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.

Rico Auto Industries , a leading auto component manufacturer, has reported a significant improvement in its financial performance for the first quarter. The company achieved a revenue of INR 543.00 crores, maintaining levels similar to the previous year despite slower production volumes at OEMs including Maruti and Hero.

Profit Surge and Margin Improvement

The highlight of Rico's Q1 results is the tripling of its profitability compared to the same quarter last year. The company's earnings per share (EPS) improved to INR 1.24 from INR 0.42, reflecting a substantial increase in bottom-line performance.

Rico's management has set an ambitious target of achieving 12-13% EBITDA margins by Q4. This goal is expected to be realized through ongoing cost control measures and improved capacity utilization.

Strong Order Book and Revenue Projection

The company's order book remains robust, exceeding INR 1,000.00 crores annually. Rico projects a revenue of INR 2,652.00 crores, indicating confidence in its growth trajectory.

Market Performance and Key Growth Drivers

Despite challenging market conditions, Rico has shown resilience and growth in key segments:

Key growth drivers for the company include:

• Alloy wheels
• EV and hybrid components
• Pump business

Expansion into New Sectors

Rico is diversifying its portfolio by expanding into Railways and Defense sectors. The company is targeting INR 80.00 crores revenue from these segments. Notably:

• Railway business has commenced with indirect deliveries
• Registration process with RDSO (Research Designs and Standards Organisation) is underway
• Defense orders for shooting ranges are being manufactured and will be dispatched in the coming quarters

Hosur Facility Update

The company's new facility in Hosur remains on schedule, with the first production expected in Q1. This expansion is set to enhance Rico's manufacturing capabilities and support its growth plans.

U.S. Tariff Concerns Addressed

Management has addressed concerns regarding U.S. tariffs, stating that they have settled arrangements with key customers. The company expects minimal negative impact due to its OEM-focused business model and the long-term nature of its customer relationships.

Future Outlook

Rico Auto Industries is poised for growth, with a strong order book and strategic expansions into new sectors. The management's focus on cost control and improved capacity utilization is expected to drive profitability in the coming quarters. As the company continues to diversify its product portfolio and expand into high-margin sectors like Railways and Defense, it aims to solidify its position in the auto component industry.