Raymond Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Raymond Ltd filed with BSE on 14 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Raymond Limited reported consolidated total income of INR628 crores in Q1 FY27, up 13% year-on-year, with EBITDA of INR100 crores at a 15.9% margin. The Aerospace and Defence segment grew revenue 40% year-on-year to INR123 crores while the Precision Technology and Auto Components segment grew 11% to INR444 crores with EBITDA margin expanding to 13.8%. Management discussed an aerospace order book of INR5,960-plus crores over a 10-year horizon, an active RFQ pipeline of INR1,632 crores, ongoing capex for a greenfield Andhra Pradesh facility targeted for late 2027, and plans to launch an automotive aftermarket business in Q2 FY27.
Numbers mentioned
Total income: INR628 crores (Q1 FY27)
p. 4
“reporting a total income of INR628 crores, reflecting a 13% increase compared to the same quarter of the previous financial year”
Gautam Maini, page 4 of the filed PDF · View the filing
EBITDA: INR100 crores (Q1 FY27)
p. 4
“EBITDA grew by 14% Y-o-Y to INR100 crores with an EBITDA margin of 15.9% in Q1 of FY27”
Gautam Maini, page 4 of the filed PDF · View the filing
EBITDA margin: 15.9% (Q1 FY27)
p. 4
“EBITDA grew by 14% Y-o-Y to INR100 crores with an EBITDA margin of 15.9% in Q1 of FY27”
Gautam Maini, page 4 of the filed PDF · View the filing
Aerospace and Defence revenue: INR123 crores (Q1 FY27)
p. 5
“the Aerospace and Defence business reported a robust performance with revenue of INR123 crores, which is 40% year-on-year growth”
Gautam Maini, page 5 of the filed PDF · View the filing
Aerospace and Defence EBITDA margin: 21.2% (Q1 FY27)
p. 5
“an EBITDA margin of 21.2% in Q1 FY27 versus revenue of INR87 crores with an EBITDA of INR21 crores and an EBITDA margin of 23.7% in Q1 FY26”
Gautam Maini, page 5 of the filed PDF · View the filing
Precision Technology and Auto Components revenue: INR444 crores (Q1 FY27)
p. 5
“the Precision Technology and Auto Components reported a revenue of INR444 crores, which is 11% year-on-year growth”
Gautam Maini, page 5 of the filed PDF · View the filing
Precision Technology and Auto Components EBITDA margin: 13.8% (Q1 FY27)
p. 5
“EBITDA margin of 13.8% in Q1 of FY27 versus a revenue of INR398 crores with an EBITDA of INR42 crores and EBITDA margin of 10.6% in Q1 FY26”
Gautam Maini, page 5 of the filed PDF · View the filing
Aerospace order book: INR5,960-plus crores (10-year horizon)
p. 5
“We currently have a robust 10-year order book of INR5,960-plus crores and an active RFQ pipeline of INR1,632 crores”
Gautam Maini, page 5 of the filed PDF · View the filing
Active RFQ pipeline: INR1,632 crores
p. 5
“We currently have a robust 10-year order book of INR5,960-plus crores and an active RFQ pipeline of INR1,632 crores”
Gautam Maini, page 5 of the filed PDF · View the filing
Net cash surplus: INR129 crores (as of June 2026)
p. 5
“We continue to remain a net debt-free business with a net cash surplus of INR129 crores as of June 2026”
Gautam Maini, page 5 of the filed PDF · View the filing
5-year capex plan: INR1,000 crores (5-year plan)
p. 5
“Our INR1,000 crores 5-year capex plan, INR510 crores basically in aerospace and INR430 crores in auto, is progressing swiftly on schedule”
Gautam Maini, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Aerospace and Defence revenue growth — 25% growth · FY27
stated firmly by Rakesh Kumar Tiwary
p. 8
“So, we have committed 25% growth. We are a little bit ahead of what we have committed, but we expect to keep momentum, but I would still say that a 25% growth in aerospace is a good growth.”
Rakesh Kumar Tiwary, page 8 of the filed PDF · View the filing
EBITDA margin — FY27
stated as an aspiration by Gautam Maini
p. 8
“Yes, we can -- I mean, we can expect the EBITDA margins to have the same trend as we've shown now at a consolidated level. I would say you can expect the same.”
Gautam Maini, page 8 of the filed PDF · View the filing
Aerospace stabilized EBITDA margin — around 25% · mature level
stated as an aspiration by Rakesh Kumar Tiwary
p. 11
“In Aerospace business, we aim that somewhere around 25%. That's our aim at a mature level.”
Rakesh Kumar Tiwary, page 11 of the filed PDF · View the filing
Precision manufacturing stabilized EBITDA margin — around 12%-13% · near term
stated as an aspiration by Rakesh Kumar Tiwary
p. 11
“And then in our precision manufacturing business, somewhere around 12%-13%. That's a decent margin that we are looking.”
Rakesh Kumar Tiwary, page 11 of the filed PDF · View the filing
Order intake growth — 25% growth · 3-year annualized basis
stated firmly by Gautam Maini
p. 11
“So, we'd like to say that a 25% growth is a healthy growth in the industry on an organic basis. And I believe that we have enough orders to grow at that 25%.”
Gautam Maini, page 11 of the filed PDF · View the filing
Existing facility revenue capacity — more than INR600 crores
stated as an aspiration by Gautam Maini
p. 13
“our estimated numbers earlier were at the INR600 crores range, but we do believe that we will go more than INR600 crores at this point in time and necessary improvements have been made”
Gautam Maini, page 13 of the filed PDF · View the filing
New Andhra facility commercial production — late 2027
stated firmly by Gautam Maini
p. 5
“Andhra Pradesh greenfield facility, the groundwork at our Gudipalli facility near the Bangalore Airport is on track with commercial production targeted for late 2027.”
Gautam Maini, page 5 of the filed PDF · View the filing
New facility revenue ramp-up — FY28
stated conditionally by Gautam Maini
p. 13
“You can assume that it will have up to 6 months approval processes. So, really, I would start looking at FY28 for numbers starting and then the ramp-up will happen slowly as we go along”
Gautam Maini, page 13 of the filed PDF · View the filing
Combined business growth rate
stated as an aspiration by Gautam Maini
p. 16
“The rest, we will see how we can capture a higher market share and grow at a higher rate. I mean that's always going to be the ambition, but I won't be pulled into any number at this stage.”
Gautam Maini, page 16 of the filed PDF · View the filing
Automotive aftermarket product line — Q2 of FY27
stated firmly by Gautam Maini
p. 5
“Furthermore, on strategic initiatives to leverage our B2C brand heritage and Tier 1 OEM base, we are launching an automotive aftermarket product line in Q2 of FY27.”
Gautam Maini, page 5 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said they continue evaluating opportunities across both business segments and will update the market when something is concrete.
Answered by Sunny Desa
Asked by Yeshas Paramesh: How is the company evaluating inorganic growth opportunities following the preferential warrant issue?
p. 6
“So, with respect to the question on the warrants that were issued, basically, the whole idea is that we, as a company, keep evaluating various opportunities across our 2 businesses from an inorganic growth standpoint.”
Sunny Desa, page 6 of the filed PDF · View the filing
Management said they are not significantly exposed yet as such critical businesses haven't transferred to them.
Answered by Gautam Maini
Asked by Yeshas Paramesh: Is Raymond exposed to the same casting/forging supply chain bottlenecks affecting a U.S. aerospace supplier?
p. 6
“So, basically, I mean, we are today not exposed as much because a lot of those kind of businesses haven't transferred yet, which are more on the critical side.”
Gautam Maini, page 6 of the filed PDF · View the filing
Management expects the same margin trend as shown at the consolidated level to continue.
Answered by Gautam Maini
Asked by Nishita Shanklesha: What EBITDA margin range can be expected for FY27?
p. 8
“Yes, we can -- I mean, we can expect the EBITDA margins to have the same trend as we've shown now at a consolidated level.”
Gautam Maini, page 8 of the filed PDF · View the filing
Management reiterated a committed 25% growth target, noting the quarter had exceeded it.
Answered by Rakesh Kumar Tiwary
Asked by Harshit Chheda: What growth is expected in aerospace and defence revenue share by year end?
p. 8
“So, we have committed 25% growth. We are a little bit ahead of what we have committed, but we expect to keep momentum”
Rakesh Kumar Tiwary, page 8 of the filed PDF · View the filing
Management gave ranges for asset turns in each segment and explained the trade-off with EBITDA margin.
Answered by Rakesh Kumar Tiwary
Asked by Vatsal Kothari: What are the typical asset turnover ratios in aerospace and precision auto verticals?
p. 10
“In Aerospace, our typical asset turnover for the new business that we are winning right now is hovering somewhere around 1.8 to 2.2 kind of. And for automobile, it is somewhere between 2 to 2.5.”
Rakesh Kumar Tiwary, page 10 of the filed PDF · View the filing
Management said top 3 customers currently represent 40-45% of the concentration and they aim to diversify further.
Answered by Gautam Maini
Asked by Vatsal Kothari: What is customer concentration in aerospace among top OEMs?
p. 11
“Currently, I would say it could be up to 40% to 45% with the top 3.”
Gautam Maini, page 11 of the filed PDF · View the filing
Management said earlier estimates of INR600 crores capacity are now expected to be exceeded due to internal improvement initiatives.
Answered by Gautam Maini
Asked by Niraj Mansingka: Is the existing facility running near full utilization, and how much more revenue can it support?
p. 13
“our estimated numbers earlier were at the INR600 crores range, but we do believe that we will go more than INR600 crores at this point in time and necessary improvements have been made.”
Gautam Maini, page 13 of the filed PDF · View the filing
Management attributed the margin improvement to operating leverage and product mix, expecting operating leverage to continue.
Answered by Rakesh Kumar Tiwary
Asked by Keval Shah: Are the improved margins this quarter due to inventory gains or sustainable factors?
p. 14
“See, what has happened into this time is we got operating leverage. You might have seen vis-a-vis last year, this year, quarter 1, we have significant rise in our revenue.”
Rakesh Kumar Tiwary, page 14 of the filed PDF · View the filing
Management said logistics, tooling, and minimum wage costs have risen and they are working with customers to offset these.
Answered by Gautam Maini
Asked by Keval Shah: Are there supply chain-related risks currently affecting the business?
p. 14
“Well, more than supply chain, the cost for logistics have definitely gone up. So, we have noticed that. We have noticed costs have gone up in terms of tools, the carbide and HSS costs”
Gautam Maini, page 14 of the filed PDF · View the filing
Management confirmed the hire and said they are working on defence segment strategy, to be updated in future quarters.
Answered by Sunny Desa
Asked by Midhun James: What is the strategy behind hiring a former BEL executive for the defence business?
p. 15
“So, yes, Mr. Bhanu Prakash Srivastava has joined us, and you've seen the exchange release. We plan to work on the Defence segment as well.”
Sunny Desa, page 15 of the filed PDF · View the filing
Management said they aim for higher market share and growth via synergies but declined to commit to a specific number.
Answered by Gautam Maini
Asked by Midhun James: Can the combined business growth rate accelerate beyond current mid-teens levels?
p. 16
“Yes. See, I mean, I'm not going to commit numbers. But as far as I'm concerned, I think the scenario is much more positive.”
Gautam Maini, page 16 of the filed PDF · View the filing
Risks flagged
Rising logistics and input costs including carbide, HSS, and minimum wages
p. 14
“We have noticed costs have gone up in terms of tools, the carbide and HSS costs, and we are trying our best to mitigate all of these costs in the best possible manner where we are in discussions with customers, right?”
Gautam Maini, page 14 of the filed PDF · View the filing
Temporary compression in aerospace EBITDA margins due to R&D write-offs
p. 5
“EBITDA margins saw temporary compression as we incurred major R&D expenses and expenditures, which we naturally write off as explained on earlier occasions to unlock the 40% revenue expansion.”
Gautam Maini, page 5 of the filed PDF · View the filing
Historical titanium and aerospace-grade alloy supply constraints
p. 4
“While titanium and aerospace-grade alloy constraints persisted into late FY26, raw material supply channels and engine production schedules have gradually unblocked in Q1 of FY27”
Gautam Maini, page 4 of the filed PDF · View the filing
West Asia conflict causing supply chain friction and energy market fluctuations
p. 3
“While the ongoing West Asia conflict continues to introduce localized supply chain friction and energy market fluctuations, domestic manufacturing has demonstrated high structural adaptability.”
Gautam Maini, page 3 of the filed PDF · View the filing
Product mix fluctuations affecting margin from quarter to quarter
p. 14
“Product mix, while if it varies from quarter-to-quarter, you may see some fluctuation into the margin.”
Rakesh Kumar Tiwary, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.