RAYMOND Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹606 Cr
verified against source
Revenue YoY
13%
reported change
EBITDA
₹100 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Raymond Limited delivered a solid Q1 FY27 with total income of 628 crores, up 13% YoY, driven by robust aerospace and precision technology performance. EBITDA grew 14.9% to 100 crores with margin expansion of 20bps to 15.9%. The aerospace segment was the standout, posting 40.4% revenue growth to 123 crores, though margins compressed to 21.2% (vs 23.7% YoY) due to R&D write-offs for new program development. Precision technology and auto components posted 11.5% revenue growth to 444 crores with strong 320bps margin expansion to 13.8%, driven by export ramp-up and operating leverage. The company maintains a 10-year order book of 5,960 crores with RFQ pipeline of 1,632 crores. The net debt-free balance sheet (net cash surplus of 129 crores) and Andhra Pradesh greenfield facility on track for late-2027 provide growth visibility. Key risks include customer concentration (top 3 at 40-45%), input cost inflation (logistics, tools, wages), and capacity constraints pending the new facility. Q2 aftermarket business launch and defense segment strategy expected next quarter.
Colored figures show movement against the previous available record.
Guidance to track
- Management committed to 25% YoY growth in aerospace segment for FY27, having already exceeded this in Q1 at 40.4%. This forms the baseline organic growth target.
- Target EBITDA margin for aerospace business at steady state is ~25%, compared to current 21.2%. Margins will stabilize as newly developed programs transition into production.
- Management targets ~12-13% EBITDA margin for precision manufacturing business in the near term, with potential upside as product mix improves.
- Greenfield facility near Bangalore airport on track with commercial production targeted for late 2027, preceded by 6-month customer approval processes.
Risks flagged
- Top 3 customers account for 40-45% of aerospace order book. Management acknowledged concentration risk and is working to diversify to 8-10 high-value customers to reduce dependency.
- Logistics costs, carbide/HSS tool costs, and minimum wage increases are creating margin pressure. Management is in discussions with customers for cost pass-through and attempting efficiency gains to offset.
- Existing facility running near full utilization at ~600 crores estimated capacity. Growth may plateau until Andhra Pradesh greenfield comes online in FY28, though management is implementing 'Prayatan' efficiency improvements.
- Industry-wide aerospace supply chain bottlenecks for casting and forging components affecting global suppliers. Management indicated lower exposure but acknowledged risk as business migrates to more critical components.
Key quotes
- The aerospace business for us is a daily growth business because we are getting RFQs on a daily basis. We are making new product developments on a daily basis. We are ramping up on a daily basis. This is an active pipeline as of a recent number.
- Aerospace is a long-term game. You're not working today for tomorrow. You're working today for the next 5 years. We are working in parallel with everything that we need to do to create value in the new expansion.
- 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 auto it is somewhere between 2 to 2.5.
Research modules