Rane (Madras) Q1 FY27 Earnings: Revenue Rises 19%, New Orders Worth Over ₹2,040 Crore
Rane (Madras) Limited is an automotive components manufacturer and part of the Rane Group. The company makes steering and suspension components, brake components, engine components and light metal castings, along with aftermarket products. Its products are supplied to passenger vehicles, commercial vehicles, tractors, two-wheelers, three-wheelers and off-highway vehicles, serving customers in India and more than 30 countries.
Q1 FY27 Results
Rane (Madras) reported net sales of ₹1,029.9 crore in Q1 FY27, compared with ₹869.3 crore in Q1 FY26, representing an 18% YoY increase. Consolidated EBITDA rose to ₹95.8 crore from ₹78.5 crore, with EBITDA margin at 9.1%. Profit after tax increased sharply to ₹30.1 crore, compared with ₹18.5 crore in the year-ago quarter, marking a 62.5% YoY growth. Domestic OEM sales grew 13%, driven mainly by higher offtake in passenger vehicles and farm tractors, while international customer sales increased 24%, supported by strong demand for steering products. Indian aftermarket sales also increased 28%.
Business Performance
The Steering & Linkages business remained the largest contributor, with Q1 FY27 sales of around ₹525 crore, including domestic and export sales. The Brake Components business recorded sales of approximately ₹134 crore, while Engine Components contributed about ₹142 crore and Light Metal Castings around ₹81 crore. The Aftermarket business also remained an important contributor, with sales of ₹148 crore in Q1 FY27. Passenger vehicles accounted for 60% of sales, followed by commercial vehicles at 21%, farm tractors at 8%, two-wheelers/three-wheelers at 5% and other applications at 6%.
New Business Wins and Order Visibility
Rane (Madras) secured 24 new programs during Q1 FY27 across multiple vehicle segments. These new programs represent a lifetime value of more than ₹2,040 crore, providing long-term revenue visibility. Export programs accounted for 54% of the total LTV, highlighting the company’s continued traction in international markets. The new wins include both existing and new customer relationships and cover EV applications as well. The programs have an average life of approximately six years, providing visibility for future revenue generation.
Acquisition of Hindustan Composites’ Friction Business
During the quarter, Rane (Madras) announced the acquisition of the Friction Business of Hindustan Composites Limited (HCL). The investor presentation puts the enterprise value of the transaction at ₹370 crore, while HCL’s Friction Business had FY26 revenue of ₹315 crore and PBT of ₹40 crore. The business will be integrated with RML’s Brake Components Business. The acquisition is expected to create a combined friction business exceeding ₹1,000 crore and is expected to be EPS accretive from the first year onwards.
Acquisition Rationale and Synergies
The acquisition is aimed at strengthening Rane (Madras)’ leadership across friction segments and complementing its commercial vehicle OEM and railway businesses. The transaction expands the company’s manufacturing footprint through two plants in Maharashtra and is expected to strengthen distribution and R&D capabilities. RML also expects manufacturing and sourcing synergies from the integration, creating a larger and more comprehensive friction solutions platform.
Capex
The Q1 FY27 investor presentation does not disclose a specific capex amount or detailed FY27 capex guidance. However, the company continues to operate an extensive manufacturing network of 17 plants, including 16 in India and one in Mexico, supported by R&D and testing facilities. The HCL Friction Business acquisition also adds two manufacturing plants in Maharashtra to the company’s broader operating footprint.
Future Growth Plans
Rane (Madras) is focused on expanding its presence across passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers and other applications, while increasing its international business. The strong pipeline of new programs, particularly export and EV-related programs, is expected to support future growth. The integration of HCL’s Friction Business is another key growth initiative, with the company targeting operational and revenue synergies and the creation of a ₹1,000+ crore combined friction business.
Aftermarket Business
The aftermarket business recorded sales of ₹148 crore in Q1 FY27, compared with ₹115 crore in Q1 FY26. The business serves multiple vehicle categories, with passenger vehicles contributing 31%, commercial vehicles 58%, farm tractors 6%, two-wheelers/three-wheelers 4% and other applications 1%. The company continues to have a broad geographical presence across North, East, West and South India, supporting its aftermarket distribution network.
Sustainability and Manufacturing Highlights
Rane (Madras) continues to focus on sustainability and manufacturing efficiency. In FY26, around 40% of water consumption was met through recycled water, while renewable energy accounted for 48% of power demand. The company also reported savings of 30.34 lakh units of power during FY26 and a 23% reduction in landfill waste. Four facilities have received GreenCo certification, while the company has also developed two fossil-fuel-free products.
Management Commentary
The key message from the presentation is that Rane (Madras) is entering FY27 with strong business momentum, supported by double-digit revenue growth, improving profitability, strong new program wins and international market traction. The company highlighted the strategic importance of the HCL Friction Business acquisition, which is expected to strengthen its position in the friction market and generate synergies with the existing Brake Components Business. The ₹2,040 crore-plus lifetime value of new business wins, 54% export contribution and approximately six-year average program life also indicate healthy long-term revenue visibility.
Important Points for Investors
The major developments to track are the 18.8% YoY growth in consolidated revenue, 62.5% YoY growth in PAT, strong international sales growth, 24 new program wins worth over ₹2,040 crore in lifetime value, and the acquisition of HCL’s Friction Business for an enterprise value of ₹370 crore. The acquisition is expected to create a ₹1,000+ crore combined friction business and become EPS accretive from year one. The growing contribution from international markets and EV-related programs could also remain important drivers for the company going forward.
Disclaimer
This article is based on the information provided in Rane (Madras) Limited’s Q1 FY27 earnings presentation and related corporate disclosure. The information is intended for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell the company’s shares. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions. Forward-looking statements are subject to business, economic, regulatory, competitive and other risks, and actual results may differ materially from expectations.