Ramkrishna Forgings Limited (RKFL) announced that CRISIL Ratings Limited has removed its ratings from watch and reaffirmed them at 'Crisil AA- / Negative' for long-term facilities and 'Crisil A1+' for short-term facilities. The company's Rs. 300 Crores Commercial Paper rating has also been reaffirmed at 'Crisil A1+'. The rating watch was resolved following corrective measures implemented by the management to improve internal controls related to inventory reporting and process streamlining. An independent external agency completed a joint fact-finding study by September 30, 2025, identifying no further discrepancies beyond those accounted for in fiscal 2025. To address potential losses, RKFL proposed a compensation of ₹204.75 crore via preferential issue of convertible warrants to promoters in June 2025. Of this, ₹51.19 crore was infused as upfront consideration in August 2025, with the remaining ₹153.56 crore expected by the end of fiscal 2026. The negative outlook is attributed to continued weaker-than-expected operating efficiency and capital structure in the quarter ending September 30, 2025. The company faces headwinds from a slowdown in the commercial vehicle industry and a US import duty on exports, which reduced its export revenue share to approximately 30% in H1 fiscal 2026 from 42-43% in the previous two fiscals. Revenue and operating profitability in H1 fiscal 2026 were ₹1923 crore and 14.1%, respectively. Additionally, a potential imposition of duty by Mexico on Indian exports from January 2026 is a monitorable. Ongoing capital expenditure of approximately ₹350 crore in H1 fiscal 2026, coupled with muted operating performance and elevated inventory, led to an increase in external borrowings to ₹2613 crore by September 30, 2025, impacting gearing and interest coverage ratios to 0.85 times and 2.7 times, respectively. Reduction in balance sheet debt is a key rating sensitivity. The ratings continue to be supported by RKFL group's healthy market position in the auto components industry, established customer relationships, and integrated operations. These strengths are partly offset by revenue concentration risk, susceptibility to automotive industry cyclicality and government regulations, and working capital-intensive operations. The consolidated revenue for fiscal 2025 was over ₹4001 crore.