RACL Geartech Reports 20% EBITDA Growth in Q1, Secures New Business Orders
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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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:
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.
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.
Historical Stock Returns for RACL Geartech
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-1.47% | +4.22% | -7.31% | +22.10% | +6.12% | +6.12% |