Rajoo Engineers Posts ₹48.9 Cr Profit for FY26, Recommends ₹0.15 Dividend

Rajoo Engineers reported strong financial results for the fiscal year 2025-26. Profit surged on solid sales, though uncertainty around new labor laws remains. The company's Board has recommended a final dividend.

Full-Year Financial Results Announced

Rajoo Engineers Ltd. announced its audited financial results for the fiscal year ended March 31, 2026, following a Board of Directors meeting on April 28, 2026. The company reported consolidated revenue of ₹34,425.29 lakh (₹344.25 crore) and a consolidated Profit After Tax (PAT) of ₹4,889.58 lakh (₹48.90 crore).

Standalone figures showed revenue at ₹29,828.51 lakh (₹298.29 crore) and PAT at ₹4,328.13 lakh (₹43.28 crore).

The Board recommended a final dividend of ₹0.15 per equity share for FY 2025-26, subject to shareholder approval. The Board also approved reappointing Savjani and Associates as Internal Auditors and Shailesh Thaker & Associates as Cost Auditors for FY 2026-27. The company also noted the resignation of Mr. Nikhil V. Gajjar as Company Secretary & Compliance Officer, effective April 30, 2026.

Investor Significance

These full-year results offer investors a clear view of Rajoo Engineers' financial performance and profitability. The recommended dividend signals management's confidence and commitment to returning value to shareholders.

Company Performance and Growth Initiatives

Rajoo Engineers has shown strong financial performance, with 11 consecutive quarters of positive results leading up to March 2026. In the third quarter of FY25-26, revenue increased by 56.21% year-on-year to ₹87.60 crore, with net profit surging 90.21% to ₹17.88 crore.

As part of its growth strategy, the company raised ₹160 crore through a Qualified Institutional Placement (QIP) in July 2025 and acquired a majority stake (60%) in Kohli Printing and Converting Machines Pvt. Ltd.

For FY2023-24, Rajoo Engineers had previously recommended a 25% final dividend (₹0.125 per share post-bonus) and approved a 1:3 bonus share issue in October 2024.

Shareholder Returns and Operational Notes

Shareholders can expect a proposed final dividend payment, subject to approval, as a direct return on their investment. Audit functions are set to continue smoothly with the re-appointment of its internal and cost auditors. Rajoo Engineers must navigate the implementation of India's new Labour Codes, which could have financial effects that are not yet clear.

Potential Risks and Uncertainties

Rajoo Engineers has flagged the unclear financial impact of the newly enacted Labour Codes on its employee costs. These codes, effective from November 2025, aim to simplify regulations but could lead to higher compliance costs and changes in employee pay structures.

Industry Peer: Kabra Extrusiontechnik

Kabra Extrusiontechnik stands as a significant peer in the Indian plastic extrusion machinery market. As India's largest manufacturer in this segment, Kabra uses technological collaborations, like with Battenfeld-Cincinnati, to offer a wide range of extrusion lines. It also has a strong global presence with installations in over 100 countries.

Looking Ahead: Key Areas to Monitor

Investors will be watching the detailed implementation of the new Labour Codes closely and any clarification on their financial implications for Rajoo Engineers. Future order book developments and management's commentary on demand drivers in the plastic extrusion machinery sector will be critical. The company's strategic initiatives, including its recent acquisition and future growth plans, will be key indicators of its expansion path. Management's outlook on market conditions, technological advancements, and export performance will guide future growth expectations.