RICOAUTONSERico Auto Industries Limited· Auto AncillariesLowNeutral
Announced Mon, 2 Jun · 17:36 IST

Rico Auto Industries Limited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedCfo Debt Reduction RoadmapInvestor Communications View source PDF

RICOAUTO · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Rico Auto Industries held its Q4 FY25 earnings call on May 28, 2025. FY25 turnover grew 2.5% to INR2,225 crores, weighed down by a sharp drop in exports (from INR500 crores in FY23 to INR351 crores in FY25) due to a 40% decline in BMW's EV business in Europe. Management guided for a strong 20% revenue jump to INR2,650 crores in FY26 and INR3,100 crores in FY27, supported by an order pipeline of INR720 crores already in hand. A INR220 crore capex is underway for a new Hosur plant (targeted turnover INR350-400 crores) catering to Toyota and Aisin for hybrid/EV components. Management is targeting 13% EBITDA margins (from current 8-9%) through better plant utilization, power cost savings, and a rebound in exports to INR500+ crores by FY27. Debt of INR660 crores is targeted to reduce by ~10% per Board direction.

Likely market impact

Positive near-term outlook with strong revenue growth guidance of 20% in FY26 and margin expansion plan to 13%. Investors should watch for execution on the Hosur plant ramp-up, export recovery, and debt reduction. The transcript reinforces management's confidence in a significant turnaround year.