Rico Auto slips into Q1 loss as interest and depreciation erase operating profit
Consolidated operating profit of Rs 34.78 cr was outweighed by interest of Rs 14.51 cr and depreciation of Rs 27.10 cr.
Filed 12 Aug 2026, 13:36 IST · RICOAUTO (RICOAUTO)
Key takeaways
- Rico Auto reported a consolidated net loss of Rs 3.38 cr in Q1FY27 despite operating profit of Rs 34.78 cr.
- Interest of Rs 14.51 cr and depreciation of Rs 27.10 cr outweighed operating profit, taking profit before tax to a loss of Rs 4.08 cr.
- A tax benefit of Rs 0.70 cr reduced the loss, but EPS remained negative at Rs -0.27.
Positive operating result did not translate into net profit
Rico Auto remained profitable at the operating level in Q1FY27, with operating profit of Rs 34.78 cr on revenue of Rs 755.08 cr. The below-the-line burden from interest and depreciation pushed profit before tax into a loss of Rs 4.08 cr, resulting in a consolidated net loss of Rs 3.38 cr.
Interest and depreciation were the main earnings drag
Interest expense was Rs 14.51 cr and depreciation was Rs 27.10 cr, together more than absorbing the operating profit. Other income of Rs 2.75 cr was not enough to prevent a pre-tax loss. The Rs 0.70 cr tax benefit reduced the reported loss, but did not change the negative earnings outcome.
Q1 margin was positive, but earnings below operating profit were negative
The company reported an operating margin of 4.61%, while the tax rate was 17.16% alongside a pre-tax loss. This gap between operating profitability and net earnings makes the interest and depreciation burden the key issue in interpreting the quarter.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹755 cr |
| Other income | ₹3 cr |
| Expenses | ₹720 cr |
| Operating profit | ₹35 cr |
| Operating margin (%) | 4.61% |
| Interest | ₹15 cr |
| Depreciation | ₹27 cr |
| Profit before tax | ₹-4 cr |
| Tax | ₹-1 cr |
| Net profit | ₹-3 cr |
| EPS (₹) | ₹-0.27 |
What to watch
- Whether operating margin improves from 4.61%.
- Whether interest expense remains below Rs 14.51 cr.
- Whether net profit moves above the Rs 3.38 cr loss.