Q3 2026 Rane (Madras) Ltd Earnings Call Transcript
Key Points
- Rane (Madras) Ltd (BOM:532661) reported a 21.3% increase in total revenue for Q3 FY26, reaching INR1,019.1 crores compared to INR840.5 crores in the same quarter of the previous year.
- The company won new business worth INR130 crores across product categories during the quarter.
- EBITDA margin improved by 106 basis points, from 8.2% to 9.3% in Q3 FY26.
- The India-US trade deal, including tariff reductions, is expected to enhance competitiveness and positively impact customer conversations.
- The company is undertaking cost reduction initiatives across direct and indirect materials, freight, logistics, and warehousing to improve future EBITDA margins.
- A one-off warranty provision of INR230 crores was made by the associate entity ZF Rane Automotive India Private Limited due to product recall liability, impacting financials.
- The company faces challenges in achieving double-digit EBITDA margins due to low-margin orders accepted in previous years and ongoing restructuring efforts.
- Debt levels remain high, with a focus on debt reduction over the next 12 to 18 months, but immediate reductions are not expected.
- The company is dealing with a product recall related to seatbelt buckles in certain North American markets, which may require further provisions.
- Rane Steering Systems is experiencing margin pressure due to low pricing on some orders and labor code provisions, affecting overall profitability.
Ladies and gentlemen, good day, and welcome to Rane Group Q3 FY26 earnings call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Diwakar Pingle from EY. Thank you, and over to you, sir.
Thank you, Machika. Good afternoon, good evening to everyone. Welcome to the Q3 FY26 investor call of Rane Group. To discuss the results and answer your questions today, we have the management team from Rane Group represented by Mr. P.A. Padmanabhan, President, Finance and Group CFO; Mr. J. Ananth, Executive Vice President, Finance and CFO, Rane Holdings; and Mr. S. Prasad, Associate Vice President, Corporate Finance, Rane Holdings.
Just a brief update. I think a couple of quarters before when Rane was trying to do earnings call only for 2 quarters, we got a feedback from the investors for having the regular quarterly calls. So we've kind of shifted back to a quarterly call format.
Since then, with a small caveat that Harish
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