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.

Rico Auto Industries , a prominent player in the automotive components sector, has released its unaudited financial results for the first quarter ended June 30, 2025, along with significant corporate updates.

Financial Performance

For Q1 FY26, Rico Auto Industries reported a decline in both standalone and consolidated revenue. On a standalone basis, the company's revenue from operations decreased to Rs 387.88 crore from Rs 415.07 crore in the previous quarter. The profit for the period also saw a reduction, standing at Rs 4.54 crore compared to Rs 8.41 crore in the previous quarter.

On a consolidated basis, the company's performance showed a similar trend:

All figures in Rs crore

Despite the slight dip in revenue, the company managed to improve its profitability on a quarter-on-quarter basis.

Corporate Updates

Subsidiary Merger Approved

The National Company Law Tribunal (NCLT), Chandigarh, has approved the scheme of amalgamation between Rico Fluidtronics Limited and Rico Jinfei Wheels Limited. The merger, with an appointed date of April 1, 2023, is expected to streamline operations and potentially create synergies within the group.

New Secretarial Auditor Appointed

Rico Auto Industries has appointed M/s. PG & Associates as the company's Secretarial Auditor. The appointment is for a period of five consecutive years, from FY 2025-26 to 2029-30, subject to shareholder approval at the upcoming Annual General Meeting.

PG & Associates, founded in 2004 by CS Preeti Grover, brings extensive experience in compliance requirements for listed companies. The firm specializes in Secretarial Audits, Company Law matters, and SEBI Regulations.

Segment Performance

As per Indian Accounting Standard (Ind AS) 108, Rico Auto Industries' business falls within a single business segment of "Automotive Components". This classification reflects the company's focused approach in its core competency area.

Outlook

While the company faced some headwinds in terms of revenue growth, the improved profitability on a consolidated basis suggests effective cost management and operational efficiency. The approval of the subsidiary merger and the appointment of a new secretarial auditor indicate Rico Auto Industries' commitment to streamlining its corporate structure and strengthening its governance framework.

As the automotive sector continues to evolve, Rico Auto Industries' performance in the coming quarters will be closely watched by investors and industry observers alike.