Raymond Ltd reported a 10% rise in consolidated income to ₹2,312 crore for FY26. The company declared no dividend due to standalone losses amid business demergers.
Raymond Limited FY26 Results
Consolidated Income rose 10% to ₹2,312 crore.
No dividend was recommended for FY 2025-26.
Reader Takeaway: Growth in consolidated income with stable EBITDA, but demerger impacts standalone profits.
What just happened
Raymond Limited announced its financial results for the fiscal year 2025-26, reporting a consolidated income of ₹2,312 crore, a 10% increase year-on-year. The company's consolidated EBITDA stood at ₹335 crore with a margin of 14.5%. Consolidated Profit After Tax (PAT) was ₹53 crore, a marginal 3% increase from the previous year. However, the Board decided not to recommend any dividend for FY 2025-26, citing standalone losses incurred during the year due to business demergers.
Why this matters
The results reflect the ongoing transformation of Raymond Limited. While consolidated figures show growth, the standalone performance was impacted by the demerger of its Lifestyle and Real Estate businesses. The company is focusing on three core areas: Lifestyle, Real Estate, and Engineering. The Engineering division, particularly aerospace through JK Maini Global Aerospace Limited (JKMGAL), shows promise with a substantial order book.
The backstory
Raymond has been undergoing a strategic restructuring to streamline its operations and unlock value. The demerger of Lifestyle and Real Estate businesses aims to create focused entities. The Engineering business, including JK Maini Precision Technology Limited (JKMPTL) and JKMGAL, is positioned as a key growth driver.
What changes now
The company is set to operate with a more focused business model. The Engineering business is expected to drive future growth, supported by significant order books and planned capital expenditure of approximately ₹1,000 crore for facility expansion in Andhra Pradesh and Gudipalli.
Risks to watch
Investors should monitor the impact of raw material price volatility on margins. Additionally, the successful integration and performance of the newly restructured engineering subsidiaries will be crucial for future growth.
Peer comparison
Raymond's focus on specialized engineering and aerospace manufacturing positions it within a niche segment. While direct financial comparisons can be complex due to its diversified legacy, its engineering arm competes in a sector requiring high precision and technological capability.
Context metrics (time-bound)
Consolidated Gross Revenue grew 13.6% YoY to ₹2,212.1 crore in FY26. Standalone Gross Revenue declined 30% YoY to ₹4.25 crore due to demergers. JKMGAL has an order book exceeding ₹2,350 crore over the next five years. JKMPTL recorded revenue of ₹1,687 crore with 85-90% capacity utilization.
What to track next
Investors will be keen to observe the execution of the planned ₹1,000 crore capex for the engineering division. Monitoring the performance of the demerged entities and the overall profitability of the focused business units will be key.