Raymond is quietly reinventing itself as a player in precision engineering and aerospace manufacturing.
With components for electric vehicles, aero-engines and a growing export pipeline, the company is positioning itself to capture the next phase of global manufacturing growth.
The strategy aligns with India’s expanding role in the global aerospace components market, which is projected to grow from about $1.5 billion to $4 billion (around ₹36,800 crore) over the next four years.
Once a diversified conglomerate spanning branded textiles, apparel, garmenting, real estate and specialised engineering businesses, Raymond has since restructured its portfolio to unlock shareholder value.
The company spun off its textile business, which is now listed separately as Raymond Lifestyle, while consolidating its engineering and aerospace platform under Raymond.
Today, the company operates through two segments:
• Precision Technology & Auto Components (JK Maini Precision Technology)
• Aerospace & Defence (JK Maini Global Aerospace)
JK Maini Precision is the largest contributor, generating ₹1,225 crore and accounting for 72% of revenue, while Aerospace & Defence contributes 16%.
Against this backdrop, Raymond’s strategy now hinges on how effectively it can capture the emerging opportunity.
Precision engine
JK Maini Precision (JKMPTL) is the core growth engine within Raymond’s engineering platform.
The segment integrates the company’s Tools & Hardware division, Ring Plus Aqua, and automotive operations. JKMPTL functions as a Tier-1 supplier of mission-critical precision components to both domestic and global original equipment manufacturers (OEMs).
The division manufactures over 2,000 auto components, operates across 18+ global customer locations, and serves more than 100 large global clients.
JKMPTL holds strong and defensible positions across several legacy product categories.
In steel files, it ranks No.1 globally in installed capacity, with a 25% global market share. In India, it holds a 60%+ market share.
In the automotive segment, Raymond is a leading supplier of flex plates and drivetrain components, with 55% share in passenger vehicles and 45% share in commercial vehicles.
JKMPTL is also the sole domestic manufacturer of flex plates in India, holding 25% market share globally in the category.
EV transition
Beyond legacy product lines, Raymond is expanding into future-ready engineering categories by developing complex precision components such as input shafts, oil sleeves and park pawls for electric and hybrid vehicles.
This segment is strongly export oriented, with a balanced mix between international and domestic markets. Exports accounted for about 60% of segment revenue in 9MFY26, while India contributed the remaining 40%.
Europe accounts for the largest share of exports at around 35%, followed by the United States at 10%. Asia contributes roughly 6%, Africa 5%, Mexico 3% and Latin America about 1%.
Because a large portion of the business is export driven, the operating model typically requires relatively lower raw-material inventory but higher finished-goods inventory.
The business has been benefiting from the China+1 global sourcing strategy, which is prompting multinational OEMs to diversify supply chains and increasingly rely on Indian suppliers. Management has also highlighted growing demand for hybrid vehicle components, particularly in Europe, as a key driver of recent orders.
Raymond is also expanding its portfolio to include clean powertrain technologies that comply with EURO VI and BS VI emission norms. The expansion includes complex drivetrain parts and high-precision hydraulic components designed for electric and hybrid vehicles.
Capacity expansion
To expand export reach and strengthen market access, Raymond has established a new distribution channel in Southeast Asia for its tools & hardware business.
The company is also investing in new manufacturing capacity to improve cost competitiveness.
The auto components division has planned capital expenditure of about ₹430 crore over five years for a new facility in Andhra Pradesh. The plant’s production lines are expected to begin operations in H2FY27, potentially supporting revenue growth over the following two to three years.
Management sees the facility as a key lever for future growth. Cost advantages from the plant could either improve margins or help capture additional market share.
The company is targeting Ebitda margins of 15% and above, supported by higher sales volumes, improved product mix, operational leverage and integration synergies. The division reported 12% revenue growth to ₹1,225 crore in 9MFY26. Ebitda rose 38% to ₹156 crore, while margins expanded 230 basis points to 12.7%, driven by operating leverage and a stronger product mix.
Aerospace expansion
JK Maini Global Aerospace (JKMGAL) represents Raymond’s aerospace and defence business. The division has emerged as one of the leading exporters of highly critical precision aero-engine components.
The business operates as a specialised Tier-1 supplier and is a preferred partner to the world’s three largest aircraft engine manufacturers, which together command roughly 88% of the global market.
A key competitive advantage for the company is its near-perfect manufacturing record. The facility operates at a rejection rate of just six parts per million (PPM), significantly better than the industry benchmark of about 200 PPM.
JKMGAL currently participates in 15 engine programmes, including the Pratt & Whitney GTF programme, which provides diversification across multiple aircraft platforms.
The division supplies more than 350 part numbers for the LEAP engine family, including LEAP-1A, 1B and 1C variants. These engines are widely used on Airbus A320neo and Boeing 737 MAX aircraft.
The business is currently experiencing strong growth driven by production ramp-ups at global aircraft manufacturers and incremental revenue from newly developed components.
Segment revenue rose 34% year-on-year to ₹273 crore in 9MFY26, while Ebitda increased 33% to ₹57 crore. Margins improved slightly by 10 basis points to 20.9%.
Complex engine components account for more than 75% of the segment’s revenue. A notable example is the Nozzle Guide Vane used in the LEAP-1A engine, along with low-pressure turbine stages six and seven. The company operates a dedicated manufacturing facility that produces around 8,000 units annually. Structural components contribute about 15% of revenue, while system components account for roughly 5%.
Currently, Raymond supplies roughly 0.1% to 0.3% of the total value of an aircraft engine, equivalent to around $20,000-$35,000 per engine. This leaves significant scope for increasing content per aircraft in the future.
When the company wins a new part, it typically begins with about 35% market share during the testing phase. Over time, OEMs often increase that share to around 65% because of the company’s consistent quality and 100% on-time delivery record.
The aerospace segment is highly export oriented, with approximately 83% of its products shipped to overseas markets. Europe contributes about 60% of revenue, followed by the United States at 21%. India accounts for around 17%, while Asia and Latin America contribute about 1% each. However, this export dependence also exposes the company to geopolitical risks and supply chain disruptions.
Order visibility
Aerospace manufacturing is typically a low-volume, high-mix business where growth depends heavily on the ability to continuously develop and qualify new components.
The sector is currently benefiting from the China+1 sourcing shift, rising global defence spending and increasing aircraft deliveries as Boeing and Airbus ramp up production following pandemic-era supply chain disruptions.
To support future demand and achieve long-term cost leadership, Raymond plans to invest about ₹500 crore over five years to build a new aerospace manufacturing facility in Andhra Pradesh. Production at this facility is expected to begin in H2FY27.
Contracts in the aerospace sector typically span five to ten years, providing long-term revenue visibility. As a result, Raymond’s aerospace order book generally stands at around 2.5 to three times its current revenue.
Financial snapshot
On a consolidated basis, Raymond reported revenue growth of 16% year-on-year to ₹1,609 crore. Ebitda rose 5.5% to ₹250 crore, although margins declined by 110 basis points to 14.7% mainly due to a temporary reduction in non-operating income.
Despite the margin pressure, net profit increased by 50% to ₹42 crore. The company currently maintains a net cash surplus of ₹214 crore.
At a share price of ₹364, Raymond trades at an EV/Ebitda multiple of about 9.5 times, significantly lower than peers such as Azad Engineering at 43 times and Unimech at 41 times.
The capital expenditure required for the new facility in Andhra Pradesh could strain cash flow and increase the existing debt of ₹1,100 crore. Another major risk is the heavy dependence on a single aerospace customer, Safran, which accounts for 35-40% of the company's revenue.
The eventual shift to battery electric vehicles will reduce the value of the company's core gearbox and drivetrain components.
For more such analysis, read Profit Pulse.
Madhvendra has over seven years of experience in equity markets and writes detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments.
The writer does not hold the stocks discussed in this article.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.