Rane (Madras) Limited delivered exceptional Q3FY26 performance with net profit surging dramatically to ₹32.64 crores compared to ₹2.59 crores in the corresponding quarter of the previous year. The auto component manufacturer demonstrated robust operational performance with revenue reaching ₹1,018.63 crores versus ₹839.18 crores year-on-year, while maintaining strong growth momentum across all key financial parameters.

Outstanding Financial Performance Metrics

The company's Q3FY26 results showcased exceptional growth across all key financial parameters, reflecting strong operational efficiency and market demand for its automotive components.

Nine Months Performance Analysis

For the nine months ended December 31, 2025, the company maintained strong performance trajectory with total income reaching ₹2,824.69 crores compared to ₹2,514.01 crores in the previous year. Net profit after tax for the nine-month period stood at ₹74.21 crores versus ₹41.00 crores, representing significant improvement in profitability.

Consolidated Performance Highlights

On a consolidated basis, the company reported total income of ₹1,019.11 crores for Q3FY26 compared to ₹840.50 crores in Q3FY25. Consolidated net profit after tax reached ₹30.52 crores versus ₹0.39 crores in the previous year, demonstrating the overall strength of the group's operations.

Regulatory Compliance and Transparency

The company has fulfilled its regulatory obligations under SEBI LODR Regulations by publishing the extract of unaudited financial results in leading newspapers including Business Standard (English) and Hindu Tamizh Thisai (Regional language) on February 05, 2026. The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 04, 2026.

Market Position and Business Outlook

The strong quarterly performance positions Rane Madras favorably in the automotive components industry, with the company demonstrating its ability to capitalize on market opportunities while maintaining operational efficiency. The significant improvement in profitability metrics reflects the company's strategic focus on enhancing shareholder value through sustainable growth initiatives and effective cost management.

Rane Madras Limited has informed stock exchanges about receiving a show cause notice from the Principal Commissioner of Income Tax Chennai regarding disallowance of certain expenditures worth ₹7.61 crores. The disclosure was made on January 10, 2026, under Regulation 30 of SEBI LODR regulations.

Show Cause Notice Details

The company received the show cause notice on January 09, 2026, under Section 263 of the Income Tax Act, 1961. The notice specifically relates to the disallowance of expenditures concerning treatment of trademark fee expenditure and actuarial gain/loss on Defined Benefit Plan of Gratuity.

Financial Implications

The expected financial implications on Rane (Madras) Limited amount to ₹2.66 crores, excluding applicable interest and penalty, if any. This represents the potential impact on the company's financials should the income tax authority's position be upheld.

Company's Response Strategy

Rane (Madras) Limited has outlined its approach to address the show cause notice. The company stated that it will file a suitable reply before the appropriate authority within the prescribed timelines, in consultation with its consultants and tax advisors.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30(13) of SEBI LODR regulations, specifically under Part A Para B.8 Schedule III. The company has declared that the information provided is true, correct and complete to the best of its knowledge and belief, as per the SEBI Master Circular dated November 11, 2024.

The matter pertains to the company's financial operations during the financial year 2019-20, and the outcome will depend on the company's response to the income tax authorities and subsequent proceedings.