Raymond , a prominent Indian textile and apparel company, is actively exploring strategic alternatives to mitigate the potential impact of US tariffs on its garment business. The company is considering shifting production to countries like Vietnam, Bangladesh, and Ethiopia to maintain its competitive edge in the US market.

US Market Exposure and Current Production

Group CFO Amit Agarwal revealed that 50-55% of Raymond's garment revenue is derived from the US market. The company's total garment business generates Rs 550.00 crore, with Rs 400.00 crore coming from India and Rs 150.00 crore from its Ethiopian plant. The Ethiopian facility currently benefits from a lower 10% duty rate, making it an attractive production hub for the company.

Strategic Production Shift

To address the potential tariff challenges, Raymond is evaluating several options:

1. Increasing Ethiopian Production: The company has the capacity to shift an additional Rs 50.00-75.00 crore worth of production from India to Ethiopia.
2. Exploring New Markets: Raymond is considering exporting fabrics to Bangladesh and Vietnam for garment manufacturing, potentially tapping into these countries' established garment industries and favorable trade agreements.

Timing Challenges and Market Outlook

Agarwal highlighted the timing challenges faced by US retailers, particularly with the upcoming Thanksgiving and Christmas sales seasons. With production cycles spanning 5-6 months, any immediate changes could impact the supply chain for these crucial retail periods.

The CFO expects the situation to stabilize by the end of the second quarter of FY26, indicating a cautious but optimistic outlook for the medium term.

Domestic Market Focus

Despite the challenges in the US market, Agarwal emphasized that 85% of Raymond's business remains in India. The company anticipates a stronger domestic performance, driven by the festive and wedding seasons, which traditionally boost demand for textiles and apparel.

Market Response

The news of Raymond's strategic considerations appears to have had a slight negative impact on investor sentiment. Raymond shares closed 1.59% lower at Rs 633.00 on the day of the announcement.

As Raymond navigates these international trade challenges, the company's ability to adapt its production strategy and leverage its strong domestic presence will be crucial in maintaining its market position and financial performance.

Raymond Limited , a pioneer in fabric manufacturing and engineering, has announced its unaudited financial results for the first quarter, showcasing robust growth and strategic advancements in its core businesses.

Financial Highlights

Raymond Limited reported a significant increase in revenue from operations, reaching ₹524.00 crore, up 17% from ₹450.00 crore in the same quarter of the previous year. The company's total income stood at ₹555.00 crore, reflecting an 11% year-on-year growth. Despite this strong top-line performance, EBITDA saw a marginal decrease to ₹87.00 crore, with an EBITDA margin of 15.70%, compared to 18.90% in the same quarter last year.

The company maintained its strong financial position, remaining net debt-free with a cash surplus of ₹157.00 crore.

Segmental Performance

Aerospace & Defence Business

This segment demonstrated exceptional growth, with revenue increasing by 37% to ₹87.00 crore from ₹64.00 crore in the same quarter of the previous year. EBITDA for the segment grew by 30% to ₹21.00 crore, with an EBITDA margin of 23.70%.

Precision Technology & Auto Components

The segment reported a 12% increase in revenue, reaching ₹398.00 crore. EBITDA grew by 8% to ₹42.00 crore, with the EBITDA margin slightly decreasing to 10.60% from 11.00% in the same quarter of the previous year.

Strategic Developments

Raymond Limited announced two significant long-term supply agreements with Pratt & Whitney and Safran Aircraft Engines. These partnerships will involve supplying complex precision-machined and assembled aerospace components, further solidifying Raymond's position in the global aerospace manufacturing sector.

The company also completed a restructuring process, following an NCLT order dated July 4, 2025. As a result, two new subsidiaries were formed: JK Maini Precision Technology Ltd. and JK Maini Global Aerospace Ltd.

Management Commentary

Gautam Hari Singhania, Chairman & Managing Director of Raymond Limited, expressed optimism about the company's performance and future prospects. He stated, "We're delighted to announce signing of two strategic, long-term supply agreements with Pratt & Whitney and Safran Engines. These landmark partnerships will see us supply complex precision-machined and assembled components, underscoring our unwavering commitment to excellence and significantly bolstering our global presence in aerospace manufacturing. Our auto component and engineering consumables business also had a strong quarter, demonstrating robust performance in a competitive market."

Outlook

Raymond Limited remains optimistic about its future growth trajectory, driven by its expansion strategy into new product categories and geographical markets. The company's focus on operational efficiencies, integration synergies, and the 'China-plus-one' strategy is expected to support continued business momentum across domestic and international markets.

With its strong performance in the first quarter and strategic initiatives in place, Raymond Limited appears well-positioned to capitalize on opportunities across its core business segments, aiming to deliver sustained value to its stakeholders in the coming quarters.