Rane (Madras) Ltd

Meeting Details

• Event: Analyst / Investor Meet.

Business Overview

• Auto components maker across steering, brake, engine parts, light metal castings, and aftermarket products.
• Strategic update: acquisition of Hindustan Composites' Friction Business to scale friction platform.
• Acquisition aims to create India's leading friction solution platform.

Operational Highlights

• Q1 FY27 net sales: Rs 1,029.9 Cr, up from Rs 869.3 Cr.
• Domestic OE sales grew 13%, international 24%, Indian aftermarket 28%.
• 24 new programs won in Q1 FY27; average program life ~6 years.
• LTV of new programs over Rs 2,040 Cr; export share 54% of LTV.
• Acquisition EV Rs 370 Cr for Hindustan Composites' friction business.
• HCL friction business FY26 revenue Rs 315 Cr; PBT Rs 40 Cr.
• Expansion footprint with two Maharashtra plants.

Financial Performance

• Net sales: Rs 1,029.9 Cr in Q1 FY27 vs Rs 869.3 Cr prior year.
• New program wins underpin future revenue visibility with ~6-year program life.
• Combined friction business target: Rs 1,000+ Cr post-acquisition.

Capital Structure & Liquidity

• Acquisition valuation: Enterprise Value Rs 370 Cr for HCL Friction Business.

Strategic Priorities & Outlook

• Strategic rationale: expand friction platform; strengthen CV-OE and Rail segments; EPS accretion.
• Two Maharashtra plants to expand manufacturing footprint and synergies.

Risks & Mitigation

• Integration of HCL friction business; realization of planned synergies and revenue visibility.

Governance & Leadership

• No governance changes disclosed in this update; acquisition integration remains ongoing.

SMP Appointment

• Appointment as Senior Managerial Personnel (SMP) effective Aug 20, 2026.
• Term from Aug 20, 2026 to Aug 31, 2027.
• Reason: Appointment as President - Compo Division.
• Brief profile: Chartered Accountant and Company Secretary with 45 years' experience.
• Associated with Hindustan Composites Limited for three decades.
• Disclosure of relationships with directors: Not Applicable.
• Remarks: Appointment under BTA with Hindustan Composites Limited for friction business acquisition.

Acquisition overview

• Target: Hindustan Composites Limited's Friction Business, integrated into RML's Brake Components division.
• Size/scale: not disclosed.
• Equity stake: none; not a related party transaction.
• Industry: friction materials/brake components (auto components) in India.
• Purpose: expand friction business; EPS accretive from year one; drive synergies.
• Regulatory approvals: customary approvals; fulfilled.
• Timeline: Completed Aug 20, 2026; BTA signed Jun 30, 2026.
• Consideration: slump sale basis; price not disclosed.
• Background: Friction business of Hindustan Composites Limited; no incorporation or turnover details disclosed.

Meeting Details

• Event: Earnings Conference Call, virtual group meeting.
• Date and time: Aug 21, 2026, 15:00–16:00 IST.
• Organiser: Rane Group.
• Pre-registration Express Join available.

Participants

• Key company participants: President – Finance and Group CFO; Sr. EVP - Finance and CFO, Rane (Madras) Ltd.
• EVP– Finance and CFO, Rane Holdings Limited; VP– Corporate Planning, Rane Holdings Limited.

Purpose

• Purpose: Earnings results discussion and investor interaction.

Special Window for Re-lodgement of Physical Share Transfers

• Window open Feb 05, 2026 to Feb 07, 2027.
• Open to re-lodgement of physical transfers rejected due to deficiencies.
• Submit documents to Integrated Registry Management Services (RTA).
• Transfers must be re-lodged in demat mode.
• Period ends February 7, 2027.

Audited Q1 FY27 Results

• Quarter ended 30-Jun-2026; results audited and board-approved.
• Total income from operations reported: Rs 488.38 crore.
• Net profit after tax disclosed; board approval dated 17-Jul-2026.
• Full results format available on NSE Clearing portal.

AR access via web-link

• Dispatches FY2025-26 Annual Report web-link to shareholders without registered emails under SEBI LODR.

Financial performance

• Standalone total income 3,875.01 cr in FY26 vs 3,418.10 cr FY25.
• Standalone EBITDA 352.33 cr FY26 vs 291.70 cr FY25.
• Standalone PAT 111.44 cr FY26; PBT 149.72 cr FY26; FY25 PAT 49.61 cr; 89.86 cr PBT.
• Consolidated revenue from operations 3,862.92 cr FY26; PAT 107.48 cr; EPS 38.89.
• Return on capital employed: Standalone 14.8%; RoNW 15.2%.
• Earnings per share: Standalone 40.32; Consolidated 38.89.
• Dividend declared: 16 per equity share (160% payout); dividend payout ratio 39.7%.
• Net debt to equity: Standalone 0.77; Consolidated 0.78.
• Dividend record date: 29 July 2026; payout date: 14 August 2026.

Capital structure & amalgamation

• Scheme of amalgamation of REVL and RBL with RML approved by NCLT; effective 7 Apr 2025.
• 1,13,71,870 new equity shares allotted on 23 Apr 2025; issued capital 2,76,37,137 shares.
• Authorized share capital increased to ₹47.35 cr; issued share capital ₹27.64 cr.
• Share exchange: 9 new shares for 20 REVL; 21 new shares for 20 RBL.
• Fractional entitlements 9,324 sold; net sale proceeds distributed 31 Jul 2025.
• Overseas subsidiaries: RMIH (Netherlands) 100%; RACM (Mexico) 100%.
• Promoter holdings: Rane Holdings Limited 63.80%; Nisshinbo Holdings Inc. 6.06%.

Governance & leadership

• Harish Lakshman appointed Managing Director from 1 Apr 2025.
• Vikram T. Hosangady appointed Independent Director from 28 May 2025.
• Pradip Kumar Bishnoi to retire from Board on 1 Jul 2026.
• Ramkumar Lakshminarayanan appointed Independent Director for 5-year term from 1 Jul 2026 to 8 Apr 2031.
• Board meetings: 7 in FY25-26; NRC 5; Audit 6; SRC 1; CSR 1; RMC 2.

Operations by product lines

• Steering & Linkages: FY26 sales 1,859.60 cr; domestic 1,186.58; exports 673.02; 17.0% growth.
• Light Metal Castings: FY26 sales 267.53 cr; domestic 152.04; exports 115.49; 2.1% growth.
• Engine Components: FY26 sales 530.02 cr; domestic 358.96; exports 171.06; 4.4% growth.
• Brake Components: FY26 sales 546.40 cr; domestic 491.27; exports 55.13; 11.8% growth.
• Aftermarket: FY26 sales 638.84 cr; domestic 628.44; exports 10.40; 17.3% growth.
• LMCD impairment: goodwill impairment 4.06 cr; LMCD CGU carrying value 250.10 cr; recoverable 246.04 cr.
• Geography: India revenue 3,053.53 cr; Rest of World 763.10 cr; total 3,816.63 cr.
• Single reportable segment: components for transportation; operations in India and Mexico.

CSR, energy & environment

• CSR spend 1.89 cr; Rane Foundation contributed 1.57 cr; focus areas Education, Healthcare, Environment, Community.
• Rane Vidyalaya (Trichy) 1,048 students; 100% X pass; first XII batch in 2026-27.
• Rane Polytechnic (Trichy) 2,120 graduates; 40 placed; 23 pursuing higher studies.
• Velachery land sale: 3.48 acres for ₹361.18 cr; advance ₹145 cr; land held for sale ₹0.02 cr.
• Education & health CSR initiatives across multiple locations; 43 energy-saving projects, 8,44,637 kWh saved.
• Renewable energy contributed ~47% of total energy; ~135.28 lakh units from wind/solar; 15,000 tonnes CO2 saved.

Audit & governance

• Statutory auditors: M/s B S R & Co. LLP; Secretarial auditors: M/s B Chandra & Associates.
• Internal auditors: M/s R. G. N. Price & Co.; TCWG established; no material qualifications reported.
• RPTs reviewed by Audit Committee; omnibus approvals for routine RPTs; disclosures per policy.
• Whistle blower policy in place; board oversight and protection against retaliation.

Assets, liquidity & capital expenditure

• Standalone PPE carrying value ₹624.00 cr; Right-of-use assets ₹92.78 cr; CWIP ₹95.34 cr.
• Total standalone assets ₹2,519.14 cr; equity ₹773.20 cr; total liabilities ₹1,745.94 cr.
• Consolidated assets ₹2,521.04 cr; equity ₹750.56 cr; total liabilities ₹1,770.48 cr.
• Consolidated cash & cash equivalents ₹46.18 cr; net debt ₹586.71 cr; net debt/equity 0.78.
• Velachery land sale advanced ₹145 cr; 3.48 acres; total land held ~4.50 acres.
• Capital work-in-progress aging: current projects under execution; capacity enhancement and other projects.

Geography & customers

• Revenue by geography: India ₹3,053.53 cr; Rest of World ₹763.10 cr.
• No single customer accounts for more than 10% of sales.
• Overseas subsidiaries: Mexico operations via RACM; Netherlands via RMIH.

Notes on risk & outlook

• Global economy projected 3.1-3.2% growth in 2026-27; India remains fastest-growing major economy.
• Risks: Middle East conflict, higher energy costs, currency volatility, supply-chain pressures.
• Industry backdrop: GST reforms, policy support (PLI), and localisation driving medium-term opportunities.