Raymond Ltd (RAYMOND)
🎯 Key Takeaways
- Raymond Ltd is transitioning from a diversified conglomerate toward a focused high-margin aerospace and precision engineering business, with strategic capital allocation toward capacity expansion in these segments. Despite modest revenue growth and persistent negative ROCE, the company is leveraging strong order visibility and margin improvement in aerospace to drive future profitability.
- Revenue grew 0.4% QoQ to ₹606 in Q1FY27.
- ⚠️ Persistent negative ROCE and low ROE indicate challenges in generating returns on capital, which may limit investor appetite until margin expansion ma
📖 The Story
Raymond Ltd is transitioning from a diversified conglomerate toward a focused high-margin aerospace and precision engineering business, with strategic capital allocation toward capacity expansion in these segments. Despite modest revenue growth and persistent negative ROCE, the company is leveraging strong order visibility and margin improvement in aerospace to drive future profitability. The narrative is one of structural transformation rather than immediate financial strength.
📰 What's Happening
In Q1 FY27, Raymond reported consolidated revenue of ₹628 crores, up 13.1% YoY, driven by 40% growth in Aerospace & Defence and 11% growth in Precision Technology & Auto Components. EBITDA margin improved to 15.9%, and net profit rose 25.4% YoY to ₹31 crores. The company raised ₹82.72 crores via convertible warrants and committed ₹1,000 crores for capacity expansion at its new Andhra facility, with commercial production targeted for late 2027. It also appointed Deepal Shah as President of Strategy & Special Projects to lead this transformation. Shareholder-approved PwC as its new statutory auditor, reinforcing governance standards.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 528 | 557 | 603 | 606 |
| Operating Profit | 5 | 22 | 39 | 39 |
| OPM % | 0.9% | 3.9% | 6.4% | 6.5% |
| Net Profit | 14 | 7 | 12 | 31 |
| EPS | ₹1.71 | ₹0.54 | ₹0.17 | ₹3.15 |
Revenue has grown sequentially from ₹528 crores (Sep 2025) to ₹606 crores (Jun 2026), with operating profit margin expanding from 0.9% to 6.5% over the same period, indicating early efficiency gains. However, profitability remains volatile — net profit dipped sharply in Mar 2026 to ₹7 crores before rebounding to ₹31 crores in Jun 2026, likely due to timing or one-off factors. Despite revenue growth, ROCE remains negative (-0.2%) and ROE is low at 2.2%, reflecting capital intensity and underutilized scale. The upward trend in margins aligns with management’s focus on high-margin aerospace segments, but profitability normalization is still in early stages.
🔮 Management Outlook & What's Next
Management emphasized in the Q1 FY27 filing that the company is building on a ₹5,960+ crores aerospace order book with 10-year visibility and targeting commercial production at its new Andhra facility by late 2027. It has committed ₹1,000 crores for capacity expansion to scale high-barrier aerospace and precision engineering operations. This forward-looking investment underscores confidence in long-term margin accretion, though near-term capex will likely pressure cash flows. No specific financial targets were provided, but the order book and capacity plans are central to their strategic narrative.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 67 | 67 | 67 | 67 |
| Reserves | 3,524 | 3,650 | 3,184 | 2,777 |
| Borrowings | 946 | 740 | 1,032 | 999 |
| Total Liabilities | 7,413 | 7,716 | 5,109 | 4,738 |
| Fixed Assets | 1,022 | 890 | 855 | 1,525 |
| Investments | 1,739 | 1,120 | 1,987 | 1,695 |
| Total Assets | 7,413 | 7,716 | 5,109 | 4,738 |
The balance sheet shows a strategic shift toward capital efficiency and balance sheet resilience. Equity remains stable at ₹67 crores, but reserves have grown from ₹3,650 crores (Mar 2025) to ₹3,184 crores (Mar 2026), suggesting retained earnings are being reinvested rather than distributed. Borrowings have increased slightly to ₹1,032 crores from ₹740 crores, but the company maintains a net cash surplus of ₹68 crores as of Q1 FY27, supported by ₹230 crores in financing inflows. The recent ₹82.72 crores raised via convertible warrants indicates proactive capital raising to fund growth without diluting equity immediately.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +42 |
| Investing | -180 |
| Financing | +230 |
| Net Cash Flow | +91 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 48.9% | 48.9% | 48.9% | 48.9% |
| FII | 13.6% | 11.0% | 9.8% | 7.9% |
| DII | 3.5% | 3.4% | 3.6% | 3.8% |
| Public | 29.1% | 31.5% | 32.4% | 32.8% |
| # Shareholders | 2,96,886 | 2,93,612 | 2,88,616 | 2,72,532 |
Institutional investor interest in Raymond has declined over the past year, with FII holding dropping from 13.61% (Q2FY26) to 7.9% (Q1FY27), and DII slightly increasing from 3.43% to 3.81%. Meanwhile, the promoter holding remains stable at 48.87%. The number of shareholders has marginally decreased, but the company maintains a broad base of over 2.7 lakh shareholders. The reduction in FII ownership may reflect sector-specific investor caution or portfolio rebalancing, despite improving operational metrics in high-growth segments.
⚖️ Peer Comparison — Air Transport Service
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| INDIGO | 2.00 L Cr | — | 17.7% | -69.0% | 0.26 |
| RAYMOND | 4,204 | 113.4 | -0.2% | 2.2% | 0.35 |
| SPICEJET | 1,575 | — | 46.5% | 37.5% | -0.43 |
| GLOBALVECT | 205 | — | -8.9% | -163.3% | 4.79 |
| JETAIRWAYS | — | — | 35.7% | 9.3% | -0.74 |
| ZEAL | — | — | — | — | 0.18 |
| FLYSBS | — | — | — | — | 0.12 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent negative ROCE and low ROE indicate challenges in generating returns on capital, which may limit investor appetite until margin expansion materializes. 2. High capex commitments of ₹1,000 crores could strain liquidity if order execution or commercialization at the Andhra facility faces delays. 3. The aerospace segment, while growing rapidly, remains a small portion of total revenue and is subject to cyclical defense spending and regulatory delays. 4. Declining FII holdings may signal reduced institutional confidence or sector rotation away from industrial/conglomerate stocks with long gestation periods.
📋 Recent Filings
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🔴 Announcement 31 August 2026Raymond Ltd announced it will present its Q1FY27 results at the Elara Capital Ashwamedh Investor Dialogue on September 3, 2026, in Mumbai, offering on...
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🔴 Financial Results 7 August 2026Raymond Limited reported consolidated revenue of ₹628 crores for Q1 FY27, up 13.1% YoY, with EBITDA at ₹100 crores and EBITDA margin at 15.9%. Net pro...
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Announcement 7 August 2026Raymond Limited announced its unaudited Q1 FY27 results for the quarter ended June 30, 2026, reporting consolidated revenue of ₹628 crore, up 13% year...
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🟡 Board Meeting 7 August 2026Raymond Limited announced the outcome of its August 7, 2026 board meeting, approving unaudited Q1 FY27 financial results showing consolidated revenue ...
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Announcement 7 August 2026Raymond Limited announced that the audio recording of its investor conference held on August 7, 2026 at 5:00 p.m. discussing Q1 FY27 financial results...
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Announcement 3 August 2026Raymond Limited announced a conference call on August 7, 2026 at 5:00 pm IST to discuss its Q1 FY27 financial results ending June 30, 2026, inviting i...
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🔴 Announcement 31 July 2026Raymond Limited announced the appointment of Deepal Shah as President of Strategy & Special Projects, effective July 31, 2026, as Senior Management Pe...
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🟡 Board Meeting 14 July 2026Raymond Limited announced that shareholders approved M/s. Price Waterhouse Chartered Accountants LLP as the new statutory auditor for a five-year term...
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🟡 Board Meeting 14 July 2026Raymond Limited held its 101st Annual General Meeting on July 14, 2026 via video conference, where shareholders approved the audited standalone and co...
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share transfer 13 July 2026Raymond Limited received a compliance certificate from its registrar and share transfer agent, MUFG Intime India Private Limited, confirming that secu...
🧠 Analyst's Read
Raymond is undergoing a strategic pivot toward aerospace and precision engineering with strong order visibility and margin improvement, but financial performance remains inconsistent and capital-intensive. Investors should monitor execution of the Andhra facility ramp-up, pace of margin expansion, and stabilization of returns on capital as key near-term catalysts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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