Ramkrishna Forgings Limited operating cash covered H1 investment

RKFL reported Rs 482 crore of net cash from operating activities in H1 FY27, exceeding its Rs 448 crore investing cash outflow by Rs 34 crore before financing movements. The company reported Rs 2,622 crore of consolidated revenue from operations and 72% total capacity utilisation in Q2 FY27, compared with 62% a year earlier.

Did RKFL operating cash cover H1 FY27 investing outflow?

Yes. RKFL reported Rs 482 crore of net cash from operating activities and Rs 448 crore of cash used in investing activities in H1 FY27, leaving Rs 34 crore before financing cash flows. The continuing-and-discontinued-operations cash-flow rows carry the same H1 FY27 amounts because the presentation reports no discontinued-operations cash flow for the period.

The comparison with FY26 is directional because H1 FY27 covers six months while FY26 is a full year. In FY26, RKFL generated Rs 840 crore of operating cash against Rs 929 crore of investing cash outflow, a gap of Rs 89 crore, whereas the H1 FY27 operating inflow exceeded investing outflow. The presentation does not split the Rs 448 crore investing line by project or asset category.

What contributed to RKFL's operating cash flow?

RKFL reported Rs 465 crore of operating profit before working-capital changes in H1 FY27, comprising Rs 160 crore of profit before share of joint-venture loss and tax from continuing operations and Rs 305 crore of operating-item adjustments. Working-capital changes used Rs 133 crore, reducing cash generated from operations to Rs 332 crore.

The cash-flow statement then reported Rs 150 crore on the direct-taxes-paid-or-refund line and Rs 482 crore of net cash from operating activities. The presentation does not provide a line-item reconciliation for the relationship between the Rs 332 crore cash-generated-from-operations subtotal, the tax line and the reported Rs 482 crore net operating cash figure.

Operating results increased from the comparable half year. Consolidated revenue from operations rose to Rs 2,622 crore in H1 FY27 from Rs 1,923 crore in H1 FY26, while EBITDA, or earnings before interest, tax, depreciation and amortisation, increased to Rs 475 crore from Rs 271 crore. EBITDA margin rose to 18.1% from 14.1%.

The consolidated income statement presents H1 FY27 EBITDA at Rs 474 crore after rounding, with profit after tax of Rs 117 crore. It also shows gross profit margin of 53.43% for H1 FY27, compared with 48.99% in FY26, while depreciation was Rs 202 crore and finance cost was Rs 119 crore. These accounting measures are distinct from cash flow, which also reflects adjustments and working-capital movements.

How fully was capacity used in Q2 FY27?

The presentation reported 72% utilisation of total installed capacity in Q2 FY27, up from 68% in Q1 FY27 and 62% in Q2 FY26. Total installed capacity was 395,800 metric tonnes, while Q2 FY27 production was 70,925 metric tonnes; utilisation is calculated on an annualised installed-capacity basis.

Casting utilisation reached 88% in Q2 FY27, compared with 79% in Q1 FY27 and 69% in Q2 FY26. Ring rolling was reported at 145%, versus 127% sequentially and 88% a year earlier, while forgings rose to 69% from 53%; press utilisation was 61%, unchanged from Q2 FY26.

The disclosed additions predated H1 FY27. RKFL added 3,000 metric tonnes of press capacity on January 20, 2026, 40,000 metric tonnes on March 6, 2026, and 28,800 metric tonnes of casting capacity on March 31, 2026. Ramkrishna Casting Solutions Limited added an 18,000-metric-tonne press line on December 31, 2025.

What do volumes and revenue say about production demand?

Standalone total revenue was Rs 2,364.48 crore in H1 FY27, up 35.1% year on year from Rs 1,750.04 crore. Domestic revenue rose 38.1% to Rs 1,556.64 crore, export revenue increased 30.4% to Rs 778.39 crore, and other income plus export incentives were Rs 29.45 crore.

Forgings volume increased to 100,116 tonnes in H1 FY27 from 83,580 tonnes in H1 FY26. Domestic forgings volume was 69,430 tonnes and export volume was 30,686 tonnes; domestic realisation increased to Rs 2.11 lakh per tonne from Rs 1.81 lakh, while export realisation rose to Rs 2.47 lakh from Rs 2.29 lakh.

Castings volume rose to 20,176 tonnes in H1 FY27 from 9,763 tonnes in H1 FY26, while casting realisation increased to Rs 1.32 lakh per tonne from Rs 1.29 lakh. The increase coincided with 88% casting utilisation in Q2 FY27, but the presentation does not allocate the investing cash outflow specifically to casting capacity.

RKFL also disclosed Rs 673 crore of new orders in Q2 FY27 with a four-year programme life. India accounted for Rs 323 crore, North America for Rs 272 crore and Europe for Rs 78 crore; commercial vehicles represented Rs 304 crore, light vehicles Rs 272 crore, farm equipment Rs 90 crore and electric vehicles Rs 7 crore.

How did financing and cash balances change in H1 FY27?

RKFL reported Rs 96 crore of financing cash outflow in H1 FY27 after the Rs 482 crore operating inflow and Rs 448 crore investing outflow. The cash-flow statement records a Rs 63 crore decrease in cash and cash equivalents, from Rs 162 crore at April 1 to Rs 99 crore at the H1 FY27 close.

The balance sheet reports Rs 107 crore of cash and cash equivalents at H1 FY27, compared with the Rs 99 crore cash-flow closing figure. It also shows inventories rising to Rs 1,469 crore from Rs 1,246 crore at FY26 and trade receivables increasing to Rs 1,025 crore from Rs 795 crore. The presentation does not reconcile this cash difference or attribute the Rs 133 crore working-capital movement to individual balance-sheet lines.

Non-current borrowings were Rs 1,761 crore at H1 FY27, up from Rs 1,616 crore at FY26, while current borrowings fell to Rs 432 crore from Rs 719 crore. Total equity increased to Rs 3,595 crore from Rs 3,290 crore and total assets rose to Rs 7,729 crore from Rs 7,179 crore.

Conclusion

RKFL's H1 FY27 disclosures show operating cash generation of Rs 482 crore exceeding its Rs 448 crore investing outflow, despite a Rs 133 crore working-capital use. Revenue, EBITDA and capacity utilisation increased from comparable periods, while financing cash flow was negative and cash declined by Rs 63 crore in the cash-flow statement.

Next, readers can monitor whether the Rs 673 crore of Q2 FY27 orders with a four-year programme life convert into production and operating cash. The presentation also leaves unresolved the project-level use of the Rs 448 crore investing outflow, although it identifies press and casting capacity additions completed between December 2025 and March 2026.