RACL Geartech Q3 FY26 Results: Revenue Grows 22% to ₹134 Crores, PBT Surges 92%
RACL Geartech Limited reported strong Q3 FY26 results with revenue growing 22% to ₹134 crores and PBT surging 92% to ₹19.65 crores. Nine-month revenue reached ₹364.81 crores with EBITDA of ₹90 crores. The company announced ambitious FY27 plans targeting ₹565 crores revenue and ₹77.45 crores capex investment for heat treatment upgrades and capacity expansion. New business wins include ZF electric power steering project for US truck market, demonstrating successful diversification strategy.
*this image is generated using AI for illustrative purposes only.
RACL Geartech Limited showcased robust financial performance in Q3 FY26, demonstrating strong operational efficiency and strategic growth momentum. The automotive component manufacturer reported significant improvements across all key financial metrics during its earnings conference call held on February 27, 2026.
Strong Financial Performance in Q3 FY26
The company delivered exceptional quarterly results with substantial growth across revenue and profitability metrics.
| Financial Metric: | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Revenue: | ₹134.00 crores | ₹109.75 crores | +22.11% |
| EBITDA: | ₹33.41 crores (24.93%) | ₹25.08 crores (22.86%) | +33.21% |
| PBT: | ₹19.65 crores (14.66%) | ₹10.25 crores (9.33%) | +91.71% |
The revenue composition showed export revenues of ₹93.75 crores and domestic business contributing ₹27.62 crores, maintaining the company's strategic 70:30 export-domestic ratio.
Nine-Month Performance Highlights
For the nine-month period of FY26, RACL Geartech sustained its growth trajectory with consistent performance improvements.
| Parameter: | 9M FY26 | 9M FY25 | Growth (%) |
|---|---|---|---|
| Total Revenue: | ₹364.81 crores | ₹321.00 crores | +13.64% |
| EBITDA: | ₹90.00 crores (24.67%) | ₹69.68 crores (21.69%) | +29.17% |
| PBT: | ₹47.00 crores (12.89%) | ₹25.42 crores (7.91%) | +84.93% |
Business Segment Diversification
The company's revenue diversification strategy showed positive results with balanced contribution across segments. Two-wheeler business represented 29% of nine-month revenue, while commercial vehicles expanded significantly to 19% from previous levels. Passenger car segment contributed 13%, and recreational vehicles maintained a strong 21% share, reflecting the company's successful market penetration across multiple automotive categories.
Ambitious FY27 Growth Plans and Capex Investment
Management announced comprehensive expansion plans for FY27 with a revenue target of ₹565 crores plus or minus 5%, representing approximately 17% growth. The company allocated ₹77.45 crores for capital expenditure with strategic focus on technology upgrades and capacity enhancement.
| Investment Category: | Amount (₹ Crores) | Purpose |
|---|---|---|
| Heat Treatment Replacement: | 33.88 | Gajraula facility modernization |
| Capacity Expansion: | 34.50 | Both Gajraula and Noida units |
| Backward Integration: | 9.17 | Heat treatment and solar at Noida |
The heat treatment plant replacement represents a significant technological advancement, transitioning from LPG-based to electric systems for improved efficiency, reduced operating costs, and enhanced environmental sustainability.
New Business Developments
RACL Geartech secured a new project with ZF for electric power steering systems in commercial trucks destined for the American market. This marks the company's entry into the truck segment for US markets, with manufacturing in India, assembly in Mexico, and final delivery to North American OEMs. The project represents diversification into electric steering technology and expansion of the company's geographic reach.
Facility Expansion and Infrastructure Development
The company completed ground-breaking ceremonies for its new heat treatment plant on January 23, 2026, targeting full operational status by February 2027. Additionally, RACL Geartech expanded its Noida facility with an additional 27,760 square feet of built-up area to accommodate new projects and advanced machinery installation.
As part of corporate social responsibility initiatives, the company established a charitable health center near its Gajraula factory in partnership with Max Hospital, inaugurated by the District Magistrate of Amroha on February 12, 2026.
Recognition and Awards
During Q3 FY26, RACL Geartech received multiple industry recognitions including the Export Excellence Award from EEPC India for the Northern Region and a silver rating certificate from TVS Motors for ESG practices, reinforcing the company's commitment to operational excellence and sustainable business practices.
Historical Stock Returns for RACL Geartech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.43% | -7.66% | +37.44% | +53.49% | +87.41% | +62.88% |
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