Why Rico Auto Industries Share Price is Rising

The BSE Sensex and the NSE Nifty are trading with modest gains today, 14 August.

The Sensex is higher by 151 points at 80,691 points. The NSE Nifty is trading with gains of 28 points at 24,648 points.

The market sentiment remains cautious with ongoing earnings reports and global economic factors influencing trades.

One stock that is rising is the stock of Rico Auto Industries.

Let's tell you about the reasons for an 8% surge in the stock today.

#1 Good Q1 FY26 Results

Rico Auto Industries reported a good set of Q1 FY26 numbers, particularly on the profitability front. Revenues for Q1 FY26 were placed at Rs 5,450 million (m), as against Rs 5,420 m in the corresponding period of last year.

Despite flattish revenues the EBITDA for Q1 FY26 surged to Rs 55 m, jumping almost 20% YoY. This resulted in net profits growing by 183% to Rs 170 m in Q1 FY26.

Overall, the company reported better operating efficiencies which boosted the net profits of Rico Auto industries.

The company in a recent analyst call has said that the profitability has improved on account of better cost control measures initiated in the last few months.

#2 Book Closure for Dividend

Rico Auto Industries declared a final dividend of 50% for FY25. This dividend rate was recommended by the board of directors in their meeting held on 27 May 2025.

The book closure period for this dividend is from 10 September 2025 to 16 September 2025, with the record date being 9 September 2025. Shareholders holding shares before this date will be eligible for the dividend.

Investors tend to buy shares ahead of the record date for dividends.

What Next?

Rico Auto Industries is an established and reputed engineering group focused on the automobile industry.

The company manufactures and supplies high precision and fully machined components & assemblies both aluminium and ferrous - to leading OEMs across the globe.

Presently, the company has a total order book of Rs 10.16 bn. During Q1 FY26 the company received Rs 930 m in orders.

Rico Auto Industries has entered the railways sector by establishing a new business vertical focused on manufacturing railway components. This strategic move involves producing high-quality cast and machined parts specifically for tracks, wagons, and carriages.

The impact on total revenues from the railways business is expected only in the next few quarters.

Rico Auto Industries is facing uncertainties and challenges due to US tariffs, which are impacting its export opportunities and potentially raising costs. The US has imposed significant tariffs on imported automotive components and vehicles.

Rico Industries has said that the development work for the US market is as per plan. The company is monitoring the unpredictable tariffs and is in constant touch with customers.

In its meeting with analysts the company clarified that it's in a better position as it directly supplies to OEMs. It believes that some amicable solution will be found on the tariffs front.

How Shares of Rico Auto Industries have Performed Recently

Over the last one month, the share price of Rico Auto Industries has gained from levels of Rs 76.25 to the current levels of Rs 92.3.

In the past one year, shares of the company have lost 20%.

The stock hit a 52-week high of Rs 127.7 on 23 August 2024. The stock also hit a 52-week low of Rs 49.5 on 7 April 2025.

About Rico Auto Industries

Rico Auto Industries is an engineering company specialising in the supply of high precision, fully machined aluminium and ferrous components and assemblies to automotive OEMs (Original Equipment Manufacturers) globally.

The company offers integrated services including design, development, tooling, casting, machining, and assembly across ferrous and aluminium products.

To know more, check Rico Auto Industries fact sheet and latest quarterly results. You can also compare Rico Auto Industries with its peers on our website.

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To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...