Rico Auto Industries Limited borrowings rise as capex absorbs cash

Rico Auto Industries Limited ended September 30, 2026 with consolidated borrowings of Rs 809.44 crore, Rs 107 crore above March 31, after receivables and inventories rose and Rs 143.38 crore of capital expenditure exceeded first-half operating cash generation.

Why did Rico Auto borrowings increase in the first half?

Rico Auto’s consolidated borrowings increased because both non-current and current debt were higher at September 30, 2026. Non-current borrowings rose to Rs 488.99 crore from Rs 406.03 crore at March 31, while current borrowings increased to Rs 320.45 crore from Rs 296.41 crore. Total borrowings therefore rose to Rs 809.44 crore from Rs 702.44 crore over the six months.

The cash-flow statement shows Rs 147.36 crore of proceeds from non-current borrowings during the half year, against Rs 58.39 crore of repayments. Rico Auto also recorded net proceeds of Rs 17.88 crore from short-term borrowings, compared with a net repayment of Rs 47.49 crore in the half year ended September 30, 2025.

The additional financing was recorded alongside Rs 30.39 crore of interest paid and Rs 7.71 crore of dividends paid during the six-month period. Net cash generated from financing activities was Rs 65.77 crore, compared with net cash used of Rs 40.99 crore in the corresponding 2025 half year.

How did working capital affect Rico Auto cash flow?

Rico Auto’s working-capital movements absorbed cash through larger inventories and trade receivables, even as trade payables increased. Inventories used Rs 71.72 crore of cash and trade receivables used Rs 126.59 crore in the half year ended September 30, 2026. In the comparable prior-year period, inventory growth used Rs 8.65 crore while receivables provided Rs 25.20 crore of cash.

Trade payables provided Rs 229 crore of cash in the latest half year, compared with Rs 23.64 crore a year earlier. Other assets used a further Rs 21.07 crore, while other financial assets used Rs 0.66 crore. This payable movement partly offset the inventory and receivables cash outflows.

The balance sheet reflects the same movements. Consolidated trade receivables rose to Rs 478.89 crore at September 30 from Rs 352.44 crore at March 31, while inventories increased to Rs 354.08 crore from Rs 282.36 crore. Total trade payables rose to Rs 699.93 crore from Rs 470.93 crore, comprising Rs 104.24 crore due to micro and small enterprises and Rs 595.69 crore due to other creditors at the period end.

Operating profit before working-capital changes was Rs 46.03 crore, down from Rs 121.62 crore in the previous-year half. After working-capital changes and direct taxes paid of Rs 6.37 crore, net cash generated from operating activities was Rs 67.18 crore, compared with Rs 149.16 crore a year earlier.

How much did Rico Auto spend on capital investment?

Rico Auto paid Rs 143.38 crore for property, plant and equipment, including capital work-in-progress, intangible assets and intangible assets under development, in the half year ended September 30, 2026. The outlay was Rs 31.03 crore higher than the Rs 112.35 crore spent in the corresponding 2025 period.

After Rs 1.30 crore of proceeds from property, plant and equipment sales and other investing movements, net cash used in investing activities was Rs 140.63 crore. That compared with an outflow of Rs 113 crore in the prior-year half and exceeded the Rs 67.18 crore generated from operating activities in the latest period.

Consolidated capital work-in-progress increased to Rs 253.86 crore at September 30 from Rs 161.75 crore at March 31. Property, plant and equipment increased by Rs 4.52 crore to Rs 1,182.16 crore, while intangible assets under development rose by Rs 0.14 crore to Rs 11.27 crore.

What changed in Rico Auto balance sheet and earnings?

Rico Auto’s consolidated assets rose to Rs 2,447.49 crore at September 30, 2026 from Rs 2,142.13 crore at March 31. Current assets increased by Rs 205.93 crore to Rs 912.72 crore, while cash and cash equivalents fell to Rs 5.70 crore from Rs 12.77 crore, a reduction of Rs 7.07 crore.

Total equity declined to Rs 748.76 crore from Rs 784.23 crore, while total liabilities increased to Rs 1,698.73 crore from Rs 1,357.90 crore. The liability increase included higher borrowings and trade payables, while the equity movement followed a consolidated loss after tax of Rs 29.65 crore for the six months.

Revenue from operations increased to Rs 1,607.44 crore in the half year ended September 30, 2026 from Rs 1,170.82 crore a year earlier. However, the group reported a loss before tax of Rs 37.24 crore, compared with a profit before tax of Rs 42.93 crore in the previous-year half, and finance costs rose to Rs 30.41 crore from Rs 25.27 crore.

Rico Auto reports automotive components as its only reportable business segment. The segment recorded a loss of Rs 7.11 crore for the latest half year, compared with a profit of Rs 68.54 crore in the corresponding 2025 period, before finance cost, interest income and exceptional items.

Conclusion

Rico Auto’s first-half cash flow shows that higher receivables, inventories and capital investment were funded partly by increased borrowings and a rise in trade payables. Net operating cash of Rs 67.18 crore did not cover the Rs 140.63 crore net investing outflow, leaving consolidated cash and cash equivalents at Rs 5.70 crore on September 30, 2026.

The next disclosed item to watch is the proposed sale of land at Haridwar, which Rico Auto classified as an asset held for sale after entering an agreement during the year ended March 31, 2026. The asset was carried at Rs 10.19 crore on September 30, 2026, but the filing does not disclose a closing date or expected proceeds.