RAMKRISHNA FORGINGS LTD (NSE: RKFORGE) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Lalit Kumar Khetan — Chief Financial Officer, Whole-Time Director
Milesh Gandhi — Additional Whole-Time Director
Analysts:
Joseph George — Analyst
Balasubramanian A — Analyst
Tanmay Roy — Analyst
Sunny Gosar — Analyst
Aditya Kumar — Analyst
Akash Bagrecha — Analyst
Devang Shah — Analyst
Saket Jha Saurabh — Analyst
Lakshminarayanan K — Analyst
Tushar Raghatate — Analyst
Arman — Analyst
Presentation:
operator
Conference. The conference is now being recorded. Sa. Hello Mr. Josh, can you hear me?
Joseph George — Analyst
Yes, I can. We are waiting for you to start. The call.
operator
So go ahead.
Joseph George — Analyst
Hello. Thank you Iqra. Hello everyone. On behalf of IFL Capital, I welcome. You all to the 3Q FY26 results conference call of Ramakrishna Forgings. I also welcome the senior management of Ramakrishna Forgings. We have with us Mr. Naresh Jalan. Managing Director, Mr. Chaitanya Jalan, Hold Time Director, Mr. Lalib Khetan, Whole Time Director. And CFO Mr. Millesh Gandhi, Whole Time. Director Mr. Rajesh Mundra, VP Finance and Company Secretary. Now I’ll hand over the call to the management. Over to you sir.
Lalit Kumar Khetan — Chief Financial Officer, Whole-Time Director
Thank you, Joseph. Good evening everyone and thank you for joining us on this call to discuss the Q3.9 month APO 26 earnings. I trust all of you have had a chance to review the earnings document that we have shared earlier today. Q3FY26 was a mixed quarter marked by a combination of emerging opportunities and continued volatility in the 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 the 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 both. 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, most notably railways and passenger vehicles. The 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 Q3FY26 we reported consolidated net revenue of 1098 core 1098 core higher by 2% on year on year basis compared to 1074 crore in Q3FY25.
On Q1Q basis revenues were higher by 21% compared to rupees nine hundred and eight crore in Q2FY26. Strong performance in domestic markets supported by resilient performance in international market has helped US to deliver 21% Q on Q top line growth. EBITDA excluding other income is rupees 163 crore in Q3 higher by 29% year on year compared to EBITDA of 126 crore in Q3FY25 on QoQ basis EBITDA was higher by 33% compared to rupees 123 crore in Q2FY26. The EBITDA margin is 14.9% for the quarter and is higher by 140 basis. Point quarter on quarter profit after tax is 13.6 crore after exceptional provisioning of gratuity and leave on account of new labor code of rupees 10.43 crore.
Otherwise it could have been 24 core compared to INR 21 core in Q3FY25. Our confidence in quarters ahead in due to multiple growth levers, operations have already ramped up and we now focus on driving higher utilization. Our aluminium forging has been successfully commissioned and commercial production has been commenced. Our casting facility is ready and is under trial run and sell commission. Commercial production in Q4 FY26 and we remain confident of ramping up utilization levels in coming quarters. The machining facility in Mexico is nearing commissioning and is expected to become operational shortly and further steadening 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 Q4FY26. With that I would like to hand over the proceeding to Mr. Miles Gandhi hold time Director. Thank you and over to you Milesh.
Milesh Gandhi — Additional Whole-Time Director
Thank you Lilith Gary I would like to brief that during the quarter three the company secured new orders worth Rupees 680 crores with a program life of four years. Approximately 66% of these orders were from the automotive sector and the balanced 34% were from the non automotive segments reflecting continued progress in our company’s direction diversification strategy. In Q3FY26 auto orders amounting to rupees 406 crores is from the CV segment around 26 crores is from the passenger vehicle segment that is the PV segment and rupees 18 crores is from the EV segment. In Q3FY26 non auto orders amounting to rupees 180 out of which 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 ramp up we have qualified for bulk orders. And Indian Railways has started showing a demand worth 2000 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.
And the current duties that are levied will be over. And we will become more attractive to the customers over our other competitors. That’s from my side. Thank you.
Lalit Kumar Khetan — Chief Financial Officer, Whole-Time Director
Thank you Milesh. And now I hand over the proceedings to the for Q and A. And let us hand over to moderator for the Q and A session.
Questions and Answers:
operator
Okay, thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Bala Subramanian from Arihant Capital. Please go ahead.
Balasubramanian A
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 and how does the order pipeline look for Q4 and beyond?
Lalit Kumar Khetan
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% from the expensive 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.
Balasubramanian A
Okay sir. I think domestic revenue also increased to nearly 67 68% in 9 month FY26 compared to 59% in FY25. And if you look at also North America exports is being declined to 55% compared to 71% in last nine month FA25 how do you look at domestic as well as North America export side over the medium term? Like we are strategically shifting to domestic base of these tariffs. And secondly railway business nearly 7.3 percentage of business in 9 with FY26. I think we are in the like progress of 4G wheels, JV and bookie assemblies. It’s in trial productions.
And what is the targeted revenue contributions from railway side in the next three to five years.
Lalit Kumar Khetan
First of all the wheel production I think it’s not part of the strategy right now wheel production sales is going to come in the JV and it’s going to. We are right now not building any sales from the wheel wheels right now bogey assembled bogie sales. We are looking at a strong sales number and I think railway we are looking at double digit sales in next two 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.
And in terms of North America and India Premix I think tariff is nothing to do with the change in premix 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 over North America customers and sales are intact and it is going to continue to grow with as the build rate improves.
Balasubramanian A
Okay sir. So I think forging capacity utilizations came down to 66% in Q3 of I26 compared to last Q3 of 79%. It is because of that demand softness or ramp up in new capacities. How do you look at. I think our new capacities of aluminum forging, casting and Mexico machine are under commissionings. So how do you look at utilization levels over next two years? Sir?
Lalit Kumar Khetan
No, I think in a mocking statement as Malaysia said as we every quarter I think we are going to strongly push on terms of utilization. And with the order wins we have all the. 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 incremental capacity, total capacity which has already been commissioned like for aluminum forging we have just.
It is about few only couple of months we have been able to go for production. And as we ramp up this capacity to full utilization I think within next 8 to 10 months using full utilization. Similarly in cold forging where we have almost 25000 tons of capacity we have right now at a utilization level of 40 because customer approvals and other things are still at one stage other coming in. So as we every month it’s an improvement and we are looking at almost when we close the next financial year we will be almost at 80, 85% utilization.
So specific to capacities utilizations are low and as such in overall scenario you are seeing 66% utilization in the overall increased capacity utilization. But if you compare to the capacity which was earlier there utilizations have remained same or increased from there on.
Balasubramanian A
Okay sir, so my last question I think get planned around 500 to 600 crore kind of debt reductions by end of this year. How much, how much we have achieved as of now sir.
Lalit Kumar Khetan
So date as on date is about. You look at the about 2600 core. So we have achieved already 350 core of date reduction in this quarter. And we hope to achieve this date number to below 2000 core maybe 1900 crore by the end of financial year. 26 for its adventure.
operator
Thank you. The next question is from the line of Tanmay Roy, an individual investor. Please go ahead.
Tanmay Roy
Hello. Am I audible?
Lalit Kumar Khetan
Yes, you’re audible.
Tanmay Roy
Yeah, so yeah. First of all congratulations that they are improving on quarter on quarter basis. Just wanted to know one thing like that as we know that our domestic sales is now going up and export sales is more or less little bit going down only so. But the realization wise. Do you think that domestic sales realization can cover up the export sales drop?
Lalit Kumar Khetan
No, I don’t think domestic sales can cover up in terms of the entire realization in terms of export sales. But I think in the overall traffic when you see in terms of the order means 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. So we are looking at upward terms of in terms of realization in overall between domestic and exports together. So with in isolation domestic also will improve in terms of our realization.
But we don’t foresee any drastic drop in terms of our exports.
Tanmay Roy
Okay. Okay, good. Thank you. So another thing is like you said you are not considering that railway wheel sales in in your any projection. So when do you think it can you know considerably coming as in revenue from which financial year onwards.
Lalit Kumar Khetan
In terms of railway wheel revenue is going to come from FY27 onwards itself. But it is because it is in the joint venture we have not considered it as a revenue in terms of our RKFL console console balance sheet. We are not taking it as a revenue right now. We will see post 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.
Tanmay Roy
Okay. Oh, so sorry. I mean maybe from Q1. I’m Q1.
Lalit Kumar Khetan
No, I think commercial production is going to start from Q2 onwards.
Tanmay Roy
Okay. And how the utilization you’re anticipating currently sit for 74% in total capacity of what you have. Right. So how do you see this ramping up over the next few quarters? Like when you see.
Lalit Kumar Khetan
I think we have a very strong order book in terms of RKFL between casting and forgings and 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.
Tanmay Roy
The same also we can consider the current run rate or it will be increasing from now on.
Lalit Kumar Khetan
Can you repeat your question please?
Tanmay Roy
The more you say it’s a good ramping up on your capacity. So 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 will be like more or less.
Milesh Gandhi
Can you answer the question?
Lalit Kumar Khetan
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. But in Q4 we don’t see an increase in depreciation maybe from Q1 little bit. But that is not significant.
Tanmay Roy
That’s what I was trying to understand more of the, you know, machining is already done you are saying so not too heavy depreciation from next few quarters or not. So that’s what I was trying to understand.
Lalit Kumar Khetan
Yeah.
Tanmay Roy
Okay. Thank you so much sir. Thank you for answering all my questions and all the best for next week. Thank you.
operator
Thank you. The next question is from the line of Sunny Gosar from MK Ventures. Please go ahead.
Sunny Gosar
Yeah, thank you for taking my question. My first question is regards to the North America business. So FY25 we were north of about thousand crores of revenue. And for the first nine months we’ve clocked about 480 crores which basically on a nine month comparative basis is down almost 40%. More than 40%. So 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 like last year? And what is the overall outlook in terms of the North America business with all the new orders that we have won?
Lalit Kumar Khetan
I think sunny for the build rate. Right now we have seen December the order wins which orders new order which has come in North America Class 8. We are still. I think we need to see how January performs. But from whatever optics we are seeing from customer, we are seeing improvement but not. We are not very optimistic. But we are very cautious right now. But 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 and 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. So I can. 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 nine months. From this quarter onwards to next in FY 2010 we will see almost. We have gained 100. We are back to normal in terms of the overall business we are doing in North America.
It may be not from existing customers. It will be with addition of new customers which we have already had.
Sunny Gosar
Got it, got it. And in terms of the overall revenue mix, so 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 like the 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
Lalit Kumar Khetan
sunny. I think with the addition of new capacities of foam castings and forgings both we are not looking at. We are not looking at going back to 40% I think immediately. But to be very, very pessimistic and to be very cautious on it, we are looking at coming year in FY27B to almost 35% to come from exports and 65% to come from domestic.
Sunny Gosar
Got it, Got it. And this is in spite of the robust domestic environment. So new orders would like significantly compensate for the loss in underlying or the slowdown in the underlying business in North America?
Lalit Kumar Khetan
No, I think 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 and 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 from equally from North America. So 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.
Sunny Gosar
Got it. This is very helpful. My second question is on the railways business the the new orders in terms of the bogie assemblies and which we’ve won like how is the overall margin profile of this order? Is it like from an overall perspective accretive to the average company margins or like will it be slower than the company average margin? So how should.
Lalit Kumar Khetan
No it is. It is. It is an. I think it is a value add a complete fully locked in assembly in which railway only builds builds the body. So we are getting into that and it’s a pretty big market like Malesh told in the opening statement also with this full approval what we have received by now and next year it opens 2000 crores sales revenue for us. It’s an annual requirement of almost more than 2000 crores for Indian Railways for passenger segment so we qualify for to get 60% order. So 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 in our my earlier question also I said for a double digit growth from only Indian Railways.
Sunny Gosar
Got it, got it, got it. My last question and maybe then I’ll come back into the queue is on the like we have significant dependence on the CV side like in terms of our historical performance what initiatives are we kind of taking to diversify into like non CV especially PV tractors and where are we in that journey?
Lalit Kumar Khetan
I think Sunny, I think Malaysia has already answered this question is in his opening remark we are significantly eyeing PV as our growth engine for next couple of years and I’ll be happy to share that we have now been already receiving 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. So overall we are looking at almost 10% plus revenue in next two years to come only from PV. So FY probably by FY 28 10% of the revenue share is going to only come from PV segment.
Sunny Gosar
Got it. That will be significant de risking in terms of CV dependent.
Lalit Kumar Khetan
I think we are working both ways both in domestic and international market. So I think both together taken it will become a sizeable business for us in next two years.
Sunny Gosar
Got it? Got it. Thank you for the detailed answers and I’ll come back in the queue.
operator
Thank you. The next question is from the line of Mr. Aditya from old Bridge Mutual funds. Please go ahead.
Aditya Kumar
Yeah. Hello. Am I audible?
Lalit Kumar Khetan
Yes, you’re audible.
Aditya Kumar
Yeah. Thank you for the opportunity. So sir, I just wanted one clarification on. So in the PPT we have given a slide where we are showing order splits order new order script over the next four years. So are these. Are these revenue line items or. And above the top line will be. We have. We have achieved in FY25 or FY26 or is it like. Or does that also include renewal of some of the orders that will get. That their life will get completed in one or two years?
Lalit Kumar Khetan
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 that kind of capacity capex we have done to set up this capacity. So this order win basically gives a visibility or the revenue which we are showing in terms of getting into our books in next couple of years. Basically in terms of how the utilization from the non new order means is going to come through.
Aditya Kumar
Yes. I mean so I wanted to get a sense like this is the new orders getting converted to top line. This is basically a new top line getting in. So in like in TTM we have done close to 3 and a half thousand crores of revenue in the standalone business. So this. Let’s say in FY28 if we are looking 2700 crores of extra top line. This is on 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?
Lalit Kumar Khetan
No, no you. It is only basically for new order wins. The current business, current top line which we have already achieved. This is not inclined with that.
Aditya Kumar
Okay, okay. And one more, one more Clarification on this. These are in, in these new orders, does that also include casting orders? The castings orders for this for which the new capacity is coming up. And aluminum 4G top line.
Lalit Kumar Khetan
Everything, everything is included at the console level. This is C2G.
Aditya Kumar
Okay. Okay, thank you. And one more question is on the gross margin front. So this quarter our gross margins have contracted to 45% at a standalone level and our EBITDA is almost flat on a Q on Q basis. So EBITDA on an EBITDA front we have done a decent job. So what has led to the gross margin contraction? And on the cost front, power and fuel cost and manufacturing expenses are also lower despite production ramping up. So what are the reasons for this?
Milesh Gandhi
So adit. So 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 the this reduction in material margin and 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 fuels. But a powerful also is combination of few things. We have got some reduction 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 a contribution from renewable power which rooftops we have put all these are contributing now and all this together has helped us into achieving this power and fuel cost.
Aditya Kumar
Okay. Okay. And in terms of other expenses, other expenses are also quite down significantly down over last year.
Lalit Kumar Khetan
So other expenses are not down if you look at other expenses. So it’s marginally down. And that’s basically a function of what operating loss on the foreign exchange which is lower in this quarter and little bit efficiency in terms of other cost.
Aditya Kumar
Okay. And sir, if I just may ask like if those rejections were not there this quarter, then what kind of gross margin print we were looking at?
Lalit Kumar Khetan
Certainly it could have been better. I will say at least 1%.
Aditya Kumar
1%. Okay. Okay. Okay. Okay. Thank you. Thank you for. Thank you.
operator
Thank you. The next question is from the line of Mr. Akash from NV Alpha. Please go ahead.
Akash Bagrecha
Yeah, so just one question from my side. I think in the last 3 4/4 we’ve seen quite a big hit in terms of our margins. I just want to understand in terms of EBITDA margin, should we consider as this by when do we expect to you know, touch back this 1920 kind of margins like we used to do?
Lalit Kumar Khetan
I think to be very frank, I think this is not a new normal. I think you will be able to see consistent improvement in margin Q on Q and like from the previous quarter when I had said that 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. And I think I’ll not commit to 19, 20% but our our own internal estimates and working is to get to the as fast as possible.
Akash Bagrecha
Understood. Any. Any time frame.
Lalit Kumar Khetan
No, I don’t have a time frame to that. I’ll not ballpark for me every quarter. I would like to get to that. But it is a process and we are getting there and I think in coming quarters you will see significant improvement in margin and I think very soon we will back to our new normal margins.
Akash Bagrecha
Understood. Thank you.
operator
Thank you. The next question is from the line of Mr. Devang Shah from All West Investment Managers Private Limited. Please go ahead.
Devang Shah
Hi, good evening sir. We you have explained that we have a significant order book and even North America also, you know there is a verse is over and also, you know there is a some kind of, you know, the railway is also going to add, you know, as far as future growth is concerned. So by considering all this fact and even you are saying there is an improvement as far as capacity utilization is concerned, as far as top line is concerned, what kind of you know, growth trajectory we can expect Moving forward in FY27 and FY28 as a percentage,
Lalit Kumar Khetan
as.
A percentage to FY26 which you are going to end we can assume to 10 to 15% growth in terms of. Our top line
Devang Shah
and for the FY27 and 28,
Lalit Kumar Khetan
FY27, 10 to 15%. And I think in terms of CAGR you can look at 10 to 15% growth year on year for next consecutive three years.
Devang Shah
Okay. And my second question as far as you know, tariff related to Mexico is concerned, still there is a overhang. Is you know, is there or you know, as far as you know, our operations are concerned?
Lalit Kumar Khetan
No, in terms of rkfl we have no overhang in terms of tariff for Mexico, I think we are supplying on DAT basis. So we don’t have any effect of tariff neither we are affected by those tariffs. And 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.
Devang Shah
Okay. Okay. Thank you sir.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Mr. Saket Saurabh from Sagiri Capital. Please go ahead.
Saket Jha Saurabh
Am I audible?
Lalit Kumar Khetan
Yes, you’re audible.
Saket Jha Saurabh
Yeah. So thanks for the opportunity. So last time during the con call and in November you were quite bullish on the turnaround in the export business. I know as because the confusion regarding all this tariff and what tariff to be deployed had created some bit of I think disruption especially in October. But if I look at the exports number sir, on TOQ basis it remained largely flat and even the North American numbers didn’t quite. It’s having 20 odd percent up or in fact slightly lower than that. So it doesn’t really look like a more of a turnaround.
So is it like the, the improvement that we were witnessing say November mid when the last con call took place, did it not sustain? So December, you know it again went down, it got disrupted and then again or say the Mexico thing impacted because I talked to some I think.
Lalit Kumar Khetan
Yeah 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 for 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.
Saket Jha Saurabh
Okay, I was just talking about that maybe late December was say considerably down visible. That is what I’m trying to understand. Did the sentiment really turn around?
Lalit Kumar Khetan
Yeah, 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. And despite tariffs and other things we still have new order wins from North America and we are looking at maintaining what we were in doing in the past in terms of our North America sales. In spite of the build trade being down, we will be able to maintain those sales. That itself is an optimism from our side vis a vis the market consideration.
Saket Jha Saurabh
Right now that’s increasing. And sir, last time we had told that you know by Q4 you could, you know 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 or that maybe that we. That’s why we are not committing anything. Visa was returning to a 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. So as things are delayed.
Lalit Kumar Khetan
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. But 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. But I have never said that we will get there by Q4.
Saket Jha Saurabh
Well, I’m just talking about the optimal sentiment partner.
Lalit Kumar Khetan
I’m not still sentimentally and still sentimentally and optimistically we want to get to 2019 to 20% as as fast as possible.
Saket Jha Saurabh
Okay, fair point, sir. And is the said has there been any delay on the on the governments and on the approvals? Visa is real because we are now looking at say I think Q1 commercial production. Right. No longer the March state. It’s more like trial production if I look at the presentation right now. So has there been some delay on that front? And you were 40% utilizing year one?
Lalit Kumar Khetan
I had next year is the first year and we are looking at making 40,000 wheels next year. So 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 and after successfully utilizing that and then we start bulk production. So we are still with that mindset, we are working and we are well on track. That is what also said on the opening remark that we are on track and we are starting the tile production and we next year as per our contract, we have to supply 40,000 wheels to railways and we still stick to that.
Saket Jha Saurabh
Okay, fair enough. That’s encouraging. Sir. Now coming to the European market. So 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. So is Europe likely to drive better returns going forward? Because North America has been our crown jewel so far before the last couple of quarters. But how do you see Europe going forward and what’s the likely mix Visa vis exports as far as Europe is concerned. So any thoughts or color on that?
Lalit Kumar Khetan
Can you answer this?
Milesh Gandhi
Yeah. So first thing is, you very rightly said that this North America has been more agile in our crown and I would say that it is still there and I think the diamond is sure to Sparkle more. But 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 bought in significant new business from Europe. And Europe has started concentrating a lot on America, on India. And 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 we are they are our customers there. So across various regions and various countries, this is for if it completely gets over but obvious we will be more attractive versus our neighbors. Apart from that, to answer you to your last question, we will. I think we have been very vocal and we would like to state that yes, North America, we are winning orders and we North America come back, comes back. But 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.
Saket Jha Saurabh
Thanks. Now so coming back to this mining sector, it seems to be there seems to be some mining boom, right? With commodities also doing well. So any traction that we are seeing say within the mining sector because oil and gas has done well, Railways is growth driver. But I think we had some presence even in the mining in the earlier part. I’ve been an investor for almost seven years now. So any mining driven growth that you are witnessing on order, order wins, there are things.
Milesh Gandhi
Okay, sorry. So I think Narendra, 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. And 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. But 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. And today we are there with a lot of mining companies and also material handling and farm equipment companies which contribute to this.
And I think that is the reason you would see that our off highway sales is going high.
Saket Jha Saurabh
Okay, thanks for the responses and best of luck for the coming quarters.
operator
Thank you. The next question is from the line of Mr. Devang Shah from All West Investment Managers Private Limited. Please go ahead.
Devang Shah
Yeah, good evening sir. I want to know that what kind the way we are seeing there is a, you know, improvement in a domestic market volume. But in general, you know, there is a realization that has not been, you know, improved by OI basis. So what kind of, you know, Realization we are anticipating moving forward. Domestic and even export. Can you throw some more light on that?
Milesh Gandhi
So right now the license are stagnant. You can see that. And as the commodity prices are also stable, so it will remain like it only it will slightly likely to improve with the improvement in product mix and addition of more assemblies or more value add product. So overall is likely to improve going forward.
Devang Shah
And you know any kind of numbers?
Milesh Gandhi
No, I don’t think we can put a number there. But you will see that improvement.
Devang Shah
Okay, thank you.
operator
Thank you. The next question is from the line of Mr. Lakshmi Narayanan from Tunga Investments. Please go ahead.
Lakshminarayanan K
Thank you. I 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 you know, front axle beam or knuckles or crankshaft, what is the mix and has it changed nine months of this year to the previous nine months of last year?
Lalit Kumar Khetan
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. But overall I think every, every product is important for us and I think every product is driving the growth for us.
Lakshminarayanan K
Any change in the mix?
Lalit Kumar Khetan
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 like front axle beam or anything product mix in terms of. In part families, within the part family there may be changes in terms of weight range. Sometimes we get a higher range weight range products in the same product family or sometimes we get lower range weight range in terms of product. Finally that’s the change basically happens within the product mix.
Lakshminarayanan K
And 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.
Lalit Kumar Khetan
I think in terms of the domestic market we are seeing traction both in any entire automotive segment and off highway segment. Both are showing great traction. But 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 FPV by 27. And while our new continued journey on in our existing business is going to continue grow, but the significant growth is going to come from Indian Railways.
Lakshminarayanan K
In terms of your competition, right? Has there been anybody who is. Who is giving space for you to grow or you are getting, you know, is there a. Because earlier I understand that there is some consolidation taking place now. The consolidation is behind us. So whether we are winning market from somebody else or how is the growth coming across?
Lalit Kumar Khetan
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. So I don’t think there is any other automotive segment. I. 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 in.
Within the auto segment.
Lakshminarayanan K
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. So I just want to understand your views on that.
Lalit Kumar Khetan
I think I have no view on this.
Lakshminarayanan K
Then one more question. So that is what we been told is that in the commercial vehicle also in the MSKV segment there is a movement towards trailer segment and. And not these heavy tonnage vehicles. And because of which the market tonnage wise in terms of holding is also making some shift. So is that something which you also see?
Lalit Kumar Khetan
No, I think. I think market is divided now into two different zone. One you rightly say is trailer market, but they are basically on the long haul side. I don’t think that is growing significantly. I think the consolidation and the growth is coming from the tipper vehicle which is mostly being used in the mining segment and construction segment.
Lakshminarayanan K
Okay. Okay. Thank you so much for answering it.
operator
Thank you. The next question is from the line of Mr. Tushar Raktate from Omega Portfolio Advisors. Please go ahead.
Tushar Raghatate
Thank you for the opportunity. I just wanted to know. My question is on the railway segment you mentioned in the past regarding the under carriage opportunity. I just wanted to know our prospect on the undercarriage and in order to increase the wallet share, are we seeing any, you know, any. Any acquisition in the spring phase or in the break in order to increase the wallet share or any pentogram or railway crossing? Your view on the railway?
Lalit Kumar Khetan
No, I think in terms of acquisitions, I think we always look for acquisitions. I think at the right opportunity. Right now we are not talking about or doing any. We are not in the verge of any acquisitions. But yes, if any specific opportunity comes, we would obviously like to look at it. But right now we are not. There is nothing to speak about. But 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.
But in case tomorrow any opportunity arises, we are open to any acquisitions at the right price, right make.
Tushar Raghatate
Okay. So on your 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 my. That is my question on the railway. Second your view on the defense side. Defense forging maybe aerospace or any defense. Any acquisition or any intent to enter into that segment.
Lalit Kumar Khetan
To answer your first question, I think in the railway wheel side we are already in discussion with lot of export customer import customers in the export market. And I think it is. There is a huge traction but I think we are going step by step. We would like to. First 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 and beyond 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. And 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. But there is lot of traction in the overseas market for weeks and I think we will be able to encase this very fast. Second to your answer your defense we are working very aggressively right now in terms of we making components within our existing capacities for aerospace and like post our commercial production of aluminum forgings.
We have already started trials of titanium and other alloys and we have installed these capacities already furnaces which are required for titanium and other alloys for aerospace. And we have already started bidding for defense contracts in the space of this new alloys. And I think we still have not got any orders. But yes, I think we are likely in next coming days or years or month 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 we like to for railways we are open to any acquisition.
But right now we don’t have anything which we can speak about or which is any concrete details. Are there available.
Tushar Raghatate
North American class A truck order near to 20 to 25,000 per month. I just wanted to know your view, is it the bottom of the market? And secondly sir, the Europe FTA which is happening, do you see that as a hedge against, you know, the, the entire export market or do you see a very good opportunity in terms of increasing your share in the euro or with the existing customer, the wallet share?
Lalit Kumar Khetan
Can you answer this?
Milesh Gandhi
So 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. But you would have already seen that we have already gained a lot of business from Europe in the past quarters and I think we have started already giving them and the ramp up plan has also been given in the bigger numbers. So. But obvious if today duties are not there as compared with other competitor countries, we will always be more attractive and India has always been a favorite destination on Europe when it comes to things from forgings or castings and I think that is going to help us for sure.
Sure. Coming back to North America, I think one thing we would like to state restate once more is that see the worst seems to be already over as Mr. Jalan already said and currently even the numbers, the way the numbers are showing seems that there will be a good demand coming forward and I think there has been a lot of projections with regard to the American demand even with the commercial vehicle. But obviously there has not been a great utilization of the fleet and other things in the past. But 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.
Tushar Raghatate
Last question on the EV front, in order to increase you mentioned in the past you are interested to increase the EV shares to the total portfolio. Any comment on that? Sir.
Lalit Kumar Khetan
You would have already seen that we already made informed today that around 18 crores of further business we won today from the EV segment. And I think we are already working in EV a bigger way and whatever we are getting the traction is from North American OEM who are into the EV space and 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. So 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.
So our EV Numbers are also increasing accordingly.
Tushar Raghatate
Thank you. So that was really helpful.
operator
Thank you. The next question is from the line of Mr. Arman from Blue Sky Fintech. Please go ahead.
Arman
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. So. But in nine months already it’s just around 1% only. So are we still holding to that guidance or. Okay. Okay. Thanks. That’s it.
operator
Thank you. Ladies and gentlemen. That was the last question. I would now like to hand the conference over to the management for the closing comments.
Lalit Kumar Khetan
Thank you. Would like to thank all for taking. Up the time and join us. We hope we have answered all your. Queries as per your satisfaction. Would like for any further information get in touch with US or with CDR India. On behalf of Ramakrishna, 4G, we 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.
operator
On behalf of IIFL Capital Services limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.