RACL Geartech Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript RACL Geartech Ltd filed with BSE on 17 Jun 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 FY26 revenue of Rs 512.42 crore, up over 20% from Rs 425 crore in FY25, with EBITDA margin expanding to 25.21% and PBT growing more than 100% to Rs 65.73 crore. Management discussed new project wins including Royal Enfield, Kawasaki, and continuing progress on BMW Titan and Venus electric vehicle projects, as well as ZF and BHEL business. The company also reported debt reduction to Rs 221 crore from Rs 297 crore following equity infusion, alongside a planned FY27 capex of Rs 77.45 crore.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: 512.42 crores (FY 2025-26)
p. 6
“We have clocked a consolidated turnover of 512.42 crores as compared to 425 crores clocked in financial year 2024-25, representing a growth of more than 20%.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
EBITDA margin: 25.21% (FY 2025-26)
p. 6
“Our EBITDA margins have grown from 94.94 crores, which was 22.34% to 229.16 crores, which is 25.21%, representing a growth of almost 36%.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
PBT: 65.73 crores (FY 2025-26)
p. 6
“the PBT has grown from 32.8 crores, which was 7.7% in financial year 2024-25 to 65.73 crores, representing 12.8% in financial year 2025-26, depicting a growth of more than 100%.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
Quarterly consolidated revenue: 136.69 crores (Q4 FY26)
p. 6
“turnover has grown from 92.23 crores in Q4 of last year to 136.69 crores in Q4 of this year, representing a growth of almost 48%.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
Cash generated from operations: 81.77 crores (FY 2025-26)
p. 6
“cash generated from operations has grown from 62.91 crores to 81.77 crores in financial year 2025-26, representing a growth of almost 30%.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
Debt-equity ratio: 0.63 times (FY 2025-26)
p. 6
“I want a special focus on debt equity, which is 0.63 times, which used to be 1.3 times, but it has come down to 0.63 times.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
Total debt: 221 crores (FY 2025-26)
p. 6
“Our total debt from financial year 2024-25, which was almost 297 crores, has come down to 221 crores.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
Export share of revenue: 75% (FY 2025-26)
p. 5
“Our overall turnover, 75% of our overall turnover was exports and 25% was domestic.”
Mr. Jitender Jain, page 5 of the filed PDF · View the filing
Commercial vehicle segment share: 20% (FY 2025-26)
p. 5
“About 20% of our turnover is commercial vehicles, followed by recreational vehicles, which is 18%, Passenger car segment has grown to almost 13%.”
Mr. Jitender Jain, page 5 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.
FY27 CapEx — 77.45 crores · FY 2026-27
stated firmly by Mr. Jitender Jain
p. 6
“our budgeted CAPEX plan for financial year 2026-27 is 77.45 crores and our corresponding bank debt will be availed accordingly.”
Mr. Jitender Jain, page 6 of the filed PDF · View the filing
FY27 revenue guidance — 565 plus minus 5% · FY27
stated conditionally by Mr. Prabh Mehar Singh
p. 25
“we have guidance of 565 plus minus 5% for FY27 in Q3.”
Mr. Prabh Mehar Singh, page 25 of the filed PDF · View the filing
Revenue milestone — 1000 crore · next three to five years
stated as an aspiration by Mr. Prabh Mehar Singh
p. 19
“vision wise, we are very much focused to achieve in next three to five years, this 1000 crore milestone.”
Mr. Prabh Mehar Singh, page 19 of the filed PDF · View the filing
BMW Titan project start of production — October '26
stated firmly by Mr. Prabh Mehar Singh
p. 8
“the final sign off is in August. The customer is visiting and then October ‘26, we can start the mass production, October or November, depending on how it is, but as of now it is October.”
Mr. Prabh Mehar Singh, page 8 of the filed PDF · View the filing
Royal Enfield project commercial production — August-September
stated conditionally by Mr. Prabh Mehar Singh
p. 7
“Hoping August - September, the commercial production should happen.”
Mr. Prabh Mehar Singh, page 7 of the filed PDF · View the filing
Kawasaki project mass production — early next year
stated conditionally by Mr. Prabh Mehar Singh
p. 7
“the 9 pilot lots which will be submitted now will result in the start of production we are anticipating early next year.”
Mr. Prabh Mehar Singh, page 7 of the filed PDF · View the filing
ZF commercial truck steering SOP — September-October
stated conditionally by Mr. Prabh Mehar Singh
p. 9
“Moment the samples are validated, this is, though a small volume, but the SOP should start from September-October of this year.”
Mr. Prabh Mehar Singh, page 9 of the filed PDF · View the filing
Shift drum project start of production — 150,000 per annum volume · next month
stated firmly by Mr. Prabh Mehar Singh
p. 9
“Our start of production is next month and around 150,000 per annum volume will be there.”
Mr. Prabh Mehar Singh, page 9 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 per kit value is not a public number and that Royal Enfield is not currently seeking fully assembled products from RACL.
Answered by Mr. Prabh Mehar Singh
Asked by Mr. Jainam Madrecha: What is the per kit value and TAM for the Royal Enfield business, and could this expand from gears to full assemblies?
p. 10
“for this at the moment, sir, no customer is not wanting fully assembled. Though we are equipped, we are doing the similar for other companies like TVS and KTM.”
Mr. Prabh Mehar Singh, page 10 of the filed PDF · View the filing
Management said growth is sustainable by design given the capital-intensive, precision-oriented nature of the business, and that 20% growth is meaningful given the larger revenue base.
Answered by Mr. Gursharan Singh
Asked by Mr. Jainam Madrecha: Why can't growth exceed 20% given multiple past disruptions are now resolved?
p. 11
“20% of 400 crores is 80 crores and 20% of 500 crores is 100 crores. So we have to grow in terms of absolute numbers also.”
Mr. Gursharan Singh, page 11 of the filed PDF · View the filing
Management said they would disclose capex numbers for future years once plans matured.
Answered by Mr. Gursharan Singh
Asked by Mr. Jainam Madrecha: What capex would be required beyond FY27 to reach a 1000 crore target?
p. 11
“We have already disclosed numbers for 202627, what CAPEX we are doing. Let the time come mature, because we are also preparing documents for that.”
Mr. Gursharan Singh, page 11 of the filed PDF · View the filing
Management clarified EVs use reduction gearboxes, not automatic transmissions, and that the BMW Venus project is part of this.
Answered by Mr. Gursharan Singh
Asked by Mr. Ramanjit Singh: How is RACL positioned in automatic transmission for EVs and as a tier 1 supplier?
p. 12
“In EVs, there is no concept of automatic transmission. In EVs, there is always a reduction gearbox.”
Mr. Gursharan Singh, page 12 of the filed PDF · View the filing
Management said they have not seen any slowdown and that tariffs are largely absorbed by end consumers rather than suppliers.
Answered by Mr. Gursharan Singh
Asked by Mr. Harshit Mehta: With heavy export exposure to Europe and tariff/trade uncertainty, is there any demand slowdown?
p. 16
“So far we are not witnessing any slowdown. Demand is really robust.”
Mr. Gursharan Singh, page 16 of the filed PDF · View the filing
Management attributed this to existing customers scaling up, driven by European infrastructure and defence spending as well as a completed resourcing roadmap with MAN Trucks.
Answered by Mr. Gursharan Singh
Asked by Mr. Harshit Mehta: What drove the expansion in commercial vehicle contribution to around 20%?
p. 17
“commercial vehicle business in Europe is going very robust and due to which our demand is rising.”
Mr. Gursharan Singh, page 17 of the filed PDF · View the filing
Management said they could not disclose revenue potential due to competitive sensitivity but gave a rough volume estimate for motorcycles.
Answered by Mr. Prabh Mehar Singh
Asked by Manish Gupta: What is the revenue potential of new projects won, based on volume and kit value?
p. 22
“around, I would say, 10 to 20,000 motorcycles will be running on our parts if we are able to meet what they're asking.”
Mr. Prabh Mehar Singh, page 22 of the filed PDF · View the filing
Management said debt will be raised only against assured business and maintained with fiscal discipline, keeping margins above industry benchmarks.
Answered by Mr. Gursharan Singh
Asked by Ashwin Karthik: What is the company's approach to debt given past reduction, and will it change going forward?
p. 23
“we borrow only when there is an assured business and we invest only judiciously where there is a sustained and justified profitability.”
Mr. Gursharan Singh, page 23 of the filed PDF · View the filing
Management said supply chain investments were made last quarter, current volume is 10,000 motorcycles with a goal to reach 20,000, and a new engine gear project should start by August.
Answered by Mr. Prabh Mehar Singh
Asked by Abhisar Jain: What is the status of the Royal Enfield ramp-up given supply chain constraints?
p. 23
“right now we are at 10,000 motorcycles. We want to go to 20. We cannot go to 20 immediately, but let's see, we have to also manage this 10,000 since capacities and everything else has to be managed.”
Mr. Prabh Mehar Singh, page 23 of the filed PDF · View the filing
Management explained quarterly margin variance is due to expense timing and said the FY27 guidance range of 565 plus/minus 5% is being maintained, not revised.
Answered by Mr. Prabh Mehar Singh
Asked by Preet: Why was Q4 gross margin lower and is FY27 revenue guidance being revised?
p. 25
“At the moment, we are not because this plus minus 5 is a flexibility which we will keep.”
Mr. Prabh Mehar Singh, page 25 of the filed PDF · View the filing
Risks flagged
Global geopolitical turmoil and uncertainty affecting business conditions
p. 3
“in these challenging and tough times when there's a tremor all around, there's always a challenge to speak positivity.”
Mr. Gursharan Singh, page 3 of the filed PDF · View the filing
Rising input costs and inflation across industries
p. 4
“inflations are going over the roof, all the input cards are really hitting any industry across the world”
Mr. Gursharan Singh, page 4 of the filed PDF · View the filing
Cost pressures and customer requests for price reductions amid inflation
p. 17
“Bigger pressures are there. It's not the pressure are not there. Customers are always asking some reductions there or there.”
Mr. Gursharan Singh, page 17 of the filed PDF · View the filing
Inflationary pressure on raw material basket
p. 24
“The inflations are serious, they are very high. We are speaking to our customers for some interim support.”
Mr. Prabh Mehar Singh, page 24 of the filed PDF · View the filing
KTM bankruptcy and shutdown affecting business previously
p. 19
“Despite, you know, KTM was one of the biggest customers for us, even that year, we grew by 1% when their shop was shut for six months.”
Mr. Prabh Mehar Singh, page 19 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.