Rane (Madras) Rane Madras reported a sharp acceleration in profitability for the quarter ended June 30, 2026, with net profit after tax (PAT) rising 62.5% year-on-year to ₹30.1 crore. The Chennai-based auto component manufacturer logged consolidated revenue of ₹1,050.6 crore, marking an 18.8% increase from the previous year’s period.

The earnings beat was underpinned by robust demand across both domestic and international markets. EBITDA expanded 22.0% YoY to ₹95.8 crore, while the EBITDA margin improved by 24 basis points to 9.1%. The company’s strong operational performance was complemented by significant business development activity, securing new orders with a lifetime value exceeding ₹2,040 crore.

Financial Performance Breakdown

The company’s top-line growth was broad-based, driven by higher offtake in passenger vehicles and farm tractors domestically, alongside strong export performance. International sales grew 24% YoY, supported primarily by steering products. Domestic original equipment (OE) sales rose 13%, while the Indian aftermarket segment saw a 28% surge.

Segment-Wise Sales Analysis

Steering and linkages remained the largest contributor, accounting for 51% of total sales. Passenger vehicles constituted 60% of the vehicle segment mix, followed by commercial vehicles at 21%. The international market contributed 30% of total sales, with deemed exports making up approximately 35% of that share.

• Steering & Linkages: Exports rose to ₹209 crore from ₹162 crore in Q1FY26, while domestic sales stood at ₹316 crore.
• Light Metal Castings: This segment saw significant export growth, rising to ₹42 crore from ₹28 crore YoY. Domestic sales increased to ₹39 crore.
• Engine Components: Domestic sales grew steadily to ₹96 crore, while exports remained flat at ₹46 crore.
• Brake Components: Domestic sales declined slightly to ₹121 crore from ₹111 crore, while exports remained stable at ₹13 crore.

What the Numbers Show

The divergence between EBITDA growth (22%) and revenue growth (18.8%) indicates operating leverage, as fixed costs were spread over a larger revenue base. Furthermore, the 62.5% surge in PAT outpaced the 22% EBITDA growth significantly. This suggests that factors beyond core operations—such as lower interest expenses, tax benefits, or other income—contributed materially to the bottom-line expansion, rather than operational margin expansion alone, which only widened by 24 basis points.

Strategic Developments and Order Wins

Rane Madras announced the acquisition of the friction business of Hindustan Composites Limited (HCL) for an enterprise value of ₹370 crore. The target business generated ₹315 crore in revenue and ₹40 crore in profit before tax (PBT) in FY26. Management stated this move creates India’s leading friction solution platform and will be EPS accretive from year one.

In terms of future visibility, the company secured 24 new programs during Q1FY27 with a lifetime value of over ₹2,040 crore. Export programs accounted for 54% of this total value. These orders span existing and new customers, including electric vehicle applications, with an average program life of six years.

Sustainability and Recognition

The company highlighted its sustainability progress, noting that 48% of its power demand was met through renewable energy in FY26. It also achieved a 23% reduction in landfill waste. Rane Madras received multiple awards, including the GreenCo Platinum Rating for its Puducherry facility and the Zero PPM Award from Toyota Industries Engine India for its Trichy plant.

Rane Madras Limited has scheduled an earnings conference call for Friday, August 21, 2026, at 3:00 pm IST. The management team will discuss the company's unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27). This disclosure is made in compliance with Regulation 30 of the SEBI (LODR) Regulations 2015.

The earnings call will provide investors with insights into the auto component manufacturer's performance during the initial three months of the fiscal year. The presentation and transcript will be available on the company's website following the event.

Management Representatives

Key executives from the Rane Group will participate in the discussion:

• Dr. P.A. Padmanabhan, President – Finance and Group CFO
• Mr. B. Gnanasambandam, Sr. EVP - Finance and CFO, Rane Madras Limited
• Mr. J. Ananth, EVP– Finance and CFO, Rane Holdings Limited
• Mr. S. Prasad, VP– Corporate Planning, Rane Holdings Limited

Dial-in Details

Investors and analysts can join the call using the following numbers:

A pre-registration facility is available via DiamondPass™ to allow participants to join directly without waiting in a queue.

About Rane Group

Headquartered in Chennai, Rane Group has been manufacturing auto components for over six decades. The group supplies steering and suspension systems, brake components, engine components, occupant safety systems, and light metal casting components to major OEMs and the aftermarket in India and abroad. Its products serve passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers, railways, and stationary engines.