RACL Geartech Ltd (Auto Ancillaries - Gears) — fundamental analysis, earnings data, and key metrics. PE: 38.3. ROE: 10.7%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Apr 19, 2026
What: New Project Win: ZF Electric Power Steering
“We are very proud to share and announce that we have again further diversified into a new product line... This one is going to the trucks... for ZF.”
What: PBT Growth: 91.89%
Impact: Significant PBT jump
“I think the jump in PBT, which you are looking at, it is predominantly because of reduction in the finance cost.”
What: Revenue Threshold: ₹134 Cr
Impact: Higher Delta Profitability
“You know what happens when you cross a particular threshold of profitability? Then, Delta goes very high.”
What: BMW Electric Car Project: SOP by year-end
“We are fully prepared for the SOP by the end of this new, by the end of this year for the BMW car.”
What: Export Share: 70%
“This time now it will be direct export to Mexico because for pass cars, the entire steering system will be mechanical... this opens way for us for all leisure product market in the US.”
What: PBT growth of 91.89% YoY to ₹19.65 Cr.
“I think the jump in PBT, which you are looking at, it is predominantly because of reduction in the finance cost.”
Earnings deceleration risks from management commentary
Trigger: Policy change by the government affecting export incentives.
Impact: PAT impact: ₹1 Cr loss per year
Management view: The Federation of Exporters has approached the government for a review.
Monitor: regulatory
Trigger: Pricing is governed by global political factors and exchange rates.
Management view: Replacing LPG furnaces with electric ones powered by solar energy.
Monitor: commodity
Trigger: Uncertainty in global trade scenarios.
Management view: Focusing on India's resilience and diversifying into new geographies like Mexico.
Monitor: geopolitical
Key quotes from recent conference calls
“So, we are maintaining that we will grow between 18 to 20%. Of course, when we say 565, it is not that it is a number which is in front of us. [Previous Revenue Growth guidance]”
“We are putting up a heated room facility in Noida unit. So of course, it will reduce our in outsourcing cost because at Noida plant we are getting 100% heated on outside. [Initiative: Backward Integration (Heat Treatment)]”
“Actually, we'll be losing, I'll say, around a crore of rupees from next year, but it is still a long way to go because FAE Federation of Exporters has already approached the Government of India. [Risk (regulatory): LOW]”
“LPG price is always very subjective to the inflations in the country and the world... LPG cost has gone almost 100 rupees per kilo. [Risk (commodity): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹134.01 Cr
Why: Growth was driven by increased sales in the export segment and the addition of new premium projects.
Standalone revenue reached an all-time high for the company during this quarter.
EBITDA
₹33.41 Cr
Why: Margin expansion was aided by higher sales volumes crossing a profitability threshold and a favorable product mix.
EBITDA margins improved by approximately 207 basis points year-on-year.
PAT
₹19.65 Cr
Why: The significant jump in PBT was predominantly due to a reduction in finance costs after paying down long-term debt.
Profit Before Tax nearly doubled year-on-year due to deleveraging benefits.
Other Highlights
• Consolidated revenue for Q3 stood at ₹141.17 Cr.
• Export revenue contributed ₹93.75 Cr, representing 70% of total sales.
• Nine-month standalone revenue reached ₹364.81 Cr, up 13.56% YoY.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Export Revenue %
70%
Why: Strong demand from European and American markets.
Two-Wheeler Revenue Mix
29%
Why: The share decreased not in absolute terms, but because other segments like CV grew faster.
Commercial Vehicle Revenue Mix
19%
Why: Significant growth from 2% a few years ago to 19% now.
Recreational Vehicle Mix
21%
Active Customers
22
Total SKUs
900+
Permanent Employees
887
Why: Hiring to support capacity expansion and new projects.
Warehouses in Europe
5
Noida Plant Expansion Area
27,760 sq ft
Why: Leased additional space for new projects and heat treatment plant.
Forward-looking targets from management for FY 2026-27
Revenue Growth Target
5%
Capex Plan
₹77.45 Cr
₹565 Cr (+/- 5%)
Maintaining basic profitability while balancing inflation and new projects.
₹77.45 Cr
Heat treatment plant replacement and capacity expansion.
Doubling production for a new premium two-wheeler customer.
Guidance Changes
FY26 Revenue Growth: 18 to 20% → 18 to 20%
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
RACL Geartech Ltd's latest quarterly results (Dec 2025) show
RACL Geartech Ltd's current PE ratio is 38.3x.
RACL Geartech Ltd's price-to-book ratio is 5.1x.
RACL Geartech Ltd's fundamental strength based on key financial ratios
RACL Geartech Ltd has a debt-to-equity ratio of N/A.
RACL Geartech Ltd's return ratios over recent years
RACL Geartech Ltd's operating cash flow is positive (FY2025).
RACL Geartech Ltd's current dividend yield is 0.11%.
RACL Geartech Ltd's shareholding pattern (Dec 2025)
RACL Geartech Ltd's promoter holding has increased recently.
RACL Geartech Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
RACL Geartech Ltd has 6 key growth catalysts identified from recent earnings analysis
RACL Geartech Ltd has 3 key risks worth monitoring
In Q3 FY26, RACL Geartech Ltd's management highlighted
RACL Geartech Ltd's management has provided the following forward guidance for FY 2026-27
RACL Geartech Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why RACL Geartech Ltd may be worth studying
RACL Geartech Ltd investment thesis summary:
RACL Geartech Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
