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Rane (Madras) Receives Rs 6.04 Cr Income Tax Show Cause Notice for AY 2023-24
Rane (Madras) Limited has received a Show Cause Notice from the National Faceless Assessment Centre of the Income Tax Department for Assessment Year 2023-24. The notice proposes a disallowance of expenditures amounting to Rs. 24.01 crores, primarily concerning the treatment of gains from derivative assets and trademark fees. The estimated financial impact of this notice is Rs. 6.04 crores, excluding any applicable interest or penalties. The company is currently consulting with tax advisors to file a formal response to contest these findings.
Key Highlights
Show Cause Notice received under Section 143(3) of the Income Tax Act, 1961.
Proposed disallowance of Rs. 24.01 crores related to derivative assets and trademark fees.
Potential financial liability estimated at Rs. 6.04 crores plus interest and penalties.
Notice pertains to Assessment Year 2023-24 (Financial Year 2022-23).
Company is in the process of filing a suitable reply with the appropriate authorities.
💼 Action for Investors
Investors should monitor subsequent filings for the final assessment order to see if the Rs. 6.04 crore liability is confirmed. While the amount is significant, it represents a potential rather than an immediate cash outflow.
Rane (Madras) Q3 FY26 Revenue Rises 21% to ₹1,019 Cr; EBITDA Margins Expand to 9.3%
Rane (Madras) Limited delivered a robust performance in Q3 FY26, with consolidated revenue increasing 21.3% YoY to ₹1,019.1 Cr. The company's EBITDA margins expanded by 106 basis points to 9.3%, driven by operational efficiencies and strong sales growth across segments. Growth was broad-based, with domestic OE sales up 18% and international sales rising 21%. The company also reported a significant turnaround in PAT to ₹30.5 Cr, aided by a low base in the previous year due to one-time tax adjustments.
Key Highlights
Consolidated revenue grew 21.3% YoY to ₹1,019.1 Cr, crossing the ₹1,000 Cr quarterly milestone.
EBITDA increased by 36.8% to ₹94.8 Cr, with margins expanding 106 bps to 9.3%.
International sales grew by 21% YoY, supported by strong offtake of steering products.
Secured new business orders worth ₹115 Cr in Steering & Linkages and ₹20 Cr in Brake Components.
PAT rose to ₹30.5 Cr compared to ₹0.4 Cr in Q3 FY25, which was impacted by a one-time tax credit reversal.
💼 Action for Investors
Investors should focus on the company's consistent margin improvement and strong order wins in the international market. The stock remains a key play in the auto-ancillary space with diversified exposure across PV, CV, and export markets.
Rane (Madras) Q3 FY26: Revenue up 21.3% to ₹1,019 Cr, PAT Surges to ₹30.5 Cr
Rane (Madras) Limited reported a strong performance for Q3 FY26, with consolidated revenue growing 21.3% YoY to ₹1,019.1 Crore. Profitability improved significantly as EBITDA rose 36.8% to ₹94.8 Crore, driven by a 106 bps margin expansion to 9.3%. Net profit (PAT) reached ₹30.5 Crore, a massive jump from ₹0.4 Crore in the previous year, which was impacted by a one-time tax reversal. Growth was broad-based with domestic OE sales up 18% and international sales increasing by 21%.
Key Highlights
Consolidated revenue grew 21.3% YoY to ₹1,019.1 Crore from ₹840.5 Crore.
EBITDA increased 36.8% to ₹94.8 Crore with margins expanding from 8.2% to 9.3%.
PAT surged to ₹30.5 Crore compared to ₹0.4 Crore in Q3 FY25.
Domestic OE sales grew 18% while International sales rose 21% on strong steering product demand.
Indian Aftermarket sales grew by 32% following the restructuring of that business segment.
💼 Action for Investors
Investors should take note of the sustained margin expansion and strong double-digit growth across all business segments. The company's ability to leverage fixed costs effectively suggests improving operational efficiency that warrants a positive outlook.
Rane (Madras) Q3 FY26 Consolidated PAT Surges to ₹30.5 Cr; Revenue Up 21% YoY
Rane (Madras) Limited reported a robust performance for Q3 FY26, with consolidated revenue from operations growing 21.2% YoY to ₹1,015.15 crore. The company's consolidated net profit saw a massive turnaround, rising to ₹30.52 crore from a marginal ₹0.39 crore in the same quarter previous year. Profitability was driven by strong operational performance, with profit before exceptional items increasing 169% YoY. Additionally, the company announced the appointment of Mr. Konark Kumar Gupta as President of the Aftermarket Products Business.
Key Highlights
Consolidated Revenue from operations grew 21.2% YoY to ₹1,015.15 crore in Q3 FY26.
Consolidated Net Profit (PAT) jumped to ₹30.52 crore compared to ₹0.39 crore in Q3 FY25.
Profit before tax and exceptional items reached ₹43.62 crore, a significant increase from ₹16.20 crore YoY.
Nine-month FY26 consolidated PAT stands at ₹70.52 crore, already surpassing the full FY25 PAT of ₹37.65 crore.
Management transition announced with Mr. Konark Kumar Gupta taking over the Aftermarket business leadership.
💼 Action for Investors
The significant turnaround in profitability and strong revenue growth suggest improved operational efficiency and market demand. Investors should maintain a positive outlook while monitoring the leadership transition in the key aftermarket segment.
Rane (Madras) Receives GST Order for Rs 12.23 Cr Tax Demand and Rs 12.23 Cr Penalty
Rane (Madras) Limited has received an order from the CGST and Central Excise authorities for the period FY 2018-19 to 2023-24. The order imposes a tax demand of Rs. 12.23 crores along with an equivalent penalty of Rs. 12.23 crores, totaling Rs. 24.46 crores plus applicable interest. This final demand is a reduction from the initial show-cause notice which had proposed a tax demand of Rs. 22.64 crores. The company has stated its intention to contest the order before the appropriate appellate authorities.
Key Highlights
Tax demand of Rs. 12.23 crores levied for the period FY 2018-19 to FY 2023-24.
Equivalent penalty of Rs. 12.23 crores imposed, bringing the base financial impact to Rs. 24.46 crores.
The current demand is a reduction from the original show-cause notice amount of Rs. 22.64 crores plus penalty.
Issues relate to wrong Input Tax Credit (ITC) availing, short payment of tax, and RCM compliance.
The company plans to file an appeal against the order with the relevant statutory authorities.
💼 Action for Investors
Investors should monitor the legal progression of this dispute as a potential Rs. 24.46 crore liability could impact future earnings if the appeal is unsuccessful. No immediate sell-off is warranted as the company is contesting the demand and the amount was reduced from the initial notice.
Rane (Madras) Credit Rating Re-affirmed at A+/Stable; Bank Facilities Enhanced to Rs 1,085 Cr
CRISIL has re-affirmed the credit ratings for Rane (Madras) Limited's bank loan facilities, maintaining a 'CRISIL A+/Stable' for long-term and 'CRISIL A1' for short-term instruments. Notably, the total rated bank loan facilities have been enhanced to Rs. 1,085 crores from the previous Rs. 910.51 crores. This indicates the company's ability to access higher credit limits while maintaining its creditworthiness. The stable outlook suggests a consistent financial profile and lender confidence in the medium term.
Key Highlights
CRISIL re-affirmed the long-term rating at 'CRISIL A+/Stable' and short-term rating at 'CRISIL A1'.
Total bank loan facilities enhanced by approximately 19% to Rs. 1,085 crores from Rs. 910.51 crores.
Short-term bank facilities comprise Rs. 965 crores of the total, distributed across major banks like SBI, HDFC, and Standard Chartered.
Long-term facilities include term loans totaling Rs. 120 crores from Exim Bank and HDFC Bank.
💼 Action for Investors
The re-affirmation of ratings despite an increase in debt limits reflects the company's stable financial health and credit profile. Investors should monitor the company's utilization of these enhanced limits for future growth or working capital efficiency.