RACL Geartech

NSE: RACLGEAR · Auto Components & Equipments

52W Range₹805 ₹1,692

Snapshot

Unlock RACL Geartech's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

RACL Geartech Limited is an Indian manufacturer specialising in high-precision automotive components, including gears, shafts, and assemblies for diverse vehicle segments. The company serves original equipment manufacturers (OEMs) and tier-1 suppliers across two-wheelers, commercial vehicles, agriculture machinery, and e-mobility sectors.

Business Model

The company operates as a B2B supplier, generating revenue through the design, manufacture, and supply of critical transmission and engine components to global automotive OEMs. It leverages long-term supply contracts and technical expertise to maintain its position within the automotive supply chain.

Growth Outlook

Growth is driven by the expansion of the company's e-mobility component portfolio and increasing demand for high-precision gears in the global agriculture and commercial vehicle markets. The company continues to leverage its international footprint to capture demand from major automotive hubs worldwide.

Key Risks

  • Cyclical Automotive Demand. The company's financial performance is highly sensitive to the cyclical nature of the global automotive industry and OEM production schedules.
  • Raw Material Price Volatility. Fluctuations in the prices of steel and other raw materials can significantly impact manufacturing margins if costs cannot be fully passed on to customers.
  • Technological Disruption. The rapid transition toward electric vehicles necessitates continuous investment in new component technologies to remain relevant to evolving powertrain requirements.
  • Geopolitical and Currency Risk. As a company with a significant international export footprint, it is exposed to foreign exchange volatility and potential trade barriers in its key global markets.

Price

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Key Metrics

REVENUE

₹490 Cr

TTM · consolidated

+18.0%YoY

NET PROFIT

₹49 Cr

TTM · consolidated

+106.3%YoY

EPS

₹42.27

TTM · consolidated

+92.0%YoY

RETURN ON EQUITY

19.0%

TTM · consolidated

+7.7 ppYoY

RETURN ON CAPITAL EMPLOYED

24.9%

TTM · consolidated

+6.5 ppYoY

P/E

31.4x

Q4 FY26 · consolidated

31.4 vs 45.1x5Y avg

EV/EBITDA

14.1x

Q4 FY26 · consolidated

14.1 vs 20.0x5Y avg

EBITDA MARGIN

25.8%

TTM · consolidated

+3.5 ppYoY

NET PROFIT MARGIN

9.4%

Q4 FY26 · consolidated

+2.0 ppYoY

DEBT TO EQUITY

0.6x

Q4 FY26 · consolidated

-0.69xYoY

Peers · Auto Components & Equipments

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
RACL GeartechRACLGEAR
1,44331.4114.1218.0%25.8%19.0%24.9%+45.4%
India Nipp.Elec.INDNIPPON
1,66024.5418.2526.5%14.0%15.0%18.7%+55.7%
GNA AxlesGNA
1,60521.7311.31-4.0%16.3%12.6%16.7%+78.1%
NDR Auto Compon.NDRAUTO
1,60131.7620.8815.4%11.4%19.6%20.4%-25.0%
Rico Auto IndsRICOAUTO
1,47833.2310.2512.0%9.4%7.1%10.5%+63.2%
Talbros Auto.TALBROAUTO
1,40023.6616.145.2%17.8%15.8%17.3%+36.3%

As of Q4 FY26

Financials