Rico Auto swings to Rs 3.4 Cr consolidated loss in Q1 FY27 despite 39% revenue growth
PAT -120.2% YoY · revenue +38.95% · margins compressing · miss vs street
₹755.08 Cr
+38.95% YoY
₹-3.38 Cr
-120.2% YoY
-0.45%
-3.5pp YoY
₹-0.27
Rico Auto's consolidated (primary) results for Q1 FY27 show revenue up a strong 38.9% YoY to Rs 755.1 Cr (Rs 543.5 Cr) and 11.5% QoQ (Rs 677.5 Cr), but the company swung to a net loss of Rs 3.4 Cr against a profit of Rs 16.7 Cr a year ago (-120% YoY) and Rs 6.9 Cr last quarter (-149% QoQ). The loss attributable to owners was Rs 3.6 Cr, translating to an EPS of -Rs 0.27 versus +Rs 1.24 a year earlier. Standalone results tell the same story at smaller scale: PAT collapsed 96.5% YoY and 97.6% QoQ to just Rs 0.16 Cr, effectively breakeven.
Q1 FY-2027 vs prior quarters
The swing is a margin story, not a one-off: the Rs 0.10 Cr exceptional VRS-related charge this quarter (versus Rs 0.52 Cr a year ago) is too small to explain the move, and adjusting for it leaves YoY PAT growth at roughly -119%, barely different from the -120% reported. The real driver is cost of raw material consumed, which rose to Rs 534.2 Cr from Rs 325.6 Cr a year ago (+64%), well ahead of the 38.9% revenue growth, pushing consolidated net profit margin from +3.1% YoY and +1.0% QoQ into negative territory this quarter.
The stock went into the print at ₹129.61, up 2.3% over the past month of trading.
For context: revenue is at a 6-quarter high.
What the summary numbers don't show
Three subsidiaries (reviewed by other auditors) contributed combined revenue of Rs 57.8 Cr and PAT of Rs 1.1 Cr to the consolidated numbers
Rico Auto is forecasting revenue to cross INR3,000 crores in FY27, building on a record INR2,477 crores in FY26. The company expects EBITDA margins to improve beyond the adjusted 10.25% from FY26, driven by successful renegotiations for raw material settlements and other cost recoveries, with 75% of customers by value
— This quarter: missed
This result runs directly against the prior concall's confident tone: management had guided FY27 EBITDA margins to improve beyond the adjusted 10.25% seen in FY26, citing raw-material cost recoveries with 75% of customers by value already on monthly settlement. That benefit is not yet visible in the Q1 print. On revenue, the underlying trajectory still supports the >Rs 3,000 Cr FY27 target flagged after a record Rs 2,477 Cr FY26 (Q1's Rs 755 Cr run-rate is consistent with that path), so the guidance verdict is mixed: revenue on-track, margin guidance missed. No management press release commentary was available in the filing to cross-check against these numbers. Separately, analyst notes ahead of results had flagged "Q1 FY27 earnings disappointment" as a key risk to the stock's FY27 thesis of 15-20% PAT growth (Univest, FY27 analyst review) −that risk materialised this quarter, though no specific brokerage PAT estimate for Q1 was found to size the miss precisely.
W1
Whether raw-material cost recoveries (75% of customers by value on monthly settlement, per FY26 concall) show up in Q2 FY27 margins after this quarter's EBITDA compression
W2
FY27 revenue trajectory against management's >Rs 3,000 Cr guidance −Q1's Rs 755 Cr quarterly run-rate is currently consistent with that target
W3
Ramp-up of the ~Rs 2,500 Cr new order book (5-year program life, transmission/braking/engine/EV) flagged in the FY26 concall, and any near-term margin drag from ramp costs
Both statements carry a Rs 0.10 Cr exceptional item this quarter (VRS-related, vs Rs 0.52 Cr YoY, Note 4). Consolidated PAT of Rs -3.38 Cr (pre-NCI, row 9) splits to owners Rs -3.59 Cr / NCI Rs +0.21 Cr; EPS of -0.27 is on the owners' portion. Three subsidiaries (unreviewed by principal auditor) contributed Rs 57.81 Cr revenue and Rs 1.10 Cr PAT.