Rico Auto Industries Ltd Q3 FY25 Results & Concall Highlights: Revenue, Margins & Order Book
Published 28 May 2026 | Auto Components | Market Cap: ₹1.8K Cr
FY '26 sales target around ₹2,600 crores, with potential to exceed due to aggressive domestic/export market efforts. FY 2026 sales target around ₹2,600 crores, with export revenue expected to increase from ₹360 crores to over ₹500 crores.
From Rico Auto Industries Ltd's Q3 FY25 earnings-call transcript · updated 23 Aug 2026.
Price
₹130
Market Cap
₹1.8K Cr
P/E Ratio
49.9
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Compare Rico Auto Industries Ltd against every Auto Components company this quarter on revenue, margins and earnings-call signals.
Rico Auto Industries Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹629 Cr, net profit ₹11 Cr.
Full financials →📊 Revenue & Sales Performance
- →FY '26 sales target around ₹2,600 crores, with potential to exceed due to aggressive domestic/export market efforts.
- →Export revenue expected to rise from ₹360 crores (current) to over ₹500 crores next year.
- →Domestic business growth includes new confirmed orders worth ₹720 crores, anticipated to increase to ₹810-815 crores by March end.
- →Iron casting utilization expected to rise from ~50% to ~70-72% in FY '26 and ~85-89% by FY '27.
- →Aluminum casting capacity freed by 15%, ready for expansion.
- →New auto component launches starting production Feb '25, peak expected by third year.
- →Defense segment aims to deliver ~100 shooting range containers next year, signaling strong growth.
- →Revenue target of ₹3,000 crores by FY '27 and ₹3,200 crores by FY '28 remains intact.
- →Margins expected to improve significantly once ₹2,500-2,600 crores sales crossed.
- →Positive outlook contingent on stable US-India trade relations and no major tariff impositions.
📈 Profitability & Margins
- →FY 2026 sales target around ₹2,600 crores, with export revenue expected to increase from ₹360 crores to over ₹500 crores.
- →By FY 2027, revenue is projected to cross ₹3,000 crores with EBITDA margins improving to about 13%.
- →Margins expected to improve significantly from Q1 FY 2026 onwards due to higher volumes, cost reduction, and operational efficiencies.
- →Defense segment margins anticipated at 18-20%, with growing contribution as volumes increase (target of 100 containers next year).
- →Cost savings through freed capacity, improved technology, better manpower utilization, and energy savings (solar and wind) to enhance profitability.
- →Export business targeting recovery post setbacks from delayed launches and market slowdowns.
- →FY 2028 revenue estimated at ~₹3,200 crores, with ongoing focus on expanding domestic and export market shares.
- →EPS expected to improve commensurately with revenue and margin growth, supported by operational efficiencies and new product launches.
🏗️ Capital Expenditure Plans
- →No major investment required in casting capacity for the next 3-4 years due to freed-up capacities with new die casting technologies.
- →Future capital investments primarily focused on machining and inspection areas, expected to be minimal.
- →New plant for Toyota progressing; building to be ready by June 2025; production sampling starts October 2025; full volume production mid-2026.
- →No new subsidiaries planned; consolidation of existing subsidiaries ongoing.
- →Improving efficiencies and technology in casting and machining to reduce manpower and costs.
- →Defense and railway sectors identified as growth areas, with ongoing bids and collaborations (e.g., DRDO).
- →Board closely monitoring margins quarterly with target EBITDA margins above 13% by FY '27.
- →Awaiting clarity on potential US tariffs, which may impact strategic plans.
- →Ongoing investment in Rico Production System for better manpower utilization and cost reduction.
💰 Fundraising & Capital Structure
- →There is no explicit mention of any current or future new fundraising through debt or equity in the latest conference call.
- →The company discussed utilization of existing capacities and focusing on cost reductions rather than raising new funds.
- →In response to a question on share buybacks, the Chairman mentioned that the Board debates this regularly and will inform investors when any decision is made, indicating no immediate plans for equity transactions.
- →They are focusing on organic growth through new confirmed orders and improving efficiencies.
- →No mention of plans to raise additional debt or equity capital was made during the call.
📋 Order Book & Pipeline
- →Current confirmed new orders total approximately ₹720 crores per year, expected to rise to ₹810-815 crores by March end.
- →Domestic new business from Maruti and other customers: ~₹510 crores/year.
- →Export new business: ~₹210 crores/year.
- →Orders primarily for auto components; customers include Maruti, Aisin, Toyota, GKN, Tata, Narbheram, Bendix, Case New Holland, Musashi, Cummins, Daimler, Greaves.
- →Defense orders include shooting ranges: 9 containers already shipped, 20 more to be shipped soon, targeting 100 containers next year.
- →Export orders currently impacted by delays and tariffs, but expected to recover to over ₹500 crores next year from ~₹360 crores this year.
- →Production delays from some programs (Toyota, Aisin) now resolved; volumes expected to ramp up.
- →Overall, orderbook is strong and expected to drive growth to ₹3,000 crores revenue by FY 2027.
Key Metrics
Frequently Asked Questions
What were Rico Auto Industries Ltd Q3 FY25 results?
FY '26 sales target around ₹2,600 crores, with potential to exceed due to aggressive domestic/export market efforts. FY 2026 sales target around ₹2,600 crores, with export revenue expected to increase from ₹360 crores to over ₹500 crores.
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?
No major investment required in casting capacity for the next 3-4 years due to freed-up capacities with new die casting technologies.
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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.