RAYMOND Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹557 Cr
verified against source
Revenue YoY
18%
reported change
EBITDA
₹83 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Raymond Limited delivered a robust Q3 FY26 with total income of 580 crores, up 18% YoY, driven by strong performance in aerospace (JKMDA: 105 crores, +48.9% YoY) and precision technology & auto components (JKMPL: 417 crores, +14.9% YoY). EBITDA grew 27.7% to 83 crores with margin expansion of 100bps YoY to 14.3%, though management noted margin pressure from NPD write-offs and new product ramp-ups in aerospace. The company remains debt-free with net cash of 214 crores. Aerospace margins face temporary headwinds from development spending but management targets 23-25% long-term margins in aerospace and 15%+ in auto precision. The order book stands at 2.5x annual revenue with robust RFQ pipeline. Key risks include US tariff uncertainties creating scheduling delays, raw material inflation (Inconel), and the long 5-10 year timeline for new aerospace contracts to monetize. Management guided for continued momentum in Q4 FY26 with strategic supplier agreements and capacity expansion in Andhra Pradesh (500 crores aerospace, 430 crores auto capex over 5 years).
Colored figures show movement against the previous available record.
Guidance to track
- Long-term EBITDA margin target for aerospace segment driven by efficiencies, synergies, and operating leverage as new products mature and scale.
- Management targets sustained margin expansion beyond 15% in precision technology and auto components, up from current 13.7% in Q3 FY26.
- 100 crore per year for aerospace and 100 crore per year for auto precision, combining capacity expansion, capability enhancement, and maintenance capex over the next several years.
- 500 crore for aerospace and 430 crore for auto precision segments in Andhra Pradesh facility, creating cost advantages and strategic positioning.
Risks flagged
- Global trade pressures from US tariffs have introduced logistical complexities and temporary scheduling delays across the aerospace industry, affecting near-term outlook.
- While material costs are pass-through per customer contracts, inflationary pressures in key materials like Inconel persist due to geopolitical tensions, though localization efforts may reduce costs over 2-year horizon.
- Analyst repeatedly pressed management on value unlocking timelines. Management deflected, citing need for business stabilization, tariff clarity, and Andra cost benefits realization before any IPO consideration—vague response on specific milestones.
- New product development write-offs are suppressing aerospace EBITDA margins despite strong revenue growth, as the company invests heavily in developing parts for new engine programs.
Key quotes
- We are hardly 0.1 to 0.3% of that engine. So that gives us massive potential. We are a very small part of that engine.
- In aerospace, we're growing at a very fast pace and we're doing a lot of new product development. So there is no percentage margin expansion but the betas are increasing significantly simply because we're growing the top line very high and we write off all development work done on these new products.
- Boeing is back and they are producing at very high levels. I think the trend is very good although we've still not reached pre-COVID levels which means the potential is even higher.
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