RACL Geartech reports FY25 results, outlines growth strategy

RACL Geartech (BSE:RACLGEAR) reported a turnover of INR4.27 billion for FY25, marking a 1% increase year-over-year. Export turnover accounted for INR2.91 billion and domestic turnover reached INR93 crores. EBITDA for Q4 FY25 stood at INR24.05 crores. Despite a slight dip in PBT to INR34.37 crores for the full year, the company saw a 140% increase in cash from operations. The company successfully raised INR79.99 crores through a preferential allotment, attracting marquee investors like Malabar India Fund and White Oak Capital. Proceeds will be used to reduce debt and support future capital expenditure, estimated at INR45-50 crores for the current fiscal year. RACL aims for a revenue of INR500-525 crores for FY26 and is targeting INR1000 crores in 3-4 years, underpinned by existing capacity, new project wins like Project Titan and Venus, and diversification into steering components. They are also expanding their Gajraula facility. Bajaj Auto's acquisition of majority control in KTM AG is expected to stabilize the KTM business.