Any current/future new fundraising through debt or equity?

The company plans to raise new debt for ongoing investments, while simultaneously repaying existing long-term debt. Long-term debt repayment target for the current year is INR140 crores. The Board has directed a debt reduction of about 10%, and management is working to reduce overall debt from INR660 crores. New debt will be raised mainly to finance capex projects like the Hosur plant and expansions at other facilities. No explicit mention of new equity fundraising was made in the call. Focus is on improving working capital efficiency and reducing leverage alongside selective debt raising. The

Any current/future capex/capital investment/strategic investment?

Hosur plant capex: INR220-230 crores spread over 3 years (FY'26-FY'28). Expected turnover of INR350-400 crores with better margins from car business including electric and hybrid vehicles. FY'26 capex at Hosur: Around INR70 crores; FY'27: INR100 crores; balance in third year. Additional capex of about INR150-155 crores planned in FY'25-'26 including dies and equipment. Investment in building and equipment related to expansion for customers like Maruti, Toyota, GKN (exports), and Knorr-Bremse. Utilization improvements in casting capacities to reduce need for immediate new furnaces; furnace addi

Future growth expectations in sales/revenue/volumes?

FY'26 sales turnover target: INR 2,652 crores, about 20% growth over previous year. FY'27 sales expected to reach INR 3,100+ crores based on orders in hand. Orders of INR 720 crores picked up last year, implementing over 3 years, with INR 150 crores added this year and INR 320 crores next year. Additional INR 650 crores worth orders targeted for FY'26 onwards, with INR 70 crores already secured for immediate production. Export growth projected from INR 351 crores in FY'25 to approx INR 380 crores in FY'26 and INR 500+ crores by FY'27. Focus on increasing exports and domestic demand f

Future growth expectations in earnings/operating earnings/profits/EPS?

Target turnover for FY26 is INR2,652 crores, about 20% growth over the previous year. Exports expected to rise to INR380 crores in FY26 and surpass INR500 crores by FY27. Orders of INR720 crores received last year will contribute INR150 crores in FY26 and INR320 crores in FY27, with full run rate in 3 years. Margins targeted to improve to 13%-14% company-wide; exports deliver higher margins of 15%-20%. Cost reductions in manpower, power savings (solar, wind), and improved productivity are expected to boost profitability. Working capital and long-term debt are targeted to reduce, impr

Current/ Expected Orderbook/ Pending Orders?

Last year, Rico Auto Industries secured orders worth INR 720 crores, with production already started on some. This year, they are adding approximately INR 150 crores in orders and expect around INR 320 crores additional next year, totaling INR 420 crores from these orders. The company targets to pick up another INR 650 crores in new orders this year; out of that, INR 70 crores have already been confirmed. The order execution is planned over three financial years, with orders progressively entering production. Orders include both domestic and export customers, with a strong focus on exports exp

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Rico Auto Industries LtdQ1 FY25Auto Components

Rico Auto Industries Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹141P/E: 29.7Market Cap: ₹1.7K CrSector: Auto Components

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 2

→FY'26 sales turnover target: INR 2,652 crores, about 20% growth over previous year.
→FY'27 sales expected to reach INR 3,100+ crores based on orders in hand.
→Orders of INR 720 crores picked up last year, implementing over 3 years, with INR 150 crores added this year and INR 320 crores next year.
→Additional INR 650 crores worth orders targeted for FY'26 onwards, with INR 70 crores already secured for immediate production.
→Export growth projected from INR 351 crores in FY'25 to approx INR 380 crores in FY'26 and INR 500+ crores by FY'27.
→Focus on increasing exports and domestic demand for 4-wheelers, commercial vehicles, railways, and defense segments.
→Utilization of existing capacities improving, especially in castings and new business areas like defense and railways.
→Overall volumes expected to rise with better capacity utilization and new project implementations.

Margin guidance

Category 1

→Target turnover for FY26 is INR2,652 crores, about 20% growth over the previous year.
→Exports expected to rise to INR380 crores in FY26 and surpass INR500 crores by FY27.
→Orders of INR720 crores received last year will contribute INR150 crores in FY26 and INR320 crores in FY27, with full run rate in 3 years.
→Margins targeted to improve to 13%-14% company-wide; exports deliver higher margins of 15%-20%.
→Cost reductions in manpower, power savings (solar, wind), and improved productivity are expected to boost profitability.
→Working capital and long-term debt are targeted to reduce, improving financial health.
→Defense and railway businesses expected to contribute INR100-150 crores with better margins.
→New Hosur plant capex of INR220-230 crores expected to generate around INR350-400 crores revenue with premium margins.
→Management confident of margin and utilization improvement starting FY26, with significant growth from exports and domestic 4-wheelers.

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Fundraise plans

Yes

→The company plans to raise new debt for ongoing investments, while simultaneously repaying existing long-term debt.
→Long-term debt repayment target for the current year is INR140 crores.
→The Board has directed a debt reduction of about 10%, and management is working to reduce overall debt from INR660 crores.
→New debt will be raised mainly to finance capex projects like the Hosur plant and expansions at other facilities.
→No explicit mention of new equity fundraising was made in the call.
→Focus is on improving working capital efficiency and reducing leverage alongside selective debt raising.
→The sale or monetization of surplus Gurgaon land is under consideration to support financial goals, but only if it benefits shareholders.

Order book

Yes

→Last year, Rico Auto Industries secured orders worth INR 720 crores, with production already started on some.
→This year, they are adding approximately INR 150 crores in orders and expect around INR 320 crores additional next year, totaling INR 420 crores from these orders.
→The company targets to pick up another INR 650 crores in new orders this year; out of that, INR 70 crores have already been confirmed.
→The order execution is planned over three financial years, with orders progressively entering production.
→Orders include both domestic and export customers, with a strong focus on exports expected to grow significantly.
→The export orderbook includes key customers like GKN and Knorr-Bremse; exports are projected to increase from INR 380 crores this year to over INR 500 crores next year.
→The expected turnover this year stands at INR 2,650 crores, up from INR 2,225 crores last year, fueled by the orderbook.

Capex plans

Yes

→Hosur plant capex: INR220-230 crores spread over 3 years (FY'26-FY'28). Expected turnover of INR350-400 crores with better margins from car business including electric and hybrid vehicles.
→FY'26 capex at Hosur: Around INR70 crores; FY'27: INR100 crores; balance in third year.
→Additional capex of about INR150-155 crores planned in FY'25-'26 including dies and equipment.
→Investment in building and equipment related to expansion for customers like Maruti, Toyota, GKN (exports), and Knorr-Bremse.
→Utilization improvements in casting capacities to reduce need for immediate new furnaces; furnace additions planned 2 years out.
→Focus on cost reduction through power savings (solar, wind, efficient furnaces) and manpower optimization.
→Strategic focus on growth in exports, 4-wheelers, commercial vehicles, railways, and defence segments.
→Exploring monetization of prime Gurgaon land for potential shareholder returns.

How does Rico Auto Industries Ltd rank vs peers in Auto Components?

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1Rico Auto Industries Ltd

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