Raymond (RAYMOND) Q2 25/26 earnings summary

Executive summary

• India's economy showed strong growth in Q2 FY26, with GDP projected at 6.8% for the year, supporting robust demand in key sectors.

• Delivered strong sales growth in Aerospace & Defence and Precision Technology & Auto Components for Q2 FY26 and H1 FY26, maintaining robust operational momentum.

• The business now focuses on two core verticals: Precision Technology & Auto Components and Aerospace & Defence, following the demerger of Lifestyle and Realty businesses.

• Strategic business expansion, restructuring, and international expansion have positioned the group for sustained stakeholder value and future growth.

Financial highlights

• Q2 FY26 total income: ₹564 Cr, up 10% year-over-year; H1 FY26 total income: ₹1,119 Cr, up 11% year-over-year.

• Q2 FY26 EBITDA: ₹79 Cr (14.1% margin), up 3% year-over-year; H1 FY26 EBITDA: ₹167 Cr (14.9% margin), down 3% year-over-year.

• Q2 FY26 PBT: ₹19 Cr (3.4% margin), down 20% year-over-year; H1 FY26 PBT: ₹50 Cr (4.4% margin), down 27% year-over-year.

• Net cash surplus of ₹27 Cr as of September 2025; company remains net debt free.

• One-time gain of ~₹13 Cr included in EBITDA from sale of land.

Outlook and guidance

• Management remains optimistic, citing expansion into new product categories, geographies, and international markets.

• Positive momentum expected from global customer onboarding, audit compliance, and increased manufacturing capacity.

• Aerospace business expanding internationally, with strong order backlog providing 12–15 years of revenue visibility.

• CapEx of ₹100 Cr per year planned, aiming to double Aerospace & Defence business in 4–5 years.

• Focus on cost engineering, value-added processes, and sustainable margin growth.