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Raymond Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤27th Jan 26

Summary : Raymond Limited reported robust Q3 FY26 performance driven by strong growth in engineering segments, maintaining a net debt-free status while pursuing strategic expansion.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated total expenses for Q3 FY26 were ₹55,602 lakhs.
  2. Employee benefits expense for Q3 FY26 was ₹10,712 lakhs.
  3. Other expenses (manufacturing and operating) for Q3 FY26 were ₹12,990 lakhs.
  4. Consolidated Total Income for Q3 FY26 at ₹580 Cr, up 18% YoY.
  5. Precision Technology & Auto Components revenue ₹417 Cr in Q3 FY26.
  6. Aerospace & Defence revenue ₹105 Cr in Q3 FY26.
  7. Net cash surplus of ₹214 Cr, company remains net-debt free.
  8. Paid-up equity share capital ₹6,655 lakhs as of 31 December 2025.
  9. Both standalone and consolidated unaudited financial results are presented.
  10. Auditors issued separate review reports for standalone and consolidated results.

Corporate Overview

  1. Global customer base across Asia-Pacific, Africa, Latin America, Europe, and North America.
  2. Exports contribute over 50% to total business.
  3. Tightening competitive landscape impacting business operations.
  4. Temporary pressure on EBITDA margins due to reduced non-operating income.
  5. Global trade pressures from U.S. tariffs causing logistical complexities and scheduling delays.
  6. Deepening integration of Indian suppliers into the global high-tech value chain.
  7. Pioneer and leader in fabric manufacturing, diversified into engineering and real estate.
  8. Engineering business includes Precision Technology & Auto Components and Aerospace & Defence.
  9. Serves global B2B and B2C clients across over 60 countries.
  10. Commands leadership in manufacturing files and hand tools.
  11. Chairman & MD highlights record sales performance in core engineering businesses.
  12. Committed to strategic roadmap, prioritizing high-value expansion.
  13. Focus shifts to scaling operations to capture global demand and enhance shareholder returns.
  14. Serves a global customer base of both B2B and B2C clients.
  15. Precision Technology & Auto Components: Q3 FY26 revenue ₹417 Cr, 15% YoY growth.
  16. Aerospace & Defence: Q3 FY26 revenue ₹105 Cr, 49% YoY growth.
  17. Discontinued operations include Lifestyle Business and Realty Business due to demergers.
  18. Maintained robust order pipeline for Tier-1 and Tier-2 export partners.
  19. Increased production requirements from leading aerospace OEM.
  20. Strategy to expand into new international geographies and industrial sectors.
  21. Scaling operations to capture emerging global demand.

Risk Factors

  1. Tightening competitive landscape.
  2. Temporary pressure on EBITDA margins.
  3. Global trade pressures, U.S. tariffs.
  4. Regulatory changes, economic developments.

Key Drivers

  1. Robust Q3 FY26 performance.
  2. Strong growth in engineering segments.
  3. Net debt-free with cash surplus.
  4. Strategic expansion into new geographies.

Auditor’s Report

  1. Unmodified conclusion on standalone unaudited financial results.
  2. Unmodified conclusion on consolidated unaudited financial results.
  3. Demerger of Raymond Realty Limited effective 01 May 2025, accounted for in Q2FY26.
  4. Demerger of Lifestyle Business undertaking effective 30 June 2024, accounted for in Q1FY25.
  5. Scheme of Arrangement for JKFEL group companies effective 31 July 2025.

Board Commentary

  1. Government of India notified four Labour Codes consolidating 29 existing labour laws.
  2. Amendment in Union Budget 2024-25 regarding deferred tax position.
  3. Approved Composite Scheme of Arrangement for demerger of Lifestyle Business.
  4. Approved Scheme of Arrangement for demerger of Real Estate Business.
  5. Approved Composite Scheme of Arrangement for JKFEL group companies.

Corporate Governance

  1. Audit Committee reviewed and recommended the Statement on 23 January 2026.

Management Discussion & Analysis

Future Strategy

  1. Expand into new international geographies and industrial sectors.
  2. Prioritizing high-value expansion in sectors with significant barriers to entry.
  3. Scaling operations to capture emerging global demand and enhance shareholder returns.

Industry Overview

  1. Current demand environment remains favorable for future expansion.
  2. Steady increase in Requests for Quotation (RFQs) observed.
  3. Business momentum supported by China-plus one strategy.

Macroeconomic Outlook

  1. Near-term outlook influenced by external macroeconomic factors.
  2. Global trade pressures stemming from U.S. tariffs.

Operational Focus Areas

  1. Focused operational efficiencies across all segments.
  2. Monitoring finalization of Central and State Rules regarding Labour Codes.

Performance Drivers

  1. Strong performance anchored by Aerospace & Defence and Precision Technology & Auto Components divisions.
  2. Higher sales volumes and favorable product mix contributed to EBITDA margin improvement.
  3. One-time gain of ~₹13 crore from sale of land in Q2FY26.

Risk Control Measures

  1. Company will provide appropriate accounting effect for Labour Code developments.

Critical Risks

  1. Regulatory changes, local political or economic developments.
  2. Technological risks affecting business operations.
  3. Global trade pressures and U.S. tariffs impacting logistics.
Raymond Ltd (RAYMOND) Quarterly Report Analysis & Insights | Dhanarthi