Rane (Madras) Limited international sales rose 57% in Q2 FY27

Rane (Madras) Limited reported a 57% year-on-year increase in international customer sales in Q2 FY27, supported by strong steering-product offtake, while export programs accounted for about 59% of Rs 614 crore in lifetime value from 26 new programs. The four disclosed businesses recorded aggregate exports of Rs 380 crore, versus Rs 242 crore in Q2 FY26.

Why did RML’s international sales rise 57% in Q2 FY27?

RML said international customer sales increased 57% in Q2 FY27 because of strong offtake of steering products. The export sales disclosed across Steering and Linkages, Light Metal Castings, Engine Components and Brake Components totalled Rs 380 crore, up Rs 138 crore from Rs 242 crore in Q2 FY26.

Steering and Linkages supplied Rs 113 crore of that Rs 138 crore increase. Its exports rose to Rs 275 crore in Q2 FY27 from Rs 162 crore a year earlier, while domestic sales in the same business increased to Rs 374 crore from Rs 282 crore. Combined Steering and Linkages sales therefore rose to Rs 649 crore from Rs 444 crore.

The quarterly trend also shows a further acceleration in steering exports. They rose from Rs 183 crore in Q4 FY26 to Rs 210 crore in Q1 FY27, then reached Rs 275 crore in Q2 FY27. That Rs 65 crore sequential rise exceeded the Rs 58 crore increase in domestic steering sales from Rs 316 crore to Rs 374 crore.

Which RML businesses drove export sales growth?

RML’s Steering and Linkages business was the principal export contributor in Q2 FY27, at Rs 275 crore, followed by Engine Components at Rs 47 crore and Light Metal Castings at Rs 44 crore. Light Metal Castings recorded the fastest percentage growth, doubling its exports from Rs 22 crore in Q2 FY26.

Engine Components added Rs 5 crore of export sales year on year, reaching Rs 47 crore. Brake Components was the only disclosed business with lower exports, falling Rs 2 crore to Rs 14 crore. RML said Q2 FY27 Brake Components sales include domestic and export sales of the acquired Friction Business from August 20, 2026.

Steering and Linkages represented about 72% of the Rs 380 crore aggregate export total calculated from the four business tables. Light Metal Castings and Engine Components each represented roughly 12%, while Brake Components accounted for about 4%. The presentation notes that net sales for the past five quarters were restated across divisions to reflect regrouping.

How much of RML’s new-program value came from exports?

Export programs represented about 59% of the Rs 614 crore lifetime value, or LTV, of 26 new programs secured in Q2 FY27. RML said the programs covered multiple vehicle segments and had an average program life of approximately five years.

The Q2 FY27 wins followed Rs 2,040 crore of order wins in the previous quarter, making the latest quarterly LTV Rs 1,426 crore lower sequentially. RML nevertheless described Q2 FY27 order wins as strong, and said they spanned both existing and new customer relationships.

LTV represents the stated value over the life of a program, rather than revenue recorded in Q2 FY27. RML did not disclose a production start date, customer allocation, product-level value or annual revenue schedule for the Rs 614 crore of wins. The five-year average life instead provides the disclosed timeframe for potential conversion into sales.

How does export growth fit RML’s Q2 FY27 sales mix?

RML’s net sales rose 35% to Rs 1,223.3 crore in Q2 FY27 from Rs 907.7 crore in Q2 FY26, alongside the 57% increase in international customer sales. The company said domestic original equipment customer sales grew 31%, mainly because of higher offtake across vehicle segments, and Indian aftermarket sales rose 11%.

International original equipment manufacturer and aftermarket business made up 31% of Q2 FY27 sales, compared with 56% for India original equipment and original equipment supplier sales and 13% for the India aftermarket. RML said deemed exports accounted for about 37% of the international original equipment manufacturer and aftermarket category.

By business, Steering and Linkages accounted for 53% of Q2 FY27 sales, ahead of Brake Components at 15%, Aftermarket at 13%, Engine Components at 12% and Light Metal Castings at 7%. Passenger vehicles accounted for 59% of sales by vehicle segment, while commercial vehicles represented 21%, farm tractors 8% and two-wheelers and three-wheelers 5%.

What did RML report for revenue and profitability in Q2 FY27?

RML reported total revenue of Rs 1,242 crore in Q2 FY27, up from Rs 923 crore in Q2 FY26, and earnings before interest, taxes, depreciation and amortisation, or EBITDA, of Rs 114 crore, up from Rs 83 crore. EBITDA margin was 9.2%, compared with 9.0% a year earlier and 9.1% in Q1 FY27.

Profit after tax was Rs 327 crore in Q2 FY27, versus Rs 21 crore in Q2 FY26, but RML disclosed a one-time, net-of-tax gain of Rs 292.1 crore from the sale of land. Return on capital employed was 13.5%, compared with 11.5% in Q2 FY26 and 15.2% in Q1 FY27, while debt-to-equity was 1.15 times against 1.16 times a year earlier.

Conclusion

RML’s Q2 FY27 disclosure shows international demand contributed materially to sales growth. Aggregate exports across the four reported businesses increased Rs 138 crore year on year to Rs 380 crore, led by a Rs 113 crore increase in Steering and Linkages exports, while international original equipment manufacturer and aftermarket business represented 31% of the reported sales mix.

The next item to watch is the conversion of the 26 Q2 FY27 program wins into sales over their disclosed average life of approximately five years. RML also disclosed that the Friction Business entered Brake Components results from August 20, 2026, so subsequent full-quarter reporting can show how that acquisition affects domestic and export sales within the business.