Raymond Ltd reported a strong Q2 FY27 performance with consolidated income at Rs 683 crore, a 21% year-on-year increase. The engineering-focused segments drove growth, with aerospace revenue surging 72%. The company remains net debt-free, with ongoing capacity expansion in Andhra Pradesh.
Raymond Ltd Reports 21% Revenue Growth in Q2 FY27
Q2 FY27 Consolidated Income: Rs 683 crore
Q2 FY27 Aerospace Revenue: Rs 139 crore
Reader Takeaway: Strong aerospace and precision segment growth drives performance, with net debt-free status providing a solid foundation.
What just happened
Raymond Ltd delivered robust growth for the second quarter of FY27, with consolidated income rising 21% to Rs 683 crore. The company reported an EBITDA of Rs 103 crore, representing a 15.1% margin. For the first half of the fiscal year, total income reached Rs 1,311 crore, marking a 17% year-on-year improvement.
Why this matters
The company’s strategic shift toward engineering-led growth is yielding results. The aerospace division saw a 72% revenue surge to Rs 139 crore, supported by a 21% EBITDA margin. Simultaneously, the Precision Technology and Auto Components segment grew 15% to Rs 471 crore. These high-complexity segments are now the primary growth engines for the business.
Expansion and Strategy
Raymond is executing a Rs 1,000 crore capital expenditure plan over five years to bolster its engineering capabilities. The greenfield facility in Andhra Pradesh remains on track for commissioning by Q3 FY28. To support immediate needs, an interim brownfield site is already operational. Additionally, the company has entered the high-margin automotive aftermarket with 800 new part numbers.
Risks to watch
Logistics volatility and rising freight costs, driven by global geopolitical tensions, remain key pressure points. While many raw materials are protected by pass-through agreements, managing shipping expenses requires active customer negotiation. Furthermore, moving production to new facilities necessitates customer approvals that typically take between 3 to 9 months.
What to track next
Investors should monitor the progress of the Andhra Pradesh facility’s construction and the pace of customer certifications for newly shifted production lines. The scaling of the automotive aftermarket business and the ability to maintain current EBITDA margins amid cost pressures will be critical for long-term valuation.