Rane (Madras) Posts Strong YoY Profit Surge Despite Sequential Dip
The auto ancillary firm's profit jumped 71.7% year-on-year, though both revenue and profit softened slightly from the previous quarter.
Rane (Madras) reported robust yearly growth with profit up 71.7%, but saw a sequential decline in both sales and earnings for Q1 FY27.
Rane (Madras) Ltd. delivered a quarter of powerful year-on-year growth but a slight sequential pullback. The auto components supplier's profit after tax surged 71.7% compared to the same quarter last year, significantly outpacing an 18.3% rise in revenue. This indicates a strong improvement in profitability from its operations a year ago.
However, compared to the preceding quarter (Q4 FY26), both top and bottom lines softened. Revenue dipped 0.6% quarter-on-quarter, while profit fell 13.6%. The net profit margin for Q1 FY27 stood at 3.1%, a full percentage point higher than the 2.1% margin in Q1 FY26, but down from 3.6% in the previous quarter.
The recent trajectory shows a company that has steadily built its performance over the past year.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 1,041.65YoY +18% | 1,047.87 | 880.88 |
| Profit (₹ Cr) | 32.15YoY +72% | 37.23 | 18.72 |
| Net Profit Margin (%) | 3.1YoY +48% | 3.6 | 2.1 |
This multi-quarter view highlights a clear upward trend in both revenue and profit over the last five quarters, with the latest period maintaining revenue above the ₹1,000 crore mark. The trailing twelve-month (TTM) profit stands at ₹124.87 crore on revenue of ₹4,024.19 crore, yielding a TTM net profit margin of 3.1%.
Key Points
- The company maintains a solid balance sheet with a debt-to-equity ratio of 0.84 and a return on equity (ROE) of 15.24%.
- The stock has delivered strong returns, gaining 25.1% over the past year and 66.9% over three years.
- At a P/E of 16.0, RML trades at a significant discount to its industry P/E of 39.3.
The challenge for Rane (Madras) will be to reignite sequential growth and defend its improved profitability in the coming quarters.
Live Chart
· RML
(BSE)
ISIN: INE050H01012
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