RACL Geartech Limited has achieved a significant recognition in sustainability practices, receiving a Silver rating from TVS Motors for its Environmental, Social and Governance (ESG) initiatives. The award was presented at the TVS Supplier Sustainability Summit, highlighting the company's commitment to sustainable business practices.

Award Recognition Details

The recognition ceremony took place at the TVS Supplier Sustainability Summit in Bengaluru, Karnataka. Along with the Silver rating, RACL Geartech received a Certificate of Appreciation from TVS Motors, acknowledging the company's performance in ESG practices.

ESG Performance Assessment

The Silver rating is based on the outcome of the TVS Manufacturing Performance Index Assessment, which evaluates suppliers on various sustainability parameters. This comprehensive assessment framework measures companies' initiatives and performance across environmental, social, and governance dimensions, ensuring alignment with sustainable business practices.

Company's Sustainability Commitment

RACL Geartech views this recognition as a significant milestone in its sustainability journey. The company has emphasized its commitment to continuous improvement in sustainability and ESG practices, demonstrating its dedication to responsible business operations. This award reinforces the company's position as a sustainability-focused supplier in the automotive ancillaries sector.

Strategic Significance

The recognition from TVS Motors, a leading automotive manufacturer, validates RACL Geartech's efforts in implementing robust ESG frameworks. This achievement not only enhances the company's reputation among industry peers but also strengthens its supplier relationship with TVS Motors. The award reflects the company's proactive approach toward sustainable manufacturing and corporate responsibility in the automotive supply chain.

RACL Geartech Limited has released the official transcript of its Q2 FY26 earnings conference call held on December 5, 2025, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The comprehensive transcript provides detailed insights into the company's financial performance and strategic initiatives.

Conference Call Highlights

The earnings call was moderated by Neha Bahal, Company Secretary and Compliance Officer, with key management participation including:

The call covered the company's performance for Q2 FY26, strategic developments, and future outlook across automotive and industrial segments.

Financial Performance Discussion

During the call, management detailed the company's strong Q2 FY26 results, reaffirming the previously reported financial metrics:

The management emphasized the company's improved operational efficiency and strong cash flow generation, with operating cash flows growing by approximately 50% in H1 FY26.

Strategic Developments and Business Updates

Technical Collaboration with ARRK Engineering

Management provided detailed insights into the technical collaboration with German company ARRK Engineering GmbH. This partnership enables RACL Geartech to transition from a "built to print" model to a "concept to print" approach, offering complete product design capabilities from inception to production.

New Business Nominations

The company confirmed receiving a second nomination for transmission parts of gearbox assembly from one of India's largest premium two-wheeler manufacturers, with production expected to commence from July 2027.

Credit Rating and Debt Management

Management discussed the improved credit outlook from Care Ratings, with the rating reaffirmed at A- for long-term facilities and A2+ for short-term facilities, while the outlook was upgraded from Stable to Positive. Total rated facilities decreased to ₹273.38 crores from ₹336.93 crores.

Market Expansion and Future Outlook

Defense Sector Participation

The company participated in a defense manufacturing exhibition in Jabalpur from November 7-9, 2025, showcasing its capabilities to defense sector stakeholders and exploring opportunities in this growing segment.

Customer Updates and Production Status

Management provided updates on various customer programs, including:

Investor Engagement and ESG Initiatives

The company conducted its third annual shareholder plant visit on October 15, 2025, at the Gajraula facility. Additionally, RACL Geartech received a "Medium" ESG rating from Dun & Bradstreet for the second consecutive year across environmental, social, and governance parameters.

Management Commentary on Growth Strategy

Chairman and Managing Director Gursharan Singh emphasized the company's diversified approach across multiple automotive segments, stating that this strategy provides resilience against sector-specific challenges. The management reiterated confidence in achieving double-digit revenue growth for FY26, with H2 expected to outperform H1.

The company maintains its long-term vision of reaching ₹1,000 crores in revenue within the next three to five years, supported by strategic partnerships, technological upgrades, and market expansion initiatives across automotive and emerging sectors including defense and advanced mobility solutions.