Rane (Madras) Reports ₹37.6 Cr Full-Year Profit in FY25, Sees Margins Improve Despite Revenue Dip

Rane (Madras) Limited reported a consolidated profit after tax of ₹37.6 crore for the financial year ended March 31, 2025, compared to ₹54.8 crore in the previous year, marking a 31.2% decline. The company announced its earnings on May 27, following the completion of its merger with Rane Brake Lining Ltd. and Rane Engine Valve Ltd.

Total revenue for FY25 stood at ₹3,421.4 crore, slightly lower than ₹3,473 crore in FY24, representing a 1.5% decline. EBITDA for the year grew by 6.9% to ₹297.7 crore, with margins improving to 8.7%, up from 8.0% in the previous year.

In the fourth quarter of FY25, consolidated revenue rose by 5.8% year-on-year to ₹905.3 crore. EBITDA grew to ₹82.8 crore, a 14.7% increase over the same period last year. Q4 EBITDA margins reached 9.1%, compared to 8.4% a year ago. However, net profit declined to ₹6.5 crore in Q4 FY25 from ₹10.8 crore in Q4 FY24.

The company attributed margin improvement to a favourable sales mix and reduced operating expenses. It noted an exceptional item of ₹11.8 crore in Q4 related to merger expenses.

Domestic sales to original equipment manufacturers (OEMs) grew by 6.3%, led by demand in the passenger vehicle and farm tractor segments. Export sales rose by 3.4%, driven by demand for steering and casting products. Sales to the Indian aftermarket increased by 8.1%, aided by dealer network expansion.

The board of directors recommended a dividend of ₹8 per share on a paid-up capital of ₹27.6 crore.

The FY25 financials are not directly comparable with the previous year due to the divestment of the Light Metal Casting business in September 2023. The reported results include the performance of RBL and REVL following their amalgamation into RML, as approved by the National Company Law Tribunal.