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Revenue
₹1,535 Cr
verified against source
Revenue YoY
21.3%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Rane Madras reported a strong Q3 with revenue of ₹1,019.1 crore, up 21.3% YoY, driven by broad-based auto demand recovery and festive tailwinds. EBITDA margin improved 106 bps to 9.3%, aided by cost initiatives and operating leverage. New order wins of ₹130 crore in the quarter and ₹650 crore YTD bolster the medium-term growth pipeline. However, a one-off warranty provision of ₹230 crore at associate ZF Rane Automotive (net ₹172 crore) for a seat belt buckle issue in North America weighs on sentiment. Management targets double-digit EBITDA margins for RML by FY27, with debt reduction of ₹150-200 crore over 12-18 months via land sale proceeds. Key risk: further warranty provisions or customer impact from the ZF Rane recall.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets 11-12% EBITDA margin for Rane Madras by March 2027, driven by cost synergies and operating leverage.
- Gross debt at RML expected to reduce by ₹150-200 crore by March 2027, using land sale proceeds and internal accruals.
- Rane Madras plans capital expenditure of around ₹200 crore each year for the next three years, primarily growth capex.
- Rane Steering Systems expected to see margin improvement from FY28 onwards as new higher-margin programs commence.
Risks flagged
- The ₹230 crore provision for seat belt buckle recall may be inadequate; management will review by April-May 2026 and could require additional provisioning.
- The defective plastic component was sourced from a small supplier (Micro Tech Polymer), making cost recovery improbable, as confirmed by management.
- Rane Steering Systems continues to suffer from low-margin orders booked years ago, with margin improvement only expected from FY28.
- Conscious inventory buildup has increased working capital; if not optimized, it could delay debt reduction targets.
Key quotes
- We are looking at a 12 to 18 month kind of a window... that 11-12% kind of an EBITDA is what we are actually targeting.
- This is a manufacturing defect... with respect to one of our parts that we source from the tier 2 injection molding company.
- We continue to win new businesses across geographies with this specific customer... our relationship remains very strong.
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