RICOAUTO Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹632 Cr
verified against source
Revenue YoY
14.1%
reported change
EBITDA
Pending
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Rico Auto Industries delivered a strong Q3 FY26 with consolidated revenue of 632 crores, up 14.1% YoY, and EBITDA growth of 33.2% with margins expanding to 10%. The company cited stable volumes from key OEM customers, new program launches, improved capacity utilization, and internal cost initiatives as growth drivers, partially offset by customer pricing pressure. Management sees double-digit growth continuing into FY27 with new export and domestic programs ramping up in Q1-Q2 next year. Railway revenue will miss the 60-65 crore target this fiscal year but is expected to exceed it in FY27 with direct supply approvals. The EV/hybrid share has grown from 4% to 7% and is expected to reach double digits. Management acknowledged that US tariff reductions will be passed back to customers rather than retained as margin, but expects improved export competitiveness against China. The path to 12-13% EBITDA margins remains intact but timing is uncertain due to commodity volatility. Risk: commodity inflation and labour code implementation creating near-term margin pressure, while railway and defense diversification timelines remain elongated.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects growth above 10-12%, potentially reaching 15%, driven by new export and domestic programs launching in Q1-Q2 FY27 and China-plus-one tailwinds.
- Management maintains the target but cannot commit to timeline due to commodity volatility; expects improvement from current ~10% level as capacity utilization improves.
- Direct supply to railways expected to start from Q2 FY27 with RDSO approvals in place; targeting minimal capex with maximum utilization of existing foundry capacity.
- Long-term aspirational target confirmed despite near-term railway delays; management indicated they might outperform this target.
Risks flagged
- US-India trade agreement benefits (reduced tariffs from ~25% to 18%) will be fully returned to customers as per management commitment, eliminating direct margin benefit.
- Company will not achieve the 60-65 crore railway revenue target for FY26, pushed to FY27; direct supply approvals still pending inspection.
- Large ~10,000 crore defense fuse tender withdrawn after company completed testing; policy now favors PSUs; new 20-25% private sector requirement unclear.
- Aluminum and copper prices rising; RM indexation creates margin percentage dilution despite cost pass-through; new labour code implementation requires customer price negotiation.
Key quotes
- We will return whatever tariffs have been lowered we will return it back to the customer... there won't be any additional profit because of that.
- We have very clear path on getting to the margin of 13%. But because of the denominator effect the percentages do go down. So it is very difficult to say that when exactly we are going to achieve 12 to 13 odd percent.
- We are hoping that there will be a double digit growth will be close to double digit or even above that.
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