Rico Auto Industries Ltd(RICOAUTO)

NSE: RICOAUTOBSE: 520008

₹ 100.55-0.84%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 1,360 crWebsite: www.ricoauto.comUpdated: 24 Oct 2026

About

Rico Auto Industries Ltd is an Indian manufacturer of high-precision aluminium and ferrous components and assemblies, including engine and transmission parts and braking systems, for two-wheelers, passenger vehicles and commercial vehicles. It operates 16 manufacturing plants across 15 locations in India. Revenue was ₹2,477.73 crores in FY26, and consolidated revenue of ₹755 crores in Q1 FY27 was its highest quarterly figure so far. It exports to 8 countries, and exports were 15.59% of total turnover in FY25.^[1][2]

Business segments

Aluminium (non-ferrous) casting contributed 89% of consolidated revenue in Q1 FY27, up from 87% of FY25 turnover.^[3]
Ferrous (iron) casting contributed 11% of consolidated revenue in Q1 FY27, versus 13% of FY25 turnover.^[3]
A new non-automotive vertical covering Railways and CNC Machines was created in FY25; railway supplies for Tracks, Wagons & Carriages have already started.^[1]

Products and portfolio

Products include engine and transmission parts, braking systems, oil and water pumps, aluminium wheels, and precision machined components for two-wheelers, passenger vehicles, and commercial vehicles.^[1]
The portfolio spans Internal Combustion Engine, Hybrid, and Electric Vehicle powertrains; EV/hybrid mix was ~7% of turnover in Q3 FY26.^[1]
R&D developed paper-based friction material for clutch applications - first in India - approved by a global OEM and in production as of FY25.^[1]
Subsidiary AAN Engineering Industries (AS 9100D certified) makes precision components for Aerospace, Naval and Defence and holds a ToT with TBRL (DRDO) for Baffle Shooting Ranges.^[1]
Rico has begun selling CNC machines externally (previously captive only), targeting 100 machines for ~₹35 - 40 crores revenue in FY27.^[3]

Manufacturing footprint

16 manufacturing plants at 15 locations in India, including Gurugram (27 acres, corporate/R&D/casting), Bawal (15 acres, aluminium casting and EV), Sanand & Halol (12 acres, HPDC and EV), Chennai (12 acres) and Pathredi (12 acres, machining).^[1]
Two international offices plus warehousing in Germany, France, Detroit and North Carolina support global customer servicing.^[1]
A greenfield plant at Hosur (12 acres), focused on hybrid and EV programs, is expected to start commercial production in September 2026 with ramp-up from October 2026.^[3]
R&D expenditure was ₹17.76 crores in FY25, 1.11% of total turnover (capital: ₹3.40 crores; operating: ₹14.36 crores).^[1]

Capacity utilisation

Iron foundry utilisation was ~50 - 52% in Q2 FY26, up from ~40% earlier; management targeted ~90% by FY27 on orders already in hand.^[4]
Aluminium die casting utilisation was reset to ~50% in Q2 FY26 after efficiency improvements (previously 65 - 70%); new orders were expected to lift it to ~80 - 85% by FY27.^[4]
Management stated peak revenue of ~₹4,000 crores is achievable from the existing asset base without major new capex (Q1 FY27).^[3]

Key operating metrics

Consolidated revenue was ₹755 crores in Q1 FY27 vs ₹543 crores in Q1 FY26 (+39% YoY); aluminium price inflation added ~₹100 - 115 crores to the topline.^[3]
Aluminium raw material price was ~₹349/kg in Q1 FY27 vs ~₹222/kg in Q1 FY26; the lag in passing through raw material costs to customers cost about ₹10 crores of profit in Q1 FY27.^[3]
75% of customers by value were on real-time raw material price settlement in Q1 FY27; the remaining 25% were under negotiation.^[3]
Air freight and sorting costs were ~₹12.8 crores in Q1 FY27, forced by longer ocean transit times on US export routes; they were expected to peak in Q2 FY27 and stop from Q3 FY27.^[3]
New business program value secured in 9M FY26 was ₹2,112.50 crores with peak annual value of ₹422.50 crores.^[5]

Customers and distribution

Key customers include BMW, Hero, Maruti Suzuki, Toyota, Renault, Nissan, Tata Motors, Cummins, Honda, Mahindra, Volvo, Bajaj, GKN, Knorr-Bremse, AISIN, Daimler and Musashi.^[1]
Two customers each contributed 10% or more of revenue in FY25.^[1]
Exports were ~15% of consolidated revenue in Q1 FY27 and 15.59% of total FY25 turnover, serving 8 countries.^[3]
Foreign exchange earnings were ₹311.95 crore in FY25 vs ₹409.62 crore in FY24.^[1]
The US is ~50% of total exports; US auto component exports grew 21.7% YoY to ₹101 crores in Q2 FY26 and are exempt from the second 25% tranche of US tariffs.^[4]
New export business from GKN, Knorr-Bremse, Daimler and Cummins was projected to grow exports by 20% in FY26.^[1]

New programs and order book

55 new programs were in launch phase as of Q1 FY27: 28 have reached start of production and are ramping up with Toyota, Ford and BMW, and 27 remain in the pipeline. All are single-source, with program lives of 7 - 8 years.^[3]
Confirmed orders of ₹720 crores peak annual sales from Maruti, TATA, Toyota, Musashi, Knorr-Bremse, AISIN and GKN are in development, with peak volume targeted by 2027.^[1]
Railways contributed ~₹5 - 7 crores in Q1 FY27; RDSO approvals are in progress for direct railway supply; 200 computerised shooting ranges are to be supplied in FY27.^[3]

Expansion and capex

The Hosur greenfield plant (hybrid/EV-focused) is expected to reach commercial production in September 2026 and a peak annual revenue of ₹350 - 400 crores.^[3]
For about one year from Q1 FY27, capex will cover only small capacity expansions for existing programs; major new projects are deferred until current ramp-ups stabilise.^[3]
Maruti and Hero have asked Rico to set up a plant near them in Gujarat; management prefers to supply from existing plants first (Q2 FY26).^[4]
Monetisation of the Gurgaon land (26 - 27 acres) is under discussion; management raised its minimum price to ₹1,500 crores after rejecting an earlier offer; no timeline has been disclosed (Q2 FY26).^[4]

Recent developments

CRISIL assigned 'CRISIL A/Stable/CRISIL A1' ratings to bank facilities totalling ₹615 crores, as reported in the FY25 annual report.^[1]
Rico received the TISAX Certificate in July 2024 and holds IATF 16949, ISO 14001, ISO 45001 and ISO 27001 certifications.^[1]
The company completed migration from SAP ECC to S/4 HANA in FY25 and started AI-based pilot projects to reduce process defects.^[1]
The government withdrew a large defence fuse tender that Rico had pursued for 3 - 4 years and reverted to a PSU-only policy (Q3 FY26).^[5]

Market Cap

₹1,360 Cr

High / Low

₹158 / 78

Stock P/E

44.5

Price / Book

1.8

Book Value

₹58

EPS

₹3.7

No. of Shares

13.53 Cr

ROCE

9.2%

ROE

6.7%

OPM

5.3%

Debt / Equity

0.90

Sales

₹2,478 Cr

Net Profit

₹52 Cr

Promoter holding

50.3%

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