Rane Madras reports Rs 326.68 crore profit on land gain

Rane (Madras) Limited reported consolidated profit of Rs 326.68 crore for the quarter ended September 30, 2026, after recognising Rs 339.65 crore of net exceptional income, principally comprising a Rs 341.13 crore gain on the Velachery land sale. Rane Madras completed its Rs 365.72 crore Friction Business acquisition on August 20, 2026.

How did the Velachery land sale affect Rane Madras profit?

The Velachery transaction lifted Rane Madras’s reported quarterly profit because it recognised a Rs 341.13 crore gain on selling 3.48 acres in Chennai. The company recorded the sale during the quarter and six months ended September 30, 2026, after transferring possession and fulfilling conditions in its agreement with Canopy Living LLP, a joint venture between Arihant Foundations & Housing Limited and Prestige Estates Projects Limited.

Aggregate consideration for the land was Rs 361.18 crore. Rane Madras said it had received an advance from the buyer and that the balance consideration would be received in accordance with the agreement’s terms. The company separately recorded Rs 1.48 crore of stamp-duty expense related to acquiring the Friction Business, resulting in net exceptional income of Rs 339.65 crore in both the September quarter and first half.

Reported profit before tax was Rs 388.74 crore, compared with Rs 29.68 crore a year earlier, while profit before exceptional items was Rs 49.09 crore against Rs 31.27 crore. The comparison shows that pre-exceptional profit rose by Rs 17.82 crore, while the land-sale gain accounted for most of the increase in reported pre-tax profit.

What did Rane Madras acquire from Hindustan Composites Limited?

Rane Madras acquired Hindustan Composites Limited’s Friction Business as a going concern for Rs 365.72 crore through a slump sale under a Business Transfer Agreement. The acquisition was completed on August 20, 2026, and the September-quarter and first-half results include the Friction Business’s financial performance from that acquisition date.

A slump sale transfers an undertaking for a lump-sum consideration rather than assigning a separate price to each asset and liability. Rane Madras said it was completing the purchase price allocation, or PPA, required under Indian Accounting Standard 103, Business Combinations. It has therefore provisionally recognised the fair values of identifiable acquired assets and assumed liabilities as of the acquisition date.

The provisional accounting allocated the excess of purchase consideration over the provisional fair value of net identifiable assets to goodwill. Consolidated goodwill stood at Rs 120.89 crore on September 30, 2026, compared with Rs 0.57 crore on March 31, 2026, while other intangible assets increased to Rs 149.20 crore from Rs 2.53 crore. These amounts remain subject to completion of the PPA.

How did Rane Madras’s assets and funding change after the acquisition?

At September 30, 2026, after the Friction Business acquisition, Rane Madras had consolidated total assets of Rs 3,344.29 crore, compared with Rs 2,521.04 crore on March 31, 2026. Non-current assets rose to Rs 1,555.80 crore from Rs 1,059.44 crore, with increases in goodwill, other intangible assets, capital work-in-progress and right-of-use assets among the reported changes.

Non-current borrowings were Rs 270.89 crore at September 30, compared with Rs 48.30 crore at March 31. During the six months ended September 30, 2026, Rane Madras reported Rs 349.92 crore of proceeds from long-term borrowings and lease arrangements, Rs 21.87 crore of long-term borrowing repayments and Rs 22.25 crore of lease-liability payments on a consolidated basis.

Cash and cash equivalents were Rs 15.06 crore at September 30, down from Rs 46.18 crore at March 31. Consolidated net cash used in investing activities was Rs 463.07 crore during the six months ended September 30, 2026, compared with net cash generated of Rs 23.03 crore in the corresponding prior-year half. Financing activities generated Rs 383.06 crore, compared with a Rs 26.14 crore outflow a year earlier.

What was Rane Madras’s underlying trading performance?

Rane Madras’s consolidated revenue from operations increased to Rs 1,237.14 crore in the quarter ended September 30, 2026, from Rs 919.31 crore a year earlier. For the half year, revenue rose to Rs 2,278.76 crore from Rs 1,799.91 crore. Rane Madras and its subsidiaries report one operating segment: manufacture and supply of auto components for the transportation industry.

Costs also increased alongside revenue. In the September quarter, material costs were Rs 723.65 crore, compared with Rs 514.65 crore a year earlier; employee-benefit expense was Rs 155.19 crore against Rs 126.39 crore; and other expenses were Rs 223.61 crore against Rs 176.17 crore. Finance costs increased to Rs 20.52 crore from Rs 15.09 crore.

Profit before exceptional items was Rs 90.11 crore for the half year ended September 30, 2026, compared with Rs 57.06 crore in the prior-year half. Reported half-year profit after tax was Rs 356.78 crore against Rs 40.00 crore, with the Rs 339.65 crore exceptional income recognised in the current period contributing to the difference.

Conclusion

Rane Madras’s September-quarter profit of Rs 326.68 crore combined higher pre-exceptional profit of Rs 49.09 crore with a one-off Rs 341.13 crore land-sale gain, offset by Rs 1.48 crore of acquisition-related stamp duty within exceptional items. The Friction Business acquisition was completed during the quarter and coincided with higher goodwill, intangible assets, borrowings and total assets at September 30.

The next disclosed accounting development is completion of the PPA under Indian Accounting Standard 103. Rane Madras has provisionally recognised acquired assets and liabilities and allocated excess consideration to goodwill, so the Rs 120.89 crore goodwill and Rs 149.20 crore other-intangible-assets balances reported at September 30, 2026 could change when the allocation is finalised.