RACL Geartech Reports 20% EBITDA Growth in Q1, Secures New Business Orders

2 min read     Updated on 27 Aug 2025, 06:23 PM
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Ashish ThakurBy ScanX News Team
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Overview

RACL Geartech achieved 2% YoY revenue growth to ₹107.96 crores in Q1, with EBITDA rising 20% to ₹26.80 crores and PAT increasing 28% to ₹8.29 crores. The company secured new business nominations, including a high-volume order from an Indian two-wheeler manufacturer and an order from BRP Canada. RACL expanded its board, registered as a BHEL vendor, and is developing new technologies for electric vehicles. The company maintains its revenue guidance and expects to reach ₹1000 crore revenue by FY29.

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*this image is generated using AI for illustrative purposes only.

RACL Geartech , a precision engineering company specializing in automotive components, has reported a strong start to the fiscal year, with significant growth in profitability and new business acquisitions.

Financial Performance

In the first quarter, RACL Geartech achieved revenue of ₹107.96 crores, marking a 2% year-on-year growth. The company's profitability saw a notable improvement, with EBITDA rising 20% to ₹26.80 crores. The EBITDA margin expanded to 24.83% from 21.10% in the previous year, demonstrating enhanced operational efficiency. Profit after tax increased by 28% to ₹8.29 crores.

Export Performance and Revenue Mix

Exports continued to be a significant contributor to RACL's revenue, accounting for ₹65.50 crores or 60.31% of the total. However, the company's export-to-domestic revenue mix shifted from 70:30 to 60:40, indicating growing traction in the domestic market.

New Business Nominations

RACL Geartech has secured important new business nominations, expanding its footprint in both domestic and international markets:

  1. High-Volume Order from Indian Two-Wheeler Manufacturer: The company has received a prestigious nomination for a high-volume order from an Indian two-wheeler manufacturer for premium motorcycles. Production is set to commence in January/February 2026, marking RACL's entry into a new segment of the domestic market.

  2. Order from BRP Canada: RACL has bagged an order from BRP Canada for 150,000-180,000 parts annually, starting in 2026. This order is for a new product family of shifting drums, expanding RACL's product portfolio.

Strategic Developments

Board Expansion

RACL has strengthened its leadership by adding two new directors to its board:

  • Mr. Pravir Kumar, a retired IAS officer with extensive experience in government and commerce, joins as a non-executive independent director.
  • Mr. Rakesh Kapoor, a seasoned techno-financial professional, has been appointed as a non-executive director.

BHEL Vendor Registration

The company has successfully registered as an approved vendor for Bharat Heavy Electricals Limited (BHEL), opening up new opportunities in the public sector engineering space.

Technology Focus

RACL is actively developing new technologies for electric vehicles and expanding its product portfolio beyond transmission gears. The company is working on projects such as Electronic Roll Control (ERC) systems, steer-by-wire technology, and electric power steering systems for various global automotive manufacturers.

Future Outlook

Despite global economic uncertainties, RACL Geartech's management maintains its revenue guidance and expects to achieve ₹1000 crore revenue by FY29. The company has planned a capital expenditure of ₹50 crores for FY26 to support its growth initiatives and new product developments.

Chairman & Managing Director Gursharan Singh commented on the results, stating, "Our focus on value-based business and technological innovation continues to drive our growth. The new business nominations and our expanding product portfolio position us well for sustainable long-term growth in both domestic and international markets."

As RACL Geartech continues to navigate the evolving automotive landscape, its strategic focus on premium segments and future technologies appears to be yielding positive results, setting a strong foundation for future growth.

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RACL Geartech Secures Long-Term Supply Order for Premium Motorcycle Transmission Gears

1 min read     Updated on 20 Aug 2025, 04:35 PM
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Reviewed by
Ashish ThakurBy ScanX News Team
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Overview

RACL Geartech Limited has secured a long-term supply order for transmission gears from a leading Indian premium motorcycle manufacturer. This marks the company's strategic entry into the domestic high-end two-wheeler market while maintaining its focus on the premium segment. The order is for premium motorcycle transmission gears from a globally renowned Indian manufacturer. While financial details were not disclosed, the company emphasized the long-term nature of the agreement. This development showcases RACL Geartech's technological capabilities and is expected to positively impact its market position.

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*this image is generated using AI for illustrative purposes only.

RACL Geartech Limited, a prominent player in the automotive components industry, has announced a significant milestone in its business expansion strategy. The company has secured a long-term supply order for transmission gears from a leading Indian premium motorcycle manufacturer, marking its strategic entry into the domestic high-end two-wheeler market.

Strategic Entry into Premium Segment

The order represents a crucial step for RACL Geartech as it ventures into the domestic mass market of the motorcycle industry while maintaining its core focus on the premium segment. This move demonstrates the company's ability to adapt to market demands and leverage its technological capabilities in the high-end two-wheeler sector.

Order Details

According to the company's intimation to the stock exchanges under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements:

  • The order is for the supply of transmission gears for premium motorcycles.
  • The client is described as a "Globally renowned Indian manufacturer," highlighting the prestigious nature of the contract.
  • While specific financial details were not disclosed, the company emphasized the long-term nature of the supply agreement.

Technological Prowess

RACL Geartech's success in securing this order is a testament to its technological capabilities and manufacturing excellence. The company's ability to meet the exacting standards required for premium motorcycle components underscores its position as a trusted supplier in the automotive industry.

Management's Perspective

Neha Bahal, Company Secretary & Compliance Officer of RACL Geartech Limited, stated in the regulatory filing, "The awarded business marks a significant milestone for the Company, as it steps into Domestic Mass market of Motorcycle Industry, while maintaining our core business strategy of premium segment."

Market Impact

This development is expected to have a positive impact on RACL Geartech's market position and potentially its financial performance in the coming years. The long-term nature of the supply order suggests a stable revenue stream and the possibility of further collaborations in the premium two-wheeler segment.

Conclusion

RACL Geartech's entry into the domestic high-end two-wheeler market with this new order signifies a strategic expansion of its product portfolio and client base. As the automotive industry continues to evolve, particularly in the premium segment, RACL Geartech appears well-positioned to capitalize on new opportunities while building on its existing strengths in gear manufacturing.

Historical Stock Returns for RACL Geartech

1 Day5 Days1 Month6 Months1 Year5 Years
-1.47%+4.22%-7.31%+22.10%+6.12%+6.12%
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