Raymond (RAYMOND) Q4 24/25 earnings summary

Executive summary

• Successfully completed the demerger of the real estate business, with Raymond Realty to be listed in Q2 FY26, enabling focused growth as an independent entity.

• Achieved record revenue and EBITDA in FY25, driven by strong performance in both engineering and real estate segments.

• Engineering business expanded with the acquisition of Maini Precision Products Limited (MPPL), contributing to higher sales and EBITDA.

• Continued expansion through asset-light JDA projects, signing two new projects in Mahim and Wadala.

• Macroeconomic environment in India remains supportive, with controlled inflation, RBI rate cuts, and a favorable union budget boosting urban consumption and housing.

Financial highlights

• Continuing operations (engineering and others) reported Q4 FY25 total income of INR 601 crore and EBITDA of INR 99 crore (16.4% margin); FY25 total income was INR 2,105 crore with EBITDA of INR 335 crore (15.9% margin).

• Real estate segment Q4 FY25 revenue was INR 766 crore, up 13% YoY; EBITDA INR 194 crore, also up 13% YoY, with a stable 25.3% margin.

• Real estate segment FY25 revenue was INR 2,313 crore, up 45% YoY, and EBITDA INR 507 crore, up 37% YoY, with a 21.9% margin.

• Net profit from continuing operations in Q4 FY25 was INR 25 crore, up 101% YoY; total net profit for the period (including demerged operations) was INR 230 crore.

• Real estate bookings reached INR 636 crore in Q4 FY25, driven by strong demand in Thane and Bandra projects.

Outlook and guidance

• Anticipates substantial increase in housing segment purchasing power due to tax cuts and liquidity, with housing expected to drive growth over the next 12-24 months.

• Real estate business targets 20-25% YoY growth in booking values, with several launches planned for Q3 and Q4 FY26 and further expansion via JDA model.

• Engineering business expects strong growth, especially in aerospace and EV components, as production issues at a major aircraft manufacturer resolve.

• Company expects to remain net cash surplus.

• Management remains optimistic about FY26, especially for the Engineering business, citing growth opportunities in the aerospace sector.