Rane (Madras) Q1 net profit up 27 per cent

Rane (Madras) Limited has reported a 27 per cent year-on-year increase in Profit After Tax (PAT) for the first quarter of FY26, with net profit rising to ₹18.5 crore from ₹14.6 crore in the same period last year. The company attributed the growth to improved operational efficiencies, despite incurring ₹1.01 crore in voluntary retirement expenditure during the quarter, classified under exceptional items.

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EBITDA rose 10.9 per cent year-on-year to ₹78.5 crore, compared to ₹70.8 crore in Q1FY25. The EBITDA margin improved by 29 basis points to 8.9 per cent, supported by reductions in freight and consumable costs.

Total revenue for the quarter stood at ₹884.4 crore, up 7.4 per cent from ₹823.8 crore a year ago. The growth was driven by a 7 per cent increase in sales to domestic OEM customers, primarily due to higher off-take in the passenger vehicle and farm tractor segments. International sales rose 15 per cent, supported by strong demand for steering products, while sales in the Indian aftermarket segment grew 2 per cent.

Following the recent completion of its merger, the company said that it was sharply focused on unlocking synergies and reducing costs across operations. It was also working to enhance team capabilities and sales effectiveness, especially in the aftermarket segment, which continued to face headwinds, it added. Rane (Madras) sees potential in expanding its product range and introducing new offerings to tap into emerging opportunities.

The company said that it was closely monitoring the evolving trade conditions in the UA., which accounted for 8 per cent of its total sales. However, it noted that there was no immediate impact from recent tariff changes.

Strong customer relationships and the ability to deliver global-quality products at competitive prices are expected to help the company navigate any future challenges.

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