what I'm just trying to understand. More of the machining is already done, you assumed, or not too heavy depreciation from next few quarters onwards, sir.

That's what I was trying to understand.

Yeah.

Okay. Thank you so much, sir.

Thank you for answering all my questions, and all the best for next few quarters. Thank you.

Yeah. Thank you for taking my question.

My first question is regards to the North America business. FY25, we were north of about 1,000 crores of revenue, and for the first 9 months, we've clocked about 480 crores, which basically on a 9-month comparative basis is down almost 40%, more than 40%.

Basically, if you can give us some understanding of how the business environment in North America is shaping up, how is the Class 8 build rates currently as compared to the last year, and what is the overall outlook in terms of the North America business with all the new orders that we have won?

I think, Sunny, for the build rate right now, we have seen December new order, which has come in North America Class 8. We are still, I think, we need to see how January performs.

From whatever offtakes we are seeing from customer, we are seeing improvement. Not, we are not very optimistic, but we are very cautious right now.

What we can confidently say, the worst is behind in terms of the North America sales. From here, you will see what we have budgeted for is almost 10% YoY increase in terms of the build rate and consumption in terms of our exports to North America from our existing clients.

The new clients and the new order wins which we have added is going to compensate us most of the losses which we have made in this year in terms of the utilization or in terms of the total sales in North America. We are confident that in FY27, we will meet most of the losses in terms of top line which we have had in North America, which you are seeing in last 9 months.

From this quarter onwards to next in FY27, we'll see almost we have gained 100 We are back to normal in terms of the overall business we are doing in North America. It maybe not from existing customers, it will be with addition of new customers which we have already had.

Got it. Got it.

In terms of the overall revenue mix, say last year we were at about 60% domestic, about 40% export. In this quarter, our mix is about 70% domestic, 30% export.

Now based on the new order wins and the overall robustness in the domestic business environment, how do we see this mix changing, say, over FY27? Because this will also be kind of a key determinant to the profitability, considering exports has relatively better profitability as compared to domestic.

Sunny, I think with the addition of new capacities from castings and forgings both, we are not looking at going back to 40%, I think, immediately. To be very, very pessimistic and to be very cautious on it, we are looking at coming year in FY27 to be almost 35% to come from exports and 65% to come from domestic.

Got it. Got it.

This is in spite of the robust domestic environment, new orders would significantly compensate for the loss in underlying or the slowdown in the underlying business in North America.

No, I think the underlying business slowdown which is there in North America, like I said, is going to get compensated with the new customer addition from North America which we have already had, and for which samples, PPAPs, and other things are in process. I think we are going to have full sales from first quarter of next year.

Also, there is a lot of new addition of new customers from Europe, which is going to compensate us in terms of our exports equally from North America. I think in totality, in terms of exports, we are very confident that we should be at a strike rate with our increased capacity and increased utilization to be at almost anything between at least to be at around 35% mark in terms of our overall utilization.

Got it. This is very helpful.

My second question is on the railways business. The new orders in terms of the bogie assemblies and which we've won, how is the overall margin profile of these orders?

Is it from an overall perspective accretive to the average company margins, or will it be slower than the company average margin? How should we look at...

No, I think it is a value add, a complete fully locked-in assembly in which railway only builds the body. We are getting into that, and it's a pretty big market, like Milesh told in the opening statement also.

With this full approval what we have received by now, and next year it opens a 2,000 crores sales revenue for us. It's annual requirement of almost more than 2,000 crores for Indian Railways for passenger segment.

We qualify for to get 60% order. This is a highly accretive margin business for us, and I think we are eyeing a big chunk of business going into FY27 from this, which is going to like in my earlier question also I've said, for a double-digit growth from only Indian Railways.

Got it. My last question, and maybe then I'll come back into the queue, we have significant dependence on the CV side, in terms of our historical performance.

What initiatives are we kind of taking to diversify into non-CV, specially PV, tractors, and where are we in that journey...

Sunny, I think Milesh has already answered this question in his opening remark. We are significantly eyeing PV as our growth engine for next couple of years.

I'll be happy to share that we have started receiving orders from two large PV manufacturers within the domestic market and three from the international market and one from EV segment in the export market. Overall, we are looking at almost 10%-plus revenue in next 2 years to come only from PV.

Probably by FY28, our 10% of the revenue share is going to only come from PV segment.

Got it. That will be significant de-risking in terms of CV dependence.

Yes, and I think we are working both ways, both in domestic and international market. I think both together taken, it will become a sizable business for us in next 2 years.

Got it. Thank you for the detailed answers, and I'll come back in the queue.

Yeah. Hello.

Am I audible?

Yes, you're audible.

Yeah. Thank you for the opportunity.

Sir, I just wanted one clarification. In the PPT, we have given a slide where we are showing new order split over the next 4 years.

Are these revenue line items over and above the top line we have achieved in FY25 or FY26? Or does that also include renewal of some of the orders that their life will get completed in 1 or 2 years?

No, basically, Aditya, we have tried to give you a consolidated picture on past order wins, and how this in coming years in next couple of years, how these order wins are going to get reflected in terms of revenue in our overall when we say our capacity utilization and the kind of capacity capex we have done to set up this capacity. This order win basically gives the visibility or the revenue which we are trying showing in terms of getting into our books in next couple of years, basically in terms how the utilization from the new order wins is going to come through.

Yes. I wanted to get a sense this is the new orders getting converted to top line.

This is basically new top line getting in. In TTM, we have done close to 3,500 crores of revenue in the stand-alone business.

Let's say, in FY28, if we are looking 2,700 crores of extra top line, this is in top of that 3,500 crores top line that we are doing today, right? Should I read it in that way, or should I read it that it will be below something?

No. It is only basically for new order wins.

The current top line which we have already achieved, this is not inclined with that.

Okay. One more clarification on this.

In these new orders, does that also include the castings orders for which the new capacity is coming up and aluminum forging top line?

Everything is included. At a console level, this is situated.

Okay. Thank you.

One more question is on the gross margins front. This quarter, our gross margins have contracted to 45% at a stand-alone level, and our EBITDA is almost flat on a QoQ basis.

On an EBITDA front, we have done a decent job. What has led to the gross margin contraction?

On the cost front, power and fuel costs and manufacturing expenses are also lower despite production ramping up. What are the reasons for this?

Aditya, on the gross margin side, it's basically result of product mix and little bit we were having a more rejection in this quarter, so that has led to this reduction in material margin. Hopefully, it will be back to my normal level in next quarter, so that will improve my margins also and overall EBITDA also.

Coming to the power and fuel, power and fuel also is combination of few things. We have got some reduction in electricity duty, which has been taken care of in this quarter.

Apart from that, there has been some efficiency we have built in in the utilization of power, and there is contribution from renewable power which rooftops we have put. All these are contributing now.

All these together has helped us in achieving this power and fuel cost.

Okay. In terms of, sir, other expenses are also quite significantly down over last year.

Other expenses are not significantly down if you look at other expenses. It's marginally down, and that's basically a function of operating loss on the foreign exchange which is lower in this quarter, and little bit efficiency in terms of other cost.

Okay. Sir, if I just may ask, if those rejections were not there this quarter, then what kind of gross margin print we were looking at?

Certainly, it could have been better. I will say at least 1%.

1%, okay.

100 basis points. 100 basis points.

Okay. Thank you for that.

Yeah. Sir, just one question from my side.

I think in the last 3, 4 quarters, we've seen quite a big hit in terms of our margins. Just want to understand in terms of EBITDA margin, should we consider this normal, or by when do we expect to touch back to 19%, 20% kind of margins like we used to do?

To be very frank, I think this is not a new normal. I think you will be able to see consistent improvement in margin QoQ.

From the previous quarter when I had said that the worst is over, I think this quarter we have made considerable progress in terms of our margins and top line. I think going forward, you will be able to see on a QoQ basis, consistent improvement in terms of margin.

I think I'll not commit to 19%, 20%, but our own internal estimates and working is to get to there as fast as possible.

Understood. Any time frame?

No, I'll not put a time frame to that. I'll not ballpark.

For me, every quarter, I would like to get to there, but it is a process, and we are getting there. I think in coming quarters, you will see significant improvement in margin.

I think very soon, we will be back to our new normal margins.

Understood. Thank you.

Hi. Good evening, sir.

The way you have explained that we have a significant order book, and even North America also worst is over. Also, railway is also going to add as far as for future growth is concerned.

By considering all this fact, and even you are saying there is a improvement as far as capacity utilization is concerned. As far as top line is concerned, what kind of growth trajectory we can expect moving forward in FY27 and FY28 as a percentile?

As a percentage to FY26 which we are going to end, we can assume to 10% to 15% growth in terms of our top line.

For the FY27 and '28?

FY27, 10% to 15%. I think in terms of CAGR, you can look at 10% to 15% growth year-on-year for next consecutive 3 years.

Okay. My second question, as far as tariff related to Mexico is concerned, still there is a overhang, or as far as our operations are concerned?

No, in terms of RKFL, we have no overhang in terms of tariff from Mexico. I think we are supplying on DAP basis, we don't have any effect of tariff, neither we are affected by those tariffs.

In terms of our operations in Mexico, I think if this tariff prevails, it is going to be extremely good, and we are more optimistic if this tariff prevails, my Mexico operations is going to ramp up sooner than what we expect.

Okay. Thank you, sir.

Am I audible?

Yes, you're audible.

Yeah. Thanks for the opportunity.

Naresh sir, last time during the con-call during November, you were quite bullish on the turnaround in the export business, because that confusion regarding all this tariff, what tariff to be deployed had created some bit of, I think, disruption, especially in October. If I look at the exports numbers, sir, on QoQ basis, it remained largely flat, and even the North America numbers it's adding 20-odd percent of In fact, slightly lower than that.

It doesn't really look like more of a turnaround. Is it the, say, improvement that we were witnessing, say, in November mid when the last con-call took place, did it not sustain?

December it again went down, it got disrupted, and or say the Mexico thing impacted, because I talked to some...

I think just to interrupt you, I have never said and I never give a quarterly update or quarterly statement, or market does not work on quarterly basis. I think on a sentimental way or in any optimism, it's on a yearly basis what we look at the market as.

In mid-November, I cannot predict for 45 days what is going to happen in terms of exports or neither I can give any view on the same.

No, I was just talking about that late December was say, considerably down vis-a-vis November. That is what I'm trying to understand, did the sentiment really turn around?

Yeah.

No, like I had said to my earlier questions, we are optimistic in terms of our growth in North America, and we still stick to that. Despite tariffs and other things, we still have new order wins from North America, and we are looking at maintaining what we were doing in the past in terms of our North America sales.

In spite of the build rate being down, we'll be able to maintain those sales. That itself is an optimism from our side vis-a-vis the market consideration right now.

Fair point. No, that's encouraging.

Sir, last time you had told that by Q4, there is a remote possibility that we might come back to that 20% thing, but this time you don't seem that confident. Is that a fair assumption that's why we are not committing anything vis-a-vis returning to that 20% thing during Q4?

Because last time we were aggressive on that front that we might even come back if things go in our favor.

Have

things been delayed? Yeah.

No, I have still answered that question in the past also. We want to get to 20% level as soon as possible.

I don't want to put a date to that. As a company, we are very aggressively working internally in terms of our cost and everything, and we would be very happy to get to 20% or 19% level as soon as possible.

I cannot commit to a date. Neither in Q2 call Q2 conference call, we had optimistically said that as a company, we are trying to get there.

I have never said that we will get there by Q4."

No, I'm just talking about the sentiment part. I understand.

Still sentimentally and optimistically, we want to get to 20 19% to 20% as fast as possible.

Okay. Fair point, sir.

Has there been say any delay from the government side on the approvals vis-a-vis wheel? Because we are now looking at say, I think, Q1 commercial production, right?

No longer the March date. It's more like trial production if I look at the presentation right now.

Has there been some delay on that front? You are expecting around 40% utilization in year 1?

Next year is the first year, and we are looking at making 40,000 wheels next year. There has not been any delay from the government side.

Trial production means we have to submit 300 wheels to the Government of India, Indian Railways, for their trial. After successfully utilizing that, and then we start bulk production.

We are still with that mindset. We are working, and we are well on track.

That is what Lalit also said on the opening remark, that we are on track, and we are starting the trial production. Next year, as per our contract, we have to supply 40,000 wheels to railways, and we still stick to that.

Okay. Fair, no, that's encouraging, sir.

Now coming to the European market. Now, sir, how do you see that going forward?

Because with the FTA coming in, and also Europe is not really focusing on manufacturing within its geography because of power and all those issues. Is Europe likely to say drive say better returns going forward?

Because North America has been our crown jewel so far before, say, last couple of quarters. How do you see Europe going forward, and what's the likely mix vis-a-vis exports as far as Europe is concerned?

Any thoughts or color on that?

Milesh, can you answer, please?

Yeah. First thing is you very rightly said that, yes, North America has been more a jewel in our crown, and I would say that it is still there.

I think the diamond is sure to sparkle more. You would have also noted with many of the order wins which we have been announcing over the past quarters, you would have seen that we have brought in significant new business from Europe.

Europe has started concentrating a lot on India. I would say that with the free trade agreement, even the small duties whatever are there across various other countries, because we are supplying to practically all CVs across Europe, and they are our customers there.

Across various regions and various countries, if it completely gets over, but obviously, we will be more attractive versus our neighbors. Apart from that, to answer you to your last question, I think we have been very vocal, and we would like to state that, yes, North America, we are winning orders and North America comes back.

The way Europe has been, you would see that at least Europe is also contributing to anywhere against our overall export sales, somewhere between 30% to 35% comes from Europe. That pattern will be visible in the near future.

Okay. All right, thanks.

Now, sir, coming back to this mining sector. There seems to be some mining boom, right, with commodities also doing well.

Any traction that we are seeing, say, within the mining sector, because oil and gas has done well, railways is our growth driver. I think we had some presence even in the mining in the earlier part.

I've been a investor for almost 7 years now. Any mining-driven growth that you are witnessing or order wins?

There are two things. Naresh, sorry.

No, Milesh, bolo.

Naresh, I think in the opening statement also you would have already heard that we are already finding a very huge surge in the domestic demand. I think a lot of this domestic demand is also coming because of the mining segment today.

The demand for the tippers and other things are already there. At the same time, you would have also seen that we have been making a lot of announcements with our new order wins in off-highway markets.

Today, we are there with a lot of mining companies and also material handling and farm equipment companies, which contribute to this. I think that is the reason you would see that our off-highway sales is going high.

Okay. Thanks for the responses, and best of luck for the coming quarters.

Yeah. Good evening, sir.

I want to know that the way we are seeing there is a improvement in a domestic market volume. In general, there is a realization that has not been improved YoY basis.

What kind of realization we are anticipating moving forward?

Lalit?

Domestic and even export, can you throw some more light on that?

Right now, the realizations are stagnant. You can see that.

As the commodity prices are also stable, it will remain like this. Only it will slightly likely to improve with the improvement in product mix and addition of more assemblies and more value-add product.

Overall realization is likely to improve going forward.

Any kind of numbers?

No, I don't think we can put a number there, but you will see that improvement.

Okay. Thank you.

Thank you. Just want to understand a bit more about the domestic market.

In terms of what kind of products you actually make, can you just give a mix of products like front axle beam or knuckles or crankshaft? What is the mix?

How has it changed 9 months of this year to the previous 9 months of last year?

I think product-wise, it is very difficult for us to tell you anything right now, and we would not like to discuss product-wise. Overall, I think every product is important for us, and I think every product is driving the growth for us.

Any change in the mix?

No, I think product line-wise mix change, I think, is extremely difficult for us to say. I think we are only adding new products and adding new capacity.

I don't think we are displacing any products or like front axle beam or anything. Product mix in terms of part families, within the part family, there may be changes in terms of weight range.

Sometimes we get a higher weight range products in the same product family, or sometimes we get lower weight range in terms of product family. That's the change basically happens within the product mix.

In terms of the visibility you have in the domestic market for the calendar year 2026, which segments you actually see stronger velocity, whether it is CV or PV or earthmoving or tractors?

I think in terms of the domestic market, we are seeing traction both in any and all entire automotive segment and off-highway segment. Both are showing great traction.

For RKFL, I think the biggest chunk of traction is going to come from Indian Railways. I think that's the next level of growth which is going to come from Indian Railways in FY27.

While our continued journey in our existing business is going to continue grow, but the significant growth is going to come from Indian Railways.

In terms of competition, right, has there been anybody who is giving space for you to grow, because earlier I understand that there was some consolidation taking place. Now that consolidation is behind us.

Whether we are winning market from somebody else or how is the growth coming across?

No, I think in terms of Indian Railways, we have been able to identify new products, and we are offering new opportunities or new growth assemblies to Indian Railways, which is benefiting Indian Railways in terms of cost reductions, and we are also gaining traction. In terms of automotive segment, we will not be able to exactly say that from whom we are getting business or anything.

I think each customer, we have been able to increase our wallet share, and this wallet share is helping us to increase our domestic share of business within the auto segment.

Got it. My question is more to do with do you also see consolidation taking place, because I think after the top five, six forging companies, I think the next are getting smaller, is what I was thinking.

I just want to understand your views on that.

I think I have no view on this.

Got it. One more question.

What we've been told is that in the commercial vehicle also, in M&HCV segment, there is a movement towards trailer segment and not these heavy-tonnage vehicles. Because of which, the market tonnage-wise in terms of forging is also making some shift.

Is that something which you also see?

No. I think market is divided now into two different zones.

One you're rightly say is trailer market, but they are basically on the long-haul side. I don't think that is growing significantly.

I think that consolidation and the growth is coming from the tipper vehicle, which is mostly being used in the mining segment and construction segment.

Okay. Thank you so much for answering it.

Yeah. Thank you for the opportunity.

Sir, I just wanted to know, my question is on the railway segment. You mentioned in the past regarding the undercarriage opportunity.

I just wanted to know our prospect on the undercarriage. In order to increase the wallet share, are we seeing any acquisition in the springs space or in the brakes in order to increase the wallet share or any pantograph or railway crossing?

Your view on the railway, looking for, sir.

No, I think in terms of acquisitions, I think we always look for acquisitions. We are not in a verge of any acquisitions, but yes, if any specific opportunity comes, we would obviously like to look at it, but right now, there is nothing to speak about.

In terms of increasing our wallet share, in terms of making assemblies, I think we are doing it in our own while we source this springs and other items which are required to complete the assemblies on an individual basis from the manufacturers within India. In case tomorrow any opportunity arises, we are open to any acquisitions at the right price, right make.

Okay. Sir, on your wheels plant facility, your capacity is big compared to the demand side of India.

On the export front, what are your views, and how are you placing your product in the export market for a high-speed rail? That was a question on the railway front.

Second is, sir, on your view on the defense side, defense forging, maybe aerospace or defense in defense side, any acquisition or any intent to enter into that segment?

To answer your first question, I think in the railway wheel side, we are already in discussion with a lot of export import customers in the export market. I think there is a huge traction, but I think we are going step by step.

This year we will be able to make 40,000-plus wheels, which we are going to sell to the domestic market only because of the obligation of the agreement which we have with Indian Railways. Post that, I think we will approach the international market when we next year are looking to make more than 100,000 wheels in the next year.

I think once we start these operations, I think we will have customer visits and approvals process starting. I think by the time we are ready with our capacity to go to 100,000-plus wheels in the next year, we will have the customers in place.

There is a lot of traction in the overseas market for wheels, and I think we will be able to encash this very fast. Second to answer your defense, we are working very aggressively right now in terms of we making components within our existing capacities for aerospace.

Post our commercial production of aluminum forgings, we have already started trials of titanium and other alloys. We have installed furnaces which are required for titanium and other alloys for aerospace.

We have already started bidding for defense contracts in the space of this new alloys. I think we still have not got any orders, but yes, I think we are likely in next coming days or years or months, we should be in track to get a significant portion of business in new alloy business in terms of titanium and other things from our existing facility for aerospace.

Coming to acquisitions, I think, like for railways, we are open to any acquisitions, but right now, we don't have anything which we can speak about or any concrete details are there available.

Fair enough, sir. On the export front, North American Class 8 truck order near to 20 to 25,000 per month, I just wanted to know your view, is it the bottom of the market?

Second is, sir, the Europe FTA which is happening, do you see that as a hedge against the entire export market? Or do you see a very good opportunity in terms of increasing your share in the Europe, or with the existing customer, the wallet share?

Milesh, can you answer, please?

Sir, I will start with your second question first with regard to the European FTA. I think I just replied a while back that I think this will always help us to become more attractive, because end of the day, there are small duties.

You would have already seen that we have already gained a lot of business from Europe in the past quarters. I think we have started already giving them, and their ramp-up plan has also been given in the bigger numbers.

Obviously, if today duties are not there as compared with other competitors' countries, we will always be more attractive, and India has always been a favored destination on Europe when it comes to things from forgings or castings, and I think that is going to help us for sure. Coming back to North America, I think one thing we would like to restate once more is that, see, the worst seems to be already over, as Mr.

Jalan already said. Currently, even the way the numbers are showing seems that there will be a good demand coming forward.

I think there has been a lot of projections with regard to the American demand, even with the commercial vehicle. Obviously, there has not been a great utilization of the fleet and other things in the past.

Now with the way the market is showing, I think the numbers are very encouraging, and we look forward to at least coming back with the numbers in the coming quarters soon.

Fair enough. Sir, my last question on the EV front.

You mentioned in the past you are interested to increase the EV share to the total portfolio, any comment on that, sir?

You would have already seen that we already informed today that around 18 crores of further business we won today from the EV segment. I think we are already working in a bigger way, and whatever we are getting the traction is from North American OEM who are into the EV space.

Plus, we also are doing today with the commercial vehicle industry with regard to the EV space. I think we are the prominent player.

Whoever is making the EV vehicles today, we are their primary suppliers. If they are growing with the numbers, what they are getting from the market and also from the government with regard to the green policies, I think we are the beneficiaries indirectly, our EV numbers are also increasing accordingly.

Thank you, sir. That was really helpful.

Yeah. Hi, sir.

I just want to have a clarification. Like in last call, we told that for the full year, full year basis, we still maintain our commentary of double-digit growth for the full year, right?

In 9 months, already it's just around 1% only. Are we still holding to that guidance, or so what's the...

Yes, we are still holding to that guidance.

Got it. Thanks.

That's it.

Thank you. Would like to thank all for taking out your time and join us on this call.

We hope we have answered all your queries as per your satisfaction. Would like for any further information, kindly touch with us or with CDR India.

On behalf of Ramkrishna Forgings Limited, wish you all a great week ahead. We look forward to interacting again next quarter.

Thank you again very much for talking with us. Thank you.