RACL Geartech Q4 FY25 Results & Concall Highlights: Revenue, Margins & Order Book
Published 28 May 2026 | Auto Components | Market Cap: ₹1.6K Cr
The company targets revenues of ₹500-525 crores for FY26, showing growth from ₹427 crores in FY25 despite setbacks. The company targets revenue of ₹500-525 crores for FY26, up from ₹427 crores in FY25, reflecting a 16-18% growth expectation.
From RACL Geartech's Q4 FY25 earnings-call transcript · updated 23 Aug 2026.
Price
₹1,512
Market Cap
₹1.6K Cr
P/E Ratio
34.6
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Compare RACL Geartech against every Auto Components company this quarter on revenue, margins and earnings-call signals.
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 targets revenues of ₹500-525 crores for FY26, showing growth from ₹427 crores in FY25 despite setbacks.
- →KTM contributed about 12-15% historically but saw a 6-month production halt impacting revenues; KTM production is expected to fully restart post-summer 2025, which should help liquidate inventory and contribute to growth.
- →A cautious outlook is maintained for the next 6-12 months due to KTM's restart and global volatility.
- →The company expects volume growth of around 15-16%, factoring in conservative KTM contribution.
- →Growth drivers include strong demand in commercial vehicles, two-wheelers, tractors, and emerging projects with major clients like BMW.
- →The company plans capacity expansions and new manufacturing facilities to support the growth roadmap targeting ₹1000 crore revenue in 3-4 years.
- →Capex of around ₹150 crores planned over coming years, partly funded by debt and equity, to meet future demand.
📈 Profitability & Margins
- →The company targets revenue of ₹500-525 crores for FY26, up from ₹427 crores in FY25, reflecting a 16-18% growth expectation.
- →Growth outlook is positive, driven by recovery in KTM production, commercial truck segment, domestic markets, and tractor/agriculture sectors.
- →Margins are expected to remain healthy around 22-25%, consistent with prior years.
- →Management maintains a cautious yet optimistic view for the next 6-12 months, especially monitoring KTM restarting full production by mid-2025.
- →Long-term vision is to achieve ₹1000 crores revenue in 3-4 years.
- →Capex of about ₹150 crores is planned over coming years to support capacity expansion and diversification, funded partly by debt and equity.
- →Profitability expected to improve supported by reduced interest costs due to debt reduction from preferential allotment proceeds.
- →Overall, the company anticipates sustainable growth with product and segment diversification efforts driving margins and profits upward.
🏗️ Capital Expenditure Plans
- →Capex of around ₹150 crores planned, focused on future growth beyond current capacity.
- →Current year investments are for future years; no significant addition to current production capacity.
- →For FY 2025, capex planned is about ₹45-50 crores, funded approximately 75% by debt and 25% by equity.
- →Preferential allotment raised ₹79.99 crores; proceeds used to reduce debt and strengthen balance sheet for future capex.
- →New manufacturing facility at Gajraula initiated (Bhumi Pujan done April 30, 2025) to expand capacity for upcoming projects.
- →Capex planning done cautiously due to market volatility, while targeting ₹1000 crore revenue in 3-4 years with capacity expansion aligned accordingly.
- →Focus on technological upgradation, backward integration, diversification, and sustainable growth through value-accretive segments.
💰 Fundraising & Capital Structure
- →The company raised ₹79.99 crores through a preferential allotment of equity shares recently, mainly to reduce debt and finance Capex.
- →Current year's Capex is estimated around ₹45-50 crores, planned to be funded approximately 75% by debt and 25% by internal accruals/equity.
- →For future growth towards ₹1000 crores revenue in 3-4 years, a total Capex of around ₹150 crores is anticipated, with year-to-year planning given market volatility.
- →The company aims to reduce dependency on borrowed funds to maintain a stronger balance sheet for sustainable growth.
- →There is no mention of immediate future fundraising through new equity; debt funding will be used for the near-term Capex.
- →The focus remains on disciplined capital deployment and optimizing capital structure to support new orders and growth projections.
📋 Order Book & Pipeline
- →RACL Geartech does not disclose detailed order book numbers as they consider these to be non-binding customer forecasts and potentially optimistic.
- →The company works on a year-to-year basis and follows a policy of not disclosing order books for 5 to 10 years.
- →Order books often do not reflect the true scenario due to variability in customer production plans (example cited: Ola scooters).
- →The company prefers to focus on annual plans and forecasts rather than long-term order book disclosures.
- →They emphasize working as a single source for complete projects rather than individual orders.
- →Recent confirmed delivery schedules have started coming in from KTM AG after production restart.
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 Q4 FY25 results?
The company targets revenues of ₹500-525 crores for FY26, showing growth from ₹427 crores in FY25 despite setbacks. The company targets revenue of ₹500-525 crores for FY26, up from ₹427 crores in FY25, reflecting a 16-18% growth expectation.
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 of around ₹150 crores planned, focused on future growth beyond current capacity.
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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.