Key Metrics of Racl Geartech Limited
About Racl Geartech Limited
Sectors
Company details
- Registered office
- 15th Floor, Eros Corporate Tower,, Nehru Place, South Delhi, New Delhi, In-dl, 110019
- Listed
- NSE: RACLGEAR · ₹1,367.90
Operational Areas of Racl Geartech Limited
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 10 Oct 2025 | CARE | Reaffirmed | A- | — | Positive | ₹273 Cr | View |
| 04 Oct 2024 | CARE | Reaffirmed | A- | A2+ | Stable | ₹337 Cr | View |
| 03 Oct 2023 | CARE | Reaffirmed | A- | A2+ | Stable | ₹300 Cr | View |
| 23 Sep 2022 | CARE | Reaffirmed | A- | A2 | Stable | ₹423 Cr | View |
| 27 Oct 2021 | CARE | Revised (from BBB+) | A- | A2 | Stable | ₹137 Cr | View |
| 03 Sep 2020 | CARE | Revised | BBB+ | — | Stable | ₹112 Cr | View |
| 09 Aug 2019 | CARE | Reaffirmed | BBB | A3 | Positive | ₹205 Cr | View |
Credit strengths (CARE, Oct 2025)
+ Experienced promoters
RACL Geartech Limited has a presence of over 35 years in the automobile component industry. Gursharan Singh, Chairman and Managing Director, joined the company as Plant Head and has been associated since inception. He is a mechanical engineer and holds a Postgraduate Diploma in Export Management. He is supported by a professional team that has been with the company for over 20 years. 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s pu
+ Reputed customer base
RACL Geartech Limited (RACL) has moderate customer concentration risk, with the top five customers contributing ~58% of total revenue in FY25 (FY refers to April 01 to March 31) compared to ~57% in the previous year. However, comfort is derived from RACL being a preferred vendor for several premium segment export customers with whom it has long -term relationships. The management, as part of its strategy, ensures that sales to any single customer do not exceed 20% of total revenue. The largest
+ Steady operational performance
In FY25, the company’s total operating income remained largely flat at ₹425.94 crore (PY: ₹421.54 crore), reflecting ~1% grow th. This was primarily due to a revenue loss of ₹35 –40 crore stemming from the operational halt of a key customer, KTM, Austria amid its restructuring, along with subdued European demand caused by post –Red Sea crisis destocking and rising competition from Chinese EVs. The company's PBILDT margin declined by 215 basis points to 21.68% in FY25 (previous year: 23.82%),
+ Improvement in capital structure
The total debt of the company comprised term loan of ₹136.07 crore, working capital loan of ₹157.96 crore and lease liability of ₹11.96 crore as on March 31, 2025. The capital structure remained moderate with overall gearing ratio of 1.34x as on March 31, 2025 (PY: 1.41x as on March 31, 2024) owing to accretion of profits to net worth base. The company operates a capex -intensive business model that necessitates annual investments for new projects, primarily involving prototype development, vali
Credit challenges
− Moderate debt coverage indicators
The benefits of regular capex have not come as envisaged as visible in the moderation in profitability thereby impacting the debt coverage indicators as on balance sheet date. Debt coverage indicators remained moderate owing to a decline in profitability and an increase in total debt as on balance sheet date. Profit before interest, lease rentals, depreciation, and taxation (PBILDT) to interest and total debt to gross cash accruals (GCA) stood at 3.14x and 5.20x respectively as on March 31, 2025
− Foreign Exchange fluctuation and raw material price risk
The company derives its revenue majorly through exports which was ~70% of total revenue in FY25 (PY: 74%). Though the profitability margins are exposed to volatility in foreign exchange however the same are mitigated with the availment of export credit in foreign exchange. Further, the company discounts the invoices with banks at an early stage to minimize the forex 2 CARE Ratings Ltd. Press Release fluctuation risk. During FY25, the company reported net gain of Rs.8.57 crore due to foreign curr
− Working capital intensive nature of operations
Being in the auto ancillary industry, the operations of the company are working capital-intensive. The company maintains inventory of ~3.5 months, supported by a large product range comprising over 500 products under regular production. To meet the demand of key customers, the company stocks inventory at warehouses located near customers’ factories to ensure uninterrupted product flow and minimise transit time. The company has warehouses in Austria for this purpose. Credit period of ~2 months is
Could lead to an upgrade
• Sustained improvement in the scale of operations beyond Rs.475 crores while maintaining the profitability margins and continued relationship with its key customers. • Improvement in the capital structure leading to overall gearing of below 0.75x on a sustained basis. • Improvement in working capital cycle thereby leading to strengthening of
Could lead to a downgrade
• Decline in scale of operations below Rs.225.00 crore with moderation in PBILDT margin below 18% on a sustained basis. • Higher than envisaged capex thereby with increase in debt leading to total debt to PBILDT beyond the current levels of FY25.
Agency-reported financials (CARE, 10 Oct 2025)
| Metric | March 31, 2024 | March 31, 2025 | Q1FY26 |
|---|---|---|---|
| Total operating income | ₹422 Cr | ₹426 Cr | ₹99.91 Cr |
| PBILDT | ₹100 Cr | ₹92.32 Cr | ₹18.76 Cr |
| PAT | ₹39.81 Cr | ₹25.59 Cr | ₹8.29 Cr |
| Overall gearing (times) | 1.41× | 1.34× | 0.66× |
| Interest coverage (times) | 4.25× | 3.14× | 2.50× |
| Revenue growth (YoY) | — | 1.0% | — |
| EBITDA margin | 23.8% | 21.7% | 18.8% |
| Implied interest cost (EBITDA ÷ coverage) | ₹23.63 Cr | ₹29.40 Cr | ₹7.50 Cr |
| PAT margin | 9.4% | 6.0% | 8.3% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| crore) Long Term Bank Facilities | Working capital & bank lines | — | ₹102 Cr | — | — | Revised | CARE |
| Long Term Short Term Bank CARE Facilities A2+ | Working capital & bank lines | — | ₹163 Cr | — | A- (Positive) | Revised | CARE |
| Short Term Bank Facilities | Working capital & bank lines | — | ₹9.00 Cr | — | A2+ | Reaffirmed | CARE |
CARE ratings on record (checked 26 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | ₹9.00 Cr | CARE A2+ |
| Term Loan | ₹102 Cr | CARE A-; Positive |
| Working Capital Limits | ₹163 Cr | CARE A-; Positive / CARE A2+ |
Lenders
| Fund-based - LT | Term Loan | Bank of India |
| Fund-based - LT | Term Loan | Citi Bank |
| Fund-based - LT | Term Loan | Induslnd Bank Ltd. |
| Fund-based - LT | Term Loan | RBL Bank Limited |
| Fund-based - LT | Term Loan | State Bank of India |
| Fund-based - LT | Term Loan | Yes Bank Ltd. |
| Fund-based - LT/ ST | Working Capital Limits | Bank of India |
| Fund-based - LT/ ST | Working Capital Limits | Citi Bank |
| Fund-based - LT/ ST | Working Capital Limits | Induslnd Bank Ltd. |
| Fund-based - LT/ ST | Working Capital Limits | RBL Bank Limited |
| Fund-based - LT/ ST | Working Capital Limits | RBL Bank Limited |
| Fund-based - LT/ ST | Working Capital Limits | Standard Chartered Bank |
| Fund-based - LT/ ST | Working Capital Limits | State Bank of India |
| Fund-based - LT/ ST | Working Capital Limits | Yes Bank Ltd. |
| Non-fund-based - ST | BG/LC | Bank of India |
| Non-fund-based - ST | BG/LC | Induslnd Bank Ltd. |
Credit assessment · Auto components
Rating Methodology – Auto Components and Equipment (Oct 2026) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 77% |
| Information on file | 78% · missing: Capex / investment plans, Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 77% chance the next rating action is stable or better
- Current rating A- (investment grade)
- Interest coverage 2.5×
- Working-capital limits 80% utilised on average
What happened, step by step
- Oct 2025 — ₹80 cr raised through equity
- Oct 2025 — Full repayment of long-term debt
“Ratings also favourably factors in the equity infusion of ~₹80 crore in Q1FY26 (FY refers to April 01 to March 31), raised through preferential issue, which has been utilized towards prepayment of long-term debt and resultant improvement in overall gearing.”
Rated limits by facility
Timeline
From the report
Ratings also favourably factors in the equity infusion of ~₹80 crore in Q1FY26 (FY refers to April 01 to March 31), raised through preferential issue, which has been utilized towards prepayment of long-term debt and resultant improvement in overall gearing.
From the report
Ratings also favourably factors in the equity infusion of ~₹80 crore in Q1FY26 (FY refers to April 01 to March 31), raised through preferential issue, which has been utilized towards prepayment of long-term debt and resultant improvement in overall gearing.
From the report
The proceeds were primarily utilised towards prepayment of debt, thereby improving the capital structure.
From the report
The average working capital utilisation remained ~80% in the trailing 12-month period ended July 31, 2025.
From the report
Liquidity: Adequate The liquidity of the company is adequate as characterized by sufficient cushion expected in accruals of Rs.72.52 crore in FY26 as against the actual repayment obligations of Rs.31.54 crore.
From the report
The same further moderated owing to the additional term debt availed by the company of Rs.75.34 crore against the capital expenditure of Rs.105.75 crore.
From the report
The average working capital utilization remained ~ 90% during trailing 12-month period ending July 31, 2024.
From the report
Liquidity: Adequate Liquidity position of the company is adequate as reflected by projected gross cash accruals of ~Rs.83.84 crore in FY25 against scheduled repayments of Rs.50.47 crore.
From the report
Further, the average utilization of working capital borrowings stood ~90% for the trailing 12 months ended July 31, 2024.
From the report
The average working capital utilization remained ~81% during trailing 12-month period ending July 31, 2023.
From the report
The same is to be funded by a combination of term debt (already sanctioned) and internal accruals.
From the report
Liquidity: Adequate – Liquidity position of the company is adequate as reflected by projected gross cash accruals of Rs.68.29 crore in FY24 against scheduled repayments of Rs.38.40 crore.
From the report
Further, the average utilization of working capital borrowings stood ~81% for the trailing 12 months ended July 31, 2023.
From the report
The company had free cash and bank balance of Rs.10.72 crore as on June 30, 2023.
From the report
The average working capital utilization remained 79% during trailing 10-month period ended July, 2022.
From the report
Further, the said capex is lessthan 50% of the tangible net worth base.The same is to be funded by a combination of term debt and internal accruals, whereby Rs.45 crore of term loan has been sanctioned by the bank. 2 CARE Ratings Limited Press Release Industry prospects The automobile industry is highly cyclical in nature and automotive component suppliers’ sales are directly linked to sales of auto OEMs.
From the report
Liquidity: Adequate Adequate liquidity characterized by sufficient cushion in estimated gross cash accruals vis-à-vis repayment obligations of Rs.29.51 crore and modest cash balance of Rs.0.73 crore as on March 31, 2022.
From the report
Liquidity: Adequate Adequate liquidity characterized by sufficient cushion in estimated gross cash accruals vis-à-vis repayment obligations of Rs.29.51 crore and modest cash balance of Rs.0.73 crore as on March 31, 2022.
From the report
The average working capital utilization remained 68.2% during trailing 12 -month period ended Aug, 2021.
From the report
Liquidity: Adequate Adequate liquidity characterized by sufficient cushion in estimated gross cash accruals of Rs.45.35 crore vis-à-vis repayment obligations of Rs.20.42 crore and modest cash balance of Rs.0.89 crore as on March 31, 2021.
From the report
Liquidity: Adequate Adequate liquidity characterized by sufficient cushion in estimated gross cash accruals of Rs.45.35 crore vis-à-vis repayment obligations of Rs.20.42 crore and modest cash balance of Rs.0.89 crore as on March 31, 2021.
From the report
The average working capital utilization remained 72.83% during 12 month period ended June, 2020.
From the report
Liquidity: Adequate The company has adequate liquidity as characterized by sufficient cushion in cash accruals vis-à-vis repayment obligations and modest cash balance of Rs.0.66 crores as on March 31, 2020.
From the report
In FY19, the promoters infused Rs.2.46 crore as equity and in July 2019, the promoters infused Rs.3.62 crore as share application money.
From the report
Liquidity: The company had cash balance of Rs.0.70 crore as on March 31, 2019.
From the report
The liquidity remains moderate with positive cash flow from operations, average working capital utilization was 90.88% during 12 month period ended June-2019.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Racl Geartech Limited
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Tata Motors Passenger Vehicles |
Gears, Steering, Brakes & Systems · Auto Components, Forging & Casting | tata.cars | 1945 | Mumbai, India |
 Maruti Suzuki India |
Passenger Cars · Automobile Manufacturers | marutisuzuki.com | 1981 | New Delhi, India |
 Tata Motors |
Outlets operated by Sri Lakshmi Motors. | tatamotors.com | 1945 | Mumbai, India |
 Hyundai Motor India |
Part of Hyundai Motor Company. | hyundai.com/in/en | — | Kanchee- -puram, India |
 Bajaj Auto |
Two-Wheelers & Three-Wheelers · Automobile Manufacturers | bajajauto.com | 1945 | Pune, India |
 Ashok Leyland |
Commercial Vehicles & Buses · Automobile Manufacturers | ashokleyland.com | 1948 | Chennai, India |
 TVS Motor Company |
Two-Wheelers & Three-Wheelers · Automobile Manufacturers | tvsmotor.com | 1979 | Chennai, India |
 Hero MotoCorp |
Outlets operated by Avi Bhatiya. | heromotocorp.com | 1984 | New Delhi, India |
 Skoda Auto Volkswagen India |
Part of Volkswagen Group. | skoda-vw.co.in | 2007 | Pune, India |
| Tube Investments Of India Limited | Pipes & Tubes · Steel, Metals & Pipes | — | — | Chennai, Tamil Nadu, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Principal business activities and related-party transactions are read from MGT-7 and AOC-4 filings.
Filings
No filings on record yet.