Q3 2026 Rico Auto Industries Ltd Earnings Call Transcript
Key Points
- Rico Auto Industries Ltd (BOM:520008) reported a 14.1% increase in consolidated revenue for Q3 FY26, reaching INR632 crore.
- EBITDA grew by 33.2%, with margins improving to 10%, reflecting strong operational performance.
- The company experienced a 25.5% year-on-year revenue growth on a standalone basis.
- Rico Auto Industries Ltd (BOM:520008) benefited from stable volumes from key OEM customers and successful launch of new programs.
- The company is well-positioned to benefit from continued localization by OEMs and increasing content per vehicle, with a positive outlook for the Indian automotive sector.
- The company is not on track to achieve its targeted INR60-70 crore revenue from the railway sector for FY26, with expectations now set for FY27.
- Margins have not yet reached the historical levels of 11-12%, with challenges such as pricing pressure from customers and volatile commodity prices impacting performance.
- The contribution from the railway sector to revenue remains minimal, with direct supply to railways expected to start in the second quarter of next year.
- The company faces challenges in achieving the targeted 12-13% EBITDA margin due to volatile commodity prices and the need for customer negotiations.
- The electronic fuses business has faced setbacks, with government tenders being withdrawn and reliance on public sector undertakings.
Ladies and gentlemen, good day, and welcome to the Rico Auto Industries Limited Q3 FY26 conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Ambesh Tiwari. Thank you, and over to you, Mr. Ambesh.
Thank you. Good evening, everyone, and thank you for joining us for Rico Auto Industries Q3 FY26 earnings conference call. From the management side, we have with us Mr. Arvind Kapur, Chairman, CEO and Managing Director; Mr. R.K. Miglani, Executive Director; Mr. Kaushalendra Verma, Executive Director; Mr. Naveen Sorot, Chief Financial Officer; and Ms. Ruchika Gupta, Company Sectary.
I now request Mr. Kaushalendra Verma to take us through the key opening remarks, after which we can open the floor for question-and-answer session. Thank you, and over to you, sir.
Thank you. Very good afternoon, everyone. A warm welcome to all of you, and thank you very much for
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