Rane Holdings Ltd (NSE: RANEHOLDIN) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Harish Lakshman — Vice Chairman
Dewakar Pingle — Investor Relation
Analysts:
Unidentified Participant
Jigar Shah — Analyst
Lakshmi Narayanan KG — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Rani Group Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 0 on your Touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Dewakar Pingle from EY Investor Relations. Thank you. And over to you sir.
Dewakar Pingle — Investor Relation
Thank you so much. Good afternoon everyone. Welcome to the Q1FY26 in Mr. Polybarani Group to discuss the results and answer your questions. Today we have the management team from Rani Group represented by Mr. Harish Laxman. Who is Chairman of the Rani Group, Mr. Puddhumarman, President, Finance and Group CFO and Mr. J. Amand, Executive Vice President, Finance CFO Holdings. Please note that the results and presentations have already been made to you and. You can also view it on the company’s website. In case anyone does not have the copy of the presentation. You’re not marking a mail, please rewrite to us and be happy to send the same to you. Before we start, I’d like to say that everything that I said in this. Call that reflects a new applicant future or which can be considered a forward. Looking statement must be wooden conventional. These uncertainties and risks are included in. The part limited to what we mentioned in prospectus and subsequently annual reports which. You can find on the website. With that said, let me kind of. Invite Harish to take over. Harish.
Harish Lakshman — Vice Chairman
Good afternoon ladies and gentlemen. Thank you for dialing in. I’d like to welcome you all for this teleconference. I’d like to start with a few comments on the industry. The Automotive industry began FY26 on a mixed footing. While early quarter momentum was initially encouraging, the demand softened towards the close of the quarter leading to subdued overall growth across vehicle categories. The passenger vehicles maintained their growth trajectory supported by robust demand in the multi utility vehicle segment and healthy export performance. However, the passenger car segment saw a noticeable slowdown signaling a shift in consumer preferences. The commercial vehicle segment witnessed growth supported by seasonal recovery and improved financing condition while the MSCV segment saw an uptick driven by fleet replacement and pre buying ahead of the mandatory air conditioned cabin implementation.
The farm tractor segment recorded a strong growth during the quarter reflecting a revival in rural sentiment, early monsoon progress in key agricultural belts. The two wheeler segment saw muted growth impacted by OEM inventory correction as well as decline in demand for some of the entry level commuter bikes. Coming to our company’s financial performance, the total revenue was 884.4 crores for the first quarter compared to 823.8 crores in the first quarter of last year with an increase of 7.4%. I’m happy to share that we had 800 crores of new business wins in the quarter. This will position us to drive future growth and cement our leadership position across our product categories.
Following the completion of the merger, Rani Madras has sharpened its focus on unlocking synergies across operations. We have made tangible progress in improving operational efficiency, lowering costs and enhancing profitability levers. During Q1 FY26 EBITDA margin improved by 30bps from 8.6 to 8.9%. The aftermarket segment faced a challenging quarter. But we are actively driving capability building, range expansion and new product introductions to strengthen the market presence on the US tariff. The US business currently contributes around 8% of Rani Madras revenue and it has not seen any immediate tariff related impact. Our strong global quality, reputation and competitive cost based position position us well to navigate the evolving trade scenario.
On the global front, the auto component industry is navigating geopolitical shifts. The recent tariff announcements by the US Administration could impact pricing and supply chain flows in the short term. We are closely monitoring these developments especially in the context of India US trade negotiations. While the near term uncertainty persists due to global trade tensions and the recent tariff measures, we remain cautiously optimistic about FY26. Domestic demand fundamentals are intact supported by infrastructure projects, decent momentum and rural income stability. We anticipate moderate growth across major segments. However, the impact of component shortages, inventory adjustments of OEMs and price increases will remain key monitorable.
With these remarks, we’ll now open for any questions that you may have. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Take the next question from the line of Lakshmi Narayan KG from Tunga Investments. Please proceed.
Lakshmi Narayanan KG
Yeah, thank you. I just want to understand. In Zfranay Automotive India Private Limited, what is the debt we are actually carrying?
Harish Lakshman
One second. What is the total day? 679 crores.
Lakshmi Narayanan KG
Okay. And what is the pathway do you is it that the debt would kind of come down or what is how do you think about in this business Zwani?
Harish Lakshman
Eventually it will come down but I think in the short term when I look at the next one or two years it will continue at these levels. You know, because of the strong order position of zriii especially on the most of the debt is on the seatbelt and airbag side. So you know, we’re seeing good growth opportunities and therefore the business needs more investment. So we are using debt as one.
Lakshmi Narayanan KG
Of the reasons we are almost doing close to 2,500 crores in this business. I want to understand in the next two, three years what is the kind of capacity of building and what would be the peak revenue that you can actually expect based on the capacity of building for the next three years in this business?
Harish Lakshman
Yes, I’ll answer the question in two parts. One is the occupant safety systems division which is making the seat belt and airbag. That business is growing very fast. It’s a strong double digit, sometimes even touching 15, 20%. And and we are looking at that kind of growth rate continuing over the next three, four years. And that is a mix of both domestic because of the six airbags. The market, regardless of legislation, the market is moving, the consumer preference is moving towards more airbags in a vehicle. And on top of it we have a healthy book of business.
For example exports both directly to vehicle manufacturers supported by ZF as well as to other ZF plants. So we are quite optimistic about this business for strong double digit growth and more investments are continuing. And as you are aware, some of the investments are also approved through the PLI scheme. As far as the steering gear division is concerned, the fortunes are tied more to the commercial vehicle segment and that market has softened a bit. So there we are not seeing as much growth. But of course the steering gear division is the more solid business in terms from a balance sheet perspective there’s no debt as well as the margins are tend to be higher than the occupant safety business.
But that business will pick up as soon as the CV market rises.
Lakshmi Narayanan KG
I’m just trying to understand from a capacity of building on this business over the next two, three years what is the right now we are around 2500 crores run kind of a run rate how much it can actually really be theoretically possible.
Harish Lakshman
So the capacity is at peak, you know, optimum. That is why we are continuously investing. See the business is going to grow at about 15 to 18% per annum and for the incremental sales generally the investment on the occupant safety side is about 1 is to 5. So for every 5 rupees of sales, 1 rupee investment is needed. So we continue to, we will continue to make those investments.
Lakshmi Narayanan KG
And what’s the kind of margin you typically would like to keep it either at an EBITDA level or at a part level for this business.
Harish Lakshman
So the EBITDA for this business, you know, will generally hover around 10, 11%.
Lakshmi Narayanan KG
Got it, got it. Thank you Harish. I’ll come back in queue.
operator
Thank you. Before we proceed with the next question, a reminder to the participants in order to ask a question, you may press star in one. The next question is from the line of Hrithik from Beyond Capital. Please proceed.
Unidentified Participant
Hello. Congratulations on a good set of numbers, sir. So one question around Ranish Pairing limited. Hello.
Harish Lakshman
Yeah, please continue.
Unidentified Participant
Yeah, so sequentially our revenue has gone down but our margins have improved over here. So what is that has changed? Plus where do we see the business in next two to three years? And are there any business win towards this business?
Harish Lakshman
Yeah, I’ll answer that question. So as far as the revenue is concerned, I think last quarter, this quarter there has actually been a 6% growth but the margins have improved even more. There are a couple of reasons for that I think. One, there were some extraordinary items of land sale which is non operating but even in the operating also we have got some increases because of certain price settlements that we received from our customers that were pending. But a lot of it was to do with some of the past claims as well. So therefore I think that would have also got reflected in this quarter.
But going forward also the operating margin will be slightly better than last year’s performance. But we still have ways to go in terms of improving the margins further on this business. And, and as I’ve said in the past calls, this is going to take about a couple of years because of the poor pricing of some of the new businesses which we are doing our best to correct. But as and when some new businesses that we have booked which are at much better profit margins as and when they start coming into the EP and we will see the margin improvement.
Unidentified Participant
And so have we added any other customers except Maruti over here?
Harish Lakshman
Yeah, we have added one more customer during the January to March quarter which we had announced for a new electric steering program for one of passenger car platforms.
Unidentified Participant
All right, that’s it. Thank you.
operator
Thank you. We take the next question from the line of Mihir Vora from Equidis. Please proceed.
Unidentified Participant
Yeah, thank you for taking my question. So basically sorry to interrupt.
operator
Mr. Hello. Hello. Yes sir, can you please come closer to your device and then speak and a bit louder.
Unidentified Participant
Yeah. Am I audible now?
operator
Yes, thank you.
Unidentified Participant
So basically my question was that I was going through the order book and it has been quite good in the quarter. So is it something that, you know there’s a new order wins or is it replacement of some previous products also?
Harish Lakshman
It’s a combination of both. I don’t have the exact split up but a lot of it is also the new business.
Unidentified Participant
And can we expect this to continue at the same range or you know, slightly below but you know it was quite positive to see that number.
Harish Lakshman
So, you know, I don’t want to give any numbers except I can tell you that we are optimistic that, you know, the order book pipeline looks good and we are confident of continuing to book a lot of new business. Now whether we can maintain this, there are always quarter to quarter variations. So I don’t want to predict. But I can tell you that we feel positive about winning new businesses, booking even more businesses.
Unidentified Participant
And the second part is on the technology front. You know, now we are also seeing stair by wire technology coming in from the dev. So basically this still has a very nascent penetration. But if this product starts, you know, in the penetration for this increases. How do we see Rane Madras products into the steering system placed here? Because that is mainly into the intermediate parts. So how do we see that risk?
Harish Lakshman
Yeah, no, so you know, the sphere by wire, I’ll put it into two parts as far as the export is concerned. You know, Rane Madras has a lot of opportunities to be a tier 2 supplier to the major steering players like Bosch ZF next year. In fact, I can share with you that we already supply to one or two tier by wire products for exports. As far as the Indian market is concerned. The market is still far away for steer by wire type of products in Indian market. But however, certain other advanced steering technologies like rack drive, those will start coming into the Indian market.
And as you know we have signed a license agreement with ZF to bring those through the joint venture that we have. So those business as far as Indian market is concerned that we are hopeful that ZF Ranier will capture that business. And once we do that, there is potential for Rani Madras to be a supplier of certain components for those products in the domestic market.
Unidentified Participant
Okay. Okay, sir. And the final question would be like recently which the landfill which we have done. So just wanted to understand whether this would be a complete full on land sale or there’s some terms like you know, we’ll be receiving payments in a period of say, two years, three years or it would be a spot.
Harish Lakshman
No, no, no. It’s over a fixed period.
Unidentified Participant
Okay, okay. And so the debt reduction target remains the same, around 150 crores.
Harish Lakshman
Correct? Correct. Yes.
Unidentified Participant
All right, so that’s all from my side. Thank you.
operator
Thank you. We take the next question from the line of Pratik Kothari from Unique pms. Please proceed.
Unidentified Participant
Yes. Hi. Good afternoon, sir. On the land sale again, I mean, so given this kind of exceeds what our expectations were overall, does the other land parcel also still stay in place for us to monetize or not anymore.
Harish Lakshman
Sorry, can you repeat your question?
Unidentified Participant
Yeah. So this Velacheri land sale, which we did, I mean, exceeds, I mean, so earlier our expectations were we wanted to monetize 100, 200 crores of land. This itself gave us 350 crores. So do we intend to do another. Parcels of land which we had put out in that voting, shareholders vote, we had taken for some three, four land parcels. So does that still stay in play or we are done in terms of selling off land?
Harish Lakshman
Yeah. So, you know, I mean, all those properties mentioned in that shareholders approval are surplus and there is no foreseeable need. So if we find an economically valuable proposal, you know, if it’s a good deal, we may do it. So the short answer to your question is we are continuing to evaluate some more options. No decisions have been taken.
Unidentified Participant
Correct. So there’s a possibility that we might be able to monetize a large part of our. I mean, we might be able to reap large part of our debt this year itself. I mean, Velacheri plus maybe those other parcels.
Harish Lakshman
It’s a possibility. Yeah.
Unidentified Participant
Fair enough. And so second, two aspects. One, we wanted to, I mean, this is Rani Madras specific. So one, after, I think four, six quarters, we are seeing some movement in exports. We are seeing some growth coming back which we used to see for three, five years earlier. So one comment. Is anything changing anything you would like to highlight this?
Harish Lakshman
Well, no, I mean, clearly there has been after almost four quarters of flat or negative growth in exports. We are seeing some, you know, some uptick in the market. But obviously the latest development on the unexpected development on the tariffs is making us, you know, concerned or nervous. So we’ll have to see what happens. But otherwise, you know, with some of the market coming back as well as some new business that we have won, you know, should continue.
Unidentified Participant
But this export growth that we saw would be across geography. Right. Including Europe.
Harish Lakshman
Yes, yes.
Unidentified Participant
Lastly on margins. Right. So we intended to take this margins up to double digit, maybe 1112. And also last quarter we did speak about some synergies coming in after merging all of these businesses together. So one, if you can highlight, I mean three, six months into this process, I mean are those synergies materializing? Is it material enough for our size and scale? And second, on a trajectory towards this double digit margins.
Harish Lakshman
Yeah, so yeah, definitely the synergies are beginning to come in. As we communicated earlier, I would break down the synergies into three buckets. One is straightaway immediate actor on the day of the merger which are largely compliance driven cost reduction from running three public listed companies to one public listed company. So obviously those have already been realized. Then there are some short term synergy benefits of consolidating the financial position, therefore leveraging the balance sheet to reduce things like interest rate etc. So those kind of things are also underway and some of it has also been realized and some more will be realized soon.
And in that also there are also some other indirect materials that procurement there are by consolidated buying. So those are in active discussion right now and we expect some results also during this year. So I think all put together these from a short term perspective we expect a 1% as I said during the RML AGM, you know 1% improvement in margin is a sure possibility at the current volume level. And then in the longer term is the third bucket which is little bit more synergies of consolidated direct material purchasing, centralization of certain organization functions, etc.
Which will take a few more years to come. But in the next 1824 months we will start to see those. So a combination of these initiatives combined with hopefully some growth in the market, the passenger car market and the CV market start growing in high single digit if not double digit. If all that happens, I think we are on track to hit double digit EBITDA margins.
Unidentified Participant
Just to clarify, this 1 percentage increase in margin is just from this very immediate and short term synergies which you are expecting?
Harish Lakshman
Yeah, over a year. That’s as I said.
Unidentified Participant
Sure. Thank you and all the best.
operator
Thank you. We take the next question from the line of Mithun from Kiva and advisors. Please proceed.
Unidentified Participant
Yes, myself one question on the Zfrani business you’ve seen a quarter on quarter, slight decline in the margin. I just wanted to know out of the 625crores how much is in the the safety business and how much in the remaining business is the revenue mix currently?
Harish Lakshman
Yeah. So if you look at the safety business during the Q1. Yeah, yeah. So the 389 crores was from the safety business and 218 crores was from the steering business. And actually the steering the safety business there was a 28% growth. And also, of course that’s also because of the acquisition that we did of the steering wheel business. So that’s the reason for the growth. The steering business had a minus 3% as I mentioned, largely because of the commercial vehicle market.
Unidentified Participant
Got it. And I just wanted to understand. And you mentioned that the steering business has higher margins than the safety business, right?
Harish Lakshman
Yes.
Unidentified Participant
So we will get top line growth, but maybe the margins will be more in the 10, 11% range. Or could we do better than that in this ZF Rani business?
Harish Lakshman
No. I mean, unless the commercial vehicle market picks up, I’m not seeing an opportunity. We are all hopeful the commercial market will pick up during the second half. If that happens, margin expansion is definitely possible.
Unidentified Participant
Also you had mentioned that last time that the safety business of ZF Rani would be moved and housed into a separate company. I just wanted to understand the timeline for that and any implications of that happening.
Harish Lakshman
Yeah. So the process is well underway as announced earlier. Right now the matter is through going through the NCLT process. I’m not able to give an exact timeline, but it should happen during this financial year. So in the next two quarters, you know, Q2, Q3, I don’t know in case of some procedural, it could go to Q4, but I think during the next six to nine months it should happen.
Unidentified Participant
And then we would have 49% of that business or it would become 100% subsidiary of Zfrani.
Harish Lakshman
No, no, this will be two separate joint ventures.
Unidentified Participant
Okay.
Harish Lakshman
Yeah. So RHL will own 49 in one joint venture and 49 in the other joint venture.
Unidentified Participant
And any implications of that too, in terms of costs or anything? Sorry, any, any implication of costs or any sort of benefit? Okay.
Harish Lakshman
No, I mean this is largely being done because ZF took a decision to globally carve out their occupant safety business. So as a part of that process, we are also supporting ZF in that move.
Unidentified Participant
Understood. And on the Ranius steering systems business, we’ve seen some quarter on quarter improvement on the margins even on a year on year basis to about 3.9%. Just wanted to understand. That’s quite a significant improvement. So just wanted to understand how the trajectory of the margins here would move on an annual basis.
Harish Lakshman
As I explained earlier already this quarter there were also some price increases of last year. That were received during this quarter. So that drove the margin improvement. And of course there is some improvement also through efficiency that’s happening. But as I explained, it’s going to take a few more years before we see EBITDA levels going up further. I mean this 3, 4% EBITDA definitely is. We have visibility, but beyond that is a function of, you know, some of the new business kicking in, etc. So it’s going to take some time.
Unidentified Participant
So what levels would the new business be at? Just to understand.
Harish Lakshman
Sorry, what level,
Unidentified Participant
what level the margins would the new business be at?
Harish Lakshman
Those would be at about 8, 8% EBITDA.
Unidentified Participant
Okay, thank you as we join.
operator
Thank you. We take the next question from the line of Komal from Ratna Bali Group. Please proceed.
Unidentified Participant
Hello. Hello.
Harish Lakshman
Yes.
Unidentified Participant
Yeah, hi sir. So I just wanted to understand on the status of our current provisioning of the legacy order book. So where are we at? And like are we done with it or like still there’s more to come?
Harish Lakshman
Sorry, I didn’t understand the question. Can you repeat?
Unidentified Participant
So the provisioning part of our legacy orders, like the, like the ones in the Rani Steering. So are we, do we see more provisioning in the coming quarters or are we done with it?
Harish Lakshman
So you’re talking of the legacy warranty matter, correct?
Unidentified Participant
Correct. Correct.
Harish Lakshman
Yeah, yeah. No more. No more. There definitely be no more provisions.
Unidentified Participant
Okay, okay. That was all from my search, sir. Thank you.
operator
Thank you. We take the next question from the line of Raja Kumar Vaidyanathan, an individual investor. Please proceed.
Unidentified Participant
Yeah, good afternoon, sir. Thanks for the opportunity. Few questions. So first one, any update on the receipt of balance consideration for the sale of the US Subsidiary? Do we have any update?
Harish Lakshman
You know, the. No, there is no update. As you know, we have written it off completely in our books. Theoretically there is a chance that we might get it, but I personally don’t think it will be happening. It will happen in the short term. You know, we still don’t know what’s going to happen to that business. Whether it will survive, whether it will go into bankruptcy and if it goes into bankruptcy, whether after the liquidation process there is a. There is a possibility of us getting some money, but I am not able to see any visibility for it right now.
Unidentified Participant
Okay, but don’t you think that with the tariff situation that unit will revive and there is a possibility of recording the money?
Harish Lakshman
No, I don’t think it’s a possibility. See, because the. Even if the tariff situation, this kind of manufacturing, you know, sustaining in us just doing casting and machining you know, I really. I’m not able to see whether that will happen. But we don’t know. I mean we are no longer connected with that business. But I think they will find it very difficult because again that will solve a huge investment. And I don’t know whether the new owners are willing to make that kind of investment.
Unidentified Participant
Okay. Okay. And the next question is on this landfill. In the press release you mentioned that some portion of the land in Vilachari is retained for constructing an office where all the office of Rani Group will be consolidated. So I just want to know you, you will that include the offices that you have in your Katydal Road, Chennai as well?
Harish Lakshman
No, that is not included. That is part of Ranifolding. So all the Rani Madras businesses, you know that are. They are active today spread across. There are five or six city offices etc that will all get consolidated.
Unidentified Participant
Okay, got it sir. And sir, just two clarification. So the first one is you in the call. In initial call you mentioned the tariffs in situation impact on the Rani Group. But that was more for Rani Madras. So I just want to know will there be any impact on Rani Steering and the ZF Group?
Harish Lakshman
Yeah. So Rani Steering has almost zero exports that go to North America. So negligible. So therefore the tariff will not impact rssl. Zrai. There is again not a significant, there is some exports to North America but it’s not a significant number. So therefore these two businesses will not get impacted by the tariff.
Unidentified Participant
Okay, got it sir. And sir, just one suggestion. In your PowerPoint, you know you’re giving the revenue EBITDA and PAT but there is no PBT mentioned. So. And there’s a lot of movement in numbers. So it would be helpful if you also give the PBT numbers for each of the divisions.
Harish Lakshman
Review this.
Unidentified Participant
Okay? Yeah. Thank you.
operator
Thank you. We take the next question from the line of Lakshmi Narayan from Tunga Investments. Please proceed.
Unidentified Participant
Thanks again, Harish. See, Zs in Germany is facing certain issues. Now how that is it, Is it affecting or is it influencing any of the decisions which they are taking in India either committing capacity or committing technology or is it actually the velocity of those transactions have come down. Can you just throw some light on that?
Harish Lakshman
Yeah. So you know, I’m not able to exactly answer your question yet. The fact is ZF is going through a very difficult time and therefore they have to recalibrate themselves. As far as the joint venture is concerned. This is a, you know, it’s a self driven kind of a joint venture. There is not much involvement with the financial situation. Of zf. So therefore it will not impact the joint venture in any manner. So the relationship is very strong. And therefore when they are going through a difficult time, Rane will also be with them and stay with them.
They are a strong company as far as their ambitions in India etc. Are concerned. I don’t know the details. I’m guessing that they are controlling how much capital they spend. And while I’m. But at the same time I’m sure they realize that India has a strong growth story. So how they’re going to calibrate both, I’m not aware.
Unidentified Participant
In your capacity expansion, the capital would be committed in the proportion of your joint venture, right?
Harish Lakshman
Yeah. But as you can see, the joint venture company by itself is very healthy. And the balance sheet can support its own source of funds. So it’s not like Rane holdings and ZF have to bring in fresh equity or anything. So they will fund growth.
Unidentified Participant
Under SK division. Is there any tax credit you get? Because there has been a lot of losses which you may be carrying forward. So what is the tax asset that is being created? Whether you will actually get some benefit in terms of tax? Because this quarter I see that the path is higher. So can you just help me understand that part?
operator
Thank you. The next question is from the land of Ankur Jain, individual investor. Please proceed.
Harish Lakshman
We’ll come back to your question. Yeah, please continue.
Unidentified Participant
Yeah, I have one question. How much debt we have in ranes? Hearing.
Harish Lakshman
About 170. Around 175.
Unidentified Participant
Side. And. Okay. And then I. I see that we are going to infuse more capital. Rani holding is going to infuse more capital energy. So the debt will down.
Harish Lakshman
Yes, that will come down.
Unidentified Participant
Okay, understood. And for the Velasari land, we have received 100 crores. And when are we going to receive the balance?
Harish Lakshman
There is a scheduled payment over the next, you know, 12 months.
Unidentified Participant
Over 12 months. Okay. Okay, thank you.
Harish Lakshman
Part of the payment, you know, I mean not the entire, that 360. As I said, that’s a combination of, you know, us retaining some space for the office etc. So. But a bulk of it will come in the next 12 months.
Unidentified Participant
Okay, understood. Thanks.
Harish Lakshman
Coming back to that at the pan.
operator
Thank you. We take the next question from the line of Raja Kumar Vaidyanathan, an individual investor. Please proceed. I would request Mr. Raja Kumar to unmute and then speak.
Unidentified Participant
Yeah, so thanks for the follow up. Sir, I just wonder what is the warranty provision you are carrying? Sandeep.
Harish Lakshman
The warranty Provision is about 20. Around 19 crores Around 19 crores is a leftover provision.
Unidentified Participant
Okay. And can you also give me what was the amount we utilized in the last two quarters? Is it possible.
Harish Lakshman
How much provision was used in the last two quarters?
Unidentified Participant
Yeah, because I want to know whether there has been any moment or there. Is no moment,
Harish Lakshman
marginal moment, maybe three, four crores.
Unidentified Participant
Okay. So there’s a potential opportunity to have a reversal of this at some point.
Harish Lakshman
We’ll take a decision probably by January, February. We still can’t tell with certainty.
Unidentified Participant
Okay. Okay, got it. And so the second question is I know we have done the merger at RNN level. So. So I asked this question in couple of calls prior to this. So I just want to know, so do you have this agenda of consolidating further at RHL level? Maybe not this year, next financial year, will that be in your part of your agenda?
Harish Lakshman
No. So we keep looking at this from time to time and as and when you know there is some need is appropriate it and it makes sense from a shareholder perspective. We will definitely consider, you know, right now there’s nothing immediate on the horizon.
Unidentified Participant
Okay. Okay. Thank you.
operator
Thank you. We take the next question from the line of Lakshmi Narayan from Tunga Investments. Please proceed.
Unidentified Participant
Yeah, my question was unanswered. You could get that question in the fact that.
Harish Lakshman
No, we didn’t understand the question. What is your question on Pat Lakshmi?
Unidentified Participant
No, no. See there is, there may be some tax credit you would get because there has been some losses in the steering business. How much is that total amount? That is number one. And second, whether that would be consumed over what period of time and then what? And you talked about the margins at 3.9% or so. So do you think at least that 3 to 3.3 to 4% of margin can be. Is something which you can actually assume for the next couple of years.
Harish Lakshman
So Lakshmi, most of the tax losses have already been used if you recollect, as part of the nsk, as part of the NSK settlement last year the company received 100, 276 crores as income last year in the month of September or so. At that point in time most of the unabsorbed losses etc was set up.
Unidentified Participant
Okay, got it. And on this margin of 3.9% which you have, is it something which one can at least assume that the band of three to four is something which would actually operate for the next foreseeable future before the new businesses could kick in?
Harish Lakshman
Yes. See the new businesses don’t kick in till two years from now. So till set time yes. This 3 to 4%, you know, more. More three than four is what you know we are trying to achieve.
Unidentified Participant
Got it. And. And on Rane Madras what is the debt we are carrying? And I think after this particular land transaction what will be the debt we’ll have?
Harish Lakshman
So RML, where is it? 796 crores. 796 crores is the current debt as on June 30 and okay. So since then another 70, 75 crores has been paid off. So it will continue to come down. You know as I said earlier about 150 crores is the target during this year.
Unidentified Participant
Got it. And what I mean how our market share has performed in terms of the steering systems and the OSB market. Market share.
Harish Lakshman
So we are continuing to maintain our share. There is no significant movement. We continue to. As far as steering is concerned, as you know we are the largest supplier in Maruti and then that continues. And Occupant safety system, they have made good inroads into customers like Mahindra. So there’s no significant share movement.
Unidentified Participant
Got it. Got it. Any new platform wins we have in terms of these two divisions like. Both. OSD as well as the steering.
Harish Lakshman
I don’t have the breakup. There has been some winning, some new business winning part of that 800 crores. And I think we have put it in the investor presentation. We have given the breakup of the. Of the wins.
Unidentified Participant
Thank you.
operator
Thank you. Before we proceed with the next call I would. I would like to remind participants that in order to ask a question please press star N1. We take the next question from the line of Jigar Shah and financial research. Please proceed.
Jigar Shah
Thank you. Thank you. My question has been answered. Thank you so much and all the best.
Harish Lakshman
Thank you.
operator
Thank you so much. We take the next question from the line of Krishna Kumar from Lion Hill Capital Private Limited. Please proceed.
Unidentified Participant
Good afternoon, sir. So since now we have completed the consolidation at Rana Madras level, is there any guidance that you can share in terms of how do you look at merger of Ram Air steering systems into Ramen draws to get more synergy benefits? Is that a possibility or is that company kept separate to make sure we get some technology or strategic partners there? What would be the way forward over the next couple of years on that?
Harish Lakshman
Sir, as I explained few minutes ago there’s no immediate plan right now. As you know the NSK transaction happened subsequent to our announcement of of the merger. And we had kept out the joint ventures at that time. So this is something that we will keep reviewing. You know, every time and when it makes sense for all shareholders, both Rani holdings shareholder Animad shareholders, you know decisions will be taken but there is nothing immediate right now.
Unidentified Participant
Thank you very much sir.
operator
Thank you. Ladies and gentlemen, a reminder to all in order to ask a question please press Star in one. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Harish Lakshman
So thank you all for your time and detailed questions. We appreciate your continued interest and support. I think despite the immediate challenges globally due to geopolitical and tariff related issues, we continue to remain confident in our strategy and the strength of the Indian market as articulated. We continue to see opportunities to enhance our profitability across our product line. I also wanted to share that based on the feedback received from many of you, we have moved now from a half yearly to quarterly call with all the investors. Going forward these calls will be handled by Mr.
Padmanabhan. He is our group CFO and a team that is going to be specifically focused on providing answers to the investors. And I will continue to be there in the calls twice in a year. So next next quarter you will hear from Padmanabhan and team and then maybe I will join the subsequent quarter. So I want to thank you all for your participation in this call and let’s hope that the company’s performance continues to improve every quarter. Thank you.
operator
Thank you on behalf of Rane Group limited that concludes this conference. Thank you for joining us in and you may now disconnect your lines.