Raymond , a diversified conglomerate, is set to significantly expand its manufacturing footprint in Andhra Pradesh with a substantial investment of Rs 1,201 crore. This move aligns with the state's ambitious economic development goals and promises to create thousands of jobs in the region.

Investment Details

Chief Minister N. Chandrababu Naidu virtually laid the foundation stone for three Raymond Group manufacturing projects in Anantapur district. These projects span across different sectors:

Economic Impact

The investment is expected to have a significant positive impact on the local economy:

• Job Creation: The projects are anticipated to generate 6,500 direct and indirect employment opportunities.
• Operational Timeline: The facilities are projected to become operational by 2027.
• State Investment Goals: This investment contributes to Andhra Pradesh's target of attracting Rs 20 lakh crore in investments.
• Employment Objectives: Aligns with the state's aim of creating 20 lakh jobs.

Strategic Significance

This move by Raymond Group demonstrates:

1. Diversification: The company is expanding beyond its traditional textiles business into high-growth sectors like auto components and aerospace.
2. Geographical Expansion: By investing in Andhra Pradesh, Raymond is tapping into the state's resources and favorable business environment.
3. Alignment with Government Initiatives: The investment supports the state government's efforts to boost industrial growth and employment.

Conclusion

Raymond Group's Rs 1,201 crore investment in Andhra Pradesh marks a significant step in the company's growth strategy and the state's industrial development. As these projects progress towards their 2027 operational target, they are likely to play a crucial role in shaping the economic landscape of Anantapur district and contributing to Andhra Pradesh's broader economic goals.

Investors and market watchers will be keen to observe how this substantial investment impacts Raymond's financial performance and market position in the coming years, particularly in the new sectors it is venturing into.

Raymond Limited , a diversified conglomerate with interests in engineering and textiles, has reported a robust performance for the second quarter of fiscal year 2026, with notable growth in its aerospace and precision technology segments.

Financial Highlights

Raymond Limited posted a total income of INR 564.00 crores in Q2 FY26, reflecting a 10% growth compared to INR 512.00 crores in the same quarter of the previous fiscal year. The company's EBITDA stood at INR 79.00 crores with a margin of 14.1%, compared to INR 77.00 crores and a 15.1% margin in Q2 FY25.

For the first half of FY26, the company's total income reached INR 1,119.00 crores, marking an 11% year-on-year increase from INR 1,011.00 crores in H1 FY25.

Segment Performance

Aerospace and Defense

The Aerospace and Defense segment delivered a strong performance with revenue of INR 81.00 crores, representing a 15% growth year-on-year. The segment's EBITDA grew by 34% to INR 17.00 crores, with an EBITDA margin of 21%.

Precision Technology and Auto Components

This segment reported revenue of INR 409.00 crores, a 10% growth compared to the previous year. EBITDA for the segment saw a significant jump of 57% to INR 57.00 crores, including a one-time gain of INR 13.00 crores.

Financial Position

Raymond Limited maintains a strong financial position, remaining net debt-free with cash and cash equivalents of INR 999.00 crores as of September 30, 2025.

Management Commentary

The management highlighted several key achievements during the quarter:

1. Successful onboarding of global customers
2. Completion of audit compliance by major OEMs
3. Positive First Article Inspection (FAI) approvals for critical engine components

Gautam Maini, Managing Director of the Engineering Business at Raymond Limited, commented on the company's strategy: "We are continuously enhancing capability on a daily basis. We handle about 110 different grades of material, which is highly complex. Our ability to be more flexible to grow at a faster pace but also to match complex parts with less complex parts has been key to our success."

Future Outlook

The company remains optimistic about its growth trajectory, particularly in the aerospace sector. With a strong order book and pipeline of new products, Raymond Limited is well-positioned to capitalize on the growing demand in the aerospace and precision engineering markets.

The management also indicated plans for strategic expansion, including potential investments in new product categories and geographical markets. The company's focus on executing a balanced mix of complex and less complex parts is expected to optimize both EBITDA and Return on Capital Employed (ROCE) in the coming years.

As India strengthens its position as a precision manufacturing hub, Raymond Limited appears well-equipped to leverage its expertise and expand its global footprint in the aerospace and engineering sectors.