Raymond Limited begins the new financial year with a 13% rise in quarterly income, driven by growth in aerospace and precision technology sectors, alongside strategic investments in capacity expansion.
Raymond Limited has reported a firmer start to the new financial year, with unaudited first-quarter results showing total income of ₹628 crore for the three months to June 30, up 13% from a year earlier, as earnings improved across its two engineering-led businesses. The group’s EBITDA rose 14% to ₹100 crore and its margin edged up to 15.9%, while Raymond said it ended the quarter with a net cash surplus of ₹129 crore and remained net debt free.
The strongest contribution came from Aerospace & Defence and Precision Technology & Auto Components, the two subsidiaries now folded into Raymond Limited’s reporting structure. According to the company’s results, Aerospace & Defence posted revenue of ₹123 crore, a rise of about 40% from the same quarter last year, while Precision Technology & Auto Components generated ₹444 crore, up about 11%. Raymond said the aerospace business benefited from higher production for global original equipment makers and a growing order pipeline, while the precision unit drew support from exports and a better product mix.
Chairman and managing director Gautam Hari Singhania said the quarter reflected healthy growth in the company’s core engineering segments and pointed to continued investment in higher-margin businesses. He said the Andhra Pradesh greenfield facility remained on schedule, underlining Raymond’s push to expand capacity in aerospace and precision manufacturing. Arthneeti, in a separate analysis of the results, said the company is also pursuing a five-year capital expenditure plan of ₹930 crore focused on these businesses, with a strong order book and product development pipeline offering visibility into near- to medium-term earnings.
The quarter also showed a notable divergence in margins between the two divisions. Aerospace & Defence posted EBITDA of ₹26 crore, but its margin eased to 21.2% from 23.7% a year earlier as Raymond increased research and development spending tied to future revenue growth. Precision Technology & Auto Components, by contrast, delivered EBITDA of ₹61 crore and expanded its margin to 13.8% from 10.6%, reflecting operating leverage, higher volumes and tighter cost control. Raymond said those trends, together with easing supply-chain pressure and growing international demand, should support further execution in the months ahead.
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