Rico Auto Industries Ltd., a prominent supplier of precision-engineered components to the automotive sector, has reported a consolidated net profit of ₹163.3 million for the quarter ended June 2025. Revenue from operations stood at ₹5.43 billion, reflecting strong demand from original equipment manufacturers (OEMs), improved capacity utilization, and a steady recovery in the domestic auto market.
The company’s performance underscores its strategic focus on product diversification, operational efficiency, and expanding its footprint in both domestic and export markets.
Quarterly Financial Highlights
- Net profit for Q1 FY26 reached ₹163.3 million, up 9.2 percent year-on-year
- Revenue from operations rose to ₹5.43 billion, marking a 13.6 percent increase compared to the same period last year
- EBITDA margin improved to 14.1 percent, supported by better product mix and cost optimization
- Earnings per share stood at ₹2.06, reflecting enhanced profitability
Segmental Performance And Demand Drivers
1. Transmission And Engine Components
- Core segment contributed over 60 percent of total revenue
- Demand remained strong from two-wheeler and passenger vehicle OEMs
- New orders from electric vehicle manufacturers added incremental volumes
2. Aluminium Die-Casting And Machining
- Export volumes to Europe and North America saw a moderate uptick
- Lightweight components for EV platforms gained traction among global clients
- Margins improved due to automation and process refinement
Operational Efficiency And Cost Management
- Manufacturing utilization rose to 81 percent, driven by streamlined production schedules
- Raw material costs were managed through strategic sourcing and vendor consolidation
- Administrative expenses declined 2.8 percent year-on-year due to digital transformation initiatives
- No exceptional items or impairments were reported during the quarter
Strategic Initiatives And Expansion Plans
- Rico Auto is investing in capacity expansion at its Gurugram and Pathredi plants to meet rising demand
- The company is developing new product lines for hybrid and electric powertrains
- R&D efforts focus on lightweight materials, thermal management, and NVH reduction
- ESG initiatives include solar energy adoption and zero-liquid discharge systems
Shareholder Metrics And Market Position
- Promoter holding stands at 45.6 percent, with no pledged shares
- The stock has delivered a 12-month return of 11.3 percent, supported by consistent earnings
- Market capitalization is approximately ₹12.8 billion as of August 2025
- Dividend policy remains stable, with a focus on reinvestment and long-term growth
Outlook For FY26
Rico Auto Industries is expected to maintain its growth momentum through FY26, backed by strong OEM relationships, product innovation, and operational agility. The company’s strategic investments in EV-compatible components and export diversification position it well to capitalize on emerging industry trends and deliver sustained shareholder value.
Sources: Reuters, Rico Auto Industries Ltd. Investor Disclosures, Business Standard.
