Rico Auto Industries Limited (RICOAUTO)

Automobile and Auto Components · Auto Components · NSE · Updated 21 July 2026

₹138.36 ↑ 85.07% (1Y)

🎯 Key Takeaways

Rico Auto Industries is in a phase of strategic expansion and margin recovery, transitioning from a mature component supplier to a growth-oriented player with EV and defense tailwinds. Management is actively renegotiating customer contracts and scaling high-margin product mix, supported by new Capex in Hosur to serve emerging segments like electric and hybrid vehicles.
Revenue declined 4.2% QoQ to ₹552 in Q3FY25.
⚠️ Margin expansion depends on successful customer renegotiations and shift to higher-margin products, which is not guaranteed.

Market Cap

₹1,540

P/E Ratio

51.0

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Rico Auto Industries is in a phase of strategic expansion and margin recovery, transitioning from a mature component supplier to a growth-oriented player with EV and defense tailwinds. Management is actively renegotiating customer contracts and scaling high-margin product mix, supported by new Capex in Hosur to serve emerging segments like electric and hybrid vehicles.

📰 What's Happening

In FY '26, Rico Auto reported record revenue of INR2,477 crores (+12% YoY), driven by domestic and export demand, with EBITDA at INR223 crores. Adjusted EBITDA margin improved to 10.25% after excluding nonrecurring impacts of INR30 crores from labor code changes and lag settlements. Management targets margin expansion beyond 10.25% in FY '27 through customer renegotiations and a shift toward higher-margin offerings. Export growth to U.S. and Germany is targeted at 2x within two years, with railway revenue expected to reach INR100 crores and defense at INR50 crores in FY '26. Capex in Hosur is on track for September 2026 operationalization to support EV and hybrid programs. Working capital days improved to 7 from 33, reflecting better liquidity management.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	603	534	554	524	548	540	576	552
Operating Profit	73	53	57	62	62	46	53	47
OPM %	11.1%	9.5%	9.8%	11.1%	10.8%	8.0%	8.6%	8.2%
Net Profit	26	6	6	11	16	6	7	2
EPS	₹1.91	₹0.42	₹0.50	₹0.74	₹1.20	₹0.42	₹0.47	₹0.14

Revenue grew steadily from Q1FY24 to Q4FY24, peaking at INR603 crores in Q4FY24, but showed sequential moderation in Q1FY25 and Q2FY25, settling at INR552 crores in Q3FY25. Operating performance remained stable with OPM holding around 8-11%, though a slight dip in Q3FY25 suggests pressure from volume or pricing. PAT and EPS declined sequentially in Q3FY25 to INR2 crores and ₹0.14, down from ₹16 crores and ₹1.20 in Q4FY24, likely reflecting seasonality or higher investments. The full-year FY '26 results indicate a return to growth and margin improvement, supported by management's strategic initiatives.

🔮 Management Outlook & What's Next

Management expects margin expansion beyond 10.25% in FY '27, driven by customer renegotiations and a higher-margin product mix. Export growth to U.S. and Germany is targeted at 2x within two years, with railway and defense segments projected to contribute INR100 crores and INR50 crores respectively in FY '26. Capex in Hosur is progressing toward September 2026 operationalization to serve EV and hybrid programs, signaling long-term capacity alignment with future demand trends.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Auto Components

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Samvardhana Motherson International Limited	1.37 L Cr	30.6	—	—	—
Bosch Limited	1.11 L Cr	55.0	—	—	—
Bharat Forge Limited	91,463	99.6	—	—	—
UNO Minda Limited	64,785	66.7	—	—	—
Schaeffler India Limited	62,984	67.0	—	—	—
Tube Investments of India Limited	55,168	47.4	—	—	—
MRF Limited	54,558	31.1	—	—	—
Balkrishna Industries Limited	41,530	23.4	—	—	—
Endurance Technologies Limited	35,848	44.7	—	—	—
Sona BLW Precision Forgings Limited	35,667	58.5	—	—	—

🔗 Peer Stock Analyses

MOTHERSON BOSCHLTD BHARATFORG UNOMINDA SCHAEFFLER

⚠️ Risk Factors

1. Margin expansion depends on successful customer renegotiations and shift to higher-margin products, which is not guaranteed. 2. Export growth targets to U.S. and Germany may face geopolitical, currency, or execution risks. 3. Capex in Hosur must deliver on EV/hybrid program timelines; delays could impact long-term competitiveness. 4. Working capital improvements were aided by one-time factors; sustaining them amid growth will require operational discipline.

📋 Recent Filings

🧠 Analyst's Read

Rico Auto is transitioning into a growth phase with strategic investments in EV-aligned and defense segments, supported by improving liquidity and margin initiatives. Investors should monitor execution of Hosur plant ramp-up, pace of export growth, and sustainability of margin improvement in the upcoming quarters.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-21.

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