Raymond (RAYMOND) Q2 25/26 earnings summary

Executive summary

• Total income for Q2 FY26 was ₹564 crore, up 10% year-over-year; H1 FY26 income reached ₹1,119 crore, up 11% year-over-year.

• Aerospace & Defense and Precision Technology & Auto Components segments drove performance, reflecting India's rising role in global supply chains and strong sales momentum.

• The company remains net debt free, reporting a net cash surplus of ₹27 crore as of September 2025.

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

Financial highlights

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

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

• Net profit for Q2 FY26 was ₹14 crore; H1 FY26 net profit was ₹35 crore.

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

• Net cash surplus of ₹27 crore as of September 2025; gross debt at ₹972 crore, cash and equivalents at ₹999 crore.

Outlook and guidance

• Management remains optimistic, citing expansion into new product categories, geographies, and global customer onboarding.

• Precision Technology business gaining momentum from China+1 sourcing, EV/hybrid demand, and new export markets.

• Aerospace business expanding internationally, with new customers in UAE and strong order visibility from a commercial aircraft backlog exceeding 16,000 units.

• CapEx of ₹100 crore per year planned, aiming to double Aerospace & Defense business in 4–5 years, with major investments in Andhra Pradesh.

• Company expects sustainable margin growth and new program wins, despite challenges from escalating US tariffs.