RACL Geartech reported consolidated revenue of ₹512.42 crore for FY26, crossing the ₹500 crore mark for the first time, and has earmarked ₹77.45 crore of capital expenditure for FY27 to replace a 30-year-old LPG-based heat treatment plant and add capacity, according to a report published on 26 August by Sahi. The same report sets an FY27 revenue target of ₹565 crore within a ±5% range.
Key takeaways
- FY26 consolidated revenue: ₹512.42 crore, the first time the company has crossed ₹500 crore, per Sahi.
- FY27 capex plan: ₹77.45 crore, earmarked for replacing the legacy LPG-based heat treatment plant and expanding capacity, per Sahi.
- FY27 revenue guidance: ₹565 crore, within a ±5% flexibility band, per Sahi.
- Q1FY27 result: consolidated revenue of ₹132.6 crore, up 21.99% year-on-year, with profit before tax of ₹16.82 crore, up 49.32%, per Sahi.
- FY26 consolidated EBITDA margin: 25.21%, per Sahi.
What happened
RACL Geartech, an Indian precision-engineering supplier to premium global OEMs, has logged what the report calls a "historic milestone" by surpassing ₹500 crore in consolidated revenue for the fiscal year ended March 2026, according to Sahi. The same report notes exports now contribute more than 60% of total revenue, with partnerships covering BMW, KTM and Kawasaki alongside Royal Enfield.
Management has framed the next stage around a ₹77.45 crore capex package for FY27, the bulk of which is targeted at retiring a 30-year-old LPG-based heat treatment line and replacing it with modern, energy-efficient electric systems. The report says the new heat treatment plant is "on track for October 2026 completion, with trial production scheduled to start in January 2027," per Sahi.
For the quarter ended June 2026, the company posted a 21.99% year-on-year rise in consolidated revenue to ₹132.6 crore and a 49.32% jump in profit before tax to ₹16.82 crore, demonstrating the operating leverage the capex is meant to support, according to Sahi. The report adds that the upgrade is "critical to sustaining its high consolidated EBITDA margins (which stood at 25.21% in FY26) as it begins mass production for global majors like BMW EV, Royal Enfield, and Kawasaki," per Sahi.
Looking ahead, the report cautions that the ₹77.45 crore outlay "will temporarily elevate debt levels and finance costs, which could restrict near-term net margin expansion until the new assets reach optimal capacity utilization," per Sahi. The FY27 revenue target of ₹565 crore (with a ±5% flexibility band) frames the volume the new assets must absorb, per Sahi.
| Metric | Value | Period | Source |
|---|---|---|---|
| Consolidated revenue | ₹512.42 crore | FY26 | Sahi |
| Capex plan | ₹77.45 crore | FY27 | Sahi |
| Revenue guidance | ₹565 crore (±5%) | FY27 | Sahi |
| Consolidated revenue (YoY +21.99%) | ₹132.6 crore | Q1FY27 | Sahi |
| Profit before tax (YoY +49.32%) | ₹16.82 crore | Q1FY27 | Sahi |
| EBITDA margin | 25.21% | FY26 | Sahi |
| New heat treatment plant completion | October 2026 | Milestone | Sahi |
| Trial production start | January 2027 | Milestone | Sahi |
Specification read
The headline number is the ₹77.45 crore capex for FY27, with the new heat treatment plant flagged for October 2026 completion and trial production from January 2027, per Sahi. The source reports a 30-year-old LPG-based heat treatment line being replaced by modern electric systems, and notes the upgrade is meant to support a 25.21% consolidated EBITDA margin while enabling mass production for BMW EV, Royal Enfield and Kawasaki, per Sahi. The source does not state a plant flow in m³/day, a workforce size, or a COD/BOD loading, so a precise water balance cannot be drawn from the article.
For a metal-finishing and heat-treatment line of the class described, the typical treatment train runs: oil/grease removal and pre-treatment rinse capture → equalisation and flow balancing → chemical precipitation (crack detection fluids, quenchants) for heavy metals → DAF or lamella clarification for suspended solids → biological treatment (MBBR or SBR) for organics → tertiary filtration and activated carbon polishing → ion exchange or RO for rinse-water recovery, with ZLD reserved for sites where local discharge norms or water stress demand zero liquid discharge, per Industries We Serve. This event sits upstream of the wastewater train: it changes the volume and temperature profile of the rinse water leaving the heat treatment bay, which is the same boundary condition that drives selection between high-recovery RO and a full ZLD configuration — the comparison set out in ZLD vs High-Recovery RO for Pharma Wastewater in 2026: Brine Management Compared and the EV-component counterpart in ZLD vs High-Recovery RO for Paint & Battery Wastewater at EV Plants: 2026 Brine Mandate Comparison.
If your plant looks like this: a precision-components facility running an electric heat treatment line, with rinse-water flows in the order of tens of m³/day, modest COD but elevated oil-and-grease and dissolved metals, a state pollution control board consent that is being renewed, and a corporate water-recovery target above 80% — this capex cycle is the trigger to re-baseline your influent assumptions, because the swap from LPG to electric heat treatment changes both wastewater temperature and oil loading, and that is precisely the boundary condition a procurement team should re-quote before signing the next ZLD or high-recovery RO package, per Municipal.
FAQ
What is the headline capex figure and what is it for? ₹77.45 crore, earmarked for FY27, primarily to retire a 30-year-old LPG-based heat treatment line and add capacity, with a new heat treatment plant targeted for October 2026 completion and trial production from January 2027, per Sahi.
What revenue figure has the company set for FY27? ₹565 crore, with a stated ±5% flexibility range, per Sahi. The report cautions that elevated debt and finance costs during the capex phase may cap near-term net margin expansion until the new assets reach optimal utilisation.
How does the LPG-to-electric switch affect the wastewater envelope? The source does not quote a flow in m³/day or a COD/BOD figure, so the engineering read above is based on typical heat-treatment rinse profiles. As a general industry range, not from the sources, a switch from LPG-fired to electric heat treatment typically lowers the heat content of the discharge stream and can shift the oil-and-grease load, which is the main reason a buyer would re-validate the DAF and biological stages before locking in a ZLD or high-recovery RO scope, per Industries We Serve.
What should a procurement lead ask a supplier in the next enquiry cycle? Re-quote the influent envelope (flow in m³/day, oil and grease, total dissolved solids, temperature) for the post-upgrade line, confirm whether the consent is being amended, and ask for a comparative bid between high-recovery RO and ZLD given the new electrical load profile, per ZLD vs High-Recovery RO for Paint & Battery Wastewater at EV Plants: 2026 Brine Mandate Comparison.
