Raymond Q1 FY27 Results (NSE: RAYMOND)
Signal: Margin expansion
The read
The operating trajectory improved materially, with consolidated revenue up 15.5% YoY to ₹605.61 crore, gross margin up 450bps to 69.2% and EBITDA margin at 16.5% versus 10.0% a year ago, led by aerospace and defence growth of 40.5%; however, PAT of ₹20.99 crore is not a clean measure of recurring earnings because Q1FY26 contained ₹530.753 crore of discontinued realty profit and current PBT included other income equal to 54%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6.06 Cr | +15.5% | +0.5% |
| EBIT | ₹0.62 Cr | N/A | |
| Net profit | ₹0.21 Cr | -99.6% | |
| EPS | ₹3.15 | -99.6% | |
| EBIT margin | 16.5% |
P&L walk
Consolidated revenue rose to ₹605.61 crore, operating margin improved to 16.5%, and finance costs fell sequentially, but PAT of ₹20.99 crore remains heavily affected by the prior-year discontinued-operations base and other income equal to 54% of PBT.
Segments
Aerospace and defence was the fastest-growing unit, with revenue up 40.5% YoY to 12,273 lakh and result up 40.2% to 1,562 lakh; precision technology and auto components remained the largest contributor at 44,391 lakh revenue and 4,173 lakh result, while Others remained loss-making at -235 lakh.
Key positives
- Consolidated revenue reached ₹605.61 crore, up 15.5% YoY, with aerospace and defence revenue increasing 40.5% YoY to 12,273 lakh.
- Gross margin expanded 450bps YoY to 69.2% as raw-material cost declined 450bps to 30.8% of revenue; the filing does not disclose the driver.
- EBITDA margin improved to 16.5% from 10.0% in Q1FY26 and 12.0% in Q4FY26, marking the fourth consecutive quarter of YoY margin expansion in the prior-results series.
- Precision technology and auto component result increased 83.0% YoY to 4,173 lakh, while aerospace and defence result increased 40.2% to 1,562 lakh.
Key concerns
- Current-quarter PAT of ₹20.99 crore is not comparable with Q1FY26 PAT of ₹532.8 crore because the prior period included ₹530.753 crore of discontinued realty profit.
- Other income of ₹22.49 crore represented 54% of consolidated PBT, reducing the quality of reported earnings.
- Others segment remained loss-making at -235 lakh versus -145 lakh YoY, and aerospace and defence result declined 25.0% sequentially despite 40.5% YoY revenue growth.
- Standalone revenue was only ₹0.8 crore while standalone other income was ₹23.29 crore, underscoring the material divergence between parent-level and group earnings.
Earnings quality: includes non-operating other income
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