Rico Auto Industries Limited announced its Q4 and FY '26 earnings, reporting its highest ever annual revenue for FY '26, driven by strong domestic and export demand, operational improvements, and the ramp-up of new programs. The company's export business to the U.S. and Germany is projected to double in the next two years. The automotive sector in India continues to show robust growth, with passenger vehicles expected to grow by 5-7% and two-wheelers by 6-8% in FY '27. Rico Auto is actively strengthening its business pipeline with new orders from major clients including Toyota, Maruti Suzuki, Hero, Bosch, Cummins, and Knorr-Bremse. Financially, consolidated revenue for FY '26 stood at ₹2,477 crores, a 12% year-on-year increase, with exports contributing ₹395 crores. EBITDA was ₹223 crores, resulting in an EBITDA margin of 9%. Profit After Tax (PAT) was ₹52.4 crores, a significant increase from ₹19.2 crores in the previous year. The company also highlighted non-recurring impacts from the Labour Code and lag settlements that affected Q4 and full-year profitability, but is actively renegotiating RM settlements with customers on a monthly basis, with 75% of customers by value already agreeing. The company is progressing with its investment in Hosur, with the facility expected to become operational from September 2026 to cater to hybrid and EV-related programs. Rico Auto has secured new orders worth approximately ₹2,500 crores over a five-year program life. Working capital days improved significantly to 7 days from 33 days last year, and cash flow from operations stood at ₹331 crores. Looking ahead, Rico Auto is optimistic about its outlook, supported by domestic and export growth, a strong order pipeline, and increasing participation in hybrid and EV platforms. The company is also seeing traction in the railway and defense sectors, targeting ₹100 crores from railways and ₹50 crores from defense in the current fiscal year. Additionally, they are exploring the market for machine tools, having made their first sale recently.
