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RACL Geartech LtdQ1 FY27 earnings call

· All quarters

Summary generated by AI from the official transcript RACL Geartech Ltd filed with BSE on 01 Sept 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries

The short read

RACL Geartech reported consolidated Q1 FY27 revenue of Rs 132.60 crore, up around 22% year-on-year, with EBITDA of Rs 32.19 crore and PBT of Rs 16.82 crore, a growth of close to 50%. Management attributed the growth to resilient export performance, a rebound at KTM, and ramp-up in domestic programs including Royal Enfield. The company also discussed progress on its new electric heat treatment plant, ESG metrics, and capex plans for the year.

Numbers mentioned

Consolidated turnover: Rs 132.60 crore (Q1 FY27)

p. 5
In Q1 of FY26-27, we clocked a consolidated turnover of 132.60 crores.

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

Standalone turnover: Rs 127.82 crore (Q1 FY27)

p. 5
On a standalone basis, we clocked the turnover of 127.82 crores

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

Consolidated turnover growth: 22% (Q1 FY27 vs Q1 FY26)

p. 5
On a quarter on quarter basis, we clocked a turnover of 132.6 crores as against 108.7 crores last year, same quarter, which is a growth of close to 22%.

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

Consolidated EBITDA: Rs 32.19 crore (Q1 FY27)

p. 5
EBITDA has grown from 27.29%, which was 25.11%, to 32.19 crores, which is a growth of close to 18% on an absolute basis.

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

Consolidated PBT: Rs 16.82 crore (Q1 FY27)

p. 5
And PBT has grown from 11.26 crores, which was 10.36%, to 16.82 crores, which is 12.68%, which is a growth of close to 50%.

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

Standalone turnover growth: 18.4% (Q1 FY27 vs Q1 FY26)

p. 5
On a quarterly basis, on a standalone basis, we have clocked a turnover of 127.82 crores against as against 107.96 crores achieved last year same quarter, which is a growth of 18.4%.

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

Standalone EBITDA: Rs 32 crore (25.04% margin) (Q1 FY27)

p. 5
Our EBITDA has grown from 27.23 crores, which was 25.22% to 32 crores, which is 25.04%, which is a growth of close to 17.5% on an absolute basis.

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

Standalone PBT: Rs 16.66 crore (13.03% margin) (Q1 FY27)

p. 6
And our PBT has grown from 11.25 crores, which was 10.42%, to 16.66 crores, which is 13.03%, which is a growth of close to 48%.

Mr. Jitender Jain, page 6 of the filed PDF · View the filing

Export share of net sales: 66% (Q1 FY27)

p. 5
On a net sales basis, our export turnover is up 66% and our domestic business is 34%.

Mr. Jitender Jain, page 5 of the filed PDF · View the filing

FY26 consolidated turnover: Rs 512 crore (FY26)

p. 4
We clocked that consolidated turnover of 512 crores in FY 25-26.

Mr. Jitender Jain, page 4 of the filed PDF · View the filing

Capex for the year: Rs 77.4 crore (FY27)

p. 11
So, we have already disclosed to the stock market, yeah, 77.4 crores profits.

Mr. Gursharan Singh, page 11 of the filed PDF · View the filing

Effective tax rate this quarter: 47% (Q1 FY27)

p. 17
So, right now, the effective tax it for this quarter was forty-seven percent, right?

Mr. Shashank Kanodia, page 17 of the filed PDF · View the filing

Blended tax rate for the year: 25.62% (FY27)

p. 16
So it will be 25.62%.

Mr. Jitender Jain, page 16 of the filed PDF · View the filing

Scope 1 carbon emission: around 750 tons (Q1 FY27)

p. 7
So we had generated scope one carbon emission of around 750 tons and scope 2 carbon emission of around 321 tons.

Mr. Jitender Jain, page 7 of the filed PDF · View the filing

What management said it would do

A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.

Revenue growth — 570 crores / 16-17% growth · FY27

stated firmly by Mr. Shashank Kanodia

p. 16
We got it for closer to 570 quotes of revenues or 16-17% kind of revenue growth.

Mr. Shashank Kanodia, page 16 of the filed PDF · View the filing

Revenue guidance variance — plus or minus 5%

stated conditionally by Mr. Gursharan Singh

p. 16
And we have already told you that is plus or minus 5% generally it always happens.

Mr. Gursharan Singh, page 16 of the filed PDF · View the filing

Heat treatment plant construction completion — building and construction completed · October 2026

stated firmly by Mr. Jitender Jain

p. 6
We are expecting the building and construction to be completed by October 2026.

Mr. Jitender Jain, page 6 of the filed PDF · View the filing

Heat treatment equipment arrival — all equipment to arrive · September to October 2026

stated firmly by Mr. Jitender Jain

p. 6
we are expecting all equipment to arrive within September to October 2026.

Mr. Jitender Jain, page 6 of the filed PDF · View the filing

Heat treatment plant installation and commissioning — install and commission · October 2026 to December 2026

stated firmly by Mr. Jitender Jain

p. 6
And we will install and do commissioning from October 2026 to December 2026.

Mr. Jitender Jain, page 6 of the filed PDF · View the filing

Heat treatment plant trial production — start trial production · January 2027

stated conditionally by Mr. Jitender Jain

p. 6
And as of now, if all goes well, we are planning to start the trial production by January 2027.

Mr. Jitender Jain, page 6 of the filed PDF · View the filing

BMW SOP — final approval and supply start · October 2026

stated firmly by Mr. Piyush Jain

p. 9
So, what I understood, BMW supply will start from October, correct, sir?

Mr. Piyush Jain, page 9 of the filed PDF · View the filing

ZF electric power steering commercial supplies — commercial supplies start · end of 2027 or middle of 2028

stated conditionally by Mr. Prabh Mehar Singh

p. 11
And I think from end of 2027 or middle of 28, the commercial supplies.

Mr. Prabh Mehar Singh, page 11 of the filed PDF · View the filing

Revenue growth target medium-term — 15 to 20% per year · next three to four years

stated as an aspiration by Mr. Gursharan Singh

p. 23
we always say that we always have a very, very ambitious growth plan to grow, 15 to 20% per year

Mr. Gursharan Singh, page 23 of the filed PDF · View the filing

Overall growth trajectory — between 5 to 20 percent · year-on-year

stated as an aspiration by Mr. Gursharan Singh

p. 18
So we have a very clear guidance that we will be growing reasonably, anything between 50 to 20 percent of growth year-on-year basis.

Mr. Gursharan Singh, page 18 of the filed PDF · View the filing

Q&A highlights

Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.

Management said relationship remains with KTM Austria and no direct communication yet with Bajaj on India production.

Answered by Mr. Gursharan Singh

Asked by Mr. Sid: Whether KTM has fully bounced back and if Bajaj ownership will increase India sourcing.

p. 8
Until now, we have no such direct communication with Bajaj for the India production, but definitely it is a open world if anything comes to our, I will definitely love to add that, but our primary focus remains with KTM for Austria.

Mr. Gursharan Singh, page 8 of the filed PDF · View the filing

Management confirmed the project is on track with final approval expected October 24 and pilot supplies already begun.

Answered by Mr. Gursharan Singh

Asked by Mr. Piyush Jain: Status of BMW SOP expected from October 2026.

p. 9
Yes, so 24th October, their team is finally visiting us for the final sign off.

Mr. Gursharan Singh, page 9 of the filed PDF · View the filing

Management said commercial supplies started in January, ramping to about 7,500-8,000 sets per month against a nomination of roughly 10,000 sets.

Answered by Mr. Prabh Mehar Singh

Asked by Mr. Piyush Jain: Update on Royal Enfield empanelment and volumes.

p. 10
So we were ramping up earlier and we reached to a level of 7.5 to 8000. We are sustaining that level.

Mr. Prabh Mehar Singh, page 10 of the filed PDF · View the filing

Management said ZF volumes are recovering as the end platform shifted to a higher-volume SUV, running at 50-60% utilization.

Answered by Mr. Prabh Mehar Singh

Asked by Mr. Piyush Jain: Status of ZF business and volume trends.

p. 11
We are working at 50% to 60% utilization of the installed capacity.

Mr. Prabh Mehar Singh, page 11 of the filed PDF · View the filing

Management attributed it to differences in depreciation/gratuity treatment and a change in surcharge rate creating deferred tax liability.

Answered by Mr. Jitender Jain

Asked by Mr. Nisarg Shah: Reason for rising tax in the quarter.

p. 13
Our higher tax liability, current tax liability has come because of the difference in depreciation and gratuity as per Income Tax Act.

Mr. Jitender Jain, page 13 of the filed PDF · View the filing

Management said investment so far is in human resources and effort under an incubation approach, not large capital outlay yet.

Answered by Mr. Gursharan Singh

Asked by Mr. Abhisar Jain: Whether investments have begun for non-auto diversification areas like aerospace and robotics.

p. 14
We have started putting our human resources out.

Mr. Gursharan Singh, page 14 of the filed PDF · View the filing

Management said guidance is reviewed annually and would not be revised mid-year, staying with the plus-or-minus 5% benchmark.

Answered by Mr. Gursharan Singh

Asked by Mr. Shashank Kanodia: Whether revenue guidance would be revised upward given KTM recovery and new customers.

p. 16
generally giving such new revenue guidance will not be appropriate at this point of time

Mr. Gursharan Singh, page 16 of the filed PDF · View the filing

Management said they are working with two potential customers on this platform but cannot disclose details yet.

Answered by Mr. Gursharan Singh

Asked by Mr. Jainam Madrecha: Update on the Arc Technologies tie-up for build-to-print to concept-to-print.

p. 17
Right now, we are working with two potential customers on this platform, so moment anything about this will definitely disclose this

Mr. Gursharan Singh, page 17 of the filed PDF · View the filing

Management said they see increased RFQ/RFI activity due to geopolitical realignment but remain cautious about how far it develops into firm business.

Answered by Mr. Gursharan Singh

Asked by Mr. Bhargav Buddhadev: Whether RACL would become more aggressive given a surge in RFQs from Europe.

p. 22
there is a certain spot we are also witnessing this, but how far it goes into the serious business, and only time will come.

Mr. Gursharan Singh, page 22 of the filed PDF · View the filing

Risks flagged

Geopolitical conflicts and energy crisis affecting operations since March 2026.

p. 3
despite all the challenges of geopolitical conflicts, despite all the challenges of severe energy crises which happened.

Mr. Gursharan Singh, page 3 of the filed PDF · View the filing

India still facing ongoing energy crisis.

p. 3
India is still not energy crisis free.

Mr. Gursharan Singh, page 3 of the filed PDF · View the filing

Volatility in customer demand for multi-supplier customers exposing smaller suppliers first.

p. 19
then eventually the little suppliers are always at the risk of getting the first hit

Mr. Gursharan Singh, page 19 of the filed PDF · View the filing

Disclosure of per-unit pricing could create competitive risk with rivals.

p. 10
Since domestic market is highly price sensitive, so such things we don't disclose

Mr. Prabh Mehar Singh, page 10 of the filed PDF · View the filing

Disclosing customer volume share could create business risk and violate customer confidentiality expectations.

p. 19
then it goes in the public domain and then eventually it gets a little bit of business risk for us

Mr. Gursharan Singh, page 19 of the filed PDF · View the filing

Margins are not stationary and can move up or down quarter to quarter.

p. 16
But this, you can always see that nothing remains stationary, so either we go up or we go down, so nothing remains stationary.

Mr. Gursharan Singh, page 16 of the filed PDF · View the filing

DG set emissions are difficult to control.

p. 7
And 23% of our scope 1 emission is currently coming from DG set, which is difficult for us to control.

Mr. Jitender Jain, page 7 of the filed PDF · View the filing

Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.