Q4 2026 Rico Auto Industries Ltd Earnings Call Transcript
Key Points
- Rico Auto Industries Ltd (BOM:520008) achieved its highest revenue during FY26, supported by strong domestic and export demand.
- The company is experiencing growth in its export business, particularly in the US and Germany, with expectations to double exports in the next two years.
- Rico Auto Industries Ltd has secured new orders worth approximately INR2,500 crore over a program life of five years, providing strong visibility for future growth.
- The company is expanding its presence in the railway and defense sectors, with expectations to generate significant revenue from these areas.
- Rico Auto Industries Ltd has improved its working capital management, reducing working capital days from 33 to 7 days, and generated INR331 crore in cash flow from operations during FY26.
- The company faced non-recurring impacts on profitability due to labor code changes and lag settlement impacts, affecting EBITDA margins.
- Raw material price volatility has impacted margins, although the company is renegotiating with customers to mitigate this.
- There is uncertainty regarding the full recovery of losses incurred due to raw material price increases in FY26.
- The defense sector is progressing slower than expected, with revenue targets yet to be fully realized.
- Despite achieving high revenue, the company's net debt increased to INR686 crore as of March 2026, compared to INR653.1 crore last year.
Ladies and gentlemen, good day and welcome to Rico Auto Industries Limited Q4 and FY26 earnings conference call. (Operator Instructions)
Before we begin, this conference call may contain certain forward-looking statements about the company, which are based on beliefs, opinion, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict.
From the management we have with us today, 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. I now hand the conference over to Mr. Kaushalendra Verma, Executive Director from Rico Auto Industries Limited. Thank you, and over to you sir.
Thank you. Good evening. everyone and thank you for joining us for the Rico Auto Industries Limited Q4 and FY26 earnings conference call.
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