Earnings Release
Rane (Madras) Q1 FY27 Results: Revenue Up 18.8% YoY; PAT Up 62.5%
NSE
RML
BSE
532661
- Rane (Madras) Limited reported Q1 FY27 consolidated total revenue of ₹1,050.6 crore, up 18.8% YoY.
- EBITDA grew 22% YoY to ₹95.8 crore; margin expanded 24 bps to 9.1%.
- PAT surged 62.5% YoY to ₹30.1 crore.
- Sales to Domestic OE customers up 13%; International customers up 24%; Indian Aftermarket up 28%.
- Entered into Business Transfer Agreement to acquire Friction Business of Hindustan Composites for ₹370 crore.
- Secured new business with Lifetime Value of ~₹2,040 crore.
PRICE-SENSITIVE TRIGGER
Event: Q1 FY27 Financial Results Announcement
Type: Earnings Release
Impact: Positive
Immediate Effect: Strong revenue and PAT growth; margin expansion; strategic acquisition announcement; positive sentiment for the stock.
Metrics:
Key Financial Metrics:
- Total Revenue: ₹1,050.6 crore (+18.8% YoY)
- EBITDA: ₹95.8 crore (+22.0% YoY)
- EBITDA Margin: 9.1% (+24 bps YoY)
- PAT: ₹30.1 crore (+62.5% YoY)
- Finance Costs: -9.2% YoY (cost competitive borrowings)
Segment Performance:
- Domestic OE Customers: +13% (PV and farm tractor segment)
- International Customers: +24% (steering products)
- Indian Aftermarket: +28%
Highlight:
- PAT up 62.5% YoY; revenue growth across all customer segments; strategic acquisition of Hindustan Composites’ Friction Business; new business wins of ~₹2,040 crore lifetime value.
What Happened ?
Rane (Madras) Limited announced its Q1 FY27 consolidated financial results, reporting total revenue of ₹1,050.6 crore, up 18.8% YoY. EBITDA grew 22% YoY to ₹95.8 crore, with margin expanding 24 bps to 9.1%. PAT surged 62.5% YoY to ₹30.1 crore. The company entered into a Business Transfer Agreement to acquire the Friction Business of Hindustan Composites for ₹370 crore and secured new business with lifetime value of ~₹2,040 crore.
key details
- Total revenue up 18.8% YoY to ₹1,050.6 crore.
- EBITDA up 22% YoY to ₹95.8 crore; margin expanded 24 bps to 9.1%.
- PAT up 62.5% YoY to ₹30.1 crore.
- Domestic OE sales up 13%; International sales up 24%; Aftermarket sales up 28%.
- Finance costs declined 9.2% YoY due to cost competitive borrowings.
- Business Transfer Agreement signed to acquire Friction Business of Hindustan Composites for ₹370 crore.
- Transaction subject to regulatory approvals; expected completion by end of Q2 FY27.
- Capex of ₹76.2 crore incurred in Q1; majority directed towards steering, linkages, and brake components.
- Secured new business with lifetime value of ~₹2,040 crore.
Note:
- Inflationary pressures due to the West Asian crisis were offset through operational initiatives and better absorption of fixed cost. The acquisition of Hindustan Composites’ Friction Business is expected to strengthen RML’s product portfolio.
Risk Analysis
Summary:
- While the company delivered strong Q1 performance, risks include raw material price volatility, integration of acquisition, and automotive sector dynamics.
Key Risks:
- Raw material price volatility impacting margins.
- Integration of Hindustan Composites’ Friction Business.
- Automotive sector demand cyclicality.
- Competition in the auto component space.
- Currency fluctuations affecting international sales.
- Regulatory changes in the automotive sector.
Worst Case:
Integration challenges or demand slowdown could impact growth trajectory
Risk Level: Medium
Official Exchange Filing: Rane (Madras) Limited
