RACL Geartech Ltd(RACLGEAR)

NSE: RACLGEARBSE: 520073

₹ 1,322.45-2.90%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 1,559 crWebsite: www.raclgeatech.comUpdated: 24 Oct 2026

About

RACL Geartech Ltd. is a B2B manufacturer of precision-engineered transmission and gear components supplying OEMs and Tier-1 suppliers across two-wheelers, passenger vehicles, commercial vehicles, recreation, agriculture, and industrial segments in India and overseas. The company posted consolidated revenue of ₹512 cr in FY26, with exports contributing more than 70% of revenue across 10 countries. It operates two manufacturing plants in India and holds IATF 16949:2016 certification, and has received Star Performer recognition at EEPC India's Northern Region Export Excellence Awards across four consecutive award cycles.^[1][2][3]

Revenue mix by end segment

Two-wheelers: 30% of FY26 revenue, down from ~40 - 45% in FY23 as faster-growing segments diluted the share.^[2][1]
Commercial vehicles: 20% of FY26 revenue, up from ~7 - 8% in FY23, driven by MAN Trucks full resourcing completion.^[1]
Recreation (ATV/RTV): 18% of FY26 revenue.^[2]
Passenger cars: 13% of FY26 revenue, up from 0% in FY23.^[2][1]
Tractors and agriculture: 10%; industrial equipment: 5%; three-wheelers: 3%; e-mobility and others: 1% of FY26 revenue.^[2]

Geography and export mix

Export share was 75% of FY26 consolidated revenue; Europe contributed 69% of FY26 consolidated net sales.^[1]
In Q1 FY27, Europe was 59%, India and Asia Pacific 36%, and North America 5% of consolidated net sales - a new three-region reporting format introduced this quarter.^[4]
Export mix stood at 66% in Q1 FY27, compared with 70% in Q3 FY26 and 72% in Q2 FY26.^[4][5][6]
The company serves 10 countries internationally and 7 states nationally.^[2]
RACL has 5 warehouses in Europe and has maintained a presence there for 16 years.^[5]

Operations and plants

Two manufacturing plants in India (Gajraula main plant and Noida), two national offices, and one international office.^[2]
The company holds IATF 16949:2016, ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications.^[2]
ZF project installed capacity utilisation was 50 - 60% in Q1 FY27.^[4]
RACL signed a technical collaboration with ARRK Engineering GmbH (Germany) to move from built-to-print to concept-to-print capability, covering product design, prototyping, simulation and testing.^[6][2]

Key operating metrics

Active customers: 29 in Q1 FY27; portfolio spans more than 1,600 SKUs as of FY26.^[4][1]
Consolidated operating revenue grew 31.5% YoY to ₹132.35 cr in Q1 FY27 from ₹100.65 cr in Q1 FY26.^[4]
Consolidated EBITDA margin was 24.28% in Q1 FY27; standalone EBITDA margin was 25.04% vs 25.22% in Q1 FY26.^[4]
Royal Enfield commercial supply run-rate reached 7,500 - 8,000 sets/month in Q1 FY27 against a nominated capacity of 10,000 sets/month.^[4]

Key customers

KTM (export, served from India and Austria) recovered to near pre-COVID volume levels by Q1 FY27 following prior financial insolvency; new Duke 790 launched in the US uses RACL kinematics.^[4]
Royal Enfield (350cc engine platform): commercial supply started January 2026; a second project for transmission/engine gears was won in Q4 FY26 with commercial production expected August - September 2026.^[1]
TVS Motor: supplies parts for RTX 310 (mass production commenced November 2025) and the Norton global brand; TVS conferred a Silver Rating on RACL at its Supplier Sustainability Summit 2025.^[6][2]
ZF: two active projects - a premium passenger-car platform (now extended to BMW X5) and a new EPS steering nomination for a North American commercial truck OEM (SOP end-2027 to mid-2028).^[4][5]
BHEL: mass production commenced; components running on critical national-security equipment.^[1]

Order book and new wins

Kawasaki Japan: high-volume project covering 15 part numbers for a general-purpose engine (two-wheelers, SUVs, lawn mowers); SOP October 2027, mass production from January 2028.^[1]
BMW Project Titan (parking lock) and Project Venus (electric sports car drivetrain): Level-1 approval received; pilot supplies shipping by sea; final BMW sign-off visit scheduled 24 October 2026; mass production SOP targeted October - November 2026.^[4]
Second nomination from large premium domestic 2W OEM (Royal Enfield) for gearbox assembly transmission parts; SOP July 2027 at Gajraula plant.^[6]
BRP Canada shift drum (150,000 ppa): mass production targeted to begin Q2 FY27.^[1]

Expansion and capex

FY27 capex of ₹77.45 cr approved: ~₹40 cr for replacement of the 30-year-old LPG heat treatment plant at Gajraula with an electric system, and ~₹35 cr for capacity expansion.^[4][5]
New electric heat treatment plant at Gajraula: building complete October 2026, all equipment arriving September - October 2026, commissioning October - December 2026, trial production January 2027.^[4]
The new heat treatment plant will replace LPG (73% of Scope 1 emissions) with electricity, reducing fuel cost and eliminating outsourcing cost at Noida.^[4]
Royal Enfield volume ramp targeted from 7,500 - 8,000 sets/month to 20,000 sets/month; Noida capacity being expanded to accommodate this.^[4][5]

New verticals being incubated

Management has identified civil aerospace (Airbus-focused), actuators/micro-motors, humanoid robotics (targeting Europe), and defence as new business areas; approach is human-resource investment first, capex deferred until validation.^[4]
Industrial gear manufacturing for BHEL is being scaled as a pilot for the defence/industrial vertical.^[4]
The India - EU FTA, applicable from January 2027, is bringing Indian suppliers into focus with European OEMs; RACL's 16-year European presence and 5 warehouses are cited as a competitive advantage.^[5]

Market Cap

₹1,559 Cr

High / Low

₹1,933 / 925

Stock P/E

36.3

Price / Book

5.1

Book Value

₹299

EPS

₹41.5

No. of Shares

1.18 Cr

ROCE

17.1%

ROE

16.9%

OPM

18.7%

Debt / Equity

0.64

Sales

₹490 Cr

Net Profit

₹49 Cr

Promoter holding

42.7%

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