RACL Geartech Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 1 Jun 2026 | Auto Components | Market Cap: ₹1.6K Cr
The company has grown roughly 78% in the first half of the fiscal year. H2 FY26 expected to outperform H1 with optimistic outlook for revenue growth beyond 78% achieved in H1.
From RACL Geartech's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹1,512
Market Cap
₹1.6K Cr
P/E Ratio
34.6
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RACL Geartech — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹130 Cr, net profit ₹12 Cr.
Full financials →📊 Revenue & Sales Performance
- →The company has grown roughly 78% in the first half of the fiscal year.
- →Guidance is maintained for double-digit revenue growth of 14-15% for FY26 compared to FY25.
- →Optimistic outlook for H2, expected to be better than H1 in revenue and profitability.
- →The next milestone target is achieving 1000 crores revenue within three to five years, though exact timing is uncertain.
- →Future growth will be supported by existing projects, with no new projects currently contributing to revenue.
- →KTM production ramp-up is ongoing, with meaningful revenue contribution expected next year.
- →Diversification and technical advancements through collaborations aim to increase value chain involvement and future growth potential.
- →Capex spend for FY26 is around 50 crores, focused on supporting production and technology upgrades.
- →The company expects steady volume growth supported by expanded product offerings and customer base.
📈 Profitability & Margins
- →H2 FY26 expected to outperform H1 with optimistic outlook for revenue growth beyond 78% achieved in H1.
- →Double-digit revenue growth of 14-15% is anticipated for FY26 compared to FY25.
- →Operating profitability is improving with EBITDA margin maintained above 24% in H1 FY26.
- →PBT surged significantly (about 280% YoY in H1), indicating strong profit growth potential.
- →Operating cash flow increased by ~50%, supporting debt reduction and future capex requirements without heavy borrowing.
- →The company targets achieving ₹1000 crores revenue milestone within 3-5 years, reflecting a strong long-term vision though exact 5-year target timing is uncertain.
- →Continual investment in technology and capacity upgrades aims to support scaling and improved profitability.
- →New business nominations and technical collaborations are expected to enhance value chain positioning and margin expansion.
🏗️ Capital Expenditure Plans
- →Capex for FY26 is about ₹50 crores, primarily to support current year production and gradually next year's production.
- →Investments include upgrading old obsolete technologies and heat treatment setups nearing end of life.
- →New projects are not highly capital intensive and are expected to generate good project turnover.
- →Operating cash flows are expected to reduce the need for borrowing; debt levels targeted to be stabilized or reduced.
- →Strategy is to avoid Capex in anticipation of business; investments are made aligned with confirmed business to avoid idle capacity.
- →FY27 Capex plans are being compiled, with more details expected next quarter.
- →Technical collaboration with German company AARK Engineering for design-to-print capability is a strategic move enhancing product design and customization.
- →Participated in defence manufacturing expos, signaling exploration into defence sector opportunities as a diversification avenue.
💰 Fundraising & Capital Structure
📋 Order Book & Pipeline
- →The transcript does not provide explicit details on the current or expected orderbook or pending orders in exact figures.
- →However, it indicates optimism about growth in the second half (H2) of the fiscal year and expects double-digit revenue growth of around 14-15% in FY26 versus FY25.
- →Discussion about KTM production ramp-up suggests a positive outlook for new and resumed orders after KTM restarted production in July 2025.
- →The company is also engaging in new programs and technical collaborations (e.g., with AARK Engineering GmbH) to design products from concept to print, indicating a strategic pipeline of projects.
- →Management expresses confidence in achieving a 1000 crore revenue milestone within 3-5 years, implying a strong order pipeline and growth vision.
- →No specific order backlog numbers or pending orders are disclosed in the provided transcript sections.
Key Metrics
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What RACL Geartech Ltd's management said in earlier quarters
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Frequently Asked Questions
What were RACL Geartech Q2 FY26 results?
The company has grown roughly 78% in the first half of the fiscal year. H2 FY26 expected to outperform H1 with optimistic outlook for revenue growth beyond 78% achieved in H1.
What is RACL Geartech share price analysis?
RACL Geartech currently shows a neutral. The stock trades at a P/E of 34.6 with a market cap of ₹1,635 Cr. Investors should review the full earnings analysis for detailed insights.
Is RACL Geartech planning capital expenditure?
Capex for FY26 is about ₹50 crores, primarily to support current year production and gradually next year's production.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.