Financial Performance Highlights

Rico Auto Industries delivered exceptional financial results for FY 2025-26, achieving record revenue and significant profit growth. On a consolidated basis, the company reported:

  • Total Revenue: ₹2,487.7 crore (FY26) vs ₹2,225.2 crore (FY25) - 12% growth
  • PAT: ₹52.4 crore (FY26) vs ₹21.4 crore (FY25) - 144.8% growth
  • EPS: ₹3.73 (FY26) vs ₹1.58 (FY25)

Standalone performance was equally strong:

  • Revenue from Operations: ₹1,836.44 crore (FY26) vs ₹1,607.02 crore (FY25) - 14% growth
  • Profit After Tax: ₹27.32 crore (FY26) vs ₹22.91 crore (FY25) - 19% growth
  • EPS: ₹2.02 (FY26) vs ₹1.69 (FY25)

Dividend Declaration and Capital Structure

The Board recommended a final dividend of 55% (₹0.55 per equity share of ₹1 each) for FY 2025-26, amounting to ₹7.44 crore. The record date is set for September 1, 2026, with payment to be made electronically within 30 days of declaration at the AGM. The company maintained its authorized share capital at ₹270.00 crore with paid-up capital of ₹13.53 crore.

Operational and Business Highlights

The company achieved its highest-ever revenue supported by robust domestic and export demand. Key operational achievements include:

  • Export Turnover: Standalone ₹337.08 crore; Consolidated ₹390.00 crore
  • New Orders: Secured approximately ₹2,500 crore worth of orders over 5-year program life
  • EV Expansion: New greenfield plant at Hosur, Tamil Nadu for EV components (expected commercial production Q3 FY27)
  • Customer Relationships: Maintained strong ties with Toyota, BMW, GKN, Maruti Suzuki, Tata, Renault, Aisin, Bosch, Cummins

Subsidiary Performance

Rico Jinfei Wheels Limited (96.31% subsidiary)

  • Total turnover: ₹650.53 crore (FY26) vs ₹645.01 crore (FY25)
  • Net profit: ₹26.45 crore (FY26) vs ₹17.85 crore (FY25)
  • Rico Fluidtronics Limited merged effective April 1, 2023

AAN Engineering Industries Limited (100% subsidiary)

  • Total revenue: ₹22.80 crore (FY26) vs ₹9.49 crore (FY25)
  • Profit: ₹2.25 crore (FY26) vs ₹1.4 crore (FY25)
  • AS 9100D certified for aerospace, naval and defense sectors

Rico Auto Industries Inc., USA (100% subsidiary)

  • Total revenue: ₹165.75 crore (FY26) vs ₹122.39 crore (FY25)
  • Profit: ₹1.46 crore (FY26) vs ₹1.04 crore (FY25)
  • Paid dividend of ₹6.83 crore

Corporate Governance and Compliance

The company maintained strong governance standards with a 10-member Board (4 Executive, 1 Non-Executive Non-Independent, 5 Independent Directors). Five Board meetings were held during the year. Key committees including Audit, Nomination and Remuneration, and Stakeholders Relationship committees functioned effectively.

Auditor's Report and Observations

B S R & Co. LLP issued an unqualified opinion on both standalone and consolidated financial statements. Key audit matters included revenue recognition due to potential incentives to meet expectations. The auditors noted that during migration to new accounting software from April 3-6, 2025, audit trail functionality was not fully enabled at application and database levels, though no instances of tampering were found where enabled.

Financial Position and Borrowings

Total borrowings stood at ₹702.44 crore as of March 2026, with secured borrowings of ₹509.20 crore backed by:

  • First pari passu charge on movable fixed assets
  • Mortgage by deposit of title deeds of immovable properties
  • Charge on current assets including stocks and book debts

CRISIL Ratings Limited assigned 'CRISIL A/Stable/CRISIL A1' ratings to bank facilities of ₹775 crore.

Significant Transactions and Events

  • Land Sale: Entered agreement to sell Haridwar land for ₹10.19 crore, classified as non-current asset held for sale
  • Labour Codes: Adopted new labour codes resulting in ₹7.38 crore exceptional provision (₹6.11 crore gratuity, ₹1.27 crore leave encashment)
  • Asset Base: Gross fixed assets at ₹1,862.7 crore (standalone) and ₹2,124.6 crore (consolidated)

Risk Management and Internal Controls

The company maintained ISO 27001 certification for cybersecurity with transition to 2022 version underway. Internal financial controls were reported as adequate and operating effectively. Foreign exchange risk was managed through forward contracts for USD 500,000 and EUR 1,000,000.

CSR Activities and Social Responsibility

CSR obligation of ₹60.35 lakhs (2% of average net profit) was fully spent through Rico Care Foundation. Focus areas included healthcare, education, sports, environment protection, and community development. The Rico Medicare Centre at Pathredi provides free medical services to over 10,000 beneficiaries annually.

AGM Details and Forward Outlook

The 43rd Annual General Meeting is scheduled for September 8, 2026 through VC/OAVM. The company maintains strong growth visibility with:

  • Robust order book providing future growth certainty
  • Expansion into hybrid and EV components supporting industry transition
  • Focus on operational efficiency and cost optimization
  • Continued investment in technology and digital transformation
  • Strengthening presence in railways and defense sectors