Rane Holdings Ltd

- 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.

- 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.

- 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)

- 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).

- 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.