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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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.

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RACL Geartech Q1 Results: Net Profit Soars 98% Despite Revenue Dip

2 min read     Updated on 11 Aug 2025, 08:16 PM
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Reviewed by
Shriram ShekharBy ScanX News Team
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Overview

RACL Geartech's Q1 results show a 98% year-on-year increase in consolidated net profit to ₹8.29 crore, despite a slight revenue decline to ₹107.96 crore. EBITDA rose to ₹26.80 crore, with the margin improving to 24.83%. Exports contributed 61% of total sales. The company announced key appointments including Mr. Pravir Kumar and Mr. Rakesh Kapoor as directors, and new auditors, subject to member approval.

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RACL Geartech , a leading player in the automotive and engineering components sector, has reported a mixed bag of results for the first quarter. The company's financial performance showcases significant profit growth despite a slight decline in revenue.

Financial Highlights

  • Net Profit: RACL Geartech's consolidated net profit nearly doubled to ₹8.29 crore, up from ₹4.15 crore in the same period last year, marking a robust 98% year-on-year increase.
  • Revenue: The company's revenue saw a marginal decline to ₹107.96 crore, compared to ₹109.00 crore in the corresponding quarter of the previous year.
  • EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹26.80 crore, up from ₹19.84 crore in the previous year.
  • EBITDA Margin: The EBITDA margin improved significantly to 24.83% from 21.11% in the previous year, indicating enhanced operational efficiency.

Key Performance Metrics

Particulars Q1 Current Q1 Previous YoY Change
Revenue (₹ crore) 107.96 105.80 +2.04%
EBITDA (₹ crore) 26.80 22.33 +20.02%
Net Profit (₹ crore) 8.29 6.26 +32.43%
EBITDA Margin 24.83% 21.11% +372 bps
Net Profit Margin 7.68% 5.92% +176 bps

Business Segment Performance

  • Exports: The export segment contributed significantly to the company's revenue, accounting for 61% of the total sales.
  • Domestic Sales: The domestic market made up the remaining 39% of the company's sales during the quarter.

Corporate Governance Updates

RACL Geartech has announced several key appointments and changes in its leadership and audit structure:

  1. Mr. Pravir Kumar has been appointed as an Additional Director in the category of Non-Executive Independent Director, effective August 11.
  2. Mr. Rakesh Kapoor joins as an Additional Director in the capacity of Non-Executive Non-Independent Director, also effective August 11.
  3. M/s. Gupta Nayar & CO. has been appointed as the Statutory Auditor for a period of 3 years, subject to member approval.
  4. M/s. Rosy Jaiswal & Associates has been named as the Secretarial Auditor for a 5-year term, pending member approval.

These appointments are subject to approval in the upcoming Annual General Meeting and are expected to bring diverse expertise to RACL Geartech's board and audit functions.

In conclusion, RACL Geartech's quarterly results demonstrate the company's ability to enhance profitability and operational efficiency even in the face of modest revenue challenges. The focus on exports and the recent corporate governance updates position the company for potential growth and improved performance in the coming quarters.

Historical Stock Returns for RACL Geartech

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-0.26%+11.63%-7.04%+28.60%+9.90%+9.90%
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