Rajoo Engineers Ltd Q2FY26 – The Gujarati Machinery Maverick That’s Extruding Profits Like Hot Plastic
1. At a Glance
Once a quiet Rajkot-based machinery maker, Rajoo Engineers Ltd is now the poster child for how to build world-class engineering out of small-town Gujarat grit. From manufacturing basic plastic extrusion lines in the 1980s to exporting to 70+ countries, Rajoo’s journey has more layers than its multilayer film machines.
Q2FY26 results confirm that this isn’t your average smallcap — it’s a machine that prints profits faster than it extrudes plastic. Revenue clocked ₹92.2 crore (+62.4% YoY), PAT at ₹14.2 crore (+78.8% YoY), and an OPM of 20% that would make even premium engineering firms jealous.
At ₹88.8 per share, Rajoo trades at a P/E of 29.4x, with ROE of 26.1% and ROCE of 32.6% — the kind of numbers that scream efficiency. Market cap stands at ₹1,587 crore, debt is barely ₹17.7 crore, and the company’s interest coverage ratio of 49x means even the RBI’s repo hikes won’t wake it up at night.
And the cherry on top? A fresh ₹160 crore QIP, a 60% stake acquisition in Kohli Printing, and a 40% capacity boost at their Rajkot factory. Rajoo is on a roll — literally and financially.
2. Introduction – From Rajkot to the World, One Plastic Sheet at a Time
If India’s manufacturing story had a middle-class hero, it would be Rajoo Engineers. Founded in 1986 by C.N. Doshi and R.N. Doshi, this company quietly became a global name in plastic extrusion machinery — the kind of machines that produce the packaging films for your Maggi noodles, milk packets, and chips.
When others were busy talking “Make in India,” Rajoo was already making for the world. Today, 46% of its revenue comes from exports, down from 61% in FY20 — not because exports fell, but because domestic demand exploded.
From Reliance Industries to Uflex, Rajoo’s clientele list reads like the who’s who of packaging. The company has 5,000+ installations across continents, proving that Indian engineering can compete head-on with European precision.
Now, with the global plastics market shifting towards recyclability, Rajoo’s machines — which allow high-quality, thin-gauge, multilayer films — are seeing rising demand. Think of them as the “EVs” of packaging equipment — greener, faster, and smarter.
So yes, while tech bros are coding in WeWork, this Rajkot firm is building billion-rupee machines in grease and grit.
3. Business Model – WTF Do They Even Do?
Let’s decode the machinery mayhem. Rajoo isn’t selling plastic; it sells the machines that make plastic products.
Segments:
1️ Blown Film Lines (Core Business) – Machines that make multilayer plastic films used for packaging everything from food to fertilizers. 2️ Sheet Lines – Used to produce plastic sheets for thermoforming (think disposable plates, packaging trays, etc.). 3️ Thermoforming & PS Foam Machines – Create shaped plastic containers; popular among FMCG companies. 4️ Extrusion Coating & Lamination Lines – Used for high-speed lamination of plastic films and papers. 5️ PVC & WPC Segment – Produces extrusion machines for pipes and wood-plastic composites. 6️ Cross Lamination Film Line – A niche but high-margin product.
The company makes 26+ machine variants across 6 segments, and each one can be customized — a favorite among Indian clients who treat “standard specifications” as flexible suggestions.
Revenue Mix FY24:
Domestic: 54%
Exports: 46%
The shift to domestic shows rising Indian demand for plastic film lines, especially from FMCG, agriculture, and packaging sectors.
Repeat customers contribute ~60% of annual business. When your clients come back voluntarily, you’re not selling — you’re satisfying.
4. Financials Overview
Metric
Latest Qtr (Q2 FY26)
Same Qtr Last Year
Previous Qtr (Q1 FY26)
YoY %
QoQ %
Revenue (₹ Cr)
92.2
57
85
+62.4%
+8.4%
EBITDA (₹ Cr)
18
9
19
+100%
-5.3%
PAT (₹ Cr)
14.2
7.9
15
+78.8%
-5.3%
EPS (₹)
0.79
0.48
0.92
+64%
-14%
Annualized EPS: ₹3.16 P/E: 28–30x range
Commentary: The company’s financials look like a smooth extrusion line — steady, hot, and consistently producing profits. YoY growth above 60% is a stunner, and even with some sequential flattening, margins remain fat.
5. Valuation Discussion – Fair Value Range (Educational Only)
