New order wins (Q3)
₹130 Cr
+130% QoQ
New business won across product categories in Q3 FY26.
RANE
Diversified
10 Feb 2026
Rane Ltd — Q3 FY26
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.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
New order wins (YTD)
₹650 Cr
+160% YoY
Cumulative new orders for Rane Madras in first three quarters.
ZF Rane revenue split - Safety
63%
N/A
Occupant safety division contributed 63% of ZF Rane revenue in Q3.
RSSL capacity utilization
80-85%
N/A
Current capacity utilization at Rane Steering Systems.
Management Guidance
Double-digit EBITDA margin for RML by FY27
Management targets 11-12% EBITDA margin for Rane Madras by March 2027, driven by cost synergies and operating leverage.
Management guidance marginsDebt reduction of ₹150-200 crore over 12-18 months
Gross debt at RML expected to reduce by ₹150-200 crore by March 2027, using land sale proceeds and internal accruals.
Management guidance otherCapex of ~₹200 crore per annum for RML over FY26-28
Rane Madras plans capital expenditure of around ₹200 crore each year for the next three years, primarily growth capex.
Management guidance capexRSSL margin improvement from FY28
Rane Steering Systems expected to see margin improvement from FY28 onwards as new higher-margin programs commence.
Management guidance marginsKey Risks
ZF Rane warranty provision may increase
The ₹230 crore provision for seat belt buckle recall may be inadequate; management will review by April-May 2026 and could require additional provisioning.
high · management_commentaryRecovery from supplier unlikely
The defective plastic component was sourced from a small supplier (Micro Tech Polymer), making cost recovery improbable, as confirmed by management.
medium · analyst_questionRSSL low-margin legacy orders persist
Rane Steering Systems continues to suffer from low-margin orders booked years ago, with margin improvement only expected from FY28.
medium · management_commentaryWorking capital increase from inventory buildup
Conscious inventory buildup has increased working capital; if not optimized, it could delay debt reduction targets.
low · data_observationNotable 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.
Frequently Asked Questions
What was Rane's revenue in Q3 FY26?
Rane reported revenue of ₹1,019 Cr in Q3 FY26, representing a +21.3% change compared to the same quarter last year.
What guidance did Rane management give for FY27?
Double-digit EBITDA margin for RML by FY27: Management targets 11-12% EBITDA margin for Rane Madras by March 2027, driven by cost synergies and operating leverage. Debt reduction of ₹150-200 crore over 12-18 months: Gross debt at RML expected to reduce by ₹150-200 crore by March 2027, using land sale proceeds and internal accruals. Capex of ~₹200 crore per annum for RML over FY26-28: Rane Madras plans capital expenditure of around ₹200 crore each year for the next three years, primarily growth capex. RSSL margin improvement from FY28: Rane Steering Systems expected to see margin improvement from FY28 onwards as new higher-margin programs commence.
What are the key risks for Rane in FY27?
Key risks include ZF Rane warranty provision may increase — The ₹230 crore provision for seat belt buckle recall may be inadequate; management will review by April-May 2026 and could require additional provisioning.; Recovery from supplier unlikely — The defective plastic component was sourced from a small supplier (Micro Tech Polymer), making cost recovery improbable, as confirmed by management.; RSSL low-margin legacy orders persist — Rane Steering Systems continues to suffer from low-margin orders booked years ago, with margin improvement only expected from FY28.; Working capital increase from inventory buildup — Conscious inventory buildup has increased working capital; if not optimized, it could delay debt reduction targets..
Did Rane meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Rane Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.