Rane's Q2 profit jumps on Rs 344.77 cr of other income
Operating margin improved as revenue grew faster than expenses, but other income drove most of pre-tax profit and the tax rate also fell.
Filed 03 Nov 2026, 18:57 IST · after market close · Rane (Madras) Ltd (RML)
Key takeaways
- Consolidated net profit rose 985.32% quarter-on-quarter to Rs 326.68 cr, largely because other income reached Rs 344.77 cr.
- Operating margin improved 0.47 percentage points to 8.81% as revenue growth of 18.77% outpaced expense growth of 18.16%.
- Other income accounted for 88.69% of pre-tax profit, while the tax rate fell 10.66 percentage points to 15.96%.
Price around the results
Profit growth was led by non-operating income
Rane reported consolidated revenue growth of 18.77% quarter-on-quarter in Q2FY27, while operating profit grew 25.50%. The resulting 985.32% increase in net profit was not matched by operating performance, as other income rose from Rs 8.99 cr to Rs 344.77 cr. The results were filed after market close.
Margin edged up, but profit quality was weak
Operating margin widened by 0.47 percentage points because expenses grew slightly slower than revenue. Interest costs still increased 32.73% and depreciation rose 13.06%, partly offsetting the operating improvement. Other income contributed 88.69% of pre-tax profit, and the 10.66-percentage-point fall in the tax rate to 15.96% further supported net profit.
Margin remains below the Consumer Discretionary peer median
At 8.81%, Rane's operating margin was 3.42 percentage points below the 12.23% median for the 188 Consumer Discretionary peers that had reported the quarter. The margin was nevertheless higher than the 8.34% recorded in Q1FY27. With the results filed after market close, there is no post-results stock reaction to place against the company's history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,237 cr | ₹1,042 cr | +18.77% |
| Other income | ₹345 cr | ₹9 cr | +3735.04% |
| Expenses | ₹1,128 cr | ₹955 cr | +18.16% |
| Operating profit | ₹109 cr | ₹87 cr | +25.50% |
| Operating margin (%) | 8.81% | 8.34% | — |
| Interest | ₹21 cr | ₹15 cr | +32.73% |
| Depreciation | ₹44 cr | ₹39 cr | +13.06% |
| Profit before tax | ₹389 cr | ₹41 cr | +847.68% |
| Tax | ₹62 cr | ₹11 cr | +468.32% |
| Net profit | ₹327 cr | ₹30 cr | +985.32% |
| EPS (₹) | ₹118.20 | ₹10.89 | +985.40% |
Operating margin of 8.81% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 8.81% in the next quarter.
- Whether other income remains a major contributor against its 88.69% share of pre-tax profit.
- Whether the tax rate stays near the current 15.96%.