Raymond Q2 FY27 results: net profit up 130.8% to ₹32.06 crore, revenue up 24.2%

How did Raymond perform in Q2 FY27?

Raymond Limited’s consolidated revenue for Q2 FY27 was ₹655.16 crore, up ₹127.47 crore or 24.2% from ₹527.69 crore in Q2 FY26. Total income was ₹683.22 crore, an increase of ₹119.51 crore or 21.2% from ₹563.71 crore. The board also approved unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026.

Consolidated EBITDA was ₹75.31 crore, up ₹32.06 crore or 74.1% from ₹43.25 crore, and the margin rose 3.3 percentage points to 11.5%. Profit before tax moved from a loss of ₹148.06 crore in Q2 FY26 to ₹42 crore in Q2 FY27. Net profit was ₹32.06 crore, against ₹13.89 crore a year ago, and basic EPS was ₹3.36 compared with ₹1.71.

Against Q1 FY27, revenue rose ₹49.55 crore or 8.2% to ₹655.16 crore, while EBITDA fell ₹1.99 crore or 2.6% to ₹75.31 crore and margin declined 1.3 percentage points to 11.5%. Profit before tax increased ₹0.38 crore to ₹42 crore, net profit rose ₹1.21 crore to ₹32.06 crore, and basic EPS rose ₹0.21 to ₹3.36. On the standalone basis, revenue was ₹0.56 crore and net profit was ₹1.59 crore.

What changed in Raymond's costs and profit?

Total expenses rose ₹96.85 crore or 17.8% to ₹641.22 crore from ₹544.37 crore in Q2 FY26. Cost of materials increased ₹44.38 crore or 25.5% to ₹218.52 crore, employee cost rose ₹19.15 crore or 18.7% to ₹121.70 crore, and other expenses increased ₹31.89 crore or 15.4% to ₹239.07 crore. Finance costs were ₹21.62 crore, up ₹0.12 crore, while depreciation increased ₹1.32 crore to ₹39.75 crore.

Other income fell ₹7.96 crore or 22.1% to ₹28.06 crore from ₹36.02 crore. Q2 FY26 included an exceptional charge of ₹167.40 crore, while Q2 FY27 had no exceptional item. Tax was ₹10.61 crore, compared with ₹162.17 crore in the year-ago quarter, a difference of ₹172.78 crore. Profit before tax consequently moved from a loss of ₹148.06 crore to ₹42 crore.

Management said commodity, raw-material and tool costs remained elevated, while freight and logistics volatility continued amid geopolitical tensions. It also cited steady volume ramp-up and targeted cost optimisation in precision technology and auto components, alongside higher aerospace dispatch volumes. These are the company’s stated operating explanations; the filings do not quantify each factor’s individual effect on profit.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹1,260.77 crore, up ₹208.79 crore or 19.8% from ₹1,051.98 crore in H1 FY26. Total income rose ₹192.29 crore or 17.2% to ₹1,311.32 crore from ₹1,119.03 crore. The investor presentation separately reported total income growth of 17%.

Profit before tax for H1 FY27 was ₹83.62 crore, down ₹5,172.43 crore or 98.4% from ₹5,256.05 crore in H1 FY26. Net profit was ₹62.91 crore, down ₹5,279.13 crore or 98.8% from ₹5,342.04 crore, and basic EPS fell ₹795.36 to ₹6.51 from ₹801.87. The prior-year comparison included the exceptional charge reflected in the reported quarterly results.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹5,148.66 crore, compared with ₹4,737.94 crore at 31 March 2026. Total equity rose to ₹3,450.90 crore from ₹3,117.64 crore, while borrowings increased to ₹1,023.02 crore from ₹998.51 crore. Cash declined to ₹78.67 crore from ₹134.79 crore.

Inventories increased to ₹547.29 crore from ₹487.01 crore, trade receivables rose to ₹559.95 crore from ₹520.75 crore, and trade payables increased to ₹366.98 crore from ₹344.83 crore. For H1 FY27, operating cash flow was ₹50.13 crore, compared with an outflow of ₹33.36 crore in H1 FY26. Investing cash flow was an outflow of ₹160.65 crore, compared with ₹209.74 crore, while financing cash flow was ₹60.99 crore, compared with ₹253.78 crore.

Capital expenditure for H1 FY27 was ₹76.34 crore, compared with ₹39.26 crore in H1 FY26. The investor presentation described Raymond as a net debt-free business, while the balance-sheet figures reported borrowings of ₹1,023.02 crore and cash of ₹78.67 crore on the consolidated basis at 30 September 2026.

How has Raymond done over the last 8 quarters?

Revenue has increased year on year in each of the last three quarters and reached ₹655.16 crore in Q2 FY27, the highest level in the reported sequence. It was ₹605.61 crore in Q1 FY27 and ₹527.69 crore in Q2 FY26. The lowest quarterly revenue was ₹524.29 crore in Q1 FY26.

Net profit moved from ₹13.89 crore in Q2 FY26 to ₹30.85 crore in Q1 FY27 and ₹32.06 crore in Q2 FY27, showing a higher direction in the latest two quarters. It had reached ₹5,328.15 crore in Q1 FY26, the peak in the reported series, and bottomed at ₹7.10 crore in Q3 FY26. EBITDA margin was 11.5% in Q2 FY27, below 12.8% in Q1 FY27 but above 8.2% in Q2 FY26.

Which businesses drove the quarter?

Aerospace and defence reported revenue of ₹139.36 crore, up 72.0% from ₹81.04 crore in Q2 FY26. Its EBIT was ₹18.55 crore, compared with ₹7.24 crore a year ago, while the reported EBIT margin was 13.3%. In the investor presentation, management referred to this segment’s EBITDA as ₹29 crore and its EBITDA margin as 21% for Q2 FY27.

Precision technology and auto component reported revenue of ₹470.61 crore and EBIT of ₹40.30 crore, with an EBIT margin of 8.6%. The investor presentation stated that segment revenue was ₹471 crore, up 15% from ₹409 crore in Q2 FY26, while EBITDA was ₹61 crore and the margin was 13%. The other segment reported revenue of ₹45.59 crore, EBIT of a loss of ₹2.15 crore and an EBIT margin of -4.7%.

What else did the company announce?

The board approved Raymond’s unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review report. Price Waterhouse’s review conclusion was unmodified, and the report stated that nothing came to its attention indicating material misstatement of the consolidated interim results.

The same-day investor presentation was filed with BSE on 27 October 2026. It reported Q2 FY27 total income growth of 21%, EBITDA growth of 30%, and H1 FY27 EBITDA growth of 22%. The supplied filings did not announce a dividend, fund raise or appointment on 27 October 2026.

What did Raymond's management say?

Management said the Andhra programme requires about ₹400 crore of investment by launch and a total commitment of ₹1,000 crore over five years. Brownfield production is expected in FY27, while greenfield output is targeted for Q3 FY28. Management also said the automotive aftermarket was launched in August with nearly 800 part numbers, and long-term ROCE is targeted at 20–25%.

Management identified elevated commodity, tool, raw-material and freight costs as headwinds. It also noted that geopolitical and shipping disruptions can delay exports and imported inputs, new Andhra facilities need customer, part and site approvals before ramp-up, safety stock and imported specialty alloys create working-capital pressure, and rapid aerospace growth may require elevated R&D write-offs that dilute margins. Aerospace and automotive customer approvals typically take 3–6 months and 3–9 months, respectively.

How did Raymond shares react?

After the filing appeared after market, Raymond’s shares moved 3.5% in five minutes, 2.1% in 15 minutes and 1.6% in 30 minutes from the price when the filing appeared. On the reaction day, the stock fell 3.9% from its previous close, against a 0.2% median move for other Industrial Products stocks.

By the next day’s close, the stock was up 1.8% from its pre-results close, compared with a 0.5% industry median. By the fifth session’s close, it was up 5.4%, while the industry median was up 1.6%. The stock’s reaction-day excess return against the industry was -4.1 percentage points, rising to 1.3 percentage points by the next day and 3.8 percentage points by day five. Earlier results-day moves included gains of 1.8% on 7 August 2026 and 5.2% on 27 January 2026.

How did other Industrial Products companies do?

A total of 38 other Industrial Products companies were compared. Their median revenue growth was 35.8%, compared with Raymond’s 24.2% consolidated revenue growth in Q2 FY27. Sixteen peers grew more slowly than Raymond, while 22 grew faster; Raymond itself was not included in those counts.

Among the 32 peers for which profit was compared, 23 reported higher profit. The peer comparison was recorded as of 4 November 2026, two Industrial Products companies were not included in the profit comparison, and no separate median profit growth figure was provided.