Raymond Limited Q3FY26 Concall Decoded: Aerospace rockets 49%, while the “suit company” quietly builds a jet-engine empire
1. Opening Hook
Remember when Raymond was just the brand that sold expensive wedding suits and those legendary “Complete Man” ads?
Well, somewhere between tailoring jackets and spinning yarn, the company quietly decided that building aerospace engine components sounded more exciting than stitching trousers.
While investors were busy debating textile margins and real-estate spin-offs, Raymond went and bought itself an aerospace and precision engineering business that now supplies parts to global aircraft engines.
Turns out, the “complete man” now apparently builds jet engines too.
In Q3FY26, Raymond’s engineering arm delivered 49% growth in aerospace revenue, riding the global aviation recovery and the China-Plus-One supply chain shift.
And the company insists this is just the beginning — with new contracts, expanding capacity, and a massive Andhra Pradesh manufacturing bet underway.
If Raymond’s aviation dreams actually take off, investors may soon realize this is less about suits and more about jet engines. And trust me, the interesting bits are coming up.
2. At a Glance
Revenue up 18% YoY – Engineering division flexing muscles while the textile heritage politely watches.
EBITDA up 28% YoY – Operating leverage finally showed up to work.
EBITDA margin at 14.3% – Margins rising slowly, like aircraft altitude after takeoff.
Aerospace revenue up 49% – Turns out jet engines grow faster than wedding suits.
Auto & precision revenue up 15% – The quieter sibling quietly printing cash.
Net cash ₹214 crore – Debt-free balance sheet, CFO sleeping peacefully at night.
3. Management’s Key Commentary
“India’s GDP growth is estimated at 7.3%, driven by strong consumption and industrial activity.” (Translation: Macro slide mandatory in every earnings call. Yes, the economy is doing fine. Now back to our business.)
“Our aerospace business reported revenue of ₹105 crore with 49% YoY growth.” (Translation: Jet engines are the real hero of this call. The suit business didn’t get this level of excitement.)
“Precision Technology & Auto Components revenue grew 15% YoY with strong margin expansion.” (Translation: Auto business finally found operating leverage and decided to behave like a proper industrial company.)
“We remain a debt-free business with net cash of ₹214 crore.” (Translation: Balance sheet clean enough that even conservative investors might relax.)
“The RFQ pipeline in aerospace is increasing significantly.” (Translation: Global OEMs are suddenly very interested in Indian suppliers. China-Plus-One doing its magic.)
“We are developing more than one new aerospace part every day.” (Translation: Low-volume, high-mix business. Basically hundreds of tiny parts adding up to big revenue.)
“Over time aerospace margins could move to 23-25%.” (Translation: Management is dreaming of aerospace-grade profitability. Investors now dreaming too.)
4. Numbers Decoded
Source table
Segment
Q3FY26 Revenue
YoY Growth
EBITDA
EBITDA Margin
Aerospace & Defense
₹105 Cr
+49%
₹19 Cr
18.6%
Precision Tech & Auto
₹417 Cr
+15%
₹57 Cr
13.7%
Total Engineering Revenue
₹580 Cr
+18%
₹83 Cr
14.3%
Key takeaways
Aerospace is still smaller but growing like a startup.
Auto components remain the revenue engine for now.
Margins improving as integration synergies kick in.
5. Analyst Questions
Aerospace IPO vs stake sale Analysts asked why the aerospace business wasn’t listed separately during the bull market. Management said they preferred partnering with Raymond to scale
