Rane Holdings Ltd Q2FY26: The ₹1,399 Cr Quarter That Merged, Sold Land, and Still Managed a Smile

1. At a Glance

Chennai-basedRane Holdings Ltd (RHL)just dropped itsQ2FY26results — and oh boy, they’re the kind that make both analysts and comedians clap.Revenue stood tall at₹1,399 Cr, a52.7% YoY jump, thanks to the grand merger of Rane Engine Valve and Rane Brake Lining into Rane (Madras) Ltd. But before you get too excited, thePAT fell by 1.45% QoQ, proving once again that accounting numbers are like Chennai rains — impressive on the surface, yet puddled with hidden leaks.

At amarket cap of ₹2,042 Cr, aP/E of 27.7x, and aROE of 8.02%, Rane Holdings sits in that tricky spot between “old-money auto royalty” and “new-age holding company confusion.” Thestock trades at ₹1,437, far below its 52-week high of ₹1,915 — a sort of mid-life crisis zone where it’s neither cheap enough to excite nor expensive enough to brag.

They’ve got adividend yield of 2.64%, adebt-to-equity ratio of 0.94, and theRane family still controls 46.55%of the throne.And yes, the group’s beloved land at Velachery got sold for₹36.1 Crthis quarter — because sometimes it’s easier to sell land than to sell more steering systems.

2. Introduction

Welcome to Rane Holdings Ltd — a company so old (founded in 1929) that it’s practically seen the entire Indian automotive industry evolve from bullock carts to EVs. If holding companies were families, Rane would be that dignified Chennai uncle who insists on wearing full sleeves in 42°C heat and says “margin pressure” like it’s a family heirloom.

The Rane Group has been supplying steering, brakes, valves, and other vital auto parts since before most of us were even a gleam in our parents’ eyes. From Maruti to Volvo, Tata to Toyota — their clients list reads like the who’s who of the Indian road.

But here’s the twist: Rane Holdings itself doesn’t make these products. It justowns,guides, andcharges royaltiesfor using the sacred “Rane” name — a bit like the Bollywood dad who doesn’t act anymore but collects cheques for every movie featuring his surname.

Now, in FY26, Rane has made its biggest chess move in years — mergingRane Engine Valve Ltd (REVL)andRane Brake Lining Ltd (RBL)intoRane (Madras) Ltd (RML). It’s like consolidating three long-running TV shows into one mega soap opera — all under one banner, with the same drama, same cast, but better TRPs.

So what’s cooking under this ₹2,000+ crore bonnet? Let’s roll down the financial windows.

3. Business Model – WTF Do They Even Do?

Rane Holdings is not your typical manufacturing company — it’s themothership. The holding company controls several operational subsidiaries that make your cars steer straight, brake safely, and occasionally, blow a gasket elegantly.

Here’s the breakdown of what this empire actually produces (and who does the sweating):

• Rane (Madras) Ltd – 63.8% owned:Steering, suspension, and linkage systems. The one that actually does the heavy lifting.
• Rane Steering Systems Pvt. Ltd – 100% owned:Makes Electric Power Steering (EPS) and also, fun fact, justsold land worth ₹45 Crlast quarter.
• ZF Rane Automotive India Pvt. Ltd – 49% JV with ZF Germany:Makes occupant safety products like seatbelts and airbags — because Rane knows the value of saving lives when brakes fail.

Therevenue pieis as follows:

• Steering & Suspension Components:58%
• Occupant Safety Products:20%
• Engine Components:7%
• Brake Components:6%
• Light Metal Castings:3%
• Others:6%

Sector exposure? Heavy onPassenger Vehicles (68%), followed byCommercial Vehicles (22%)andFarm Tractors (4%). Basically, if it rolls on Indian roads, Rane has touched it.

So yes, they’re auto purists through and through. But concentration cuts both ways — when autos boom, they roar; when the sector sneezes, Rane catches pneumonia.

4. Financials Overview

Annualised EPS: ₹16.45 x 4 = ₹65.8 → P/E = 1437 / 65.8