Rane Q2 sales rise 35% as steering exports and Friction lift growth

Rane (Madras) Limited increased Q2 FY27 net sales 35% year on year to Rs 1,223.3 crore, as domestic original-equipment offtake rose, international sales increased 57% on steering-product demand, and the acquired Friction business was included from August 20, 2026. Brake Components and aftermarket sales also included the partial-quarter Friction contribution.

Why did Rane's Q2 FY27 sales increase 35%?

Rane's Q2 FY27 sales increased because domestic original-equipment volumes rose across vehicle segments, international customers bought more steering products, and the Friction business entered reported sales from August 20, 2026. Net sales rose from Rs 907.7 crore in Q2 FY26 to Rs 1,223.3 crore in Q2 FY27, an increase of Rs 315.6 crore.

Domestic original-equipment customer sales grew 31% as offtake increased across vehicle segments, while international customer sales rose 57%. Indian aftermarket customer sales increased 11%. The reported mix shows India original equipment manufacturer and original equipment supplier sales at 56%, international original equipment and aftermarket at 31%, and Indian aftermarket at 13% in Q2 FY27.

The international category included deemed exports, which accounted for about 37% of international original equipment and aftermarket sales. By business, Steering & Linkages was the largest contributor at 53% of Q2 FY27 sales, ahead of Brake Components at 15%, Aftermarket at 13%, Engine Components at 12% and Light Metal Castings at 7%.

How did steering and linkage sales drive Rane's growth?

Rane's steering and linkage business drove growth through a Rs 92 crore year-on-year increase in domestic sales and a Rs 113 crore increase in exports in Q2 FY27. Domestic steering and linkage sales rose from Rs 282 crore in Q2 FY26 to Rs 374 crore, while exports climbed from Rs 162 crore to Rs 275 crore.

That brought combined steering and linkage sales to Rs 649 crore in Q2 FY27, compared with Rs 444 crore a year earlier. Export sales were also Rs 65 crore higher than Rs 210 crore in Q1 FY27, while domestic sales increased Rs 58 crore from Rs 316 crore in the preceding quarter.

Light Metal Castings added a smaller increase, with domestic sales rising from Rs 31 crore in Q2 FY26 to Rs 43 crore in Q2 FY27 and exports moving from Rs 22 crore to Rs 44 crore. Engine Components domestic sales increased from Rs 90 crore to Rs 98 crore, while exports rose from Rs 42 crore to Rs 47 crore over the same period.

What did the Friction business add to brake and aftermarket sales?

The acquired Friction business was included in Rane's Brake Components and aftermarket sales from August 20, 2026, making it a reported contributor only for part of Q2 FY27. Brake Components domestic sales increased from Rs 124 crore in Q2 FY26 to Rs 173 crore in Q2 FY27, while exports declined from Rs 16 crore to Rs 14 crore.

Combined Brake Components sales therefore rose from Rs 140 crore to Rs 187 crore year on year. Rane states that Q2 FY27 Brake Components sales include the domestic and export sales of the acquired Friction business, but it does not disclose the business's separate revenue or profit contribution.

Aftermarket sales increased from Rs 140 crore in Q2 FY26 to Rs 155 crore in Q2 FY27, with Friction aftermarket sales included from August 20, 2026. The Q2 FY27 aftermarket mix was concentrated in commercial vehicles at 60%, followed by passenger vehicles at 30%, farm tractors at 5%, two- and three-wheelers at 4%, and other categories at 1%.

The quarterly aftermarket total of Rs 155 crore was above Rs 147 crore in Q1 FY27 but below Rs 193 crore in Q4 FY26. South India represented 36% of Q2 FY27 aftermarket sales, North and West each accounted for 24%, East contributed 13%, and state transport undertakings plus exports represented 3%.

How did Rane's earnings and leverage change in Q2 FY27?

Rane reported total revenue of Rs 1,242 crore and earnings before interest, taxes, depreciation and amortisation of Rs 114 crore in Q2 FY27, compared with Rs 923 crore and Rs 83 crore respectively in Q2 FY26. Earnings before interest, taxes, depreciation and amortisation rose 37.7% year on year, while its margin increased to 9.2% from 9.0%.

Compared with Q1 FY27, total revenue increased from Rs 1,051 crore to Rs 1,242 crore and earnings before interest, taxes, depreciation and amortisation rose from Rs 96 crore to Rs 114 crore. The margin moved from 9.1% in Q1 FY27 to 9.2% in Q2 FY27 and remained below the 9.5% recorded in Q4 FY26.

Profit after tax was Rs 327 crore in Q2 FY27, versus Rs 21 crore a year earlier, but the presentation identifies Rs 292.1 crore of one-time gains, net of tax, from the sale of land. Profit after tax margin was consequently 26.3%, compared with 2.3% in Q2 FY26, so the reported profit change includes that land-sale gain.

Debt-to-equity was 1.15 times in Q2 FY27, compared with 1.16 times in Q2 FY26 and 0.94 times in Q1 FY27. Return on capital employed was 13.5%, up from 11.5% a year earlier but down from 15.2% in Q1 FY27.

What do Rane's new orders say about future sales visibility?

Rane secured 26 new programmes in Q2 FY27 with lifetime value of Rs 614 crore, and export programmes accounted for about 59% of that value. The company says the programmes span multiple vehicle segments and both existing and new customer relationships.

The Q2 FY27 order wins followed Rs 2,040 crore of wins in the preceding quarter, so the disclosed lifetime value of new programmes was lower sequentially. Rane says the average programme life is about five years, which provides the stated basis for longer-term revenue visibility rather than a quarterly sales forecast.

The product and vehicle mix gives context for those wins: passenger vehicles accounted for 59% of Q2 FY27 sales, commercial vehicles 21%, farm tractors 8%, two- and three-wheelers 5%, and railways, defence and stationary engines within other categories at 7%. The presentation does not disclose programme-level start dates, customer names or the timing of revenue conversion from the Rs 614 crore order value.

Conclusion

Rane's 35% Q2 FY27 sales increase reflects higher domestic original-equipment offtake, a 57% rise in international sales supported by steering products, and partial-quarter inclusion of the Friction business from August 20, 2026. Steering and linkage sales rose by Rs 205 crore year on year across domestic and export markets, while Brake Components sales increased by Rs 47 crore.

The next item to watch is conversion of the 26 Q2 FY27 programmes, valued at Rs 614 crore over an average life of about five years, particularly because exports represent about 59% of that lifetime value. Rane's next reported periods can also show the effect of a fuller-quarter Friction contribution, as it has not separately disclosed Friction sales or earnings in Q2 FY27.