Noida auto component maker hits 52-week high of ₹1,366; ICICI Securities sees ₹1,000 crore revenue potential over 4-5 years
By S. JHA
Mumbai, March 27, 2026 — Shares of RACL Geartech, the Noida-based manufacturer of high-precision automotive gears and transmission components, surged 12 per cent in two trading sessions, hitting a 52-week high of ₹1,366 on the BSE in an otherwise subdued broader market — a move driven by a blowout set of quarterly results and a strategically significant new export order.
The rally follows the company’s Q3 FY26 earnings disclosure. Consolidated revenue from operations climbed 21.75 per cent year-on-year to ₹137.32 crore, while consolidated profit after tax surged 149 per cent to ₹16.29 crore — up from just ₹6.54 crore in the same quarter last year. EBITDA came in at ₹33.41 crore, translating to a healthy margin of 24.93 per cent.
The numbers reflect more than a cyclical uptick. Nine-month PAT has grown 66.91 per cent year-on-year to ₹31.57 crore on a standalone basis, with standalone EPS rising to ₹12.75. The margin expansion — EBITDA margin improved to 22.6 per cent from 14.8 per cent a year earlier — signals a structural shift in operating efficiency rather than a one-quarter anomaly.
The order book is the other half of the story. RACL secured a new business nomination from ZF for supplying steering components for electric power steering systems for trucks in North American markets — marking the company’s entry into the American commercial truck segment, with production expected to commence in FY2027-28. For a company with 22 active customers and over 900 SKUs, landing a Tier-1 global drivetrain supplier as a new client is a material development.
ICICI Securities is positive on RACL, citing its strategic presence in the premium auto component space and strong order book visibility, targeting ₹1,000 crore in sales over the next four to five years. Management’s own FY27 revenue guidance stands at ₹565 crore — implying approximately 17 per cent growth over projected FY26 figures — supported by a ₹77.45 crore capex plan for capacity expansion and heat treatment upgrades.
From Screener.in, the key ratios at current levels: market cap stands at approximately ₹1,690 crore, stock P/E is 35.5, book value is ₹278, ROCE is 12.5 per cent, and ROE is 12 per cent. Revenue for the trailing twelve months is ₹449 crore with profit of ₹41.6 crore. Market cap has risen 88.9 per cent over the past year. On the positive side, the company has reduced debt and working capital requirements have improved from 17.2 days to 11.3 days. One flag worth watching: a debt-to-EBITDA ratio of 2.86 times warrants monitoring even as the deleveraging trajectory continues.
In the past six months, the stock has rallied 64 per cent, against a BSE Sensex gain of just 1.6 per cent over the same period. The six-day cumulative gain heading into this week was 32 per cent.
At a P/E of 35.5 and with the ZF nomination, BMW EV programme expansion, and a clear management roadmap to ₹565 crore in FY27, RACL Geartech has crossed from small-cap obscurity to a stock with a visible growth thesis. Whether the current valuation has run ahead of that thesis is the question investors now need to answer.
(This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult a SEBI-registered financial advisor before making any investment decisions.)
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