Raymond Limited – Investor Presentation Summary

Key Operational Highlights

  • 17 state-of-the-art manufacturing facilities with 2,000+ advanced machines and 5,200+ workforce
  • 8,000+ SKUs in Precision Tech & Auto Components business
  • 1,300+ precision aero-engine parts developed with 350+ parts engineered for advanced LEAP engines
  • Active footprint across 90+ countries with 100+ large global customers and 25+ aerospace clients
  • 20+ year relationships with Tier-1 aerospace OEMs

Key drivers of operational performance: Strong market demand, scaled execution, expanded manufacturing capacity, and operational efficiencies

Segment-wise Performance

Precision Technology & Auto Components (JK Maini Precision Technology Ltd):

  • Q2 FY27 Revenue: ₹471 Cr (15% YoY growth)
  • Q2 FY27 EBITDA: ₹61 Cr (8% YoY growth)
  • Q2 FY27 EBITDA Margin: 13.0%
  • H1 FY27 Revenue: ₹915 Cr (13% YoY growth)
  • H1 FY27 EBITDA: ₹122 Cr (24% YoY growth)
  • H1 FY27 EBITDA Margin: 13.4%

Aerospace & Defence (JK Maini Global Aerospace Ltd):

  • Q2 FY27 Revenue: ₹139 Cr (72% YoY growth)
  • Q2 FY27 EBITDA: ₹29 Cr (72% YoY growth)
  • Q2 FY27 EBITDA Margin: 21.0%
  • H1 FY27 Revenue: ₹262 Cr (56% YoY growth)
  • H1 FY27 EBITDA: ₹55 Cr (46% YoY growth)
  • H1 FY27 EBITDA Margin: 21.1%

Explanation of significant changes in segment performance: Aerospace growth driven by strong market demand and scaled execution; Precision Technology growth driven by steady business momentum across precision technology, domestic market traction, and sustained export demand

Financial Highlights

Revenue: ₹683 Cr (Q2 FY27)

EBITDA: ₹103 Cr (Q2 FY27)

PAT: ₹32 Cr (Q2 FY27)

EBITDA Margin: 15.1% (Q2 FY27)

PBT Margin: 6.1% (Q2 FY27)

YoY/QoQ comparison:

  • Total Income Q2 FY27: ₹683 Cr vs ₹564 Cr in Q2 FY26 (21% growth)
  • EBITDA Q2 FY27: ₹103 Cr vs ₹79 Cr in Q2 FY26 (30% growth)
  • Net Profit Q2 FY27: ₹32 Cr vs ₹14 Cr in Q2 FY26 (131% growth)
  • H1 FY27 Total Income: ₹1,311 Cr vs ₹1,119 Cr in H1 FY26 (17% growth)
  • H1 FY27 EBITDA: ₹203 Cr vs ₹167 Cr in H1 FY26 (22% growth)
  • H1 FY27 Net Profit: ₹63 Cr vs ₹35 Cr in H1 FY26 (82% growth)

Drivers of financial performance: Volume ramp-up, targeted cost optimization initiatives, improved product mix, enhanced operating leverage, and disciplined cost reduction initiatives

Key Risks: Commodity price inflation, rising logistics costs, higher material consumption, ramp-up rejections, and R&D expenses

Geographical Revenue Split

Total Exports:

  • Auto Components & Precision Tech: >60%
  • Tools & Hardware: >40%
  • Aerospace: >80%

Domestic vs Export/Regional Revenue: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Net Cash Surplus ₹68 Cr (FY26)

Financial Health Insights: Zero non-core asset distraction, capital management bandwidth and cash flows dedicated to precision engineering compounding

Capex & Cash Flow Health

Capital Expenditure: ~₹1,000 Cr committed capacity investment

Investment Rationale: Focus on capacity expansion and technology upgrades for precision engineering compounding

Strategic & R&D Initiatives

Investments in Innovation: Andhra Pradesh Greenfield facility progressing on schedule for late 2027 commercial production; 30+ machines commissioned in brownfield facility with target start by Q3 FY27

Expected impact on growth: Expansion to scale national production capabilities and raise higher benchmarks in advanced technical precision

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through manufacturing synergies, optimized overheads, and diversified cash flow generation

Industry Trends & Business Environment

Macro/Industry Trends: India's Q2 FY27 GDP estimated at ~7.3%; IIP growth at 8.0%; Composite PMI at 56.5; Transport inflation at 4.6%; Retail inflation at 4.82% (Aug); Manufacturing output expanding by 9.0% YoY

Impact on Company: Heightened security risks and shipping disruptions sustain elevated maritime freight rates; volatile Brent Crude benchmarks expand merchandise import bill, squeezing manufacturing input margins; strategic input management essential to buffer operational margins

Management Commentary & Growth Outlook

Strategic Outlook: "Expansion of the Andhra facility is progressing well, remaining on track to begin commercial production in late 2027"; "Strong RFQ activity and our expanded manufacturing capacity positions us for seamless execution against a growing multi-year order book"

FY Guidance: Not Specified

Risks and Opportunities: Persistent supply chain and raw material headwinds; robust pipeline of RFQs and active engagements

ESG Updates

Sustainability initiatives mentioned but no specific details provided in the presentation