RACL Geartech reports strong Q2, strategic growth, and credit rating upgrade

RACL Geartech Limited reported significant financial growth for Q2 FY26, with standalone revenue reaching INR 122.84 crore, marking a 16.2% year-on-year increase from INR 105.71 crore in Q2 FY25. EBITDA surged by 33.76% year-on-year to INR 29.79 crore, while Profit Before Tax (PBT) saw an impressive 138.96% rise to INR 16.13 crore. Half-yearly consolidated revenue stood at INR 234.56 crore, with PBT increasing by 86.98% to INR 14.68 crore compared to the previous year. Exports contributed 72% of sales in Q2 FY26, highlighting the company's strong international presence.

In a strategic move, RACL Geartech entered a technical agreement with ARRK Engineering GmbH to enhance its product design, simulation, testing, and validation capabilities. The company also secured a second business nomination for transmission parts from a major 2-wheeler manufacturer, with production scheduled to commence in July 2027.

Care Ratings Limited reaffirmed RACL Geartech's credit rating as "A-" for long-term bank facilities and "A2+" for short-term facilities, revising the outlook from "Stable" to "Positive." This upgrade reflects a substantial reduction in overall debt by INR 63.55 crore, bringing it down to INR 273.38 crore. The company's ESG rating was reaffirmed as "Medium" by Dun & Bradstreet.