Rico Auto Industries Slips Into Red In Q2 FY27, Revenue Surges 36% To ₹852.36 Crore As Expenses Outpace Growth

Mumbai: Rico Auto Industries Limited slipped into the red during the second quarter ended September 30, 2026, as sharply rising expenditure outweighed strong revenue growth, putting pressure on the auto component manufacturer's profitability. The company reported a consolidated net loss during Q2 FY27, reversing the profit recorded in the corresponding quarter last year.

Revenue Growth

Revenue from operations increased 35.86 per cent year-on-year to ₹852.36 crore, compared with ₹627.36 crore in Q2 FY26. Total consolidated income climbed to ₹856 crore from ₹628.87 crore, reflecting higher business activity during the reporting period.

Expense Pressure

Total expenses surged 47.16 per cent to ₹888.94 crore from ₹604.07 crore a year earlier. The expenditure increase substantially exceeded revenue growth, eroding the company's earnings despite stronger sales. Expenses surpassed total income by approximately ₹32.94 crore during the quarter.

Profit Reversal

Rico Auto Industries reported a consolidated loss before tax of ₹33.16 crore, against a profit before tax of ₹24.48 crore in the corresponding quarter last year. This represented a negative year-on-year swing of ₹57.64 crore in pretax earnings. The results highlighted mounting cost pressures across the company's operations.

Earnings Impact

Basic and diluted earnings per share turned negative at ₹1.97, compared with positive earnings of ₹1.31 per share in Q2 FY26. The company's standalone operations also remained under pressure, reporting a net loss of ₹35.18 crore during the September quarter.

Business Outlook

Rico Auto Industries' quarterly performance reflected a divergence between expanding revenue and weakening profitability. While higher sales indicated improved business volumes or realisations, rising expenditure remained a significant challenge. Investors will monitor operating costs, margin recovery and demand conditions across the automotive components industry. The company's ability to restore profitability while sustaining revenue growth will remain important in subsequent quarters.

Disclaimer: This report is based on company financial disclosures and is intended for informational purposes only. It does not constitute investment advice or a recommendation to buy, sell or hold securities.

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