Raymond Ltd Q4 FY26: Aerospace Dreams and Engineering Reality — 802% EPS Spike Shakes The Boardroom

The suiting giant has shed its skin. If you still think of the “Complete Man” in a tuxedo when you hear this name, you’re living in the past. The latest financial data for the year ending March 31, 2026, reveals a company that has surgically removed its lifestyle and real estate limbs to become a high-precision engineering predator. With an annualised EPS reflecting a massive restructuring and a net profit that looks like a rollercoaster on steroids, the market is scrambling to price a business that now builds parts for Boeing instead of blazers for weddings.

1. At a Glance

The numbers coming out of this legacy powerhouse are enough to give a traditional accountant a mild heart attack. We are looking at a company where the “Net Profit” line for the quarter is a mere ₹12 crore, yet the annualised EPS sits at a staggering ₹802. How? Because this isn’t just a business; it’s a masterclass in corporate deconstruction.

The investors who stayed for the fabric are gone; the ones who stayed for the engineering are staring at a Stock P/E of 11.8 while the industry median sits comfortably at 26.9. Why the discount? Perhaps because the “Other Income” for the year was a mind-numbing ₹5,206 crore, mostly consisting of gains from dumping… sorry, “demerging” their lifestyle and realty businesses.

While the headline sales growth of 13.6% looks decent, the underlying drama is in the margins. The Aerospace & Defense segment is pulling in 25.5% EBITDA margins, acting as the high-octane fuel for an otherwise heavy engineering machine. But don’t let the shiny jet engines distract you from the ₹1,055 crore in debt still sitting on the books and a ROCE of 3.95% that is, frankly, embarrassing for a company of this pedigree.

The “Complete Man” is currently in the ICU undergoing a radical transplant. The lifestyle business? Gone. The real estate business? Listed separately. What’s left is a precision engineering play that owns 60% of the Indian steel files market and supplies the LEAP engines that keep global aviation in the air. It’s a bold bet on “Make in India,” but with a -96.4% profit growth (adjusted for the massive one-offs), the transition is anything but smooth. Are you looking at a deep-value engineering gem or a legacy brand struggling to find its soul after losing its clothes?

2. Introduction

Raymond Ltd is no longer the company your father bought his wedding suit from. Founded in 1925, it spent nearly a century as a textile kingpin. However, FY24 and FY25 marked the “Great Divorce.” The company executed a vertical demerger of its Lifestyle business (Branded Textiles & Apparel) and its Real Estate arm (Raymond Realty).

Today, the “New Raymond” (Raymond 2.0) is effectively an engineering and auto-component holding company with a serious crush on Aerospace. Following the acquisition of a 59.25% stake in Maini Precision Products Limited (MPPL) for ₹682 crore, the group has restructured into two distinct engineering powerhouses:

• JK Maini Global Aerospace Ltd (JKMGAL): The sexy, high-margin aerospace and defense wing.
• JK Maini Precision Technology Ltd (JKMPTL): The workhorse dealing in auto components, ring gears, and the world-famous steel files.

This is a complete pivot. The company has moved from retail stores in 600 towns to manufacturing locations in 17 sites, exporting to 55+ countries. They are the preferred suppliers to the “Big 3” global aircraft engine manufacturers. If you’re investing here, you’re betting on the fact that machines are more profitable than men’s fashion.

3. Business Model – WTF Do They Even Do?

Imagine a guy who spent 90 years selling premium wool and suddenly decides he’s an expert in 5-axis grinding and vacuum brazing. That’s Raymond’s current vibe.

The Engineering Alpha: Aerospace & Defense

They manufacture 1,300+ precision aero-engine parts. If a Boeing 737 MAX is flying, there’s a high chance Raymond’s parts are inside the LEAP-1B engines. They have a 90% export share in this segment. This is the “moat” — you don’t just “start” making engine parts for Airbus; the certifications alone take years.

The Bread and Butter: Auto & Tools

They are the #1 player in India for Steel Files (60%+ market share) and Ring Gears (55% in PVs). They also make Flex Plates, where they are the sole domestic manufacturer. This is the volume game. It’s less glamorous than aerospace but pays the electricity bills.

The Leftovers: Denim & FMCG

They still have a JV in the denim business (Raymond UCO Denim) and a presence in FMCG through Raymond Consumer Care. But let’s be real — these are just side quests now. The main mission is becoming a global engineering Tier-1 supplier.

4. Financials Overview

The latest quarter (Q4 FY26) shows a company in deep transition. The revenue is growing, but the bottom line is messy due to demerger accounting and exceptional items.

Note: The Annualised EPS for Mar 2026 reflects the full-year consolidation and the massive accounting impact of the demergers.

Management “Walk the Talk” Audit:

In the Feb 2026 Concall, management promised a shift towards higher-value projects. Looking at the Aerospace margin of 25.5% in Q4, they are hitting the targets.