Raymond's aerospace arm has secured a significant multi-programme aerospace order that will transform its manufacturing capabilities and revenue potential. According to the latest regulatory filing dated September 11, the new programme spans precision machining, aerospace castings, structural components and complex assemblies, covering more than 300 part numbers across multiple aircraft applications with annual volumes exceeding 37,000 components. At expected production rates, this represents annual business potential of approximately ₹33 crore, with production commencing progressively across 2026 and 2027. Rakesh Tiwary, Group Chief Financial Officer, commented that "this order win sits squarely within the product mix optimisation we have identified as a core margin lever" and broadens the customer base into India's growing domestic aerospace ecosystem.
Raymond shares jumped 20% to hit an intraday and all-time high of ₹1,024.50 on Friday, September 11, marking the third consecutive trading session of gains as investors focused on strong sectoral tailwinds and the company's latest ₹215 crore fundraising move. The stock has delivered nearly 27% gains in the last three days, with trading volumes surpassing 14 million equity shares across NSE and BSE combined. The buying momentum comes after the company informed stock exchanges about a fundraise through a preferential issue of share warrants, with the stock starting its upward trend on Wednesday, September 9, immediately reacting to the announcement made after market hours on September 8. Shares closed 17.44% higher at ₹1,002.80 on Friday, with the scrip having soared 35% in the past week and 61% over the month, and rallying 136% year-to-date from its 52-week low of ₹320 on March 30, 2026.
According to the latest regulatory filing, Raymond will raise ₹214.71 crore through the preferential issue of 33.28 lakh convertible warrants to Minerva Ventures Fund. The warrants are priced at ₹645 each, including a premium of ₹635, with proceeds to be received in cash. Each warrant entitles the investor to subscribe to one equity share of Raymond at ₹645 per share. The company's board approved the fundraise at its meeting held on September 8, 2026, with the issue subject to approval from the company's members and other applicable regulatory approvals. The tenure of the warrants shall not exceed 18 months from the date of allotment, with each warrant carrying a right to subscribe to one equity share which may be exercised in one or more tranches. As per the exchange filing, unconverted warrants shall lapse upon expiry of 18 months, and the upfront consideration paid towards such warrants shall stand forfeited.
Raymond's Aerospace & Defence business reported robust performance in Q1 FY27, with revenue surging 40.4% to ₹123 crore from ₹87 crore in the year-ago quarter. According to the company's latest financial data, EBITDA rose 25.4% to ₹26 crore, with the segment delivering an EBITDA margin of 21.2%. The aerospace segment contributed around 19.6% of Raymond's consolidated total income of ₹628 crore during the quarter. The company's Q1 FY27 exchange presentation showed an aerospace order book of more than ₹5,960 crore, spread across a 10-year contract horizon. Raymond also has an active RFQ pipeline worth ₹1,632 crore, more than 2,000 active drawings and the capacity to introduce over 100 new engine SKUs annually. The aerospace platform manufactures more than 1,300 aero-engine components, including over 350 parts for the CFM LEAP engine family, and serves more than 25 aerospace customers.
Raymond has secured significant strategic partnerships to strengthen its aerospace presence. Maini Precision Products, part of Raymond's engineering platform, has signed a five-year memorandum of understanding and long-term agreement with Safran Aircraft Engines for machined assemblies used in CFM LEAP engine combustors. Additionally, Raymond has disclosed a long-term supply agreement with Pratt & Whitney for precision-machined and assembled aerospace components. The company's defence business is progressing from the qualification stage towards commercial production, with Raymond disclosing its maiden build-to-spec order from a leading defence-aerospace OEM for specialised onboard storage systems. Mass production of precision components has begun for another leading defence OEM, with the company appointing Bhanu Prakash Srivastava, former chairman and managing director of Bharat Electronics, as CEO–Defence to expand beyond precision manufacturing into defence electronics, software and systems integration.
The sharp rally comes after Raymond completed the demerger of its lifestyle and real estate businesses into independent listed entities, while its aerospace and defence business continues to scale up. The remaining Raymond is now focused on two engineering businesses — Aerospace & Defence and Precision Technology & Auto Components. The company is moving up the value chain from build-to-print components to complex assemblies, specialised processes and design-to-build solutions. Raymond's management highlighted witnessing an accelerated transition as domestic engineering vendors migrate beyond standard component machining into high-complexity subsystems, critical aero-engine modules, and precision-engineered assemblies. Backed by strong trade tailwinds, capacity expansions, and strict qualification barriers, this evolving capability mix significantly elevates contract stickiness, protects operating margins, and provides unparalleled long-term revenue visibility as global aerospace and mobility supply chains realign around preferred Indian suppliers.
US-based investment firm Jefferies has initiated coverage on Raymond's subsidiary Raymond Lifestyles, highlighting the company's unique combination of India's leading branded textiles franchise with growth potential from an apparel turnaround and export-led garmenting business. According to Jefferies analysts, backed by premiumisation, retail optimisation, favourable FTAs, and a strong balance sheet, the company is expected to deliver revenue/PAT CAGR of 9%/23% over FY26-29E. The experts noted that with new leadership in charge, Raymond is now focusing on profitability, retail optimisation, premiumisation and growth in casualwear, ethnic wear and exports. However, they cautioned that a weaker-than-expected turnaround, prolonged demand softness, or execution challenges in garmenting and retail transformation could delay the company's earnings recovery. Crisil predicts that the apparel retail sector's revenue growth is expected to moderate in the upcoming period, supported by strong demand for value fashion, expansion of organised retail beyond big cities, and continued preference for branded products.
