Raymond Q4 FY26: Profit drops, revenue rises 8%

Key takeaway from Raymond’s March-quarter print

Raymond Ltd reported a mixed set of numbers for the quarter ended March 31, 2026 (Q4 FY26), with revenue rising year-on-year but profitability falling sharply. The quarter reflected higher costs and a hit from exceptional items, which weighed on reported net profit even as the company posted sequential improvement from the December quarter. The company operates in aerospace and defence, precision technology, and auto components, and highlighted these segments as the anchors for its FY26 performance. The results also showed a softer operating margin compared with recent quarters. In its exchange filing, Raymond attributed the year’s resilience to steady momentum in core segments.

Q4 FY26 revenue rises, but margins soften

Consolidated revenue from continuing operations in Q4 FY26 stood at ₹602.91 crore, up from ₹557.46 crore in the same quarter last year. A separate performance snapshot in the provided data also puts revenue from operations at ₹603 crore versus ₹557 crore, implying an 8% year-on-year increase. Sequentially, the topline was reported up 8% from ₹557 crore in Q3 FY26 to ₹603 crore in Q4 FY26. Despite growth in the top line, the company’s operating profitability moderated. Raymond reported EBITDA of ₹85 crore in Q4 FY26, which was 14% lower than ₹99 crore a year ago.

Net profit declines; exceptional items and costs in focus

Raymond reported a 53% decline in consolidated net profit from continuing operations to ₹11.93 crore in Q4 FY26, compared with ₹25.42 crore in Q4 FY25. The company said profitability was impacted by an exceptional item outgo of ₹20.03 crore during the quarter. Another data point in the provided text states consolidated net profit at ₹12 crore versus ₹137 crore a year ago, implying a 91% fall, indicating that different reports or bases (such as continuing operations, consolidation scope, or comparison period) may be in play. Separately, profit after tax (PAT) was reported to have risen 68% sequentially from ₹7 crore in Q3 FY26 to ₹12 crore in Q4 FY26. PAT attributable to the owners of the company was stated at ₹1.13 crore.

Expenses increased year-on-year in Q4 FY26

Total expenses in Q4 FY26 were reported at ₹587.14 crore, higher than ₹556.85 crore in Q4 FY25. The rise in expenses, combined with the exceptional item outgo, contributed to the year-on-year contraction in net profit from continuing operations. The cost line is especially relevant for a quarter where operating margin also weakened. With revenue rising modestly, the expense growth limited operating leverage in the period.

EBITDA and margin: where the quarter weakened

EBITDA margin declined to 13.9% in Q4 FY26. This compared with 14.3% in Q3 FY26 and 16.4% in Q2 FY25, as per the data provided. Alongside the reported EBITDA of ₹85 crore, the margin decline signalled weaker operating efficiency compared with earlier quarters. The year-on-year drop in EBITDA from ₹99 crore to ₹85 crore in the March quarter further underlined the compression.

FY26 performance: revenue growth, flat EBITDA

For the full year FY26, the company’s total income was reported at ₹2,312 crore, up 9.8% from ₹2,105 crore in FY25. Annual EBITDA was stated to be flat at ₹335 crore in FY26, the same as FY25. While EBITDA stayed constant, the EBITDA margin was reported at 14.5% in FY26 versus 15.9% in FY25, pointing to margin compression. The company said margins were impacted by lower non-operating income, while it described the core business as fundamentally robust.

FY26 continuing operations: profit edges up

On a continuing-operations basis, Raymond reported consolidated net profit of ₹53.54 crore in FY26 versus ₹52.02 crore in FY25. Consolidated revenue from continuing operations was reported at ₹2,212.1 crore in FY26 compared with ₹1,946.84 crore in FY25. These figures reflect growth in the revenue base over the year, while net profit from continuing operations rose marginally.

What management said about segment drivers

Raymond said the FY26 performance was anchored by its aerospace and defence, and precision technology and auto components divisions. It also noted healthy export growth of critical components for the hybrid sector within the precision technology and auto components division. Chairman and Managing Director Gautam Hari Singhania said FY26 saw healthy growth across core aerospace, defence, and precision technology segments, with resilience even through the final quarter. The segment commentary suggests the company is leaning on specialised manufacturing and export-linked demand to sustain momentum.

Key numbers at a glance

Market impact and why these results matter

The Q4 FY26 print underscores the sensitivity of reported profits to one-offs and cost movements, even when revenue grows. A 53% decline in net profit from continuing operations, alongside a rise in expenses and lower EBITDA, highlights why investors often track operating margin and exceptional items closely. At the same time, the sequential improvement in PAT from ₹7 crore to ₹12 crore suggests the quarter was stronger than the immediately preceding one on that specific measure. For FY26, the contrast between revenue growth and flat EBITDA points to a year where scale improved but profitability did not expand in line, with margin compression evident in the annual EBITDA margin moving to 14.5% from 15.9%.

Conclusion

Raymond’s Q4 FY26 results showed 8% revenue growth but weaker profitability, with net profit from continuing operations down sharply and EBITDA and margins lower than earlier periods. For FY26, the company reported higher revenue, flat EBITDA, and a softer margin profile. Management reiterated that aerospace and defence and precision technology-related businesses supported performance through the year. Investors are likely to monitor how costs, operating margin, and any further exceptional items evolve alongside the company’s export-linked momentum in precision components.