💰 Financial Performance

Revenue Growth by Segment

Revenue from continuing operations (Engineering and others) grew 100.17% to INR 1,946.84 Cr in FY 2025 from INR 972.57 Cr in FY 2024. The Aerospace and Defense segment reported revenue of INR 168 Cr in H1 FY 2026, representing a 26% YoY growth. The Real Estate segment contributed approximately 55% of total revenue in H1 FY 2025.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company operates 19 manufacturing plants across India and exports aerospace components to the US and Europe, where holiday season inventory destocking impacts Q3/Q4 cycles.

Profitability Margins

The Net Profit Ratio for FY 2025 was 589.76%, significantly inflated by a one-time exceptional gain of INR 7,337.84 Cr from the lifestyle business demerger. Profit from continuing operations before tax was stable at INR 78.34 Cr in FY 2025 compared to INR 78.75 Cr in FY 2024. Return on Equity (ROE) decreased to 1.17% in FY 2025 from 18.69% in FY 2024 due to the reduction in net worth post-demerger.

EBITDA Margin

Consolidated EBITDA margins are guided at 14-15%. The Aerospace segment achieved an EBITDA margin of 22.4% in H1 FY 2026 (up from 21.4% YoY), while the Automotive business reported a 12.3% EBITDA margin. Aerospace Q2 FY 2026 EBITDA grew 34% YoY to INR 17 Cr.

Capital Expenditure

Raymond Limited maintains a cash surplus of over INR 1,500 Cr as of September 2024. This capital is earmarked for organic growth in the engineering business and potential inorganic opportunities to unlock shareholder value.

Credit Rating & Borrowing

The company is net-debt free with a significantly improved financial risk profile. Overall gearing (times) reduced to 0.19 in FY 2025 from 0.88 in FY 2024. The Debt Service Coverage Ratio improved to 39.29 times from 1.68 times YoY.

⚙️ Operational Drivers

Raw Materials

Steel, alloys, and precision metal components (implied by engineering and automotive focus) represent the primary inputs, though specific percentage breakdowns per material are not disclosed.

Capacity Expansion

Raymond operates 19 manufacturing plants across India. The company is currently optimizing capacity to drive operating leverage, particularly in the Aerospace segment which manages 1,200 to 1,400 SKUs.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but management noted that gross margins for the engineering business are approximately 65%, with EBITDA margins compressed to 15-16% due to high employee and operational costs.

Manufacturing Efficiency

Operating leverage is a primary driver for margin expansion; as revenue growth delivers better capacity utilization, EBITDA is expected to increase. Aerospace EBITDA grew 32% YoY in H1 FY 2026, outpacing revenue growth of 26%.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be achieved through the consolidation of Maini Precision Products Limited (MPPL), expansion into the 'sunrising' aerospace and defense sectors, and a Joint Development Agreement (JDA) model in Real Estate targeting a revenue potential of INR 7,100 Cr. The company is also focusing on new product categories and new geographies to sustain a 26% growth rate in specialized engineering segments.

Products & Services

Worsted suiting fabric, engineering tools and files, automotive components, aerospace precision parts (JK Maini Global Aerospace), and residential real estate developments (Bandra, Mahim West, Sion, and Thane).

Brand Portfolio

Raymond, Raymond Lifestyle, Raymond Realty, JK Files & Engineering, JK Maini Global Aerospace.

New Products/Services

Expansion into high-complexity aerospace parts and new JDA-based real estate projects in the Mumbai Metropolitan Region (MMR).

Market Expansion

Targeting the aerospace and defense sectors and expanding the real estate footprint in Mumbai (Bandra, Sion, Mahim).

Market Share & Ranking

Global leader in worsted suiting fabric; established market position in tools, hardware, and automotive components in India.

Strategic Alliances

Joint Development Agreements (JDA) for land parcels in Mumbai with a revenue potential of INR 7,100 Cr; acquisition of Maini Precision Products Limited (MPPL) to bolster engineering capabilities.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized manufacturing and aerospace/defense. Raymond is positioning itself as a pure-play engineering and real estate entity following the demerger of its lifestyle business to unlock specialized investor interest.

Competitive Landscape

Competes with global and domestic players in automotive components and precision engineering; a new entrant in the Mumbai real estate market but leveraging a strong legacy brand.

Competitive Moat

Durable advantages include 50-year-old customer relationships in engineering, a massive land bank in Thane for real estate, and high switching costs in the aerospace precision parts business due to the complexity of manufacturing 1,400+ SKUs.

Macro Economic Sensitivity

Sensitive to global economic resilience (3.3% growth) and headline inflation (5.8%), which affects both consumer demand for lifestyle products and input costs for engineering.

Consumer Behavior

Shift toward environmentally conscious consumption, which Raymond is addressing through IFRS S2 aligned sustainability disclosures.

Geopolitical Risks

Exposure to US and European market cycles for aerospace exports; potential trade barriers could impact the engineering export business.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to NCLT approvals for demergers (received March 27, 2025, for the Realty demerger) and SEBI Listing Obligations and Disclosure Requirements (LODR).

Environmental Compliance

Committed to climate-related disclosures aligned with IFRS S2 to enhance reputation and appeal to ESG-conscious investors.

⚠️ Risk Analysis

Key Uncertainties

Successful execution of demerger plans and integration of acquisitions like MPPL; volatility in consumer sentiment affecting the real estate launch success (currently 23% units sold in Bandra JDA).

Geographic Concentration Risk

Heavy concentration of real estate activities in the Mumbai Metropolitan Region (MMR), specifically Thane and Bandra.

Third Party Dependencies

Dependency on US/European aerospace OEMs for order flow and inventory cycles.

Technology Obsolescence Risk

The company is mitigating technology risks by investing in the 'learning curve towards high complex parts' in the aerospace segment.

Credit & Counterparty Risk

Receivables quality is not specifically detailed, but the company maintains a healthy cash surplus of INR 1,500 Cr, providing a significant liquidity buffer.