Rico Auto Q2 FY27 Net Loss INR26.3 Crore

Event Type: Q2 and H1 FY27 Earnings Conference Call and investor interaction.
Date and Time: The conference call was held on November 6, 2026. A specific start time was not disclosed in the transcript.
Purpose: The purpose was to discuss the company's financial results and operational performance for the second quarter and first half of the fiscal year 2026-27 (FY27).
Management Participants: The following management members participated:
Mr. Arvind Kapur – Chairman, Chief Executive Officer and Managing Director
Mr. Rajiv Kumar Miglani – Executive Director
Mr. Kaushalendra Verma – Executive Director
Mr. Naveen Sorot – Chief Financial Officer
Availability of Materials: The financial results and an investor presentation were available on the stock exchanges and the company's website prior to the call.
UPSI Statement: The conference call contained forward-looking statements based on the company's beliefs and opinions as of the call date, noting they are not guarantees of future performance and involve risks and uncertainties.

Financial Highlights Disclosed:

Consolidated Q2 FY27: Revenue stood at INR 852 crores, EBITDA was INR 9.3 crores, and Profit After Tax (PAT) was a loss of INR 26.3 crores.
Consolidated H1 FY27: Revenue stood at INR 1,607 crores, EBITDA was INR 46.9 crores, and PAT was a loss of INR 29.7 crores.
Segment-wise Revenue Contribution: Aluminum casting contributed 89% of revenue, while ferrous casting contributed 11%.
Export Contribution: Exports accounted for 16% of total revenue for the quarter.

Forward-Looking Statements & Strategic Themes:

The company remains focused on achieving its FY27 revenue target of more than INR 3,200 crores, driven by the ramp-up of ongoing programs and improved capacity utilization.
A key priority is addressing cost pressures and improving profitability in the second half of the year through initiatives to enhance productivity, streamline operations, and improve execution.
The company is reviewing its product and customer portfolio with a sharper focus on program profitability, sustainable margins, and returns on capital employed.
Management specifically mentioned engaging with customers to recover an appropriate portion of the additional air freight costs, with one customer having already agreed to contribute.

Attachment: The document is an intimation letter enclosing the transcript of the conference call.
Financial Data: Significant financial data was disclosed during the call, including revenue, EBITDA, and PAT figures for Q2 and H1 FY27, as well as segmental and export breakdowns.
Cause of Loss: The primary reason for the quarterly loss, an additional cost of approximately INR 40 crores for air freight, was extensively discussed. This was incurred due to global shipping disruptions (transit times to the US and Europe increased from 5-6 weeks to 10-12 weeks) to maintain supply as a single-source supplier for programs with end customers Toyota and BMW.
Resolution Timeline: Management expects air shipments to stop after November 2026 as sea freight logistics normalize and inventory pipelines are full, with a return to sea freight from Q3 onwards.