{"id":181163,"date":"2026-02-17T03:23:19","date_gmt":"2026-02-17T08:23:19","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=181163"},"modified":"2026-02-17T03:23:19","modified_gmt":"2026-02-17T08:23:19","slug":"rane-madras-shares-rise-as-net-profit-jumps-in-third-quarter","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/rane-madras-shares-rise-as-net-profit-jumps-in-third-quarter\/","title":{"rendered":"Rane (Madras) Shares Rise as Net Profit Jumps in Third Quarter"},"content":{"rendered":"\n

Rane (Madras) Limited (NSE: RML)<\/strong> shares rose 1.52 percent to close at 831.80<\/strong> on Tuesday, following the release of the company’s third-quarter financial results. The stock fluctuated between an intraday low of 810.00 and a high of 837.90 during the session on the National Stock Exchange.<\/p>\n\n\n\n

Market Capitalization<\/strong><\/h2>\n\n\n\n

As of February 17, 2026, the market capitalization of Rane (Madras) Limited stands at INR 23.03 billion<\/strong> (approximately USD 274 million).<\/p>\n\n\n\n

\n\n\n\n

Latest Quarterly Results<\/strong><\/h2>\n\n\n\n

For the quarter ended December 31, 2025, Rane (Madras) reported a consolidated revenue of INR 1,019.1 crore<\/strong>, representing a 21.3 percent<\/strong> increase compared to INR 840.5 crore in the same period of the previous year.<\/p>\n\n\n\n

Consolidated net profit reached INR 30.5 crore<\/strong>, a significant increase from INR 0.4 crore in the year-ago quarter. The company noted that the prior year’s profit was impacted by a one-time tax credit reversal of INR 8.27 crore.<\/p>\n\n\n\n

Segment Performance Highlights:<\/strong><\/h2>\n\n\n\n
    \n
  • Domestic OE Sales:<\/strong> Revenue increased 18 percent year-on-year, supported by demand across passenger and commercial vehicle segments.<\/li>\n\n\n\n
  • International Sales:<\/strong> Revenue grew 21 percent, driven primarily by the steering products category.<\/li>\n\n\n\n
  • Aftermarket Sales:<\/strong> Revenue rose 32 percent, though the company noted this figure is not directly comparable due to business restructuring in the previous fiscal year.<\/li>\n<\/ul>\n\n\n\n
    \n\n\n\n

    FINANCIAL TRENDS<\/strong><\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n
    \n\n\n\n

    Nine-Month Overview<\/strong><\/h2>\n\n\n\n

    For the nine-month period ended December 31, 2025, the company reported a total income of INR 2,824.7 crore<\/strong>, compared to INR 2,514.0 crore in the previous year. This represents an 12.4 percent growth in revenue.<\/p>\n\n\n\n

    Net profit for the nine-month period stood at INR 74.2 crore<\/strong>, up from INR 41.0 crore in the prior year. The directional trend indicates growth in both revenue and profitability over the three quarters of the fiscal year.<\/p>\n\n\n\n

    \n\n\n\n

    Business & Operations Update<\/strong><\/h2>\n\n\n\n

    Rane (Madras) announced the appointment of Konark Kumar Gupta<\/strong> as President of the Aftermarket Products Business, effective February 9, 2026. The company also secured new orders worth INR 135 crore<\/strong> during the quarter, including INR 115 crore in the steering and linkages business and INR 20 crore in brake components.<\/p>\n\n\n\n

    \n\n\n\n

    Discussion Focal Points (Q&A Session)<\/strong><\/h2>\n\n\n\n

    During the Q3 2026 earnings conference call, the management of Rane (Madras) Limited addressed several focal points regarding the company’s financial health and strategic direction:<\/p>\n\n\n\n

      \n
    • Margin Expansion and Cost Management:<\/strong> Analysts questioned the sustainability of the 310 basis point improvement in EBITDA margins. Management attributed this to favorable product mix<\/strong> and operating leverage<\/strong>, noting that while raw material costs have stabilized, they remain focused on value engineering to offset any potential volatility in steel prices.<\/li>\n\n\n\n
    • International Order Pipeline:<\/strong> In response to queries about the 21% growth in export sales, the executive team highlighted a strong order book<\/strong> in the steering linkages segment for North American and European heavy-duty platforms, projecting a steady execution timeline over the next 18 to 24 months.<\/li>\n\n\n\n
    • Aftermarket Restructuring:<\/strong> Following the 32% growth in aftermarket revenue, management clarified that the integration of the previous year’s business acquisition is now complete. They stated that the focus has shifted toward geographic expansion<\/strong> within India and increasing the penetration of friction products.<\/li>\n\n\n\n
    • Debt Reduction and Capex:<\/strong> Regarding the balance sheet, the management confirmed a disciplined approach to capital expenditure, prioritizing internal accruals<\/strong> for capacity debottlenecking. They signaled a commitment to further reducing the debt-to-equity ratio, which has seen sequential improvement.<\/li>\n\n\n\n
    • Tax Litigation Status:<\/strong> Addressing the INR 12.23 crore CGST demand, the company stated it has received legal counsel suggesting a strong merit-based case<\/strong> for appeal and does not expect a material adverse impact on the current fiscal year’s liquidity.<\/li>\n<\/ul>\n\n\n\n
      \n\n\n\n

      Capital Expenditure & Strategic Outlook<\/h3>\n\n\n\n

      Management has outlined a disciplined Capex plan aimed at supporting new order wins and enhancing manufacturing efficiency.<\/p>\n\n\n\n

        \n
      • FY2026-27 Capex Outlay:<\/strong> The company is prioritizing internal accruals<\/strong> to fund its capacity expansion. While specific aggregate figures for the upcoming year are typically finalized in the Q4 board meeting, management indicated that the current focus is on debottlenecking<\/strong> existing lines in the Steering & Linkages division.<\/li>\n\n\n\n
      • Expansion of High-Growth Segments:<\/strong> A significant portion of the planned investment is directed toward the Light Metal Castings<\/strong> division and the Brake Components<\/strong> business, where the company recently secured new orders worth INR 20 crore<\/strong>.<\/li>\n\n\n\n
      • International Fulfillment:<\/strong> To service the INR 75 crore<\/strong> in new international steering orders, the company is upgrading its automated machining and assembly lines to meet global quality standards and “Just-in-Time” delivery requirements.<\/li>\n<\/ul>\n\n\n\n

        Performance Summary<\/strong> <\/h2>\n\n\n\n

        Rane (Madras) shares closed 1.52 percent higher<\/strong> today at 831.80. Third-quarter consolidated revenue grew 21.3 percent<\/strong> to INR 1,019.1 crore, while net profit rose to INR 30.5 crore. Segment growth was led by a 32 percent rise in aftermarket sales and 21 percent growth in international markets.<\/p>\n","protected":false},"excerpt":{"rendered":"

        Rane (Madras) Limited (NSE: RML) shares rose 1.52 percent to close at 831.80 on Tuesday, following the release of the company’s third-quarter financial results. The stock fluctuated between an intraday low of 810.00 and a high of 837.90 during the session on the National Stock Exchange. Market Capitalization As of February 17, 2026, the market […]<\/p>\n","protected":false},"author":2392,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,1941,392,5753],"tags":[10169,14492,16629],"class_list":["post-181163","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-stock-analysis","category-earnings","category-industrials","tag-earnings","tag-financial-results","tag-rml"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":175195,"url":"https:\/\/alphastreet.com\/india\/rane-madras-limited-rml-q2-2025-earnings-call-transcript\/","url_meta":{"origin":181163,"position":0},"title":"Rane (Madras) Limited (RML) Q2 2025 Earnings Call Transcript","author":"News desk","date":"January 22, 2026","format":false,"excerpt":"Rane (Madras) Limited (NSE: RML) Q2 2025 Earnings Call dated Nov. 08, 2024 Corporate Participants: Diwakar Pingle \u2014 Investor Relations Harish Lakshman \u2014 Chairman P.A. 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