Synopsis:
RACL Geartech Ltd has secured a long-term order from a leading Indian manufacturer to supply transmission gears for premium motorcycles.
The shares of the Small-cap company, specializing in the manufacturing and marketing of automotive components, with a particular focus on gears, shafts, and other precision-machined parts, hit a 20 percent upper circuit upon receiving a long-term order from a leading Indian manufacturer.
With a market capitalization of Rs. 1,190.60 crores on Thursday, the shares of RACL Geartech Ltd hit a 20 percent upper circuit, reaching a high of Rs. 1033.50 per share compared to its previous closing price of Rs. 861.25 per share.
RACL Geartech Ltd, engaged in the manufacturing and marketing of automotive components, with a particular focus on gears, shafts, and other precision-machined parts, has announced that it has secured a prestigious long-term domestic supply order.
The order is for supplying transmission gears for premium motorcycles from a globally renowned Indian manufacturer. This marks a significant milestone as the company enters the domestic mass market of the motorcycle industry, while continuing to focus on its core strategy of serving the premium segment. The order reflects the company’s strong technological capabilities and manufacturing excellence.
Financials & Others
The company’s revenue declined by 0.62 percent from Rs. 109.38 crore to Rs. 108.7 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 4.15 crore to Rs. 8.26 crore during the same period.
Additionally, Foreign Institutional Investors (FIIs) have shown growing confidence in the company, increasing their stake from 0.03% in the March quarter to 8.76% in the June quarter. Similarly, Domestic Institutional Investors (DIIs) also increased their stake from 0.05% to 2.85% during the same period.
As of FY24-25, the company reported total sales of ₹427.29 crore, comprising ₹290.97 crore from exports, ₹92.97 crore from domestic sales, ₹33.43 crore as other operating income, and ₹9.92 crore from non-operating income.
In FY 2024-25, the company’s product distribution was led by the two-wheeler segment at 39%, followed by commercial vehicles at 18%, passenger cars (including 9% EVs) at 14%, recreational vehicles at 13%, tractor and agriculture at 11%, three-wheelers at 3%, and industrial applications at 2%.
The company was established in 1983 and is headquartered in Noida, India. The company operates with 2 manufacturing locations and 1 corporate office in New Delhi. It also maintains 3 warehouses in Europe, serving a global customer base.
The company specializes in transmission gears and shafts, precision-machined parts, chassis parts, sub-assemblies, and industrial gears. These products are used across two-wheelers, three-wheelers, passenger cars, commercial trucks, ATVs, agricultural equipment, and industrial sectors.
In FY25, the company reported that it employs 811 people and its core competencies include gear cutting, precision and aluminum machining, heat treatment, laser welding and cutting, process R&D, concurrent engineering, and efficient export logistics handling.
Written by Sridhar J
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