Rane (Madras) Limited reported strong consolidated financial results for the fourth quarter and full year ended March 31, 2026, driven by robust growth across domestic OEM, international, and aftermarket businesses.
For Q4 FY26, the company posted total revenue of ₹1,051.7 crore, registering a 16.2% increase compared to ₹905.3 crore in the corresponding quarter of the previous year. Growth was primarily supported by an 11% rise in domestic OEM sales due to improved offtake across vehicle segments, while exports and international business grew by 27%, led by strong demand for steering products. Sales to Indian aftermarket customers increased by 16%, although comparable growth stood at 5% after accounting for the restructuring of the aftermarket product business.
The company’s EBITDA for the quarter rose 20.1% year-on-year to ₹99.4 crore from ₹82.8 crore in Q4 FY25. EBITDA margin improved to 9.5% from 9.1%, supported by better fixed-cost absorption and operational efficiencies.
Profit After Tax (PAT) witnessed a sharp increase, reaching ₹37 crore in Q4 FY26 compared to ₹6.5 crore in the same period last year. The previous year’s quarter included one-time merger-related exceptional expenses of ₹10.87 crore and a tax impact of ₹5.93 crore arising from MAT credit reversals.
The Board of Directors has recommended a final dividend of ₹16 per equity share on the company’s paid-up capital.
Among the key highlights during the quarter, Rane (Madras) reduced its net debt to ₹705.8 crore as of March 31, 2026, compared to ₹779.2 crore a year earlier, reflecting an improvement of ₹73.4 crore. Finance costs also declined by 32.4% year-on-year in Q4, aided by lower borrowings and refinancing of high-cost debt.
The company invested ₹53 crore in capital expenditure during the quarter, taking FY26 capex to ₹191 crore. The investments were mainly directed towards expanding capacities in steering systems, engine components, and brake components.
Rane (Madras) also generated free cash flows of ₹84.4 crore during FY26 and secured new business wins worth an annualised revenue potential of ₹33 crore in Q4. This took the company’s total FY26 order wins to an annualised value of ₹712 crore across domestic OEM and international markets.
Looking ahead to FY27, the company said it remains cautiously optimistic about market demand. While domestic demand trends continue to remain stable, the company highlighted concerns around geopolitical uncertainties, volatility in crude oil and commodity prices, currency fluctuations, and potential supply chain disruptions that could impact operating costs.
Despite these external challenges, Rane (Madras) expects to continue driving cost optimisation measures, operational efficiency initiatives, and benefits from new business ramp-ups to support further margin improvement in FY27.
