RACL Geartech H1 PBT climbs 43% as margin reaches 14.45%

RACL Geartech’s consolidated profit before tax rose 43.08% year on year to Rs 39.28 crore in H1 FY 26-27, as its margin reached 14.45% from 11.70%, while revenue grew 15.91% and EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 16.66%.

What did RACL Geartech report for H1 FY 26-27?

RACL Geartech reported consolidated revenue of Rs 271.87 crore in H1 FY 26-27, compared with Rs 234.56 crore in H1 FY 25-26, representing growth of 15.91%. Operating revenue rose 21.83% to Rs 269.19 crore from Rs 220.96 crore, according to the half-year presentation. Reported revenue exceeded operating revenue by Rs 2.68 crore in the latest half year, compared with Rs 13.60 crore a year earlier.

RACL Geartech’s consolidated EBITDA increased to Rs 68.88 crore from Rs 59.04 crore, a 16.66% rise that was close to the 15.91% increase in revenue. EBITDA margin was 25.33%, compared with 25.17% in H1 FY 25-26, an increase of 16 basis points. A basis point is one-hundredth of a percentage point.

Did RACL Geartech’s profit before tax grow faster than sales?

Yes. RACL Geartech’s consolidated profit before tax grew 43.08% to Rs 39.28 crore in H1 FY 26-27, exceeding revenue growth of 15.91% and EBITDA growth of 16.66%. Profit-before-tax margin expanded by 275 basis points to 14.45% from 11.70%, making profit before tax the fastest-growing of the three reported consolidated measures.

The gap between EBITDA and profit before tax narrowed to Rs 29.60 crore in H1 FY 26-27 from Rs 31.59 crore in H1 FY 25-26. EBITDA rose by Rs 9.84 crore, while profit before tax rose by Rs 11.83 crore. This arithmetic change is consistent with greater conversion from EBITDA to profit before tax, although the presentation does not provide a line-by-line bridge for depreciation, finance costs or other items.

The margin comparison shows that the larger change occurred below EBITDA. Consolidated EBITDA margin rose only 16 basis points to 25.33%, while profit-before-tax margin increased 275 basis points to 14.45%. RACL Geartech therefore reported a Rs 1.99 crore reduction in the EBITDA-to-profit-before-tax gap, despite EBITDA rising to Rs 68.88 crore from Rs 59.04 crore.

How did RACL Geartech’s standalone and consolidated half-year results compare?

RACL Geartech’s standalone revenue increased 18.13% to Rs 272.64 crore in H1 FY 26-27 from Rs 230.80 crore, compared with 15.91% consolidated revenue growth. Standalone operating revenue rose 24.30% to Rs 269.97 crore from Rs 217.19 crore. The standalone revenue figure was Rs 0.77 crore above the consolidated revenue figure of Rs 271.87 crore presented for the same half year.

Standalone EBITDA grew 17.03% to Rs 68.82 crore from Rs 58.81 crore. Its EBITDA margin, however, declined 24 basis points to 25.24% from 25.48%. This differs from the consolidated EBITDA margin, which increased 16 basis points to 25.33% from 25.17%.

Standalone profit before tax rose 43.44% to Rs 39.27 crore from Rs 27.38 crore, almost matching the consolidated Rs 39.28 crore result. The standalone profit-before-tax margin expanded to 14.40% from 11.86%, an increase of 254 basis points. Standalone revenue growth was 2.22 percentage points above the consolidated rate, while standalone profit-before-tax growth was 0.36 percentage points higher.

What changed for RACL Geartech in Q2 FY 26-27?

RACL Geartech’s standalone Q2 FY 26-27 revenue was Rs 144.82 crore, up 13.30% from Rs 127.82 crore in Q1 FY 26-27. EBITDA increased 15.07% quarter on quarter to Rs 36.82 crore from Rs 32.00 crore, and EBITDA margin rose to 25.43% from 25.04%. Profit before tax increased 35.71% to Rs 22.61 crore from Rs 16.66 crore, with margin rising to 15.61% from 13.03%.

Against Q2 FY 25-26, standalone revenue rose 17.90% from Rs 122.84 crore to Rs 144.82 crore and EBITDA grew 16.60% from Rs 31.58 crore to Rs 36.82 crore. EBITDA margin decreased to 25.43% from 25.71% in that comparison. Profit before tax increased 40.17% from Rs 16.13 crore to Rs 22.61 crore, while its margin increased to 15.61% from 13.13%.

RACL Geartech’s consolidated Q2 revenue grew 10.65% year on year to Rs 139.27 crore from Rs 125.86 crore, while EBITDA rose 15.58% to Rs 36.69 crore from Rs 31.74 crore. Consolidated profit before tax increased 38.78% to Rs 22.46 crore from Rs 16.18 crore. EBITDA margin reached 26.34% from 25.22%, and profit-before-tax margin rose to 16.12% from 12.86%.

Conclusion

RACL Geartech’s H1 FY 26-27 figures show profit before tax increasing substantially faster than revenue and EBITDA in both reporting formats. Consolidated revenue rose by Rs 37.31 crore and EBITDA by Rs 9.84 crore, while profit before tax increased by Rs 11.83 crore and the margin rose 275 basis points to 14.45%. The principal reported difference was the Rs 1.99 crore narrowing of the gap between EBITDA and profit before tax.

What to watch next is whether later results maintain the Q2 margin levels, with standalone profit-before-tax margin at 15.61% and consolidated margin at 16.12%, both above their respective H1 figures. The presentation does not disclose a full-year target or a bridge explaining the change between EBITDA and profit before tax, leaving the underlying driver unresolved in the supplied material.