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Earnings Call Transcript

Rico Auto Industries Earnings Call Transcript: Key Takeaways

Revenue grew 39% to ₹755 Cr, but net profit swung to a loss due to massive ₹24 Cr air freight and sorting costs caused by Red Sea supply chain disruptions.

Why this was an Alfa AlertRevenue guidance raised from 20.0% to 30.0% (+10pp).
Guidance and delivery
Revenue guidance 20.0% → 30.0% Raised by 10.0 percentage points
Management target Revenue 30.0% FY27
Highlights
Revenue growth39% YoY growth to ₹755 Cr, driven by new automotive programs.
MarginsMargins hit by ₹13 Cr air freight; 12% target by year-end.
Order book55 new programs in launch/ramp-up phase with Toyota, BMW, and Ford.
Demand visibilityStrong visibility through long-term (7-8 year) contracts with global OEMs.
Management confidenceHighly optimistic on volumes but defensive regarding temporary freight cost spikes.

Growth

Strong 39% revenue growth led by 55 new programs; exports contributed 15% of total revenue.

Outlook

Management raised FY27 revenue guidance to ₹3,250 Cr from ₹3,000 Cr, targetting 12% EBITDA margins.

Risks

High air freight costs and raw material price settlement lags are severely compressing current margins.

Last quarter's promises, checked

Delivered

  • Revenue FY26: Guided Record High → Delivered ₹2,477 Cr (+12% YoY) (= BEAT)
  • Export Growth: Guided 32% → Delivered 39% Revenue Growth (= BEAT)
  • Hosur Plant: Guided Operational Sept 2026 → On Track (= BEAT)

Partly delivered

  • Railway Revenue: Guided ₹100 Cr Target → Growing but delayed by approvals (= PARTIAL)
  • Defense Revenue: Guided ₹50 Cr Target → Currently ₹20-30 Cr range (= PARTIAL)

Missed

  • EBITDA Margin: Guided 10.25% Adjusted → Delivered 7.1% Reported (= MISS)
  • Profitability: Guided Improvement → Swung to Loss due to ₹24 Cr Freight (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: RICOAUTO. Summary written with AI assistance from the document.

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Rico Auto Industries Ltd: key numbers

Share price
₹132.23
Market cap
₹1,789 Cr
Revenue (annual)
₹2,478 Cr
Net profit (annual)
₹50.51 Cr
P/E (TTM)
58.5×Sector 33.6×
Promoter holding
50.33%-0.01% QoQ
FII holding
3.58%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Rico Auto Industries Annual General Meeting

Rico Auto held its 43rd AGM on 8 Sep 2026, approving FY26 financials, a 55% dividend (Re.0.55/share), and director re-appointment. The Chairman highlighted electrification focus and industry growth.

12:37 IST BSE
Earnings Call

Rico Auto Industries Investor Presentation: Key Takeaways

Q1FY27 revenue grew 39% YoY to ₹755 Cr, but profitability was hit by high air freight and raw material lag. Management remains confident in hitting ₹3,250 Cr revenue for FY27 with margin recovery.

Call
Guides 30% growth