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RML - Rane (Madras)

📊 NSE: RML 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 11:37

📢 Recent Corporate Announcements

Rane (Madras) Receives Income Tax Order for AY 2020-21; Rs 2.66 Cr Potential Impact

🟡 NEUTRAL ⭐ 4/10

REGULATORY 📅 28 Feb 2026, 03:34 PM

Rane (Madras) Limited has received a revisionary order from the Principal Commissioner of Income Tax (PCIT), Chennai, regarding the Assessment Year 2020-21. The order sets aside a previous ruling and directs the Assessing Officer to conduct fresh enquiries into disallowances of Trademark fees (Rs 5.12 crore) and Defined Benefit Plans (Rs 2.49 crore). While the PCIT has accepted the company's submission on the Defined Benefit Plan, the Trademark fee issue requires further verification. The company estimates a potential financial implication of Rs 2.66 crore, excluding interest and penalties.

Revisionary order received under Section 263 of the Income Tax Act for FY 2019-20.
PCIT directed the Assessing Officer to re-evaluate Trademark fees disallowance of Rs 5.12 crore.
Company's submission on Rs 2.49 crore Defined Benefit Plan disallowance was accepted for verification.
Estimated financial implication is approximately Rs 2.66 crore plus applicable interest and penalties.
The authority has directed the Assessing Officer to pass fresh orders after necessary enquiries.

💡 Investors should monitor the subsequent order from the Assessing Officer to confirm the final tax liability. The current estimated impact of Rs 2.66 crore is not material enough to alter the company's fundamental outlook.

Rane (Madras) Ltd Releases Transcript of Earnings Conference Call Held on Feb 17, 2026

🟡 NEUTRAL ⭐ 3/10

EARNINGS 📅 24 Feb 2026, 12:15 PM

Rane (Madras) Limited has officially released the transcript of its earnings conference call conducted on February 17, 2026. This disclosure is in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript provides a detailed record of management's responses to analyst queries regarding recent financial performance and future guidance. Investors can access the document via the provided link on the Rane Group's investor relations portal.

Earnings conference call was held on February 17, 2026, at 15:00 IST.
Transcript is now available on the company's official website for public review.
The filing satisfies compliance requirements under SEBI LODR Regulations.
Provides qualitative insights into the company's operational performance and future outlook.

💡 Investors should review the transcript to gain deeper insights into management's strategy and sector-specific outlook. This is a routine but essential step for fundamental analysis of the company's long-term prospects.

Rane (Madras) Receives Rs 6.04 Cr Income Tax Show Cause Notice for AY 2023-24

🔵 WATCH ⭐ 6/10

LEGAL 📅 21 Feb 2026, 06:12 PM

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.

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.

💡 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) Seeks Approval for ₹1 Cr Annual Commission to Non-Executive Directors

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 18 Feb 2026, 11:30 AM

Rane (Madras) Limited has issued a postal ballot notice to seek shareholder approval for a new director compensation structure. The proposal includes paying commissions to Non-Executive and Independent Directors up to 1% of annual net profits, capped at an aggregate of ₹1 Crore per year. This arrangement is proposed for a five-year period starting April 1, 2025. The company is also seeking specific approval for cases where a single director's remuneration might exceed 50% of the total pool for FY 2025-26.

Proposed commission of up to 1% of annual net profits for Non-Executive and Independent Directors.
Aggregate commission capped at ₹1 Crore per annum for a 5-year period starting April 1, 2025.
Seeking special resolution for instances where a single director receives more than 50% of the total annual remuneration pool in FY26.
Remote e-voting period is scheduled from February 19, 2026, to March 20, 2026.

💡 This is a routine governance matter regarding director compensation and is unlikely to impact stock fundamentals. Shareholders should review the board's performance when casting their votes during the e-voting period.

Rane (Madras) Q3 FY26 Revenue Rises 21% to ₹1,019 Cr; EBITDA Margins Expand to 9.3%

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 16 Feb 2026, 05:02 PM

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.

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.

💡 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) to Host Q3 FY26 Earnings Conference Call on February 17, 2026

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 10 Feb 2026, 04:35 PM

Rane (Madras) Limited has scheduled its earnings conference call for the third quarter of FY26 on February 17, 2026, at 15:00 IST. The management will discuss the unaudited financial results for the quarter ended December 31, 2025. Key representatives including the Group CFO and CFO of Rane Holdings will be present to address analyst queries. This call is a standard procedure following the announcement of quarterly financial results to provide deeper insights into operational performance.

Earnings conference call scheduled for February 17, 2026, at 15:00 hours IST.
Focus on unaudited financial results for the quarter ended December 31, 2025 (Q3 FY26).
Management participation includes Group CFO P.A. Padmanabhan and Rane Holdings CFO J. Ananth.
International dial-in facilities available for investors in the USA, UK, Singapore, and Hong Kong.
Presentation and transcripts to be made available on the company website post-call.

💡 Investors should track the post-call transcript for management's outlook on the auto component industry and margin guidance. Focus on updates regarding the light metal casting and steering systems segments which are core to RML.

Rane (Madras) Appoints Konark Kumar Gupta as President - Aftermarket; New Internal Auditor Named

🟡 NEUTRAL ⭐ 5/10

MANAGEMENT 📅 04 Feb 2026, 03:58 PM

Rane (Madras) Limited has announced the appointment of Mr. Konark Kumar Gupta as President of the Aftermarket Products Business, effective February 09, 2026. Mr. Gupta brings over 22 years of experience in P&L management and business transformation within the automotive and industrial sectors. The company also transitioned its internal audit function to M/s. R. G. N. Price & Co. for a one-year term following the completion of Deloitte's tenure on December 31, 2025. The outgoing President, Mr. T Giriprasad, will superannuate on May 31, 2026, providing a overlap for leadership transition.

Mr. Konark Kumar Gupta appointed as President — Aftermarket Products Business effective February 09, 2026
Incoming President brings 22+ years of experience in strategic growth and P&L management
Current President Mr. T Giriprasad to superannuate on May 31, 2026
M/s. R. G. N. Price & Co. appointed as Internal Auditor for the period January 01 to December 31, 2026
Deloitte Touche Tohmatsu India LLP completed its tenure as Internal Auditor on December 31, 2025

💡 Investors should view this as a routine management succession and auditor rotation. Monitor the Aftermarket division's performance under the new leadership for any shifts in strategic direction.

Rane (Madras) Q3 FY26: Revenue up 21.3% to ₹1,019 Cr, PAT Surges to ₹30.5 Cr

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 04 Feb 2026, 03:55 PM

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%.

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.

💡 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

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 04 Feb 2026, 03:46 PM

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.

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.

💡 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 ₹2.66 Crore Income Tax Show Cause Notice for FY 2019-20

🔴 NEGATIVE ⭐ 4/10

REGULATORY 📅 10 Jan 2026, 05:21 PM

Rane (Madras) Limited has received a Show Cause Notice from the Principal Commissioner of Income Tax, Chennai, regarding Assessment Year 2020-21. The notice proposes a disallowance of expenditures totaling ₹7.61 crores, primarily concerning trademark fees and actuarial adjustments for gratuity. The potential financial impact is estimated at ₹2.66 crores, excluding interest and penalties. The company is currently consulting with tax advisors to file a response within the stipulated timelines.

Received Show Cause Notice under Section 263 of the Income Tax Act, 1961 for FY 2019-20.
Proposed disallowance of ₹7.61 crores related to trademark fees and actuarial gain/loss on gratuity.
Estimated financial implication stands at ₹2.66 crores plus potential interest and penalties.
Company is preparing a suitable reply to the tax authorities in consultation with advisors.

💡 Investors should monitor the outcome of this tax dispute as it represents a potential one-time cash outflow. Given the amount is ₹2.66 crores, the impact on the company's overall valuation is likely to be minimal.

Rane (Madras) Processes 2 Physical Share Transfer Requests in Dec 2025-Jan 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 09 Jan 2026, 11:56 AM

Rane (Madras) Limited has submitted its periodic report regarding the re-lodgement of transfer requests for physical shares as per SEBI mandates. For the period between December 01, 2025, and January 06, 2026, the company handled 2 requests that were initially received in late November. Both requests were successfully approved with no rejections recorded during this window. The company maintained an average processing time of 12 days for these administrative tasks.

Processed and approved 2 requests for re-lodgement of physical share transfers
Zero requests were rejected during the reporting period
Average processing time for requests stood at 12 days
Compliance filing as per SEBI Circular No. SEBI/HO/MIRSD-PoD/P/CIR/2025/97

💡 This is a routine administrative disclosure with no impact on company fundamentals. No action is required from investors.

Rane (Madras) Ltd Submits SEBI Compliance Certificate for Q3 FY2025-26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 02 Jan 2026, 02:03 PM

Rane (Madras) Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that all share certificates received for dematerialization during the quarter ended December 31, 2025, were processed according to regulatory standards. The company's Registrar, Integrated Registry Management Services, verified that physical certificates were mutilated and cancelled within the stipulated time limits. This is a standard administrative procedure to ensure the accuracy of the company's electronic shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025.
Adherence to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 confirmed.
Physical share certificates were mutilated and cancelled after due verification by the depository participant.
Registrar confirmed the substitution of depository names in the register of members within mandated timelines.

💡 No action is required from investors as this is a routine regulatory filing confirming standard administrative compliance.

Rane (Madras) Receives GST Order for ₹0.39 Crore Tax Demand and ₹0.04 Crore Penalty

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 31 Dec 2025, 08:15 PM

Rane (Madras) Limited has received a GST order from the Chennai North Commissionerate for the financial year 2021-22. The order demands a tax payment of ₹0.39 Crores along with a penalty of ₹0.04 Crores and applicable interest due to issues with Input Tax Credit (ITC) reversal. This final demand is significantly lower than the original show-cause notice amount of ₹2.39 Crores. The company has stated its intention to contest this order before the appropriate appellate authorities.

Tax demand of ₹0.39 Crores and penalty of ₹0.04 Crores issued for FY 2021-22
Demand relates to non-reversal of Input Tax Credit (ITC) as per GSTR-2A records
Final demand reduced significantly from the initial show-cause notice of ₹2.39 Crores
Company to contest the order before the appropriate regulatory authority

💡 The financial impact of this order is immaterial relative to the company's operations. Investors need not take any immediate action as the company is pursuing legal remedies.

Rane (Madras) Receives GST Order for Rs 12.23 Cr Tax Demand and Rs 12.23 Cr Penalty

🔴 NEGATIVE ⭐ 6/10

REGULATORY 📅 30 Dec 2025, 06:22 PM

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.

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.

💡 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) to Consider Q3 FY26 Results on Feb 4; Trading Window Closed

🟡 NEUTRAL ⭐ 3/10

BOARD_MEETING 📅 30 Dec 2025, 06:19 PM

Rane (Madras) Limited has scheduled a Board of Directors meeting on February 04, 2026, to review and approve the unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. In accordance with SEBI insider trading regulations, the trading window for designated persons will be closed from December 31, 2025, until February 06, 2026. This is a standard regulatory procedure preceding the announcement of quarterly financial performance. Investors should look for the actual earnings release on the specified date to evaluate the company's growth trajectory.

Board meeting scheduled for February 04, 2026, to approve Q3 and nine-month FY26 financial results.
Trading window for insiders closed from December 31, 2025, to February 06, 2026.
The meeting will cover both standalone and consolidated financial statements for the period ending December 31, 2025.

💡 No immediate action is required as this is a routine regulatory filing; investors should monitor the financial results on February 4 for fundamental analysis.

View All RML Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue was INR 2,239 Cr in FY24, a 5% decline from INR 2,354 Cr in FY23 due to the divestment of the loss-making RLMC subsidiary. Domestic OEMs contribute 60-65% of revenue, while die-casting components for domestic and overseas markets contribute 15-20%. Post-merger, the entity expects healthy single-digit growth (approx. 7-9%) driven by steady OEM demand and improved aftermarket sales from the friction material business.

Geographic Revenue Split

Domestic operations (OEM and Aftermarket) account for approximately 80-85% of revenue. Exports to the US are moderate at 10-12% of overall revenues. Other exports, primarily from the die-casting division, are expected to remain flattish in the medium term.

Profitability Margins

Operating margins stood at 7.4% in FY24, down from 8.4% in FY23 due to muted CV segment sales and sluggish exports. PAT margin dropped significantly to 0.1% in FY24 (INR 3 Cr) from 1.3% in FY23 (INR 30 Cr), primarily impacted by a Rs 223 Cr impairment related to RLMC and provisions of USD 2.9 million for sale consideration receivables.

EBITDA Margin

Consolidated operating profitability was 7.2% in the first nine months of FY25. Post-merger synergy benefits and the removal of RLMC's operational losses (INR 40-50 Cr annually) are expected to improve operating margins to a range of 8-10% over the medium term.

Capital Expenditure

Planned capital expenditure is estimated at INR 180-200 Cr per annum from FY26 onwards to support capacity expansion and modernization. Historical capex was approximately INR 100-120 Cr per annum prior to the merger integration.

Credit Rating & Borrowing

The company maintains a moderate financial risk profile with an interest coverage ratio of 2.96 times in FY24, down from 5.96 times in FY23. Gearing is expected to improve significantly from 2.8 times in FY24 to approximately 1.2 times by March 31, 2025, following the merger with debt-free RBLL.

⚙️ Operational Drivers

Raw Materials

Steel, aluminum for die-casting, and specialized chemicals for friction materials represent a substantial portion of the cost structure, though specific percentage breakdowns per material are not disclosed.

Import Sources

Not specifically disclosed, though the company operates manufacturing facilities in Tamil Nadu, Karnataka, and Telangana, sourcing primarily from domestic industrial hubs.

Capacity Expansion

The company operates 7 manufacturing locations including Kanchipuram, Pondicherry, and Tumkur. Expansion is focused on the domestic die-casting division and the new Mexican subsidiary (RACM), where USD 8 million is planned for investment over three years to serve the North American market.

Raw Material Costs

Raw material costs account for a substantial portion of revenue (estimated at 60-70% based on industry standards). Procurement strategies are being streamlined post-merger to leverage common raw material procurement and logistics for better negotiation power.

Manufacturing Efficiency

Operating margin is expected to improve to 8-10% through economies of scale and synergy benefits from the merger. Capacity utilization in the die-casting division has seen substantial improvement over the past two fiscals after a slow initial ramp-up.

Logistics & Distribution

The company utilizes group-level synergies to rationalize freight costs by co-shipping products with other Rane group entities to shared OEM clients.

📈 Strategic Growth

Expected Growth Rate

7-9%

Growth Strategy

Growth will be achieved through the merger with REVL and RBLL to create a larger entity with diversified product lines (steering, valves, friction materials). The company is also expanding its footprint in North America via Rane Auto Components Mexico (RACM) with a planned USD 8 million investment to supply customers in the USA, Mexico, and Canada starting FY26.

Products & Services

Steering linkage products, engine valves, light metal castings, and friction materials including brake linings, disc pads, clutch facings, clutch buttons, brake shoes, and brake blocks.

Brand Portfolio

Rane, Rane Madras Limited (RML), Rane Brake Lining Limited (RBLL), Rane Engine Valve Limited (REVL).

New Products/Services

Expansion into friction materials and engine valves via merger; new product supplies to North American markets from the Mexico facility starting FY26.

Market Expansion

Targeting the North American market (USA, Mexico, Canada) through the incorporation of RACM in September 2023, with production expected to commence in FY26.

Market Share & Ranking

Holds a leadership position in the domestic PV steering components market, competing with ZF Steering Gear (India) Ltd and JTEKT India Ltd.

Strategic Alliances

Part of the Rane Group; merger with group companies REVL and RBLL to consolidate operations and financial strength.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward consolidation to achieve economies of scale. RML is positioning itself as a multi-product supplier (steering, valves, friction) to increase its 'share of business' per vehicle with major OEMs.

Competitive Landscape

Faces stiff competition in the steering segment from ZF Steering Gear (India) Ltd and JTEKT India Ltd.

Competitive Moat

Moat is derived from its established leadership in steering components, long-standing relationships with top Indian OEMs (Tata, M&M, Maruti), and the financial backing/reputation of the Rane Group.

Macro Economic Sensitivity

Highly sensitive to automotive industry cyclicality, particularly in the CV and PV segments which drive 60-65% of revenue.

Consumer Behavior

Shift in OEM demand toward higher efficiency components and localized sourcing in North America is driving the company's investment in Mexico.

Geopolitical Risks

Exposure to US trade policy; a 25% reciprocal tariff on exports to the US is a noted risk, though the impact is expected to be manageable through customer pass-throughs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to automotive safety and manufacturing standards; the merger requires NCLT approval, which is expected by the end of fiscal 2025.

Taxation Policy Impact

The company has accrued a deferred tax benefit of INR 113 Cr following the sale of RLMC, which will reduce tax liability and improve cash accruals over the medium term.

Legal Contingencies

The merger scheme is currently filed with the NCLT; no other major pending court cases or values were specified in the documents.

⚠️ Risk Analysis

Key Uncertainties

Delay in offtake from new orders or a decline in operating margins below 6% could impact liquidity. The turnaround of the new Mexico facility (RACM) is a medium-term uncertainty.

Geographic Concentration Risk

High concentration in India (80-85% revenue), with specific exposure to the US market (10-12%).

Third Party Dependencies

High dependency on top 3-5 automotive OEMs for over 60% of revenue.

Technology Obsolescence Risk

The company is investing in in-house capabilities to enhance products as per OEM requirements to mitigate the risk of being replaced by technologically superior competitors.

Credit & Counterparty Risk

Receivables quality is generally high due to the blue-chip nature of OEM clients (Maruti, Tata, M&M), though USD 2.9 million is still pending from the RLMC sale, for which USD 1.5 million has been provisioned.