Rico Auto Industries Ltd
Rico Auto Industries Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
Rico Auto Industries expects significant revenue growth, targeting around INR 3,000+ crores for FY 2026 and close to INR 4,000 crores by 2028-2029. - Sales to the U.S. Revenues are expected to grow significantly from around INR 2,400 crores to INR 4,000 crores by 2028-29, driven by ramp-up in multiple OEMs including Maruti Suzuki, Toyota (including Aisin and Musashi), Tata Motors, Mahindra, Honda, and exports to BMW and GKN.
From Rico Auto Industries Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Revenue & Sales Performance
- Rico Auto Industries expects significant revenue growth, targeting around INR 3,000+ crores for FY 2026 and close to INR 4,000 crores by 2028-2029.
- Sales to the U.S. market are projected to increase by 40-50% in the current year and another 50% next year.
- Domestic market growth driven by increased business from Maruti Suzuki, Hero, Toyota, Tata Motors, and Mahindra.
- New orders and increased share of business with existing customers will improve capacity utilization, especially in casting and machining units.
- Margins are expected to improve quarter-on-quarter, with new products offering better profitability above 14-15%.
- Long-term capacity expansion will focus more on specialized machining and strategic customers like BMW, GKN, and Toyota.
- Strong customer investments in tooling and capacity underpin the growth visibility and predictability.
Profitability & Margins
See what Rico Auto Industries Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Current focus is on better utilization of existing capacities before new capex.
- New plant in Hosur is coming up, with equipment potentially being shifted from existing plants.
- Considering setting up a plant in Gujarat close to customers like Maruti and Hero but only after optimizing current capacities.
- Board is cautious and approves all investments, emphasizing debt reduction before further expansion.
- Major capex primarily involves casting (foundries) and machining lines, which are mostly fungible and funded significantly by customers.
- Expansion tied to customer demand, especially for high-technology components for OEMs like BMW, GKN, Toyota, Maruti, Hero.
- Target to manage debt reduction alongside investments; approximately INR 2,500 crores invested in new foundry machines earlier.
- No major greenfield investments planned without confirmed customer orders.
- Investments prioritized in machining to improve margins alongside casting capacity.
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Ranked on what management guided this quarter
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Fundraising & Capital Structure
See what Rico Auto Industries Ltd said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- The company expects to scale up revenues from around INR 2,400 crores to INR 4,000 crores by 2028-2029, based on current order visibility and discussions.
- The orderbook includes expansions with major OEMs such as Maruti Suzuki, Toyota (including Aisin and Musashi), Tata Motors, Mahindra, Honda, and new customers like Knorr-Bremse.
- There is a significant ramp-up in orders for exports, including BMW and GKN.
- New orders are linked both to increased shares from existing customers and new product launches, with reasonable predictability due to long-standing OEM relationships.
- Current capacity utilization is expected to rise to 85%+ by next year with new product introductions contributing to better margins.
- The company is proceeding cautiously with capex, focusing first on better utilization of existing capacities before new plant setups.
Rico Auto Industries Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹629 Cr, net profit ₹11 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Rico Auto Industries Ltd's management said in earlier quarters
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Frequently Asked Questions
What were Rico Auto Industries Ltd Q2 FY26 results?
Rico Auto Industries expects significant revenue growth, targeting around INR 3,000+ crores for FY 2026 and close to INR 4,000 crores by 2028-2029. - Sales to the U.S. Revenues are expected to grow significantly from around INR 2,400 crores to INR 4,000 crores by 2028-29, driven by ramp-up in multiple OEMs including Maruti Suzuki, Toyota (including Aisin and Musashi), Tata Motors, Mahindra, Honda, and exports to BMW and GKN.
What is Rico Auto Industries Ltd share price analysis?
Rico Auto Industries Ltd currently shows a neutral. The stock trades at a P/E of 49.9 with a market cap of ₹1,786 Cr. Investors should review the full earnings analysis for detailed insights.
Is Rico Auto Industries Ltd planning capital expenditure?
Current focus is on better utilization of existing capacities before new capex.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.