Rico Auto Industries Ltd

Financial Performance

• Q1 FY27 consolidated revenue: INR755 crores; Q1 FY26: INR543 crores.
• EBITDA: INR34.8 crores; EBITDA margin: 4.6%.
• PAT: loss INR3.4 crores vs INR16.7 crores profit in Q1 FY26.
• Aluminum casting: 89% of revenue; ferrous casting: 11%.
• Exports: ~15% of quarterly revenue.
• Other operating expenses up by ~INR24 crores; air freight ~INR13 crores.
• Air freight costs peak in Q2; normalization from Q3.
• Raw-material price settlement lag impact: ~INR10 crores in quarter.
• Hosur plant: commercial production expected September 2026.
• Railways/Defence: RDSO approvals progressing; supplies started.
• Outlook: target around INR3,000 crores this year; expect > INR3,200 crores in FY27.
• Margins are expected to improve; exit year near targeted full-year margins.

Operating Update & Segment Trends

• Aluminium casting remains the principal revenue driver (89%).
• Exports contributed roughly 15% of total revenue in the quarter.
• 55 new programs in launch phase; 28 launched and in ramp-up; 7–8 year life.
• Programs with Toyota, BMW, Ford; single-source supplier for these programs.
• Railways/Defense expansion supported by localization investments.

Projects & Capital Allocation

• Hosur facility progressing; commercial production planned Sep 2026.
• 54 projects in hand; near-term capex to be limited; stabilize assets.
• CNC machine tooling: selling externally; plan to deliver 100 machines this year.
• CNC revenue target: INR35–40 crores; not included in INR3,250 crores guidance.
• Haridwar land bank: INR10 crores receivable by 30 December; debt-repayment use.

Guidance & Outlook

• Revenue outlook unchanged; target around INR3,000 crores this year.
• Expected revenue > INR3,200 crores in FY27.
• Margins to improve; exiting the year near target margins through price revisions and efficiency.

Q&A Highlights

• Freight costs: air freight elevated; peak in Q2; pass-through negotiations ongoing.
• Aluminium price impact: material cost pressure; some recovery expected via pass-through.
• CNC machines: 100 units planned; revenue INR35–40 crores; not in current guidance.
• Land sale (Haridwar): INR10 crores expected by Dec; debt repayment use.
• Railways/Defense numbers to be shared; early-stage but positive trend observed.

Risks & Watchpoints

• Temporary nature of air freight costs; potential further spikes from global tensions.
• Raw-material pass-through depends on customer negotiations; timing varies by program.
• Aluminium price volatility; hedging exposure limited as per discussion.

Investor Presentation

• Link to Investor Presentation Final 14.08.26 PDF provided.
• Presentation also available on the company website www.ricoauto.in.

Financial results and audits

• Unaudited standalone and consolidated financial results for quarter ended 30 June 2026 approved.
• Limited Review Reports for both standalone and consolidated results signed by auditors.

AGM notice and access

• 43rd AGM scheduled for 8 September 2026 at 12:00 noon via VC/OAVM.
• Notice and FY2025-26 Annual Report accessible online due to unregistered email addresses.
• Weblink and QR code provided to access AGM notice and Annual Report.
• Shareholders without registered emails may register via RTA/DP to receive notices.
• Annual Report available on NSDL, BSE, and NSE websites.

Overview

• Consolidated BRSR for FY2025-26 covering Rico Group and Indian subsidiaries.
• Main activity: design, manufacture, supply of automotive components; 16 plants and 2 international offices.
• Operations span 8 Indian states and 8 countries; 100% turnover from casting (non-ferrous 88%, iron 12%).
• Exports constitute 15.98% of group turnover; major OEM customers listed.
• CSR turnover ₹1,836.44 crore; net worth ₹688.69 crore (standalone figures).
• Certifications include ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 27001.

Key ESG Risks & Opportunities

• Climate change: high energy use; decarbonization roadmap and renewable energy procurement planned.
• Emissions management: complete GHG inventory; electrification of furnaces and fleet; decarbonization roadmap.
• Water: operations in water-stressed areas; water intensity ~0.98 per ₹ Lakh turnover; wastewater reuse.
• Waste: total 4,651 MT; 4,476 MT recycled; source segregation and circular economy practices.
• Stakeholder engagement: structured multi-channel outreach strengthens trust and long‑term value.
• Health & safety: ISO 45001; LTIFR 0 (employees), 0.09 (workers); one worker injury; no employee fatalities.
• Supply chain: 30% inputs from sustainable sources; ESG supplier evaluation planned; Code of Conduct used.

Governance & Policy Highlights

• Rico Executive Committee (REC) oversees BR policy; Board approves policies; committees execute others.
• Key policies: Anti-Bribery/AC, Whistleblower, Human Rights, POSH, Forced Labor; Supplier Code; Code of Conduct.
• Policies translated into procedures and extended to value chain; website access provided.
• Policies undergo periodic review; no material fines or penalties in the period; external assurance not applicable.

Social Responsibility & Workforce

• Total employees 734; permanent 718; females 16 (2.2%); workers 5,980; females 225 (3.8%).
• Board female representation 20%; Key Management Personnel female 16.7%.
• 100% coverage for training; BoDs 5 sessions; KMPs 8; employees 903 trainings; workers 1,156 trainings.
• ISO 45001; LTIFR 0 (employees), 0.09 (workers); one worker injury; no employee fatalities.
• Grievance mechanisms include grievance boxes, online register, ethicsline, unions; regular reviews.
• Return-to-work rate and parental leave retention at 100% for permanent staff.
• Median remuneration: BoD male ₹9.56 lakh; BoD female ₹5.25 lakh; employees ₹51,774; workers ₹49,972.
• CSR: multiple initiatives; 5,000 trees planted; education, sports, health, and community projects.

Environmental Performance

• Total energy 9,15,231.31 GJ; renewable share 12.26%; energy intensity 3.69 GJ per ₹ Lakh turnover.
• Scope 1: 19,805.54 tCO2e; Scope 2: 97,264.19 tCO2e; total 117,069.73 tCO2e; intensity 0.47.
• Water: groundwater 1,82,212.55 kl; third party 72,551.14; total withdrawal 2,54,763.69 kl.
• Waste: total 4,651.06 MT; recycled 4,476.06; incinerated 45.26; landfilled 129.74 MT.
• ETP/STP in most facilities; rooftop solar 1,400 kWp; LED lighting; electric furnaces.
• Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 27001; EPR not applicable.

Stakeholder Engagement & Complaints

• Stakeholders: employees, shareholders, board, customers, suppliers, industry bodies, regulators, communities.
• Engagement: multi-channel, regular for employees; need-based or quarterly for others.
• Complaints: customers 160; shareholders 1; communities 0; employees 0; investors 0 in FY2025-26.
• Grievance channels include grievance boxes, online register, ethicsline, and unions.

Other Notable Metrics

• Related-party transactions: purchases 2.16%; sales 0.001%; investments 0.84%.
• Sustainable inputs: ~30% of inputs sourced sustainably; MSME inputs ~38.45%; 100% Indian inputs.
• Green credits: none; ISMS ISO 27001:2013 in place; 27001:2022 transition underway.
• End-of-life: no product reclamation; packaging materials recovered where feasible.

Key financial & liquidity highlights

• Consolidated revenue ₹2,487.7 cr.
• Consolidated PAT ₹52.4 cr.
• Consolidated EPS ₹3.73.
• Cash EPS ₹11.30.
• Dividend declared: ₹0.55 per share.
• Dividend payout: ₹7.44 cr.
• Total debt ₹727.62 cr.
• Gearing ratio ~0.93x.
• Operating cash flow ₹325.65 cr.
• Lease liabilities ₹25.18 cr.

Meeting Details

• Date and time: 14 August 2026, 4:00 PM IST.
• Type: group conference call; virtual dial-in for analysts/institutional investors.
• Event organiser: Rico Auto Industries Limited.

Participants

• Key participants: Chairman/CEO & Managing Director; Executive Directors.
• Also: Chief Financial Officer; Company Secretary.

Purpose

• Discuss unaudited Q1 FY27 financial results; operational and financial performance.

Book closure details

• Book closure: 02 September 2026 to 08 September 2026 (inclusive).
• Purpose: Payment of dividend and the 43rd AGM.
• Record date: 01 September 2026; determines dividend entitlement and voting eligibility.
• Security: Equity shares (520008).