Rico Auto Industries achieved its highest-ever annual revenue of INR2,477 crores in FY26, a 12% increase from the previous year, driven by robust domestic and export demand. The company’s net profit (PAT) for the year stood at INR52.4 crores, compared to INR19.2 crores in the previous year. Management expressed optimism for FY27, targeting a revenue crossing INR3,000 crores and improved margins supported by new program ramp-ups and customer negotiations.

Financial Performance

Consolidated revenue for Q4 FY26 stood at INR677 crores, including exports of INR102 crores. EBITDA for the quarter was INR47.8 crores with a margin of 7.1%, while PAT was INR6.9 crores. For the full year, EBITDA reached INR223 crores with a margin of 9%. The company noted non-recurring impacts of INR11 crores due to the Labour Code and INR19 crores from raw material lag settlement, which affected profitability. Excluding these, the adjusted EBITDA margin for FY26 was 10.25%.

Operational Highlights and Outlook

The aluminum business contributed 88% of total revenue at INR2,155 crores, while the ferrous business contributed 12% at INR322 crores. Exports constituted 16% of total revenue, up from 15% in the previous year. The company has secured new orders worth approximately INR2,500 crores over a program life of 5 years. Management expects exports to grow by 32% in FY27, primarily to the U.S. and Germany.

Strategic Initiatives

The company is expanding its Hosur facility, expected to become operational from September 2026, catering to hybrid and EV programs. It received approval for a subsidy of around INR39 crores from the Tamil Nadu government. Additionally, Rico Auto is targeting INR100 crores in revenue from the railway segment and INR50 crores from defense in FY27. The company is also renegotiating raw material settlement cycles with customers, with 75% by value already accepting monthly settlements.

Rico Auto Industries submitted an investor presentation to BSE Limited and National Stock Exchange of India Limited on June 01, 2026. The company emphasized increased investments across electric vehicles, manufacturing infrastructure, and research and development. Alongside these priorities, the company is also ramping up spending on advanced technologies including artificial intelligence, generative AI, and connected mobility.

Strategic Investment Focus

Rico Auto Industries has outlined a multi-pronged investment approach that spans both traditional automotive manufacturing and next-generation technology domains. The company's emphasis on EVs reflects the broader industry shift toward electrification, while its commitment to strengthening manufacturing capabilities underscores a focus on operational readiness.

Technology and Innovation Drive

Beyond hardware and production, Rico Auto Industries is channeling resources into technology-driven initiatives. The company's increased spending on AI and generative AI points to an intent to integrate intelligent systems into its operations and product development processes. Connected mobility — which encompasses vehicle connectivity and smart transportation solutions — forms another pillar of the company's evolving technology strategy.

Key Investment Areas

The following table summarizes the primary areas of strategic focus highlighted by Rico Auto Industries:

Rico Auto Industries' strategic emphasis across these domains reflects a comprehensive approach to positioning itself within the rapidly transforming automotive landscape, addressing both the electrification wave and the growing role of digital and connected technologies in the sector.