In , Rane (Madras) Ltd (Auto Ancillaries - Gears) is outperforming Nifty 500 with +11.0% relative strength. Fundamentals: Average.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Feb 28, 2026
What: ₹650 cr YTD orders with 12-18 month ramp-up timeline targeting double-digit EBITDA margins
Impact: +₹650 Cr revenue
“S. Prasad: "we are looking at a 12 to 18 months kind of a window"”
What: Cost reduction initiatives driving margin improvement from 9.3% to double digits
Impact: 100 bps margin impact
“P. A. Padmanabhan: "we are fairly confident that in the coming financial year, we will touch double-digit EBITDA numbers"”
What: Debt reduction from ₹764 cr to ₹500 cr by FY27 end driving interest cost savings
Impact: 8% PAT impact
“P. A. Padmanabhan: "gross debt in Rane Madras is close to INR764 crores. So that should come down to close to INR500 crores by end of financial year '27"”
Earnings deceleration risks from management commentary
Trigger: Further remediation costs
Impact: 150 bps margin impact
Management view: Question raised but no direct answer in transcript about future provisions impact on margins.
Monitor: Warranty provisions in next quarterly filings
Trigger: Execution challenges
Impact: 200 bps margin impact
Management view: Management acknowledges 12-18 month ramp-up but doesn't address potential delays
Monitor: Quarterly order execution rates vs timeline
Key quotes from recent conference calls
“we are looking at a 12 to 18 months kind of a window — S. Prasad”
“we are fairly confident that in the coming financial year, we will touch double-digit EBITDA numbers for Rane Madras — P. A. Padmanabhan”
“the orders that we have actually won in this quarter is about INR130-odd crores, particularly for Rane Madras. And over this entire year, if you look at it for the last 3 quarters, we have won about INR650 crores of orders for Rane Madras — S. Prasad”
“We don't give guidance for the future quarters in terms of EBITDA, but we could -- I would say that we are moving in the right direction — P. A. Padmanabhan”
Forward-looking targets from management for FY27
Implied PAT Growth
15%
OPM Guidance
10%
Capex Plan
₹200 Cr
Key Milestones
• Double-digit EBITDA margins by FY27
• Debt reduction to ₹500 cr by FY27 end
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +16% | +18% | Stable |
| PAT (Net Profit) | +429% | +53% | Accelerating |
| OPM | 9.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 28, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Rane (Madras) Ltd's latest quarterly results (Mar 2026) show
Rane (Madras) Ltd's profit is growing with an accelerating trend.
Rane (Madras) Ltd's revenue growth trend is stable.
Rane (Madras) Ltd's operating margin is expanding.
Rane (Madras) Ltd's long-term compounding rates
Rane (Madras) Ltd's earnings growth is accelerating with positive momentum on a sequential basis.
Rane (Madras) Ltd's trailing twelve month (TTM) performance
Rane (Madras) Ltd appears fairly valued based on our fair value analysis.
Rane (Madras) Ltd's current PE ratio is 23.0x.
Rane (Madras) Ltd's current PE is 23.0x.
Rane (Madras) Ltd's price-to-book ratio is 3.4x.
Rane (Madras) Ltd is rated Average with a fundamental score of 53.28/100. This score is calculated from objective financial metrics
Rane (Madras) Ltd has a debt-to-equity ratio of N/A.
Rane (Madras) Ltd's return ratios over recent years
Rane (Madras) Ltd's operating cash flow is positive (FY2026).
Rane (Madras) Ltd's current dividend yield is 0.87%.
Rane (Madras) Ltd's shareholding pattern (Mar 2026)
Rane (Madras) Ltd's promoter holding has remained stable recently.
Rane (Madras) Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Rane (Madras) Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Rane (Madras) Ltd has 3 key growth catalysts identified from recent earnings analysis
Rane (Madras) Ltd has 2 key risks worth monitoring
In Q3 FY26, Rane (Madras) Ltd's management highlighted
Rane (Madras) Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why Rane (Madras) Ltd may be worth studying
Rane (Madras) Ltd investment thesis summary:
Rane (Madras) Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
