RACL Geartech share price today
Shares of RACL Geartech (RACL) hit a 16-month high of ₹1,314.35, surging 14 per cent on the BSE in Tuesday’s intra-day trade on a healthy business outlook.
In the past one month, the RACL Geartech stock price of this auto components & equipment company has zoomed 45 per cent, as compared to 1.4 per cent rise in the BSE Sensex. The stock now quotes at its highest level since May 2024. It had hit a record high of ₹1,525 on November 7, 2023.
RACL is an auto ancillary player manufacturing high-precision automotive components (gears, shafts, etc.).
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What's driving RACL stock price?
RACL, on September 15, entered into a technical agreement with ARRK Engineering GmbH, a leading engineering services provider headquartered in Germany.
Henceforth, RACL Geartech shall be positioned to offer end-to-end solutions not only for manufacturing of drive line & other precision components but also shall enable to offer solutions for product design, engineering, testing & validation services. ARRK’s advanced design, simulation and validation tools shall enable RACL to offer concept-to production solutions to OEMs and Tier-1 suppliers at an earlier stage of the product development cycle.
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Looking ahead to FY 2025-26, the auto component industry expects improved performance due to factors like the 8th Pay Commission implementation, potential tax relief, and good monsoon forecasts that should boost rural demand for entry-level vehicles. With India aiming for $80 billion in auto component exports by 2026, the industry is focusing on technological advancement, sustainability, and quality improvement to enhance global competitiveness.
The entry of global players like Tesla and expansion by existing manufacturers presents new opportunities for local suppliers. Despite FY2024-25’s challenges, the industry demonstrated resilience and adaptability, positioning itself for future growth by embracing electric vehicle (EV) transition, digital transformation, and innovation, supported by favorable government policies and strong domestic demand fundamentals that will drive India’s mobility transformation in coming years, RACL said in its FY25 annual report.
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RACL on recent stock price action
On October 4, 2025, RACL said the movement in the share price of the company is purely due to market conditions and absolutely market driven. All the information/events which have a bearing on the operations of the company are disclosed to the Exchange on immediate basis. The company has always abided by and complied with all regulatory requirements and will continue to do so, RACL on September 26, clarified on increase in volume.
ICICI Securities sees more upside in RACL stock price
Analysts at ICICI Securities are positive on RACL driven by its strategic presence in premium auto component space with strong orderbook visibility targeting ₹1,000 crore sales over next 4-5 years.
The brokerage firm assigned a Buy rating on the stock and valued it at ₹1,400 i.e. 26x P/E (~0.6x PEG) on FY27-28E avg. “We are cognizant that the stock has run up in the past week & at times has low trading volume, however believe that it can potentially double over the next 24- 30 months. Advice staggered buying for long term investment horizon,” analysts said.
RACL has secured a strong orderbook with significant SOPs wins from 2026, including high value projects like BMW’s EV drivetrain gears (Project Venus) & parking lock systems (Project Titan) with a lifetime value of ₹520 crore, along with electric power steering components (Project Crystal) which is in collaboration with ZF Rane for a major US OEM for pick-up truck platform.
With 70 per cent of revenues from exports (52 per cent from Europe) and a shift towards low-volume, high-value parts, RACL maintains attractive margin profiles (EBITDA margins in the range of 20-25 per cent) even in a competitive market. Its focus on complex, precision-engineered parts and forward integration from basic components to assemblies supports margin resilience, the brokerage firm said.

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