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Rane (Madras) Ltd reported an 18.8% year-on-year increase in consolidated revenue to INR 1,050.6 crore for the first quarter of FY27, supported by growth across domestic original equipment (OE), international and aftermarket businesses. EBITDA increased 22% to INR 95.8 crore, while profit after tax (PAT) rose 62.5% to INR 30.1 crore. During the quarter, the company signed a business transfer agreement to acquire the friction business of Hindustan Composites for an enterprise value of INR 370 crore, subject to regulatory approvals, and secured new business with a lifetime value of around INR 2,040 crore.
Rane (Madras) Ltd reported consolidated revenue of INR 1,050.6 crore for the first quarter of FY27, registering an 18.8% increase from INR 884.4 crore in the corresponding quarter of the previous financial year. The automotive components manufacturer attributed the growth to higher sales across domestic original equipment (OE), export and aftermarket segments.
Domestic OE sales increased 13% year-on-year, driven primarily by higher demand from passenger vehicle and farm tractor manufacturers. International sales grew 24%, supported by increased demand for steering products, while sales to the Indian aftermarket rose 28% during the quarter.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 22% to INR 95.8 crore from INR 78.5 crore in Q1 FY26. EBITDA margin improved to 9.1% from 8.9% a year earlier, representing an increase of 24 basis points.
According to the company, operational improvements and better absorption of fixed costs helped offset inflationary pressures arising from developments in West Asia. Finance costs declined 9.2% year-on-year due to lower borrowing costs.
Profit after tax (PAT) for the quarter increased 62.5% to INR 30.1 crore, compared with INR 18.5 crore in the corresponding period last year.
During the quarter, Rane (Madras) entered into a Business Transfer Agreement to acquire the friction business of Hindustan Composites through a slump sale for an enterprise value of INR 370 crore. The transaction remains subject to customary regulatory approvals and other closing conditions and is expected to be completed by the end of the current quarter.
The company also invested INR 76.2 crore in capital expenditure during Q1 FY27. Most of the investment was directed towards expanding capacity and capabilities in its steering and linkages, and brake components divisions.
Rane (Madras) further reported that it secured new business with an estimated lifetime value of approximately INR 2,040 crore during the quarter, strengthening its future order pipeline.
Headquartered in Chennai, Rane (Madras) Ltd manufactures steering and suspension systems, brake components, engine components and light metal casting products. The company supplies automotive components to original equipment manufacturers and the aftermarket in India and overseas, serving passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers, railway applications and stationary engine segments.
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