Synopsis: Small cap stock rises after strong quarterly earnings growth, backed by export demand. The company’s stock in context has delivered a compounded return of 36 percent over the last five years.
The small cap company manufactures precision automotive components and transmission gears for global OEMs and export markets. The company’s stock is in focus after 128 percent YoY profit growth in Q3FY26. Apart from the result, the company also declared an interim dividend of Rs 1.50 per equity share.
With a market cap of Rs 1,588 Cr, RACL Geartech Ltd saw its stock hit an intraday high of Rs 1366 which is 14 percent higher than the previous close of Rs 1201, and the company’s stock has given a compounded return of 36 percent in the last five years, while the three years number is at 12 percent.
Q3FY26 Result
In the latest quarterly result the company has seen its revenue from operations increase by 21 percent YoY, from Rs 113 Cr in Q3FY25 to Rs 137 Cr in Q3FY26, while the QoQ increased by 14 percent from Rs 120 Cr. The net profits grew by 128 percent going from Rs 7 Cr in Q3FY25 to Rs 16 Cr in Q3FY26, while the QoQ increased by 33 percent from Q2FY26’s Rs 12 Cr.
In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 9 percent YoY, from Rs 328 Cr in 9MFY25 to Rs 358 Cr in 9MFY26. The net profits for the same period grew by 117 percent going from Rs 17 Cr to Rs 37 Cr.
The company has a 3 year sales CAGR of 15 percent, while the TTM is at 3 percent. The company’s 3 year profit CAGR is at negative 1 percent, while the TTM number is at 68 percent. The company also has a ROCE of 12 percent and a ROE of 11 percent.
Revenue Split
On a standalone basis, the company reported total sales of Rs 134 crore, when broken down we get to see this is mainly driven by export revenue of Rs 94 crore, followed by domestic sales of Rs 28 crore. Other operating income contributed Rs 9 crore, while non-operating income added Rs 3 crore, reflecting a largely export-led revenue mix during the period reported, as 70 percent of the revenue came from the export business while 30 percent came from the domestic ones.
Dividend Issue
Apart from approving the Q3 result, RACL Geartech Ltd also declared an interim dividend of Rs 1.50 per equity share, which has a face value of Rs 10 for FY26. The record date for this is set on February 20, 2026, to determine eligible shareholders for the dividend payout.
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