Raymond Limited aerospace revenue rises 56% in H1 FY27

Raymond Limited reported aerospace and defence revenue growth of 56% to Rs 262 crore in the first half of fiscal 2027 (H1 FY27), while Precision Tech & Auto Components expanded its earnings before interest, tax, depreciation and amortisation (EBITDA) margin by 110 basis points to 13.4%. The two segments helped consolidated total income rise 17% to Rs 1,311 crore.

How fast did Raymond's aerospace and defence business grow?

Raymond's Aerospace & Defence business grew revenue 56% year on year to Rs 262 crore in H1 FY27, exceeding the 13% growth recorded by Precision Tech & Auto Components. Aerospace EBITDA increased 46% to Rs 55 crore from Rs 38 crore, although its EBITDA margin declined to 21.1% from 22.4%, a reduction of about 130 basis points.

The first-half performance followed a faster second-quarter fiscal 2027 (Q2 FY27) expansion. Aerospace revenue rose 72% year on year to an all-time high of Rs 139 crore in Q2 FY27, compared with Rs 81 crore in Q2 FY26. Q2 EBITDA also rose 72% to Rs 29 crore from Rs 17 crore, keeping the segment's EBITDA margin unchanged at 21.0%.

Management attributed H1 aerospace growth to production scaling and operational execution. It attributed the H1 margin decline to research and development investment, inflation, logistics and material costs, as well as ramp-up headwinds. The business added Rs 94 crore of revenue year on year in H1 FY27, while EBITDA rose by Rs 17 crore.

What changed in Raymond's precision-tech profitability?

Raymond's Precision Tech & Auto Components EBITDA margin rose to 13.4% in H1 FY27 from 12.3% in H1 FY26, an improvement of about 110 basis points. Segment EBITDA grew 24% to Rs 122 crore, outpacing revenue growth of 13% to Rs 915 crore, which management linked to volume growth, product mix, operating leverage and cost-reduction initiatives.

This differed from Q2 FY27, when Precision Tech & Auto Components revenue rose 15% to Rs 471 crore but EBITDA increased 8% to Rs 61 crore. Its quarterly EBITDA margin declined by about 90 basis points to 13.0%, from 13.9% in Q2 FY26. The first-half margin expansion therefore reflects the combined H1 result rather than a margin improvement in the second quarter alone.

Precision Tech & Auto Components remained the larger segment by revenue, generating Rs 915 crore in H1 FY27 versus Rs 262 crore for Aerospace & Defence. Its EBITDA of Rs 122 crore was also more than double aerospace EBITDA of Rs 55 crore, despite aerospace holding the higher segment margin of 21.1% versus 13.4%.

How did the segment results affect Raymond's engineering earnings?

Raymond's consolidated engineering total income increased 17% to Rs 1,311 crore in H1 FY27, while EBITDA rose 22% to Rs 203 crore. Consolidated EBITDA margin consequently increased to 15.5% from 14.9%, a gain of about 60 basis points, combining a 110-basis-point improvement in precision technology with a 130-basis-point contraction in aerospace.

Profit before tax (PBT) rose 69% to Rs 84 crore in H1 FY27 from Rs 50 crore a year earlier. The PBT margin increased to 6.4% from 4.4%, an expansion of about 200 basis points. The presentation described the increase as a result of operating leverage, while reporting that segment-level aerospace costs included investment and ramp-up factors.

The second-quarter figures showed a similar earnings pattern at the consolidated level. Q2 FY27 total income rose 21% to Rs 683 crore, EBITDA increased 30% to Rs 103 crore and EBITDA margin expanded to 15.1% from 14.1%. PBT rose to Rs 42 crore from Rs 19 crore, lifting PBT margin by about 270 basis points to 6.1%.

What does Raymond disclose about funding and operating drivers?

Raymond reported a net cash surplus of Rs 77 crore as of September 2026. The presentation says this surplus supports disciplined growth investments, while the aerospace business was simultaneously managing research and development, logistics, materials and production-ramp requirements during H1 FY27.

Management cited sustained export ramp-up, capacity utilisation and expanding customer wallet share as drivers of the 13% H1 FY27 revenue increase in Precision Tech & Auto Components. In aerospace, management cited market demand and scaled execution for the 72% Q2 FY27 revenue increase to Rs 139 crore. These stated drivers distinguish the two businesses: aerospace delivered the faster sales increase, while precision technology delivered the larger absolute revenue and EBITDA contribution.

The margin profile also differs by segment. Aerospace's 21.1% H1 FY27 EBITDA margin was 7.7 percentage points above Precision Tech & Auto Components' 13.4%, but it declined from 22.4% in H1 FY26. Precision Tech & Auto Components improved from 12.3%, meaning the consolidated 15.5% margin increase was supported by a more profitable first half in the larger revenue segment.

Conclusion

Raymond's H1 FY27 engineering results combined a 56% rise in Aerospace & Defence revenue to Rs 262 crore with a 24% increase in Precision Tech & Auto Components EBITDA to Rs 122 crore. Aerospace remained the higher-margin operation at 21.1%, but its margin fell by about 130 basis points, whereas the larger precision business expanded margin by about 110 basis points to 13.4%.

The next disclosed issue to watch is whether aerospace production scaling can offset the research and development, logistics, material and ramp-up headwinds that affected its H1 FY27 margin. Raymond also reported Rs 77 crore of net cash as of September 2026, while management identified export ramp-up, capacity utilisation, product mix and cost-reduction measures as factors behind Precision Tech & Auto Components' H1 performance.