The Raymond Group reported strong Q2 FY2027 results with consolidated EBITDA rising 11% YoY to 488 Cr. Growth was supported by Raymond Realty’s 98% surge in booking value and a 21% revenue growth in the Engineering segment, while Raymond Lifestyle achieved a major balance sheet turnaround to a net cash surplus.
Raymond Group Q2 EBITDA Climbs 11% on Diversified Growth
Consolidated portfolio EBITDA hit 488 Cr in Q2 FY2027, up 11% from 439 Cr in the same quarter last year. The group also reported a strong liquidity position with a net debt/EBITDA ratio of 0.43x.
Reader Takeaway: Strong performance across realty and engineering segments improves cash flows; monitor execution pace of the realty project pipeline.
What just happened
Raymond Group delivered balanced growth across its three listed entities. Raymond Lifestyle Limited (RLL) reported a 14% revenue increase to 2,125 Cr and successfully transitioned to a net cash surplus of 69 Cr. Raymond Realty Limited (RRL) saw booking value reach 902 Cr, a massive 98% jump, reflecting high demand for its existing project portfolio. The Engineering business reported a 21% revenue increase to 683 Cr, largely bolstered by the Aerospace & Defence segment, which grew 72%.
Why this matters
The group’s transition toward a multi-engine growth model is bearing fruit. The shift in RLL from net debt to net cash provides the group with more financial flexibility. Meanwhile, the consistent performance of the Engineering unit—which focuses on high-barrier, specialized sectors like Aerospace—serves as a robust counter-cyclical hedge to the cyclical nature of the real estate and apparel businesses.
The backstory
The Raymond Group has been focused on deleveraging its balance sheet and scaling high-margin businesses. The recent performance reflects the fruition of these strategies, specifically the cost-management efforts in apparel and the aggressive sales velocity seen in the realty segment over the last several quarters.
Risks to watch
While the financials appear healthy, investors should watch for potential slowdowns in real estate absorption rates given the lack of new project launches this quarter. Additionally, reliance on the Engineering segment's high-growth sectors requires sustained global demand, as any geopolitical or trade-related friction could affect exports.
Context metrics
The group maintains a stable credit profile, with 94% of its 9,476 Cr total rated debt carrying an 'A' or higher rating. Governance remains a core focus, with independent directors comprising 75% of the board across the three listed companies.