Rico Auto reports Rs 26.27 crore Q2 loss on higher sales

Rico Auto Industries Limited reported a consolidated net loss of Rs 26.27 crore for the quarter ended 30 September 2026, compared with a Rs 17.72 crore profit a year earlier, despite revenue from operations rising 36% to Rs 852.36 crore. Rico Auto’s total expenses grew faster than quarterly revenue, reaching Rs 888.94 crore.

Why did Rico Auto report a loss despite higher revenue?

Rico Auto reported a loss because its Rs 888.94 crore total expenses exceeded its Rs 856.00 crore total income in the September 2026 quarter. The resulting loss before exceptional items and tax was Rs 32.94 crore, against a profit before exceptional items and tax of Rs 24.80 crore in the quarter ended 30 September 2025.

The change was also evident sequentially. Revenue from operations increased from Rs 755.08 crore in the quarter ended 30 June 2026 to Rs 852.36 crore in the September quarter, but the loss after tax widened from Rs 3.38 crore to Rs 26.27 crore. Total expenses rose by Rs 127.03 crore quarter on quarter, compared with a Rs 97.28 crore rise in revenue.

Rico Auto recorded Rs 0.22 crore of exceptional items in the September 2026 quarter, compared with Rs 0.32 crore a year earlier. These items were not the main driver of the period’s loss, since the group was already at a Rs 32.94 crore loss before exceptional items and tax.

Which costs changed most for Rico Auto in Q2?

Rico Auto’s raw-material consumption and other expenses showed the largest year-on-year increases in the September 2026 quarter. Raw-material cost rose to Rs 608.14 crore from Rs 389.76 crore a year earlier, an increase of Rs 218.38 crore, while other expenses increased by Rs 89.35 crore to Rs 216.46 crore.

Employee-benefit expense was Rs 57.14 crore, compared with Rs 51.23 crore in the year-earlier quarter, and finance costs rose to Rs 15.90 crore from Rs 11.97 crore. Depreciation and amortisation increased to Rs 26.60 crore from Rs 25.73 crore. The inventory-change line was negative Rs 35.30 crore, compared with negative Rs 1.73 crore a year earlier.

Rico Auto’s automotive-components segment result was a loss of Rs 17.33 crore in the quarter, compared with a Rs 36.57 crore profit in the corresponding prior-year period. The group reports automotive components as its only reportable business segment under Indian Accounting Standard 108, or Ind AS 108, so the filing does not provide a separate product-line breakdown of the cost movement.

How did Rico Auto perform in the first half of FY27?

Rico Auto posted a consolidated net loss of Rs 29.65 crore for the half year ended 30 September 2026, reversing a Rs 34.44 crore profit in the half year ended 30 September 2025. Revenue from operations grew by Rs 436.62 crore to Rs 1,607.44 crore over the same comparison, while total expenses rose by Rs 520.29 crore to Rs 1,650.85 crore.

The six-month loss before tax was Rs 37.24 crore, compared with a Rs 42.93 crore profit a year earlier. The automotive-components segment result fell to a loss of Rs 7.11 crore from a Rs 68.54 crore profit, while finance costs increased to Rs 30.41 crore from Rs 25.27 crore.

The loss attributable to Rico Auto’s owners was Rs 30.27 crore in the first half, while non-controlling interests received Rs 0.62 crore of profit. Basic and diluted loss per equity share was Rs 2.24 for the half year, while the paid-up equity share capital remained Rs 13.53 crore.

What changed in Rico Auto’s balance sheet and cash flow?

Rico Auto’s consolidated assets rose to Rs 2,447.49 crore at 30 September 2026 from Rs 2,142.13 crore at 31 March 2026. Current assets increased to Rs 912.72 crore from Rs 706.79 crore, including inventories of Rs 354.08 crore and trade receivables of Rs 478.89 crore.

Total equity declined to Rs 748.76 crore at 30 September 2026 from Rs 784.23 crore at 31 March 2026. Consolidated liabilities increased to Rs 1,698.73 crore from Rs 1,357.90 crore, with non-current borrowings rising to Rs 488.99 crore from Rs 406.03 crore and current borrowings increasing to Rs 320.45 crore from Rs 296.41 crore.

Rico Auto generated Rs 67.18 crore of operating cash flow in the first half, below Rs 149.16 crore in the prior-year half. It spent Rs 140.63 crore on investing activities, including Rs 143.38 crore for property, plant and equipment, capital work in progress and intangible assets, while financing activities generated Rs 65.77 crore.

What corporate items should readers note in Rico Auto’s filing?

Rico Auto’s results were reviewed by the audit committee and approved by the board on 6 November 2026, with the statutory auditors completing a limited review. The results are unaudited and cover the quarter and half year ended 30 September 2026.

The filing says Rico Auto had agreed during the year ended 31 March 2026 to sell land at Haridwar, which remains classified as an asset held for sale at Rs 10.19 crore at 30 September 2026. The group also states that the amalgamation of Rico Fluidtronics Limited into Rico Jinfei Wheels Limited took effect from 1 April 2024, with its accounting effect incorporated in the financial statements for the year ended 31 March 2026.

For the half year, exceptional items included Rs 0.32 crore of voluntary-retirement-scheme expenditure. The filing also identifies a one-time Rs 7.38 crore increase in group employee-benefit obligations from new labour codes, but says that impact was recognised in the year ended 31 March 2026 rather than in the reported September 2026 half-year results.

Conclusion

Rico Auto’s September-quarter results show that a 36% increase in consolidated revenue did not translate into profitability. The shift from a Rs 17.72 crore profit to a Rs 26.27 crore loss coincided with higher raw-material costs, other expenses and finance costs, while the group’s sole automotive-components segment moved to a Rs 17.33 crore quarterly loss.

Readers should watch the progress of Rico Auto’s disclosed agreement to sell Haridwar land, which was still classified as an Rs 10.19 crore asset held for sale at 30 September 2026. The filing does not disclose a completion date or consideration for that transaction.