Rane Q2 PAT reaches Rs 326.7 crore on Rs 292.1 crore gain

Rane (Madras) Limited reported profit after tax of Rs 326.7 crore in the second quarter of fiscal year 2027 (Q2 FY27), up 1,421.5% year on year, after recognising a Rs 292.1 crore post-tax gain from the sale of Velachery land. The disclosed gain equalled about 89% of quarterly PAT, while revenue rose 34.5% to Rs 1,242.3 crore.

How did Rane reach Rs 326.7 crore of Q2 FY27 PAT?

Rane's profit after tax, or PAT, rose to Rs 326.7 crore in Q2 FY27 from Rs 21 crore in Q2 FY26, and PAT margin increased to 26.3% from 2.3%. Rane stated that the Q2 FY27 result included a one-time Rs 292.1 crore gain, net of tax, from the Velachery land sale. This transaction explains the difference in scale between the reported PAT movement and operating metrics.

Total revenue rose to Rs 1,242 crore in Q2 FY27 from Rs 923 crore a year earlier, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased to Rs 114 crore from Rs 83 crore. EBITDA margin rose by 21 basis points, where one basis point is one-hundredth of a percentage point, to 9.2% from 9.0%. Rane's presentation separately reported revenue growth of 34.5% and EBITDA growth of 37.7%.

How much of Rane's Q2 FY27 PAT came from the land sale?

The Rs 292.1 crore post-tax land-sale gain was about 89% of Rane's Rs 326.7 crore reported Q2 FY27 PAT. Subtracting the disclosed gain from PAT produces Rs 34.6 crore. That is an analytical calculation based on the two disclosed figures, not an adjusted or recurring PAT number separately reported by Rane.

PAT was Rs 305.7 crore higher than Q2 FY26's Rs 21 crore, compared with the Rs 292.1 crore disclosed land-sale gain. Rane did not disclose a separate recurring PAT figure, tax adjustment or segment-level profit excluding the land transaction. The presentation therefore supports identifying the sale as a major contributor to the reported increase, but not assigning the remaining calculated amount to a particular business or operating driver.

The five-quarter trend also shows the break in the Q2 FY27 result. PAT was Rs 21 crore in Q2 FY26, Rs 31 crore in Q3 FY26, Rs 37 crore in Q4 FY26 and Rs 30 crore in Q1 FY27 before reaching Rs 327 crore in Q2 FY27. PAT margins in the four preceding quarters ranged from 2.3% to 3.5%, versus 26.3% in the land-sale quarter.

What changed in Rane's revenue and operating margin?

Rane's net sales increased 35% to Rs 1,223.3 crore in Q2 FY27 from Rs 907.7 crore in Q2 FY26. The presentation says net sales included the acquired Friction business with effect from August 20, 2026. This means the reported year-on-year sales comparison includes a business acquired during Q2 FY27.

Sales to domestic original-equipment customers grew 31%, mainly because of higher offtake across vehicle segments, according to Rane. International customer sales rose 57%, supported by steering-product offtake, while Indian aftermarket sales increased 11%. India original equipment manufacturers and original equipment service accounted for 56% of Q2 FY27 sales, international original equipment and aftermarket represented 31%, and Indian aftermarket made up 13%.

Revenue rose from Rs 1,051 crore in Q1 FY27 to Rs 1,242 crore in Q2 FY27, while EBITDA increased from Rs 96 crore to Rs 114 crore. EBITDA margin moved from 9.1% in Q1 FY27 to 9.2% in Q2 FY27. These operating changes were materially smaller than the increase in PAT from Rs 30 crore in Q1 FY27 to Rs 327 crore in Q2 FY27.

Which Rane businesses contributed most to Q2 FY27 sales?

Rane's Steering and Linkage business reported domestic sales of Rs 374 crore and export sales of Rs 275 crore in Q2 FY27, compared with Rs 282 crore and Rs 162 crore respectively in Q2 FY26. Its Rs 649 crore combined sales made it the largest disclosed business line, consistent with a 53% share of Q2 FY27 sales by business.

Brake Components recorded domestic sales of Rs 173 crore in Q2 FY27, up from Rs 124 crore a year earlier, while export sales were Rs 14 crore compared with Rs 16 crore. Rane said Q2 FY27 Brake Components sales include domestic and export sales from the acquired Friction business from August 20, 2026. It also restated net sales across divisions for the past five quarters to reflect regrouping, limiting a simple like-for-like interpretation.

Light Metal Castings generated Rs 43 crore of domestic sales and Rs 44 crore of exports, compared with Rs 31 crore and Rs 22 crore in Q2 FY26. Engine Components reported Rs 98 crore of domestic sales and Rs 47 crore of exports, versus Rs 90 crore and Rs 42 crore a year earlier. Passenger vehicles accounted for 59% of Q2 FY27 sales by vehicle segment, followed by commercial vehicles at 21%.

How did Rane's debt and return measures change?

Rane's debt-to-equity ratio was 1.15 times in Q2 FY27, compared with 1.16 times in Q2 FY26 and 0.94 times in both Q4 FY26 and Q1 FY27. The presentation described the year-on-year movement as a 0.01-times reduction. The ratio was therefore slightly lower than a year earlier but higher than the two immediately preceding quarters.

Return on capital employed, or ROCE, was 13.5% in Q2 FY27, up from 11.5% in Q2 FY26 but below 15.2% in Q1 FY27 and 14.4% in Q4 FY26. Rane reported the year-on-year increase as 200 basis points. The presentation does not quantify the effect of the land sale on the ROCE calculation.

Rane also reported 26 new programmes in Q2 FY27 with Rs 614 crore of lifetime value, or LTV, following Rs 2,040 crore of order wins in the previous quarter. Export programmes represented about 59% of Q2 FY27 LTV, and the average programme life was approximately five years. These programme wins concern potential future sales rather than reported Q2 FY27 PAT.

Conclusion

Rane's Q2 FY27 result combines higher operating activity with a one-time transaction. Revenue reached Rs 1,242.3 crore and EBITDA reached Rs 114.1 crore at a 9.2% margin, while the Rs 292.1 crore post-tax Velachery land-sale gain was about 89% of Rs 326.7 crore reported PAT. The large PAT and margin increases therefore cannot be assessed solely through the automotive-components operations.

The next results will show how the acquired Friction business, included from August 20, 2026, affects reported sales across Brake Components and aftermarket operations. Rane also disclosed Rs 614 crore of Q2 FY27 programme wins with an average life of about five years, including about 59% from exports, while debt-to-equity was 1.15 times and ROCE was 13.5%.