Revenue grew +8.18% QoQ, but operating margin fell 1.27 points
Expenses rose +9.76%, faster than revenue, while other income contributed 67.33% of pre-tax profit.
Filed 27 Oct 2026, 16:01 IST · after market close · Raymond Ltd (RAYMOND)
Key takeaways
- Consolidated revenue grew +8.18% QoQ, but operating profit fell -2.57% as expenses rose +9.76%.
- Operating margin declined 1.27 percentage points to 11.49%, but remained 0.23 percentage points above the 11.26% Industrials peer median.
- Other income contributed 67.33% of pre-tax profit, helping net profit rise +3.92% despite the operating-profit decline.
Price around the results
Revenue growth did not translate into operating-profit growth
Raymond’s consolidated revenue rose +8.18% QoQ to Rs 655.16 cr, but operating profit fell -2.57% to Rs 75.31 cr. Expenses increased +9.76%, faster than revenue, which reduced operating margin by 1.27 percentage points to 11.49%.
Other income supported reported profit quality
Other income rose +29.41% QoQ to Rs 28.73 cr and accounted for 67.33% of pre-tax profit, making it a significant support to reported earnings. Interest expense also increased +6.66%, while the tax rate fell 0.49 percentage points to 24.87%. As a result, net profit rose +3.92% to Rs 32.06 cr even as operating profit declined.
Margin stayed just above the Industrials peer median
Raymond’s 11.49% operating margin was 0.23 percentage points above the 11.26% median for the 32 Industrials peers that had reported. Sequentially, margin moved down from 12.76% in Q1FY27, marking a clear deterioration in quarterly operating leverage.
Management pointed to expansion and aerospace cost pressure
Management said it has committed approximately Rs 1,000 cr to capacity investment and expects the Andhra Pradesh expansion to begin commercial production in late 2027. The company said the facility is intended to support rapid post-launch scale-up, while its presentation flagged commodity inflation, logistics costs, material consumption, ramp-up rejections and R&D spending as pressures on aerospace margins. Management also said a flagship aircraft-localisation programme had secured 135 part awards and that the automotive aftermarket rollout includes water-pump assemblies.
Results were filed after market close
Raymond filed these consolidated results after market close on 27 October 2026. The market response therefore belongs to the next trading session rather than the filing session.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹655 cr | ₹606 cr | +8.18% |
| Other income | ₹29 cr | ₹22 cr | +29.41% |
| Expenses | ₹580 cr | ₹528 cr | +9.76% |
| Operating profit | ₹75 cr | ₹77 cr | -2.57% |
| Operating margin (%) | 11.49% | 12.76% | — |
| Interest | ₹22 cr | ₹20 cr | +6.66% |
| Depreciation | ₹40 cr | ₹38 cr | +4.88% |
| Profit before tax | ₹43 cr | ₹41 cr | +3.24% |
| Tax | ₹11 cr | ₹10 cr | +1.24% |
| Net profit | ₹32 cr | ₹31 cr | +3.92% |
| EPS (₹) | ₹3.36 | ₹3.15 | +6.67% |
Operating margin of 11.49% compares with a Industrials sector median of 11.26% across 32 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects the Andhra Pradesh expansion to begin commercial production in late 2027.
Expansion
- The company has committed approximately ₹1,000 crore to capacity investment.
New orders
- A flagship aircraft localization programme secured 135 total part awards.
New products
- The automotive aftermarket rollout includes a strategic entry into water pump assemblies.
New initiatives
- The Andhra Pradesh training and production facility is intended to enable rapid post-launch scale-up.
Problems & risks
- Aerospace margins faced commodity inflation, higher logistics costs, material consumption, ramp-up rejections and R&D expenses.
- The aerospace business continues to face supply chain and raw material headwinds.
What to watch
- Whether operating margin moves above or below 11.49% next quarter.
- Whether expenses continue to grow faster than revenue after rising +9.76% versus revenue growth of +8.18% QoQ.
- Updates on the Rs 1,000 cr capacity investment and the stated late-2027 Andhra Pradesh commercial-production timeline.