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Raymond's Profit Plummets 53% Amidst Margin Squeeze
5 May
Summary
- Raymond's Q4 profit fell 53% to ₹12 crore, with margins contracting.
- Full-year income rose 10%, but EBITDA remained flat.
- Aerospace and Defense segment showed strong 26% revenue growth.
Raymond Limited's fourth-quarter financial results for the period ending March 31, 2026, revealed a substantial 53% year-on-year decline in net profit, falling to ₹12 crore. Profit before tax also decreased by 43% to ₹25 crore.
EBITDA for the quarter saw a 14% drop, settling at ₹85 crore, with profit margins narrowing to 13.9% from 16.4% in the prior year's comparable period. Total income for the quarter rose by a modest 1.8% to ₹613 crore.
For the full fiscal year 2026, Raymond reported a 10% increase in total income, reaching ₹2,312 crore. However, EBITDA remained flat at ₹335 crore. Profit before tax for the year fell by 20% to ₹99 crore. The company noted it maintains a net cash surplus of ₹68 crore.
Raymond operates two main business segments. The Aerospace and Defence unit, JK Maini Global Aerospace Limited, achieved 26% revenue growth in FY26 to ₹392 crore, maintaining healthy EBITDA margins of 22-25%. The Precision Technology and Auto Components segment reported a 10% revenue increase to ₹1,667 crore, with its EBITDA margins improving to 13.4% from 11%.
Significant investment is underway for a new manufacturing facility in Gudipalli, Andhra Pradesh, with a five-year capital expenditure of ₹930 crore planned across both segments. Commercial production is anticipated by late 2027. The aerospace order book stands at over ₹2,350 crore for the next five years.
