Rico Auto Industries , a leading auto component manufacturer, has reported a stable performance in Q2, with consolidated revenue growth of 5% and EBITDA margins of 9.9%. The company's performance was driven by robust export growth and new product launches.

Key Highlights

• Consolidated revenue grew by 5% year-on-year
• EBITDA margins stood at 9.9%
• Export sales increased by 22%, primarily due to growth in the U.S. market
• The company is on track to achieve its revenue guidance of INR 2,600.00 crores

Performance and Outlook

Rico Auto Industries witnessed a significant 22% growth in exports, particularly in the U.S. market. The company's Chairman, CEO, and Managing Director, Mr. Arvind Kapur, expressed confidence in the company's ability to maintain this growth trajectory, projecting a 40-50% increase in U.S. sales for the current fiscal year, followed by another 50% growth in the next year.

The domestic market also showed positive signs, with the company securing larger shares of business from key customers like Maruti Suzuki and Hero MotoCorp. This strategy aims to optimize capacity utilization, especially in the casting segment.

Margin Improvement and Future Projections

Rico Auto Industries is focusing on improving its EBITDA margins, targeting 12-13% by Q4. The company expects significant margin improvements in Q3 and Q4, driven by:

1. Better capacity utilization of foundry and aluminum casting facilities
2. Introduction of new, higher-margin products
3. Increased share in existing customer business

Mr. Kapur stated, "Every quarter, you will see a margin improvement. We did mention at the beginning of the year that the first two quarters would see a slight decrease in margin. But in the third and fourth quarter, you will see better increase in margins."

Future Growth Drivers

The company's future growth strategy includes:

1. Expansion in the electric and hybrid vehicle segments
2. Increased business from key customers like Maruti Suzuki, Toyota, and Knorr-Bremse
3. New opportunities in the railways sector, with potential EBITDA margins of 18-20%
4. Exploring defense sector opportunities, including discussions for BrahMos and other ammunition projects

Capacity Utilization and Investments

Rico Auto is prioritizing the utilization of existing capacities before making new investments. The company's iron foundry utilization is expected to reach 65-70% in the near term and potentially 90% next year. Similarly, the aluminum die-casting segment is projected to reach 80-85% utilization.

The management emphasized their cautious approach to new investments, with a focus on fungible assets and customer-funded tooling to minimize risks.

Revenue Projections

Rico Auto Industries has set ambitious targets for the coming years:

• FY27: Over INR 3,000.00 crores
• FY29: Close to INR 4,000.00 crores

These projections are based on secured orders and ongoing discussions with major OEMs, including Maruti Suzuki, Toyota, Mahindra, and BMW.

As Rico Auto Industries continues to navigate the evolving automotive landscape, its focus on high-technology components, capacity optimization, and strategic customer relationships positions it well for future growth and margin expansion.

Rico Auto Industries Limited has announced its financial results for the quarter ended September 30, 2025, showcasing robust performance and a significant leadership change.

Financial Highlights

Rico Auto Industries reported a strong financial performance for Q2 2025:

For the half-year period, the company's consolidated revenue reached Rs. 1,170.82 crores, with a net profit of Rs. 33.68 crores.

Leadership Transition

The company has announced a key leadership change:

• Outgoing CFO: Shri Rakesh Kumar Sharma will cease to be the Chief Financial Officer (KMP) effective November 12, 2025, due to superannuation.
• Incoming CFO: Shri Naveen Sorot, currently serving as Vice President (Finance), will take over as the new Chief Financial Officer (KMP) effective November 13, 2025.

New CFO Profile

Shri Naveen Sorot brings a wealth of experience to his new role:

• Chartered Accountant from ICAI (May 2005)
• B.Com (Hons.) from Delhi University (August 2000)
• Over 20 years of experience in financial governance and operational excellence
• Expertise in corporate finance, strategic planning, investor relations, and mergers & acquisitions
• Previous roles include CFO positions at Steel Strips Wheels Limited and Sunbeam Auto Private Limited

Sorot's career highlights include successful execution of greenfield and brownfield projects, asset acquisitions under IBC, improving organizational visibility among investors, and significant reductions in finance costs through strategic negotiations and optimal fund utilization.

Board Meeting Outcome

The Board of Directors approved the following in their meeting:

1. Unaudited Financial Results (Standalone & Consolidated) for Q2 and H1 FY2025
2. Limited Review Report for the quarter
3. Leadership change in the CFO position

The Board Meeting commenced at 11:00 AM and concluded at 1:30 PM on November 12, 2025.

Rico Auto Industries Limited continues to demonstrate strong financial performance while ensuring a smooth transition in its key leadership roles, positioning itself for continued growth in the auto components sector.