This article first appeared on GuruFocus .
Release Date: May 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Rane (Madras) Ltd ( BOM:532661 ) reported a 16.2% increase in total revenue for Q4, reaching 1,051 crores compared to 905 crores in the previous year.
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The company successfully reduced its net debt by Rs 73.4 crores, bringing it down to Rs 705.8 crores.
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Rane (Madras) Ltd secured new businesses with an annualized sale of Rs 33 crores during Q4, contributing to a record order win of 712 crores for FY26.
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The aftermarket product business showed strength with improved retailer engagement and increased market penetration.
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The company remains optimistic about future demand, supported by a diversified product portfolio and focus on manufacturing excellence.
Negative Points
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Global geopolitical developments have led to significant commodity price volatility and supply chain uncertainties, which need close monitoring.
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The company faces challenges in recovering cost escalations from customers, particularly due to oil and commodity price increases.
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There is a marginal increase in costs due to the demerger of the company, although it is not expected to be significant.
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The company is cautious about the overall demand environment due to geopolitical challenges and volatility in crude oil and commodity prices.
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Rane (Madras) Ltd's margins are not yet at the desired double-digit level, with current EBITDA margins at 9.5%.
Q & A Highlights
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Q: Has the company been split into two entities, and will this lead to increased operational costs? A: Yes, the company was demerged in Q4, February, following NCLT approval. The cost increase will be marginal as the businesses were historically run separately. (Respondent: Unidentified_3)
Q: Can you provide details on the net debt across various entities? A: The net debt at RA Holding consolidated level is around 950 crores, at RSSL it is around 260 crores, and for the ZF joint venture, it is around 700 crores. (Respondent: Unidentified_6)
Q: What is the rationale behind the proposed preferential allotment by the board? A: The board considered all capital raising options and decided on this due to the small quantum required. Other transactions, like real estate, are underway to address larger debt needs. (Respondent: Unidentified_3)
Q: With the geopolitical situation, how is the export growth outlook for Rane Madras and ZF Rane? A: There is no negative impact on volumes due to geopolitical issues. The focus remains on managing cost escalations and recovering them from customers. Export order bookings remain strong. (Respondent: Unidentified_3)
Q: What is the expected growth and margin outlook for Rane Steering and Rane Madras? A: Rane Steering is expected to grow in line with Maruti's growth and new customer acquisitions. Margins are expected to improve to mid to high single digits in the next couple of years. Rane Madras aims for double-digit margins, with current EBITDA at 9.5%. (Respondent: Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
