Rico Auto's revenue hits ₹2,477 cr. The real play is a ₹100 cr railway push.
The auto-component maker posted its best-ever year, but a 25x scaling target in railways is the higher-risk bet.
— 1 earlier story on Rico Auto Industries Ltd. →What's new
- FY26 consolidated revenue was a record ₹2,477 cr, up 12% YoY; net profit jumped to ₹52.4 cr from ₹19.2 cr.
- New orders of ₹2,500 cr won from Toyota, Maruti Suzuki, and Bosch across transmission, braking, and EV parts.
- Railway revenue, at just ₹3-4 cr in FY26, is now targeting ₹100 cr after RDSO approvals and initial dispatches.
Why this matters
The ₹2,500-crore order book equals a full year's sales, locking in visibility for the core auto business. The railway segment is the asymmetric bet, scaling from a near-zero base to a target that requires flawless execution from early-stage dispatches.
What we're watching
- Whether FY27 revenue crosses the ₹3,000 cr management guidance.
- Execution on the ₹100 cr railway target from a ₹3-4 cr base.
- Final terms for the Delhi land sale after rejecting a ₹700 cr offer.
The full read
Rico Auto Industries just posted its best year ever. Revenue hit ₹2,477 crore, a 12% year-on-year gain, and net profit more than doubled to ₹52.4 crore. The core auto business has a strong backstop: new orders of ₹2,500 crore from Toyota, Maruti Suzuki, and Bosch, spread over five years. That is almost exactly a full year's sales locked in. The railway business is the speculative part. It generated only ₹3-4 crore in FY26, but management is targeting ₹100 crore this year after winning RDSO approvals. A 25-33x jump from a standing start is a management hope, not yet a revenue line. For FY27, the company is guiding for revenue above ₹3,000 crore, backed by a 32% rise in exports and 40 new product launches. It is also negotiating to sell land near Delhi after rejecting a ₹700 crore offer. The auto story is solid. The railway story is the optionality, and it's unproven.
Questions answered
- How significant is the new order book relative to last year's revenue?
- The ₹2,500 crore order book is roughly equal to Rico Auto's entire FY26 revenue of ₹2,477 crore, spread over a five-year program life. This provides clear multi-year visibility for the core auto business.
- What is the timeline for the railway business to reach ₹100 crore?
- Management is targeting ₹100 crore in railway revenue for the current fiscal year (FY27), up from just ₹3-4 crore in FY26. This follows RDSO approvals and initial dispatches of components.
- Why did the company reject a ₹700 crore offer for its Delhi land?
- Management believes the land asset is worth more than ₹700 crore and is continuing to negotiate for a higher price. The sale is not yet finalized.
- What drove the profit surge in FY26?
- Net profit more than doubled to ₹52.4 crore from ₹19.2 crore, alongside a 12% revenue increase to ₹2,477 crore. EBITDA margins also improved as the company renegotiated raw material costs.
Story so far
All notes on RICOAUTO →- 4 Jun 2026 · 5:27 PM IST Rico Auto's revenue hits ₹2,477 cr. The real play is a ₹100 cr railway push.
- 3d ago Rico Auto guides for ₹3,000 cr FY25 revenue after record ₹2,477 cr in FY24