Rico Auto Industries Limited has informed the Exchange about Transcript
RICOAUTO · price
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Rico Auto reported Q1 FY26 revenue of around INR543 crores, roughly flat year-on-year despite a 3.5% decline in the overall auto market, thanks to a larger share of business won from key OEMs. Profitability tripled versus the same quarter last year, with EPS rising to INR1.24 from INR0.42. The management has guided for 12-13% EBITDA margins by Q4 FY26, driven by cost-cutting, better-utilized ferrous foundry, and higher-margin new components like alloy wheels, EV/hybrid parts, and pumps. The pending order book exceeds INR1,000 crores annually, with FY26 revenue guidance set at INR2,652 crores (INR156 crores from new wins), scaling to INR550 crores additional in FY27 and INR800 crores peak in FY28. New Railway and Defence verticals are expected to contribute INR80-90 crores this year, doubling next year, with 20-30% profitability. Foundry utilization is targeted at 90% by end of FY27, while U.S. tariff costs are being absorbed by OEM customers.
Tripled profitability, a clear margin expansion roadmap, and a strong multi-year order pipeline are positive signals for shareholders. Diversification into Railways and Defence reduces auto-cycle dependence and could drive a re-rating, though near-term execution hinges on resolving magnet shortages and OEM ramp-up. Expect positive near-term sentiment on the stock.