RACL Geartech soars 14%, hits 52-wk high; what's driving auto parts stock?

ICICI Securities is positive on RACL driven by its strategic presence in premium auto component space with strong order book visibility targeting ₹1,000 crore sales over next 4-5 years.

RACL Geartech share price today

 

Share price of RACL Geartech hit a 52-week high of ₹1,366, as the stock zoomed 14 per cent on the BSE in Monday’s intra-day trade in an otherwise subdued market after the company reported strong earnings for the quarter ended December 2025 (Q3FY26).

 

The stock price of the auto parts & equipment company surpassed its previous high of ₹1,348 touched on October 7, 2025. In the past six trading days, the stock has rallied 32 per cent. It had hit a record high of ₹1,525 on November 7, 2023.

 

Meanwhile, in the past six months, the stock has rallied 64 per cent, as compared to 1.6 per cent rise in the BSE Sensex.

 

 

At 09:28 AM; RACL Geartech was quoting 12 per cent higher at ₹1,346.30, as compared to 0.04 per cent decline in the BSE Sensex.

 

RACL Geartech Q3 results

 

RACL Geartech Limited (RACL) is an auto ancillary player manufacturing high-precision automotive components (gears, shafts, etc.).

 

On a consolidated basis, RACL’s topline for the Q3FY26 came in at ₹ 137 crore, up 22 per cent year-on-year (YoY). Exports constitute 70 per cent of its sales for the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter came in at ₹31 crore, with EBITDA margins at 22.8 per cent, up 250 bps quarter-on-quarter (QoQ). Profit after tax more-than-doubled to ₹16.29 crore from ₹ 6.54 crore in Q3FY25.   CHECK Stock Market LIVE Updates 

ICICI Securities view on RACL Geartech

 

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, ICICI Securities said in a note.

 

The brokerage is positive on RACL driven by its strategic presence in premium auto component space with strong order book visibility targeting ₹1,000 crore sales over next 4-5 years.

 

ICICI Securities has a 'Buy' rating on the stock and values it at ₹1,400 i.e. 26x P/E (~0.6x PEG) on FY27-28E avg.

 

RACL Geartech’s topline witnessed a steady compound annual growth rate (CAGR) of 14.4 per cent in the past 5 years. This growth has been propelled by the company’s diversification efforts and product innovation. For RACL, multi-year order inflow from marquee clients is expected to contribute to the revenue milestone of ~₹1,000 crore by FY29-30E.  Going forward, we expect steady topline growth in FY26E with recovering international markets (incl. KTM) & regular order inflows. The brokerage firm in its recent report said that they expect RACL to report topline growth of 18.4 per cent CAGR over FY25-28E reaching ₹688 crore by FY28E.  =====================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.