General information and education, not investment advice. The author is not a SEBI-registered adviser or research analyst. No recommendation, no promised returns. Markets carry risk including loss of capital. Figures may not be current. Always consult a SEBI-registered adviser.
1. At a Glance
RACL Geartech makes transmission gears and shafts for vehicle makers and industrial equipment firms. In the three months to June 2026, sales reached ₹127.63 crore against ₹99.91 crore a year earlier. Operating profit for the quarter rose to ₹31.81 crore from ₹18.76 crore. Net profit moved to ₹8.77 crore from ₹8.29 crore a year earlier. Operating margin came in at 24.92%, the highest of the ten quarters on the sheet.
Operating profit grew by ₹13.05 crore and net profit by ₹0.48 crore. Three lines sit between those two figures. Interest came to ₹6.14 crore for the quarter and depreciation to ₹9.20 crore. That is the first time the depreciation line has crossed ₹9 crore. The third is tax, charged at 47.36% on profit before tax of ₹16.66 crore. The nine quarters before it sat in a narrower band. Those rates ran between 25.10% and 28.06%.
Other income arrived at ₹0.19 crore, or nineteen lakh. The four quarters before it carried ₹8.05 crore, ₹5.56 crore, ₹3.20 crore and ₹5.43 crore. The line turned up, signed the register and left.
Behind the quarter sits a year to March 2026 in which standalone revenue reached ₹500.22 crore. Total debt fell over that year from ₹297.59 crore to ₹221.82 crore. A preferential issue, meaning new shares sold to chosen buyers, placed 10,06,480 shares and raised ₹80 crore from institutions. Management’s budget for the year to March 2027 stands at ₹565 crore.
2. Introduction
RACL was incorporated in 1983 as Raunaq Automotive Components Limited, promoted by the Raunaq Group. Per CARE Ratings, a credit-rating agency, financial difficulties took the company to the Board for Industrial and Financial Reconstruction in 2001. CARE says it left that board’s purview in November 2007, under a new management team led by Gursharan Singh, Chairman and Managing Director. Few listed auto ancillaries carry a restructuring file in the origin story and a BMW nomination letter in the current one.
The company makes transmission gears and shafts from two units in Uttar Pradesh, at Gajraula and Noida. It has held a wholly owned Austrian subsidiary, RACL Geartech GmbH, since buying 100% of its shares. Per the auditor’s review report, that subsidiary added ₹8.19 crore of revenue for the June 2026 quarter. The same report puts its net profit for the quarter at ₹3.11 crore, and the auditors consider it not material to the group. That is a net margin of about 38% on a warehouse and logistics arm.
The shares began trading on the NSE in November 2024, after four decades on the BSE alone. A bhumi pujan, the ground-breaking ceremony for a new site, was held in May 2025 for a new manufacturing facility. The same month brought an ₹80 crore preferential allotment to Malabar India Fund, White Oak Capital Group entities and Dr Aniruddha Malpani. In August 2025 an Indian OEM, the maker whose badge goes on the finished vehicle, placed a long-term order for premium motorcycle gears. An interim dividend of ₹1.50 a share was declared in February 2026.
Headcount went from 752 to 1,200 across the two years to March 2026. Active customers moved from 22 to 29 over the same stretch. Stock-keeping units, the count of distinct part numbers held, went from 900 to more than 1,600. That is roughly 700 new part numbers added in a single year. Each one requires its own tooling, its own drawing and its own place on a shelf.
US
Now live
US Stocks terminal is live
13,000+ US tickers · EDGAR fundamentals · screener and filings feed — the same terminal, for American markets.
Explore →
3. Business Model: WTF Do They Even Do?
The business is cutting gears, precisely, in large variety, mostly for customers who live somewhere else.
The range covers transmission gears and shafts, precision machined parts, chassis parts and sub-assemblies. It also includes industrial gears for electrical switchgear, circuit breakers, winches and cranes. Those parts go into two-wheelers, three-wheelers, passenger cars and commercial trucks. They also go into ATVs, agricultural equipment and industrial gearboxes.
The clientele reads like an airport departure board. BMW Motorrad in Germany and KTM AG in Austria are both on it. Kubota takes parts in Japan, Thailand and the United States. Schneider Electric buys in Germany, and Dana in Italy and China.
Per the investor presentation, exports were 75% of the year to March 2026 and domestic sales 25%. Europe accounted for 69%, with India and Asia Pacific at 29%. The United States and Canada came to 2%. Two-wheelers were 30% of sales and commercial vehicles 20%. Recreational vehicles took 18% and passenger cars 13%. Tractors and agriculture took 10% and industrial products 5%. Three-wheelers were 3%, and e-mobility with others 1%. The COO said the two-wheeler share had historically been roughly 40% to 45%. The COO attributed the move to 30% to other segments growing faster, rather than to any segment shrinking.
The working-capital design is the part worth understanding. Per CARE, the company holds around 3.5 months of inventory across a wide product range. CARE says it extends about two months of credit to domestic
