Rane Madras Q3 Sees Revenue Jump 21%, Order Wins Boost Outlook

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AuthorSatyam Jha|Published at:
Rane Madras Q3 Sees Revenue Jump 21%, Order Wins Boost Outlook
Overview

Rane (Madras) Limited posted robust Q3 FY26 results with consolidated revenue soaring 21.3% year-on-year to ₹1,019.1 crore. EBITDA also surged 36.8% to ₹94.8 crore, expanding margins by 106 basis points. Profit After Tax (PAT) saw a dramatic jump of 7645.3% to ₹30.5 crore, though this was significantly influenced by a prior year's one-time tax credit reversal. The company also announced substantial order wins in its Steering & Linkages and Brake Components businesses, totalling over ₹135 crore.

Rane Madras Reports Strong Q3 Performance Driven by Revenue Growth and New Orders

Rane (Madras) Limited has announced its financial results for the third quarter of fiscal year 2026, showcasing a significant uptick in its top-line and operational performance. The company reported a consolidated revenue of ₹1,019.1 crore, marking a substantial 21.3% increase year-on-year. This robust revenue growth was complemented by a 36.8% surge in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) to ₹94.8 crore. Consequently, the EBITDA margin improved by 106 basis points to 9.3%, indicating enhanced operational efficiency and profitability.

Financial Deep Dive

The impressive revenue growth was propelled by strong performance across key business segments. Domestic Original Equipment (OE) sales saw an 18% year-on-year increase, while international business grew by 21%. The Aftermarket segment also demonstrated considerable strength, with a 32% year-on-year growth (comparable growth of 18%).

Profit After Tax (PAT) reported a remarkable 7645.3% jump to ₹30.5 crore. However, it is crucial to note that this exceptional increase was largely influenced by a one-time exceptional item in the prior year's comparable period, specifically a tax credit reversal of ₹8.27 crore. Excluding this one-off event, the underlying PAT growth would be less dramatic, highlighting the importance of analysing such items for a true understanding of the company's operational profitability.

Strategic Wins and Future Outlook

Adding to the positive financial results, Rane (Madras) Limited secured significant new orders. The Steering & Linkages Business won orders valued at ₹115 crore, with ₹75 crore of this coming from international customers, signalling expanding global reach. The Brake Components Business also contributed with orders worth ₹20 crore. These new orders, totalling over ₹135 crore, are expected to bolster the company's order book and provide a healthy foundation for future revenue streams, especially within the growing automotive components sector.

The Indian auto ancillary sector, in which Rane (Madras) operates, is currently experiencing a favourable upcycle. Driven by increasing vehicle production, government initiatives like the Production Linked Incentive (PLI) scheme, and a growing focus on Electric Vehicles (EVs), the sector is projected for substantial growth. Analysts anticipate steady growth for auto components manufacturers, supported by domestic demand, export momentum, and improving operating leverage. Rane (Madras)'s recent order wins align well with these sector tailwinds.

Negative History

While Rane (Madras) Limited has reported strong operational performance, a review of regulatory filings indicates a past instance of financial reporting non-compliance. In December 2025, the company disclosed receiving an order from the Additional Commissioner of CGST and Central Excise, Chennai, levying a tax demand, interest, and penalty of ₹12.23 crore. This was in connection with excess/wrong availing of ITC, short payment of tax, and ITC availed on blocked credit. The company stated its intention to contest this order before the appropriate authority. This event, though financial in nature and under appeal, represents a governance-related concern that investors should monitor.

Peer Comparison

Rane (Madras) Limited competes in a dynamic auto ancillary market with players like Samvardhana Motherson International (SMI), Bosch, Schaeffler India, and Bharat Forge. In terms of recent performance, while specific comparable quarterly figures for peers are not detailed here, the overall sector trend shows resilience and growth. SMI, for instance, has also been expanding its global footprint and product portfolio. Bosch and Schaeffler India are known for their technological advancements and strong positions in various automotive component segments. The sector as a whole is expected to grow at a CAGR of 10-15% towards 2030. Rane (Madras)'s focus on steering, linkages, and brake components places it within a segment that benefits directly from increased vehicle production, both in the OE and aftermarket channels.
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