
Rico Auto Industries Reports Significant Progress in Sustainability and ESG Performance for FY 2025-26
Rico Auto Industries Limited, a key player in the automotive components sector, has released its Business Responsibility and Sustainability Report for the Financial Year 2025-26. The report details the company's operational scope, commitment to environmental stewardship, workforce welfare, and product sustainability within the context of India’s industrial growth.The company manufactures high-precision automotive components and systems, with operations covering both national and international markets. Rico Auto Industries serves a broad range of global Original Equipment Manufacturers (OEMs), including BMW, Hero, Maruti Suzuki, Toyota, Nissan, Tata Motors, Honda, Mahindra, Volvo, Renault, and Bajaj. The group's core products include the casting of Non-Ferrous Metals, accounting for 88% of total turnover, and the casting of Iron, contributing 12%.
Operational Scale and Workforce Details
As per the report, Rico Auto Industries maintains a substantial operational footprint, with 16 plants and one office located across India, alongside two international offices. The company’s workforce totals 5,980 workers and 734 employees for the financial year.The employment status of both employees and workers was monitored carefully, reflecting the company's dedication to social responsibility. Key figures related to human capital include:
| Category | Total Workforce (A) | Permanent (B) | Other Than Permanent (C) |
|---|---|---|---|
| Employees | 734 | 718 | 16 |
| Workers | 5,980 | 1,806 | 4,174 |
The company also reported on its commitment to gender empowerment within leadership. Both the Board of Directors and Key Management Personnel (KMP) showed a focus on female representation. The Board of Directors included two women representatives, accounting for 20.00%, while KMPs reported one woman representative at 16.67%.
Environmental Stewardship and Resource Efficiency
The company demonstrated significant improvements across environmental parameters, particularly in energy management and resource conservation, as part of its commitment to climate resilience and operational efficiency.Energy Management & Climate Action:
Rico Auto Industries achieved considerable success in renewable energy adoption, increasing consumption by 41.31%. This rise raised the share of renewable energy in the overall energy mix to 12.26%, compared to 8.47% in FY 2024-25. Furthermore, operational efficiency improved substantially, resulting in a reduction of energy intensity from 4.23 to 3.69 GJ per Lakh of turnover.
Water and Waste Management:
Commitments extended to water stewardship were also evident, with the company improving water efficiency, demonstrated by a decrease in water intensity from 1.00 to 0.98 KL per Lakh of turnover. The manufacturing processes saw improvements in waste reduction: wastewater discharge was reduced by 42.48% through recycling and reuse, while hazardous waste generation decreased by 10.81%.
Sustainable Sourcing and Supply Chain Integrity
Rico Auto Industries has established a structured sustainable sourcing framework to integrate environmental and social concerns into its procurement processes. The company reported that approximately 30% of its input materials were sourced sustainably. Internally, the manufacturing strength is highlighted by the utilization rate of recycled material; between 90-95% of aluminium inputs and 95-97% of iron inputs are sourced from recycled or secondary streams.Governance and Labor Standards
The company maintains a robust Occupational Health and Safety (OHS) management system, certified under ISO 45001:2018 across its operations. The group's safety approach includes structured hazard identification using Hazard Identification and Risk Assessment (HIRA) and Job Safety Analysis (JSA). Employees have the ability to report workplace hazards and withdraw from risky situations.Regarding labor standards, the company reported that it has not recorded any instances of corruption or conflicts of interest involving employees or KMPs during FY 2025-26. Furthermore, the firm's commitment to worker well-being is reflected in its benefits disclosures; 100% of both male and female permanent workers received health insurance for the current financial year.
Emissions and Waste Details
The entity diligently tracks greenhouse gas (GHG) emissions and waste generated.- GHG Emissions: Total Scope 1 emissions were reported as 19,805.54 Metric tonnes of CO2 equivalent in FY 2025-26, down from 26,278.98 MTCO₂e the previous year.
- Waste Management: The company’s waste management practices involve responsible segregation and handling according to SPCB/CPCB regulations. Out of a total generation of 4,651.06 Metric tonnes in FY 2025-26, 4,476.06 MT were recovered through recycling, re-using or other recovery operations.
Summary of Key Metrics (FY 2025-26 vs FY 2024-25)
| Metric | Current Financial Year (FY 2025-26) | Previous Financial Year (FY 2024-25) | Key Improvement/Status |
|---|---|---|---|
| Energy Intensity | 3.69 GJ / Lakh of turnover | 4.23 GJ / Lakh of turnover | Decreased energy intensity, improving efficiency. |
| Scope 1 GHG Emissions % | 16.92% | 23.14% | Reduction in Scope 1 emissions achieved via electrification and fuel switching. |
| Water Intensity | 0.98 KL / Lakh of turnover | 1.00 KL / Lakh of turnover | Improved water usage efficiency. |
| Hazardous Waste Generation | Reduced by 10.81% (relative to FY 2024-25) | Base Year | Significant reduction in hazardous waste. |
The Rico Group maintains a commitment to continuous improvement, with the company stating that it is currently developing an ESG evaluation framework to strengthen supplier assessments and support responsible sourcing initiatives moving forward.
RICOAUTO Stock Price Movement
Rico Auto Industries Limited shares today edged higher, gaining ₹1.94 and moving up 1.36% in post-market trading. The stock traded on a volume of 1.59 million shares, closing near its intraday high of ₹145.40.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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