RACL Geartech Ltd

Business Overview

• Core business: precision machining and gear components for automotive and industrial sectors.
• Segments include transmission gears, shafts, sub-assemblies, chassis parts, and industrial gears.
• Two manufacturing locations; one Austrian subsidiary; five warehouses in Europe.
• FY26 revenue ₹5.12 billion; 1,200+ employees.
• 29 active customers; 1,600+ SKUs.
• Certifications: ISO 9001, ISO 14001, IATF 16949, ISO 45001, ISO/IEC 27001.

Operational Highlights

• Q1 FY2026-27 consolidated revenue ₹132.60 Cr; standalone ₹127.82 Cr.
• Operating revenue up 31.50% YoY to ₹132.35 Cr.
• 2 manufacturing locations; 1 Austrian subsidiary; 5 Europe warehouses.
• 29 active customers; 1,600+ SKUs.
• Total monthly sales around ₹128 Cr.
• ESG: Scope 1 750 t CO2e; Scope 2 321 t CO2e monthly.

Financial Performance

• FY26 revenue ₹5.12 B.
• EBITDA margin 25.04% of revenue in Q1 FY2026-27.
• PAT margin 6.86% in Q1 FY2026-27.
• Current tax 3.72%; Deferred tax 2.46% of revenue.
• Total finance cost 4.81% of revenue.

Capital Structure & Liquidity

• No debt or liquidity actions disclosed in this chunk.

Strategic Priorities & Outlook

• Expand European footprint via Europe warehouses and Austrian subsidiary.
• Maintain certifications and focus on exports and diversified customer base.

Overview

• Manufactures auto-components; B2B OEM/Tier-1 supplier across India and abroad.
• Consolidated financials; standalone BRSR disclosures; FY2025-26 period is 1 Apr 2025–31 Mar 2026.
• Export revenue 336.11 Cr; total revenue 500.22 Cr; exports 67% of turnover.
• Gajraula plant operates on 100% renewable electricity; foreign subsidiary included in consolidation.

Key ESG Risks & Opportunities

• Material risks: supply-chain disruption, energy costs, water scarcity, waste, labour compliance, logistics, currency exposure, regulatory changes.
• Mitigations: supplier ESG due diligence, 100% renewable energy at key plant, ZLD wastewater, EPR, robust governance.
• Opportunities: renewable energy expansion, stronger supplier engagement, circular economy, decarbonization, improved ESG ratings.

Governance & Policy Highlights

• Board oversees ESG priorities; oversight of environmental, social, governance risks and opportunities.
• Policies: anti-bribery, whistleblower, human rights, POSH; Code of Conduct; Supplier Code of Conduct.
• Certifications: IATF 16949, ISO 9001, ISO 14001, ISO 45001.
• No material penalties or non-compliances reported; no external assurance engaged.

Social Responsibility & Workforce

• Total workforce: 800 employees and 965 workers; female representation limited (board 25%, KMP 50%).
• Well-being spend 0.48% of revenue; 100% health insurance coverage for employees; PF/ESI coverage high.
• LTIFR 0 for both employees/workers; injuries: 5 employees, 4 workers; no fatalities.
• CSR education and women empowerment initiatives benefit 400+ students and 10+ women.

Environmental Performance

• Total energy: 111,376 GJ; 59% from renewable sources; 1.7 MW rooftop solar; 4 MW off-site PPA.
• Water: 16,564 kl consumed; 14,248 groundwater withdrawn; 2,316 third-party water; ZLD with reuse.
• GHG: Scope 1 2,794 tCO2e; Scope 2 910 tCO2e; Scope 3 4,701 tCO2e; energy intensity low.
• Waste: 3,616 kg total; 100% recycled/recovered; no incineration or landfill; plantation drive of 4,800 saplings.

Stakeholder Engagement & Complaints

• Stakeholders: investors, customers, suppliers, employees/workers, communities; multi-channel engagement; periodic reviews.
• Complaints: 1 shareholder complaint; 119 customer complaints with 0 unresolved; zero issues with communities/employees.
• Grievance mechanisms include HRMS, Whistle Blower, POSH, and Code of Conduct; responsive CAPA process.

Other Notable Metrics

• Related-party transactions: purchases 2.79%, sales 4.23%, investments 25.70%.
• Input sourcing: 21.03% from MSMEs/small producers; 72.98% from India; 5.99% within district.
• Data/privacy/cybersecurity: no data breaches; cyber security policy in place; no recalls or penalties.
• Accounts payable days: 61; 100% environmental and human-rights due diligence across value chain.

Financial highlights

• Consolidated revenue ₹512.42 crore; EBITDA ₹129.16 crore; PBT ₹65.73 crore; PAT ₹48.95 crore.
• Standalone revenue ₹500.22 crore; PAT ₹46.56 crore; Basic EPS ₹39.98.
• Export revenue ₹336.11 crore; ~66% share of consolidated revenue.
• Raised ~₹80 crore via preferential allotment; strengthened balance sheet.

Operations and markets

• Export revenue remains key driver; Consolidated export revenue ₹336.11 crore.
• Domestic premium motorcycle transmission gears order; Bharat Heavy Electricals Limited vendor registration.
• Global footprint: served 9+ countries; Europe as major export region.
• FY21-26 CAGR: Revenue 19%, EBITDA 18%, PAT 15%.

Capital structure and dividends

• Paid-up equity ₹11.78 crore; total equity ₹352.36 crore.
• Total debt (consolidated) ₹224.55 crore; net debt/EBITDA 1.69x.
• DSCR 1.77x; current ratio 1.38x.

Governance & audit

• Board of 8 directors; 4 independent including one woman; 1 executive.
• Independent director Pravir Kumar appointed Aug 2025; Shashank Anikhindi left Sep 2025.
• Statutory auditors Gupta Nayar & Co; Secretarial Rosy Jaiswal; Internal Protiviti.

ESG and CSR highlights

• Renewable energy: 100% renewable; 1.7 MW rooftop; 4 MW off-site PPA.
• CSR spend ₹86.99 Lakh; 3 programs; 500+ beneficiaries.
• Awards: EEPC India Star Performer; Gear Technology India Outstanding CSR.
• ZLD, water recycling; carbon emissions reduced 64.2% since FY22-23.

Subsidiaries and related parties

• Wholly owned subsidiary: RACL Geartech GmbH, Austria.
• Related party transactions are arm's length; CSR with Sun-UP Foundation; KMP remuneration disclosed.
• Sun-UP Foundation CSR Trust and Northern India Pickleball relations noted.

Board and governance updates

• FY26 governance: 6 Board meetings; independent directors met without management.
• Nomination and Remuneration Committee re-constituted Aug 2025; NRC chaired by Jagdish Keswani.
• Risk Management Committee chaired by Pravir Kumar; ongoing governance enhancements.

Outlook and risks

• Positive long-term outlook for Indian engineering exports; opportunities in premium mobility and drivetrain segments.
• Risks include macro headwinds, supply chain dynamics, and currency fluctuations; mitigations include technology, automation, and local sourcing.

Clarification on volume movement

• No material information; disclosures per Regulation 30; price movement market-driven; company secretary confirms compliance.

Meeting Details

• Date and time: August 25, 2026, 03:30 P.M. IST.
• Type and mode: investor conference call, virtual (video/audio).
• Organizer: RACL Geartech Limited.

Participants

• The management team includes the Chairman & Managing Director.
• The Chief Operating Officer will present.
• The Chief Financial Officer will present.

Purpose

• Purpose: discuss Q1 FY 2026-27 results with investors.