Raymond , the diversified conglomerate known for its textile and apparel business, has unveiled an ambitious plan to double its aerospace business over the next 4-5 years. This strategic move is backed by a substantial annual capital expenditure commitment of INR 100 crore, signaling the company's strong focus on this high-tech sector.

Expansion Strategy

The company's aerospace division, which has been a part of Raymond's diversification efforts, is set for significant growth. The plan to double the business within a 4-5 year timeframe demonstrates Raymond's confidence in the sector's potential and its own capabilities.

Financial Commitment

Raymond's commitment to this expansion is underscored by its planned annual capital expenditure:

This substantial investment indicates Raymond's serious intent to scale up its aerospace operations and capture a larger market share in this specialized industry.

Profitability Targets

Alongside its growth ambitions, Raymond has set clear profitability targets for its aerospace business:

These target margins suggest that Raymond expects the aerospace division to be a high-value contributor to its overall profitability.

Overall Financial Outlook

Raymond's expansion in the aerospace sector is part of a broader strategy to enhance the company's financial performance. The company has provided guidance on its consolidated EBITDA margins:

This target indicates Raymond's focus on maintaining strong overall profitability while investing in growth sectors like aerospace.

Investor Communication

In line with its commitment to transparency, Raymond has made its latest investor conference recording available on its website. The audio recording of the investor conference discussing the financial performance for the quarter and half-year can be accessed at:

https://api.raymond.in/uploads/investor/176166524524710036624.mp3

This move allows investors and analysts to gain deeper insights into Raymond's strategies and financial performance.

Raymond's strategic focus on expanding its aerospace business, coupled with clear financial targets, signals the company's intent to diversify its revenue streams and capitalize on high-growth sectors. As the plan unfolds over the coming years, investors and industry observers will be keenly watching the impact of this expansion on Raymond's overall business performance and market position.

Raymond Limited , a pioneer in fabric manufacturing that has diversified into engineering and real estate sectors, has announced its unaudited financial results for the quarter ended September 30, 2025 (Q2 FY26). The company demonstrated robust growth, with its core engineering businesses showing significant momentum.

Financial Highlights

Raymond Limited reported a strong financial performance for Q2 FY26:

The company's total income grew by 10% year-on-year to ₹564.00 crore, while EBITDA increased by 3% to ₹79.00 crore. However, the EBITDA margin saw a slight compression from 15.10% in Q2 FY25 to 14.10% in Q2 FY26, primarily due to a decline in other income.

Segment Performance

Aerospace & Defence Business

The Aerospace & Defence segment showed impressive growth:

• Revenue: ₹81.00 crore (15% YoY increase)
• EBITDA: ₹17.00 crore (34% YoY increase)
• EBITDA margin: 21% (up from 18% in Q2 FY25)

This performance was driven by increased production at a leading aerospace OEM and revenue contributions from newly developed parts that entered production this year.

Precision Technology & Auto Components

The Precision Technology & Auto Components segment also delivered strong results:

• Revenue: ₹409.00 crore (9.90% YoY increase)
• EBITDA: ₹57.00 crore (57.30% YoY increase)
• EBITDA margin: 13.90% (up from 9.70% in Q2 FY25)

This segment's growth was fueled by robust domestic demand for both Auto Components and Tools & Hardware components, as well as strong demand for hybrid products in European markets.

Strategic Positioning

Raymond Limited's performance reflects a positive shift in the Indian supply chain. The company is capitalizing on the trend of Indian suppliers moving up the value chain, transitioning from simple assemblies to producing highly complex precision machined components and subsystems. This has led to a surge in order intake for both Tier-1 and Tier-2 vendors in the export business.

Gautam Hari Singhania, Chairman & Managing Director of Raymond Limited, commented on the results: "Both our aerospace & defence and precision technology & auto components businesses maintained strong momentum this quarter, delivering higher sales even in a competitive environment. We continue to focus on strategic business expansion. With both subsidiaries demonstrating robust performance, we are ideally positioned to seize upcoming opportunities and drive sustained stakeholder value."

Future Outlook

The company's strong performance provides a solid foundation for future growth. Raymond Limited is seeing increased interest from potential clients through Requests for Quotation (RFQs) and is exploring new collaborative opportunities. However, the outlook is tempered by external trade pressures, particularly U.S. tariffs, which are resulting in some scheduling delays.

Raymond Limited continues to expand into new international geographies and industrial sectors. The company is observing business momentum across domestic and international markets, supported by the China-plus-one strategy, integration synergies, and focused operational efficiencies across all segments.

Financial Position

Notably, Raymond Limited maintains a strong financial position, remaining net-debt free with a net cash surplus of ₹27.00 crore as of Q2 FY26.

In conclusion, Raymond Limited's Q2 FY26 results demonstrate the company's successful transition into a diversified engineering-focused entity. With its strong performance in the Aerospace & Defence and Precision Technology & Auto Components segments, Raymond is well-positioned to capitalize on the growing demand for high-precision engineering solutions in both domestic and international markets.