Rane Holdings Ltd Q4 FY25 Results & Concall Highlights: Revenue, Margins & Order Book
Published 15 Jul 2026 | Finance | Market Cap: ₹2.4K Cr
The Rane Group aspires to achieve a minimum of 12% CAGR growth in sales and revenue, potentially reaching up to 15% over the next three years. Rack-drive EPS in India is expected to grow from less than 5% currently to 15% by 2033-34, with Rane and ZF aiming to capture 40%-50% of that market; revenue contribution likely to start post-2028 (Page 16).
From Rane Holdings Ltd's Q4 FY25 earnings-call transcript · updated 23 Aug 2026.
Price
₹1,616
Market Cap
₹2.4K Cr
P/E Ratio
30.3
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Rane Holdings Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹1.6K Cr, net profit ₹88 Cr.
Full financials →📊 Revenue & Sales Performance
- →The Rane Group aspires to achieve a minimum of 12% CAGR growth in sales and revenue, potentially reaching up to 15% over the next three years. (Page 11-12)
- →Growth is heavily dependent on the domestic Indian passenger car and commercial vehicle market performance, which currently faces uncertainty. (Page 11)
- →The merged entity, Rane (Madras), is being positioned as the group's growth vehicle, aiming to add new products and accelerate growth. (Page 5)
- →Export opportunities are increasing steadily, especially in steering linkage and brake components, with active efforts to expand. (Page 6)
- →ZF Rane JV continues to see strong order book growth, including a recent INR157 crore order for seat belt airbags. (Page 15)
- →The rack-drive EPS segment, currently less than 5% market share in India, is expected to grow to 15% by 2033-34, with Rane and ZF aspiring to capture 40-50%, but revenue impact will start post-2028. (Page 16)
📈 Profitability & Margins
- →Rack-drive EPS in India is expected to grow from less than 5% currently to 15% by 2033-34, with Rane and ZF aiming to capture 40%-50% of that market; revenue contribution likely to start post-2028 (Page 16).
- →Rane aims for a 1% EBITDA margin improvement in FY26 from 8.6% in the previous year (Page 15).
- →ZF Rane JV expects to sustain 12.5%+ EBITDA margins due to backward integration benefits; occupant safety business poised for double-digit EBITDA margins; steering business profitability tied to domestic CV market recovery (Page 15).
- →Consolidated growth aspiration is minimum 12% CAGR in revenue, potentially reaching 15% over next 3 years; aiming for double-digit EBITDA margins even in a down market and over 12%-13% when markets improve (Page 12 and 11).
- →Legacy low-margin orders in Steering will improve gradually over 2-3 years; new orders with better margins start production only in 2027-28 (Page 13).
- →Group plans capex of INR 400 crore annually for next 3 years to support growth (Page 9).
🏗️ Capital Expenditure Plans
- →Group level capex for FY26 is targeted at approximately INR 400 to 450 crores, depending on market conditions.
- →Breakdown of FY26 capex:
- → - Rane (Madras): INR 200 to 220 crores
- → - ZF Rane JV: INR 150 to 160 crores
- → - Rane Steering: INR 70 to 80 crores
- →Capex expected to be around INR 400 crores annually over the next three years.
- →Additional investments underway under the PLI scheme, particularly benefiting the occupant safety business.
- →Plans to add more products into Rane (Madras) over the next 18 months to prepare it as a vehicle for accelerated growth.
- →Growth through M&A and new product introduction likely 12-15 months away, after improving debt and cash positions.
- →Emphasis on capital allocation efficiency post-merger, focusing on steering, brake components, and other product lines based on future potential.
💰 Fundraising & Capital Structure
- →There is no explicit mention of any immediate plans for new fundraising through debt or equity in the provided transcript.
- →The company is focused on reducing debt, targeting a debt reduction of INR150-200 crores before the end of the financial year through cash flow and monetization of land assets.
- →They are aiming to improve cash generation and reduce debt with capex planned at around INR400 crores annually over the next three years.
- →Growth through M&A is still 12-15 months away, indicating no imminent equity fundraising but a wait-and-watch approach.
- →The company’s priority is improving cash and debt position before considering any major new capital raising.
- →The consolidated debt as of March 31, 2025, stands at INR995 crores with continued debt repayment as a key focus.
📋 Order Book & Pipeline
- →The order book remains strong for both domestic and export markets.
- →In Q4, ZF Rane won a significant order worth INR 157 crores for seat belt airbags from a large domestic customer.
- →The company continues to secure new businesses, especially in occupant safety and steering segments.
- →Growth prospects remain optimistic with expected double-digit EBITDA margins in occupant safety.
- →The steering business margins are closely tied to the domestic commercial vehicle market and may improve with market upswing.
- →New business with better margins are secured but will come into production around 2027-2028.
- →Legacy low-margin orders in Rane Steering are expected to improve gradually over the next 2-3 years with some price corrections already in progress.
Key Metrics
Frequently Asked Questions
What were Rane Holdings Ltd Q4 FY25 results?
The Rane Group aspires to achieve a minimum of 12% CAGR growth in sales and revenue, potentially reaching up to 15% over the next three years. Rack-drive EPS in India is expected to grow from less than 5% currently to 15% by 2033-34, with Rane and ZF aiming to capture 40%-50% of that market; revenue contribution likely to start post-2028 (Page 16).
What is Rane Holdings Ltd share price analysis?
Rane Holdings Ltd currently shows a neutral. The stock trades at a P/E of 30.3 with a market cap of ₹2,391 Cr. Investors should review the full earnings analysis for detailed insights.
Is Rane Holdings Ltd planning capital expenditure?
Group level capex for FY26 is targeted at approximately INR 400 to 450 crores, depending on market conditions.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.