Rico Auto Q1 FY27 Revenue Up 39% But Net Loss

Event Type: Q1 FY27 Earnings Conference Call held on 14th August 2026.
Date and Time: The call was held on 14th August 2026; specific time and time zone were not disclosed in the transcript.
Purpose: Discussion of Q1 FY27 financial results, business performance, and outlook.
Management Participants:
Mr. Arvind Kapur – Chairman, Chief Executive Officer and Managing Director
Mr. R.K. Miglani – Executive Director
Mr. Kaushalendra Verma – Executive Director
Mr. Naveen Sorot – Chief Financial Officer
Mr. Sanjay Bhat – Associate Vice President (Sales & Marketing)
Presentation Availability: The company stated that the investor presentation was available on the stock exchanges and the company's website. The audio recordings of the call were uploaded on the stock exchange on 14th August 2026 and would prevail in case of any discrepancy with the transcript.
UPSI Statement: The call contained forward-looking statements based on beliefs and expectations as of the call date, with a disclaimer that these are not guarantees of future performance.

Financial Highlights Discussed:

Financial Period: Q1 FY27 (Quarter ended June 2026).
Revenue: Consolidated revenue stood at INR755 crores, up 39% from INR543 crores in Q1 FY26.
EBITDA: INR34.8 crores, with an EBITDA margin of 4.6%.
PAT: Loss of INR3.4 crores compared to a profit of INR16.7 crores in Q1 FY26.
Segment-wise Revenue: Aluminum casting contributed 89% of consolidated revenue; ferrous casting contributed 11%.
Exports: Accounted for 15% of total revenue.

Forward-Looking Statements & Strategic Themes:

Revenue Guidance: Increased to over INR3,200 crores for FY27 (from previous target of ~INR3,000 crores). Quarterly projections: Q2 ~INR840 crores, Q3 ~INR850 crores, Q4 ~INR900 crores.
Margin Outlook: Expects progressive improvement from Q3 FY27 onwards, targeting exit near full-year margin targets (previously guided ~10-12%). Near-term margins remain under pressure.
New Programs: 55 new programs in launch phase; 28 already launched and ramping up. These are long-term (7-8 years) programs for Toyota, Ford, and BMW, with the company as a single-source supplier.
Hosur Plant: New facility for hybrid and EV-related programs to start commercial production in September 2026.
Railways & Defense: RDSO approvals in progress; supplies started. Targeting supply of 200 computerized shooting range containers this year.
CNC Machine Sales: Planning to sell 100 machines externally this year, with expected revenue of INR35-40 crores (not included in main revenue guidance).

Cost Pressures & Mitigation:

Air Freight & Sorting Costs: Elevated costs of ~INR13 crores due to global shipping disruptions (transit time increased from 5 to 9 weeks) and quality correlation issues. Expected to peak in Q2 and cease from Q3 onwards.
Raw Material Cost: Aluminum prices increased ~57% YoY (INR222/kg to INR349/kg), with a lag in customer price settlements impacting profitability by ~INR10 crores in Q1.
Other Inflation: Higher costs in manpower, power, fuel, tools, and consumables.
Customer Negotiations: Active engagement with customers for price revisions and cost pass-throughs; one customer has agreed to pay 50% of air freight costs.

Attachments: The regulatory filing enclosed the transcript of the conference call.
Financial Data Disclosure: The announcement itself did not contain financial data; the transcript summarized results that were presumably disclosed separately.
Compliance: The transcript included a standard forward-looking statement disclaimer.