Rane (Madras) Ltd Reports 33% Profit Growth in Q2 FY26 Amidst Stable US Tariff Impact

Rane (Madras) Ltd has reported strong financial results for the second quarter of Fiscal Year 2026 (FY26), with its net profit surging by 33% to ₹22 crore, up from ₹16 crore in the same period last year (Q2 FY25). The company's total revenue also saw a healthy increase of 9%, reaching ₹923 crore in Q2 FY26 compared to ₹852 crore in Q2 FY25.

Sales performance was robust across segments. Domestic sales to Original Equipment (OE) customers grew by 6%, primarily driven by higher demand in the passenger vehicle and farm tractor sectors. International sales increased by 10%, bolstered by strong offtake of steering products. The Indian aftermarket segment also showed significant growth, with sales up by 17%. However, the company noted that the sales of aftermarket products were not directly comparable to Q2 FY25 due to a restructuring of the Group’s Aftermarket Product Business.

Regarding the new tariff situation in the United States, Rane (Madras) Ltd stated that it has not impacted its sales in the second quarter. Nevertheless, the company did experience lower offtake in certain export customer programs for its light metal casting products. Rane is actively monitoring the evolving tariff landscape and expressed optimism that ongoing diplomatic discussions will lead to greater clarity and policy stability.

The company's share price on the National Stock Exchange (NSE) closed at ₹853, marking an increase of ₹31.70.

Impact This news is positive for Rane (Madras) Ltd and potentially its investors. The strong profit and revenue growth demonstrate operational efficiency and market demand. While the US tariff situation is a minor concern, its contained impact so far, coupled with the company's proactive monitoring, suggests resilience. The growth in key segments like automotive and aftermarket indicates a healthy business outlook. Rating: 7/10.

Difficult Terms Explained: OE (Original Equipment): Parts manufactured by a company for sale to another company for use in the final product. For example, brake pads made by an auto component supplier for a car manufacturer. FY26/FY25 (Financial Year): Refers to the fiscal year ending March 31, 2026, and 2025, respectively. Financial years are periods used for accounting and tax purposes. Aftermarket: Refers to products sold for use in a vehicle after its initial purchase, typically for repairs, maintenance, or upgrades. This includes spare parts and accessories.