Rane Holdings Q3 FY26: Revenue Growth Amidst Warranty Provision Challenges

Rane Holdings Limited reported a consolidated revenue of Rs. 1,539.3 Cr, a 23.6% YoY increase. However, the company recorded a net loss of Rs. 39.5 Cr, primarily due to a warranty provision at a JV entity.

The net loss in Q3 FY26 was primarily caused by RHL's share of a warranty provision amounting to Rs. 84.63 Cr (net off tax) related to product recall liability at its Joint Venture entity, ZF Rane Automotive India Private Limited.

In Q3 FY26, Steering & Suspension Components contributed 57% of group sales, followed by Occupant Safety Products at 20%, Brake Components at 7%, Engine Components at 6%, Light Metal Castings at 3%, and Others at 7%.

Rane (Madras) Limited won orders worth Rs. 135 Cr, including Rs. 75 Cr from international customers. Its Light Metal Castings and Engine Component plants received awards for continuous improvement, and the Brake Components business was recognized for green energy adoption initiatives.

Rane Steering Systems Private Limited reported a total revenue of Rs. 519 Cr and won orders worth Rs. 345 Cr for supplying to domestic UV models. It achieved an EBITDA of Rs. 10 Cr with a 2.0% margin.

ZF Rane Automotive India Private Limited reported a total revenue of Rs. 702 Cr and an EBITDA of Rs. 82 Cr with an 11.7% margin. However, it incurred a PAT loss of Rs. 140 Cr due to a significant warranty provision related to product recall liability.