Air Transport Service

Q2 FY2026 Air Transport Sector Overview

9 December 2025

Explores the financial and market dynamics of Raymond Limited's engineering ventures, highlighting their growth in aerospace and defense manufacturing within the Q2 FY2026 period.

Analysis of Raymond Limited's Diversified Manufacturing & Engineering Businesses

**Summary:** This report provides a comprehensive analysis of Raymond Limited, a diversified Indian conglomerate, focusing specifically on its recently restructured Engineering businesses: JK Maini Global Aerospace Limited (JKMGAL) and JK Maini Precision Technology Limited (JKMPTL). While the requested sector for analysis was "Air Transport Service," the provided data exclusively pertains to Raymond's manufacturing operations, which encompass high-precision components for Aerospace & Defense, Automotive, and various industrial applications, alongside traditional tools and hardware. This analysis will therefore delve into these specific manufacturing segments, their market dynamics, financial performance, strategic initiatives, and future outlook, drawing insights from Raymond's consolidated results and the detailed performance of its two new engineering subsidiaries.

Raymond Limited, through its engineering segments, demonstrates robust growth in specialized manufacturing, particularly in the high-margin Aerospace & Defense sector. The company is strategically positioned as a critical supplier to global OEMs, leveraging its deep expertise, advanced manufacturing capabilities, and a 'China + 1' sourcing tailwind. Financially, the consolidated entity shows steady revenue growth, with the engineering businesses being key drivers. Profitability, especially in Aerospace & Defense, is strong and targeted for further expansion. The recent restructuring aims to unlock shareholder value by creating pure-play businesses, with significant capital allocation plans for capacity expansion and new product development. Risks include geopolitical tensions, raw material cost volatility, and certification delays, but the long-term outlook remains highly optimistic, driven by global demand for aerospace components and the evolving automotive landscape.

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A. INDUSTRY OVERVIEW & MARKET LANDSCAPE

The provided data for Raymond Limited's engineering businesses spans several distinct, yet interconnected, manufacturing sectors rather than the "Air Transport Service" sector. These include:

1. **Aerospace & Defense Components Manufacturing:** This segment, primarily represented by JK Maini Global Aerospace Limited (JKMGAL), focuses on high-precision, mission-critical components for aircraft engines, structural parts, and system parts. 2. **Precision Technology & Auto Components Manufacturing:** This segment, primarily represented by JK Maini Precision Technology Limited (JKMPTL), covers a broad range of products including auto components (for conventional, hybrid, and EV powertrains), steel files, ring gears, flex plates, and parts for hydraulics, industrials, agriculture, locomotives, and marine applications. 3. **Engineering Consumables/Tools & Hardware:** A sub-segment within JKMPTL, focusing on steel files and other hardware components.

Total Addressable Market Size and Growth Rates

**Aerospace & Defense Components Market:** * **Global Aerospace Components Market:** Projected to reach **$132 billion** with a **10% CAGR**. * **Indian Aerospace Components Market:** Currently valued at **$1.5 billion**, projected to reach **$4.0 billion** in the next 4 years, indicating a substantial **~28% CAGR**. This highlights India's rapidly growing significance in the global supply chain. * **Aircraft Engine & Other OEM Market:** Projected to grow at a **CAGR of 9%** for engines and **6%** for other OEM components over the next 5 years. This indicates a strong and sustained demand, particularly for engine components which are a core focus for JKMGAL. * **Union Budget Allocation:** India's defense budget allocation of **INR 6.81 lakh crores** (including **INR 48,614 crores** for aircraft and aero engines) directly supports new orders and growth in this sector. * **Commercial Aircraft Backlog:** Exceeds **16,000 units**, offering a remarkable **12-15 years of visibility** for component manufacturers.

**Precision Technology & Auto Components Market:** * **India's Automotive Industry:** Valued at approximately **$222 billion**, contributing **8% of total exports** and **7.1% to GDP**. It is projected to become the **3rd largest Automotive Market globally by 2030**. * **OEM Market (Auto Components):** Projected to grow at a **CAGR of ~4.7%** over the next 5 years. This growth is driven by several factors including EV adoption, connected vehicle technologies, and advancements in smart manufacturing. * **Global Engineering Consumables Market:** While a specific global figure isn't provided, the Tools & Hardware segment within JKMPTL operates within this market. * **India's Auto Component Exports:** India exports over **$20 billion** of auto components annually, indicating a strong export-oriented manufacturing base.

Market Structure and Segmentation

**Aerospace & Defense (JKMGAL):** * **Product Segmentation:** * **Complex Engine Parts:** Constitute **75%+** of revenue. Examples include Turbine Vanes, Housing Assembly, Fuel System Cylinder, Stator Blade, Fuel Control Assembly, Body Insert Assembly, Lever Throttle, TGB Mount, Inlet, Gear Train support plate, Tie Rod Assembly, Mount Bracket. * **Structural Parts:** Account for **15%+** of revenue. Examples include Swinging Links, Tank Drag Strut Assembly, Hook Assembly, Rings, Pylon. * **Systems Parts:** Account for **5%+** of revenue. Examples include Manifolds, Clevis, Flange Tube, TIR Holder, Lighting System Housings, Housing cover. * **Customer Segmentation:** Primarily global OEMs and Tier 1 suppliers. JKMGAL is a preferred supplier to the **top 3 Global Aircraft Engine Manufacturers**, holding an **88% market share** among them for its specific offerings. It serves **25+ Global Aero Components Manufacturing Clients**. * **Geographic Segmentation:** Highly export-oriented, with **90%** of Aerospace revenue from exports.

**Precision Technology & Auto Components (JKMPTL):** * **Product Segmentation:** * **Auto Components:** Includes parts for Clean Powertrain (GDI Pump body, Mechanical Dump Valve, Plunger injector, Seat retainer), Electric and Hybrid vehicles (Oil sleeve, Support bracket, BLDC Upper/Lower hub cover, Sand cover, Clutch flange, Transmission, Park pawl, Input shaft, Lever arm), Hydraulics and Industrial (Cradle, Bearing journal, ELSD housing & Plate, Brake plate, Wheel fork, Pressure plate, Bearing housing). * **Tools & Hardware:** Includes Steel Files (where JKMPTL is #1 in India with 60%+ market share and #1 globally in installed capacity with ~25% market share), Ring Gears (#1 in India with 55% in PV, 45% in CV), and Flex Plates (sole domestic manufacturer with ~25% market share in India). * **Customer Segmentation:** Supplies to **top 15 OEMs globally** and **100+ large customers** across the globe. Serves OEMs & Tier 1 suppliers in the auto sector domestically. In B2C, it has a pan-India presence across **~1.5 lakh POS** in **600 towns & cities**. * **Geographic Segmentation:** Both domestic and international presence, catering to leading global players across **65+ countries**.

Key End Markets and Applications

**Aerospace & Defense:** * **Commercial Aviation:** Driven by the massive backlog of commercial aircraft (16,000+ units), necessitating a continuous supply of engine and structural components. * **Defense Sector:** Supported by increasing defense budgets globally, including India's significant allocation for aircraft and aero engines. * **Engine Manufacturing:** A dominant end market, with over 70% of JKMGAL's aerospace revenue coming from engine components, including parts for the latest LEAP Engines Variants (350+ parts).

**Precision Technology & Auto Components:** * **Automotive Industry:** Both passenger vehicles (PV) and commercial vehicles (CV), with a growing focus on hybrid and electric vehicles (EV). Hybrid/EV business already accounts for roughly **15% of auto business revenue** for JKMPTL. * **Industrial Applications:** Hydraulics, general industrials, agriculture, locomotives, and marine sectors. * **Construction & Infrastructure:** The Tools & Hardware segment benefits from government infrastructure projects (roads, railways), though heavy monsoon can cause temporary slowdowns (e.g., July-August).

Geographic Distribution and Regional Dynamics

**Global Export Hub:** Both engineering segments are highly export-oriented. JKMGAL derives **90% of its aerospace revenue from exports**, and JKMPTL caters to **65+ countries** with **18+ global customer locations**.
**'China + 1' Strategy:** A significant tailwind for Indian manufacturers. Global OEMs and Tier 1s are increasingly diversifying their sourcing away from China towards India to de-risk Western supply chains. This trend is leading to multi-year strategic supplier agreements for design and manufacturing with Indian companies.
**U.S. and Europe Demand:** Export demand from these regions remained steady, particularly for aerospace components. JKMPTL is also developing critical parts for the hybrid market in Europe, indicating strong regional demand for specific technologies.
**UAE Market Entry:** JKMGAL has successfully onboarded key global customers, reinforcing its international footprint, including strategic entry into the UAE market.
**Domestic Indian Market:** JKMPTL benefits from robust domestic demand for auto components and tools/hardware, supported by government infrastructure projects and policy support like GST 2.0 platform reforms.

Market Maturity and Lifecycle Stage

**Aerospace & Defense Components:** This market is characterized by high entry barriers due to stringent certification requirements, long lead times for product development (1.5-2 years for complex parts), and the need for deep technical expertise in handling complex materials (110 different grades like titanium, Inconel, super alloys). JKMGAL, with **7 decades of experience** in its combined engineering business and **21 years** in aerospace, has a significant "head start" and is in a mature growth phase, continuously innovating with **150 new parts in the pipeline** and **2,000 RFQ part numbers**. The long commercial aircraft backlog provides long-term stability and growth visibility.
**Precision Technology & Auto Components:** This market is undergoing significant transformation, particularly with the shift towards EV and hybrid powertrains. While traditional auto components remain a large market, the growth drivers are increasingly tied to new technologies. JKMPTL is actively expanding into these new areas, developing critical parts for hybrid markets and leveraging its manufacturing excellence. The Tools & Hardware segment is a mature market but benefits from infrastructure development and brand leadership.

Industry Value Chain and Ecosystem

**Raw Material Sourcing:** Both segments deal with a diverse raw material portfolio. JKMGAL handles **110 varieties** of materials, consuming **500 tonnes annually**. Key materials include Inconel (44%), Titanium (19%), Aluminum (20%), and Steel Alloys (17%), sourced from global mills like Daido, VDM, Bohler, Carpenter, ATI, VSMPO, Timet Industries, Aleris, Alro, Amag, Kaizer, UGITECH, Cogne, Gloria. Raw material lead times can be up to **two years** for aerospace components.
**Manufacturing & Precision Machining:** Raymond's engineering businesses operate **17 manufacturing facilities** across 4 locations, utilizing **1500+ machines**. They specialize in high-precision machining, handling complex geometries and materials. JKMGAL has **20 state-of-the-art machines** dedicated to New Product Development (NPD) and **57 dedicated NPD engineers**.
**Supply Chain:** Involves global OEMs and Tier 1 suppliers as customers. JKMGAL has self-certification with **5 customers**, indicating a high level of trust and integration into their supply chains. The company also uses **12 3PL warehouses**. The business model often involves producing multiple SKUs in one go, managing local suppliers, and maintaining its own inventory, leading to higher working capital but also considered a strength for reliability.
**Distribution (Tools & Hardware):** For B2C, JKMPTL has a vast domestic network of **~1.5 lakh Points of Sale (POS)** across **600 towns & cities**.
**R&D and Innovation:** Continuous new product development is crucial. JKMGAL has **150 new parts in the pipeline** and is evolving plans to move towards much more complex parts, modules, and subassemblies. JKMPTL is focused on cost engineering and value-added processes for sustainable margin growth and new program wins, expanding capabilities in Clean Powertrain, EV & Hybrid, Hydraulics, etc.

B. FINANCIAL & ECONOMIC PROFILE

This section analyzes the financial performance and economic characteristics of Raymond Limited, with a specific focus on its engineering segments (JKMGAL and JKMPTL), which are the subject of the detailed data provided.

Industry Aggregate Revenue Scale and Growth Trajectory

While aggregate industry revenue for Raymond's specific niches is difficult to ascertain from the provided data, we can analyze Raymond's consolidated and segment-specific revenue performance.

**Raymond Limited - Consolidated:** * **Total Income:** * Q2 FY26: **INR 564 crores**, representing a **10% increase** YoY compared to Q2 FY25 (INR 512 crores). * Q1 FY26: **INR 555 crores**. * H1 FY26: **INR 1,119 crores**, demonstrating **11% YoY growth** over H1 FY25 (INR 1,011 crores). * FY25: Exceeded **INR 2,100+ crores**. * **Revenue from Operations:** * Q2 FY26: **INR 528 crores**, an **11% YoY change**. * H1 FY26: **INR 1,052 crores**, a **14% YoY change**. * **Growth Drivers:** The steady financial performance is largely driven by the strong performance of the Aerospace and Defense and Precision Technology and Auto Components segments.

**Raymond Limited - Aerospace & Defense Business (JKMGAL):** * **Revenue:** This segment shows robust growth, outperforming the consolidated entity. * Q2 FY26: **INR 81 crores**, a significant **15% YoY growth** from Q2 FY25 (INR 70 crores). * H1 FY26: **INR 168 crores**, an impressive **26% YoY growth** over H1 FY25 (INR 134 crores). * Analyst mentioned Q4 FY25 revenue was INR 107 crores and Q1 FY26 was INR 87 crores, indicating strong sequential performance in previous periods as well. * **Outlook:** Management aims to **double this business in the next 4 to 5 years**, indicating an expected CAGR of 15-18% for this segment.

**Raymond Limited - Precision Technology & Auto Components Business (JKMPTL):** * **Revenue:** This segment also contributes significantly to the overall growth. * Q2 FY26: **INR 409 crores**, a **10% YoY growth** from Q2 FY25 (INR 373 crores). * H1 FY26: **INR 808 crores**, an **11% YoY growth** over H1 FY25 (INR 728 crores). * **Growth Drivers:** Predominantly driven by robust domestic demand for auto components and tool/hardware components, as well as strong demand for hybrid products in European markets.

**Comparison:** JKMGAL is growing faster (26% YoY H1 FY26) than JKMPTL (11% YoY H1 FY26) and the consolidated entity (11% YoY H1 FY26), highlighting the high-growth nature of the Aerospace & Defense sector and Raymond's strong positioning within it.

Profitability Levels Across Companies

**Raymond Limited - Consolidated:** * **EBITDA:** * Q2 FY26: **INR 79 crores** (EBITDA margin **14.1%**). * Q1 FY26: **INR 87 crores** (EBITDA margin **15.7%**). * Q2 FY25: **INR 77 crores** (EBITDA margin **15.1%**). * H1 FY26: **INR 167 crores** (EBITDA margin **14.9%**), showing a **(3)% YoY decline** from H1 FY25 (INR 172 crores, 17.0% margin). * *Note: Q2 FY26 EBITDA includes a one-time gain of ~INR 13 crores on account of sale of land.* * **PBT (before exceptions):** * Q2 FY26: **INR 19 crores** (PBT margin **3.4%**), a **(20)% YoY change**. * Q1 FY26: **INR 30 crores** (PBT margin **5.4%**). * Q2 FY25: **INR 24 crores** (PBT margin **4.7%**). * H1 FY26: **INR 50 crores** (PBT margin **4.4%**), a **(27)% YoY change** from H1 FY25 (INR 68 crores, 6.7% margin). * **Net Profit:** * Q2 FY26: **INR 14 crores**, a significant **46% YoY change** from Q2 FY25 (INR 1 crore). * H1 FY26: **INR 35 crores**, a **46% YoY change** from H1 FY25 (INR 24 crores). * *Note: The high YoY growth in Net Profit is partly due to a very low base in Q2 FY25.* * **EBITDA Margin Compression:** The consolidated EBITDA margin compression in H1 FY26 is largely driven by a decline in other income. * **Management Guidance:** Consolidated EBITDA margin targeted in the **14%-15% range**.

**Raymond Limited - Aerospace & Defense Business (JKMGAL):** * **EBITDA:** This segment demonstrates superior and improving profitability. * Q2 FY26: **INR 17 crores** (EBITDA margin **21.0%**), a strong **34% YoY growth**. * Q2 FY25: **INR 13 crores** (EBITDA margin **18.0%**). * H1 FY26: **INR 38 crores** (EBITDA margin **22.4%**), a **32% YoY growth** over H1 FY25 (INR 29 crores, 21.4% margin). * **Management Guidance:** Targeting **22%-25% EBITDA margin** on a consistent long-term basis. This is significantly higher than the consolidated target, indicating the premium nature of this business. * **Drivers:** Margins improved on the back of higher sales volumes.

**Raymond Limited - Precision Technology & Auto Components Business (JKMPTL):** * **EBITDA:** This segment also shows margin improvement, though with a one-time boost. * Q2 FY26: **INR 57 crores** (EBITDA margin **13.9%**), a substantial **57% YoY growth**. * Q2 FY25: **INR 36 crores** (EBITDA margin **9.7%**). * H1 FY26: **INR 99 crores** (EBITDA margin **12.3%**), a **31% YoY growth** over H1 FY25 (INR 75 crores, 10.4% margin). * *Note: Q2 FY26 EBITDA margin improvement includes a one-time gain of INR 13 crores on account of sale of land.* * **Adjusted Q2 FY26 EBITDA (excluding one-time gain):** INR 44 crores (57 - 13), resulting in an adjusted EBITDA margin of **10.76%** (44/409). Even without the one-time gain, the margin shows improvement over Q2 FY25 (9.7%). * **Management Outlook:** Expect quarter-on-quarter improvements in margins unless seasonal variations.

**Range of Margins with Median and Outliers:** * **EBITDA Margins (H1 FY26):** * JKMGAL: **22.4%** (Outlier, highest) * Raymond Consolidated: **14.9%** (Median for the group) * JKMPTL: **12.3%** (Lower, but improving; ~10.76% adjusted for Q2 one-time gain) * The significant difference highlights the value-added and specialized nature of the Aerospace & Defense business, commanding premium margins.

Return Profiles (ROCE, ROE, ROIC) by Company

Specific ROCE, ROE, ROIC figures are not provided.
However, management mentions for JKMGAL that with higher complexity parts, asset turns could come down, implying a **compromise of higher investment and slightly lower ROCE for higher EBITDA**. This suggests a strategic trade-off where absolute profit generation is prioritized even if capital efficiency metrics might see some pressure in the short term due to significant capex.

Working Capital Characteristics and Cash Conversion Cycles

**Working Capital:** Management states that working capital is higher in the Aerospace & Defense business but is considered a **strength** due to the specific business nature. This includes managing multiple SKUs, producing in one go, dealing with local suppliers, and maintaining own inventory.
**Raw Material Lead Times:** For aerospace components, raw material lead times can be very long, up to **two years**, which necessitates significant inventory holding and thus higher working capital.
**Contract Lengths:** Long-term contracts (typically 5 years, some up to 10 years) for 80% of OEM business in JKMPTL, and 5-year contracts (2.5x to 3x annual revenue order book) in JKMGAL, provide revenue visibility but also require upfront investment in materials and production.

Capital Intensity Requirements

**Capex Plan (JKMGAL):** **INR 100 crores each year** for capacity expansion.
**New Facility (JKMGAL):** Expanding capacity by going to Andhra Pradesh with an outlay of **INR 510 crores**. This indicates significant capital investment for growth.
**Asset Turns (JKMGAL):** Roughly **1:2 ratio of capex for current mix**. This ratio could come down with higher complexity parts, implying that more capital investment might be required per unit of revenue for more advanced products.
**Strategic Initiatives:** Installation of critical machinery (e.g., GROB machine) to enhance in-house manufacturing capacity. This signifies ongoing capital expenditure to maintain technological edge and expand capabilities.

Revenue Quality (Recurring vs One-time, Contract Length)

**Long-Term Contracts:**
**Recurring Nature:** The nature of supplying critical components to global OEMs and Tier 1 suppliers implies a highly recurring revenue stream once a supplier relationship is established and parts are certified. The self-certification with 5 customers for JKMGAL further solidifies this recurring revenue quality.
**Commercial Aircraft Backlog:** The global commercial aircraft backlog exceeding 16,000 units offers **12-15 years of visibility**, underpinning the long-term recurring demand for aerospace components.
**Visibility:** JKMGAL has **12-month visibility on a monthly basis** for schedules from aerospace companies.

C. COMPETITIVE STRUCTURE & DYNAMICS

Raymond Limited's engineering businesses operate in highly specialized and competitive markets, characterized by high entry barriers, long qualification cycles, and the need for deep technical expertise.

Number of Players and Market Concentration

**Aerospace & Defense (JKMGAL):** * **Highly Concentrated Customer Base:** JKMGAL is a preferred supplier to the **top 3 Global Aircraft Engine Manufacturers**, which hold a dominant share of the global market. This indicates a concentrated customer base for critical engine components. * **Niche Leadership:** JKMGAL holds an **88% market share** with these top 3 global engine manufacturers for the specific components it supplies. This suggests a highly concentrated market where JKMGAL is a leading niche player. * **Unique Positioning:** Believed to be the **only company working with the range of engine OEMs** they have, implying a unique competitive position. * **Limited Direct Competition:** The high entry barriers (certification, technology, long relationships) likely limit the number of direct competitors capable of serving these top-tier OEMs at JKMGAL's level.

**Precision Technology & Auto Components (JKMPTL):** * **Market Leader in Specific Products:** * **Steel Files:** #1 in India (with **60%+ Market Share**), #1 in Global Installed Capacity (~**25% Market Share**). This indicates a highly concentrated market where JKMPTL is a dominant player. * **Ring Gears:** #1 in India (with **55% in PV, 45% in CV**). Another segment with high market concentration. * **Flex Plates:** Sole Domestic Manufacturer (~**25% Market Share in India**). This is a highly concentrated segment with JKMPTL as the primary domestic supplier. * **Diversified Customer Base:** Supplies to **top 15 OEMs globally** and **100+ large customers** across the globe, suggesting a broader, but still competitive, market for general auto components.

Market Share Distribution

**JKMGAL:**
**JKMPTL:**

Competitive Intensity Assessment (Porter's 5 Forces Style)

**Threat of New Entrants: Low to Medium**
**Bargaining Power of Buyers: Medium to High**
**Bargaining Power of Suppliers: Medium to High**
**Threat of Substitute Products or Services: Low**
**Intensity of Rivalry: Medium**

Entry Barriers and Competitive Moats

**Technological Expertise & R&D:** Deep engineering capabilities, ability to handle **110 different grades of highly complex materials**, and **20 state-of-the-art machines dedicated to NPD** (JKMGAL). **57 dedicated NPD engineers**.
**Certifications & Approvals:** Long and rigorous certification processes by global OEMs (e.g., FAIR approvals, audit compliance). JKMGAL has **self-certification with 5 customers**.
**Long-Term Relationships:** **2 decades relationship with Top Aero OEMs and Tier 1 Suppliers** (JKMGAL). Established relationships across domestic and global OEMs (JKMPTL).
**Manufacturing Excellence & Scale:** **17 manufacturing facilities**, **1500+ machines**, ability to manufacture **4000+ SKUs yearly**. Market leadership in specific products due to scale and efficiency (Steel Files, Ring Gears, Flex Plates).
**Product Development Capabilities:** Continuous development of new parts (150 in pipeline for JKMGAL), evolving plans for more complex modules.
**Brand Recall & Trust:** Strong brand recall for tools and hardware, and USP of manufacturing excellence.
**High Capital Investment:** Significant capex required for capacity expansion and advanced machinery (e.g., INR 510 crores for new facility, INR 100 crores annual capex for JKMGAL).

Pricing Power Dynamics and Pricing Trends

**Aerospace & Defense:** JKMGAL's high EBITDA margins (21-22%) and target of 22-25% suggest significant pricing power, driven by the mission-critical nature of its components, high entry barriers, and preferred supplier status. The complexity of parts allows for premium pricing.
**Precision Technology & Auto Components:** JKMPTL's improving EBITDA margins (12-14%, 10.76% adjusted) indicate some pricing power, especially in its market-leading segments. However, the auto components sector can be more price-sensitive than aerospace. Cost engineering and value-added processes are key to sustainable margin growth.
**Raw Material Costs:** Modest inflationary pressures in titanium and select aluminum alloys are noted, which could impact pricing or margins if not passed on to customers.

Differentiation Strategies Employed

**Specialization & Niche Focus:** JKMGAL's focus on complex aero engine components (75%+ revenue) and presence in 70%+ of engine segments.
**Technological Leadership:** Handling 110 different grades of highly complex materials, advanced machinery (GROB machine), and continuous NPD.
**Quality & Reliability:** Self-certification with OEMs, 24/6 operations, 7 decades of experience.
**Customer Integration:** Deep, long-term relationships with global OEMs and Tier 1 suppliers, acting as a trusted global partner.
**Geographic Diversification & 'China + 1' Advantage:** Leveraging India's position as a reliable precision machining and manufacturing hub to attract new global clients seeking to de-risk supply chains.
**Product Portfolio Expansion:** JKMPTL's expansion into EV & Hybrid components, Clean Powertrain, and other industrial applications.
**Market Leadership:** Dominant market shares in Steel Files, Ring Gears, and Flex Plates for JKMPTL.

Consolidation Trends and M&A Activity

The data does not explicitly mention industry-wide consolidation trends or M&A activity.
However, Raymond's own restructuring of its Engineering business into two separate subsidiaries (JKMPTL and JKMGAL) and the group philosophy of "Unlocking shareholder value by building pure-play businesses" suggests an internal consolidation and strategic focus. Raymond is also "evaluating opportunities for future organic or inorganic growth" for the cash kept on its balance sheet, indicating potential for future M&A.

Competitive Advantages of Each Player (Raymond's Engineering Businesses)

**JK Maini Global Aerospace Limited (JKMGAL):** * **Deep Expertise & Experience:** 21 years in aerospace, 7 decades in combined engineering. * **Preferred Supplier Status:** To top 3 Global Aircraft Engine Manufacturers, holding 88% market share. * **Self-Certification:** With 5 customers, indicating high trust and integration. * **Extensive Product Portfolio:** 1,200+ Precision Aero Engine Parts Developed, 350+ Parts of Latest LEAP Engines Variants. * **Advanced Manufacturing:** 20 dedicated NPD machines, 57 NPD engineers, handling 110 complex materials. * **Long-Term Visibility:** 12-15 years from commercial aircraft backlog, 2.5x-3x annual revenue order book. * **High Export Focus:** 90% revenue from exports, leveraging 'China + 1' tailwinds.

**JK Maini Precision Technology Limited (JKMPTL):** * **Market Leadership:** #1 in India for Steel Files (60%+ MS), #1 globally in installed capacity (~25% MS). #1 in India for Ring Gears (55% PV, 45% CV). Sole domestic manufacturer of Flex Plates (~25% MS in India). * **Diversified Product Portfolio:** Across 8 segments, including critical parts for hybrid/EV, hydraulics, industrials, agriculture, locomotives, marine, and automotive. * **Established Customer Relationships:** Trusted Tier-1 supplier with top 15 OEMs globally. * **Manufacturing Excellence:** USP of manufacturing excellence, strong engineering integration. * **Domestic & International Reach:** Pan-India B2C presence (1.5 lac POS), caters to 65+ countries. * **Adaptability:** Actively developing critical parts for the hybrid market and expanding into EV segments.

D. OPERATIONAL CHARACTERISTICS

Raymond Limited's engineering businesses demonstrate highly specialized and efficient operational characteristics, critical for their success in precision manufacturing.

Capacity and Utilization Trends Across Companies

**Manufacturing Facilities:** The combined engineering business operates **17 manufacturing facilities** across **4 locations**.
**Machines:** Utilizes **1500+ machines** in total.
**SKUs Manufactured:** Capable of manufacturing **4000+ SKUs yearly**.
**Dedicated NPD Capacity (JKMGAL):** Has **20 State-of-the-Art Machines exclusively dedicated to New Product Development (NPD)**, indicating a strong focus on future growth and innovation.
**Nozzle Guide Vanes Facility (JKMGAL):** Dedicated facility to make **8000 units per year** of Nozzle Guide Vanes, which are complex engine parts made from Rene 77, Honeycomb & Sheetmetal Assembly through welding & brazing. This highlights specialized, high-volume capacity for critical components.
**Capacity Expansion (JKMGAL):** Actively expanding capacity by establishing a new facility in Andhra Pradesh with a significant outlay of **INR 510 crores**. This indicates high utilization or anticipated demand growth necessitating new capacity.
**Installation of Critical Machinery:** Ongoing installation of critical machinery (e.g., GROB machine) to enhance in-house manufacturing capacity, suggesting continuous investment in upgrading and expanding capabilities.
**Round-the-Clock Operations (JKMGAL):** Operating **24/6**, indicating high utilization of existing assets to meet demand.

Production Economics and Cost Structures

**Raw Material Intensity:** High, especially for JKMGAL, which consumes **500 tonnes of raw materials annually** across **110 varieties** (Inconel 44%, Titanium 19%, Aluminum 20%, Steel Alloys 17%). Raw material costs are a significant component of the cost structure.
**High Value-Added Processes:** Both segments focus on high-precision machining, complex assemblies, and handling advanced materials, which are inherently high value-added activities. This supports higher margins.
**Labor Costs:** While not explicitly detailed, the presence of **57 dedicated NPD engineers** and a skilled workforce for precision manufacturing suggests a significant investment in human capital.
**Depreciation:** Consolidated depreciation for Q2 FY26 was **INR 38 crores** and for H1 FY26 was **INR 77 crores**, indicating substantial fixed assets and ongoing capital expenditure.
**Interest Expense:** Consolidated interest expense for Q2 FY26 was **INR 22 crores** and for H1 FY26 was **INR 40 crores**. While the company is net debt-free, gross debt is INR 972 crores, leading to these interest expenses.
**Cost Engineering:** JKMPTL is focused on **cost engineering** and value-added processes for sustainable margin growth, indicating active management of cost structures.
**Job Processing and Non-Scheduled Airline Operations:** Expected to stay in the range of **INR 1-2 crores loss per quarter**. This is a small, non-core operation with a negative impact on profitability.

Supply Chain Structure and Dependencies

**Global Sourcing of Raw Materials:** Raw materials are sourced globally from specialized mills (e.g., Daido, VDM, Bohler, Carpenter, ATI for Inconel; VSMPO, Timet Industries, ATI, Baoji for Titanium). This creates dependency on global supply chains and exposes the company to geopolitical risks and cost volatility.
**Long Lead Times:** Raw material lead times of up to **two years** for aerospace components necessitate robust inventory management and forecasting.
**Customer Integration:** Deep integration with global OEMs and Tier 1 suppliers, including **self-certification with 5 customers** for JKMGAL, indicates a highly collaborative and dependent supply chain.
**Logistics:** **12 3PL Warehouses** are utilized, and **500+ Twenty Ft. containers are exported annually** by the combined engineering business, highlighting a complex global logistics operation.
**'China + 1' Strategy:** This global trend is driving OEMs to diversify sourcing, benefiting Indian suppliers like Raymond and potentially reducing dependency on single-country supply chains in the long run.

Technology Landscape and Innovation Pace

**Advanced Machining:** Use of state-of-the-art machines, including specialized GROB machines, for high-precision manufacturing.
**Material Science Expertise:** Ability to handle **110 different grades of highly complex materials** (titanium, Inconel, super alloys, Rene 77), indicating advanced metallurgical and machining capabilities.
**New Product Development (NPD):**
**Digitalization/Automation:** Not explicitly detailed, but implied by "smart manufacturing advancements" mentioned as a driver for the OEM market.
**Certification & Quality Systems:** Continuous audit compliance by major OEMs and FAIR approvals for critical components underscore adherence to the highest technological and quality standards.

Operational Efficiency Benchmarks

**EBITDA Margins:** JKMGAL's EBITDA margins of 21-22% (targeting 22-25%) are indicative of high operational efficiency in a specialized, high-value segment. JKMPTL's improving margins (12-14%) also reflect efficiency gains, even with a one-time boost.
**Turnaround Times (JKMGAL):**
**Volumes:** Mostly **sub-1,000 units** for aerospace parts, indicating high-mix, low-volume production, which requires flexible and efficient manufacturing processes.
**SKUs:** Deals with **1,200 to 1,400 SKUs** in aerospace, requiring sophisticated production planning and inventory management.

Key Performance Indicators (Company-specific and Industry Averages)

**Revenue Growth:** JKMGAL (26% YoY H1 FY26) and JKMPTL (11% YoY H1 FY26) are key KPIs.
**EBITDA Margin:** JKMGAL (22.4% H1 FY26, target 22-25%), JKMPTL (12.3% H1 FY26, 10.76% adjusted Q2 FY26). Consolidated (14.9% H1 FY26, target 14-15%).
**Order Book:** JKMGAL's order book of **2.5x to 3x annual revenue** (5-year contracts) is a critical forward-looking KPI.
**NPD Pipeline:** **150 new parts in pipeline** and **2,000 RFQ part numbers** for JKMGAL are strong indicators of future growth potential.
**Customer Certifications:** Self-certification with 5 customers for JKMGAL is a testament to quality and reliability.
**Export Percentage:** 90% for JKMGAL, indicating global competitiveness.
**Market Share:** 88% with top 3 engine OEMs for JKMGAL; 60%+ in India for Steel Files, 55% in PV/45% in CV for Ring Gears, 25% for Flex Plates in India for JKMPTL.

Asset Efficiency Metrics

**Asset Turns (JKMGAL):** Roughly **1:2 ratio of capex for current mix**. This means for every INR 1 of capex, INR 2 of revenue is generated. Management notes this could come down with higher complexity parts, implying that more capital-intensive processes might yield lower asset turns but potentially higher absolute EBITDA.
**Capital Intensity:** The significant capex plans (INR 100 crores annually for JKMGAL, INR 510 crores for new facility) indicate a capital-intensive business model, especially for growth.

E. GROWTH DYNAMICS & DRIVERS

Raymond Limited's engineering businesses are positioned for robust growth, driven by a combination of global macro trends, strategic initiatives, and strong market positioning.

Historical Growth Trajectory (3-5 year view with specific rates)

**H1 FY26 Consolidated Total Income:** 11% YoY growth.
**H1 FY26 Consolidated Revenue from Operations:** 14% YoY change.
**H1 FY26 JKMGAL Revenue:** 26% YoY growth.
**H1 FY26 JKMPTL Revenue:** 11% YoY growth.
**FY25 Consolidated Total Income:** Exceeded INR 2,100+ crores.
The data primarily provides recent quarterly and half-yearly growth rates. The consistent double-digit growth rates across segments, particularly the high growth in Aerospace & Defense, indicate a strong positive trajectory.

Current Growth Rates and Acceleration/Deceleration

**Current Growth (H1 FY26 YoY):**
**Acceleration:** JKMGAL shows significant acceleration (26% H1 YoY vs 15% Q2 YoY), indicating strong momentum in the aerospace sector.
**Deceleration:** Consolidated EBITDA growth decelerated to (3)% YoY in H1 FY26, primarily due to a decline in other income, despite strong revenue growth from the engineering segments.

Volume vs Price Contribution to Growth

**Volume Contribution:** Explicitly mentioned for JKMGAL, where EBITDA margins improved "on the back of higher sales volumes." This suggests volume growth is a primary driver.
**Price Contribution:** Not explicitly detailed, but the ability to maintain or improve margins in a high-cost environment (e.g., raw material inflation) suggests some pricing power, particularly in the specialized aerospace segment.

Organic vs Inorganic Growth Components

**Organic Growth:** The primary driver.
**Inorganic Growth:** Raymond Limited is "evaluating opportunities for future organic or inorganic growth" for the cash kept on its balance sheet, indicating potential for future M&A, but no current inorganic growth is detailed.

Geographic Expansion Opportunities and Progress

**JKMGAL:** Successfully onboarded key global customers, reinforcing international footprint (e.g., strategic entry into UAE market). Exports account for **90%** of aerospace revenue.
**JKMPTL:** Expansion into new international geographies and industrial sectors. Horizontally deploying hybrid product experience to other customers globally. Caters to leading global players across **65+ countries**.
**'China + 1' Strategy:** A major tailwind driving global OEMs and Tier 1s to diversify sourcing towards India, leading to new multi-year strategic supplier agreements. This directly fuels geographic expansion for Raymond's exports.

Product/Service Innovation Pipeline

**JKMGAL:**
**JKMPTL:**

Adjacent Market Opportunities

**Aerospace & Defense:** Beyond engine components, JKMGAL is looking to access systems and structures (landing gears, fuel, hydraulics), expanding its addressable market within aerospace.
**Precision Technology & Auto Components:** JKMPTL's expansion into EV & Hybrid components is a direct move into a high-growth adjacent market. Its diversified portfolio already serves hydraulics, industrials, agriculture, locomotive, and marine, indicating a strategy of leveraging precision machining capabilities across various engineering sectors.
**Synergies with Tools and Hardware:** Leveraging aerospace knowledge for the Tools and Hardware division.

Customer Acquisition and Penetration Trends

**JKMGAL:** Fueled by rising interest from prospective clients (RFQs) and a growing pipeline of collaborative and strategic opportunities. Successfully onboarded key global customers.
**JKMPTL:** Gaining steady momentum, backed by 'China + 1' sourcing tailwinds. Stronger engineering integration and rising demand in EV, hybrid, and motion control segments.
**OEM Diversification:** Indian suppliers are benefiting as OEMs diversify sourcing towards India, leading to new customer acquisitions and deeper penetration with existing ones through multi-year strategic supplier agreements.

F. RISK LANDSCAPE

Raymond Limited's engineering businesses, despite strong growth drivers, face several risks inherent to their operating sectors and the global economic environment.

Industry-wide Systematic Risks

**Geopolitical Tensions:** Global geopolitical tensions can disrupt supply chains, impact international trade, and affect demand for defense-related components.
**Economic Cyclicality:** While aerospace has long-term backlogs, the auto components sector is more susceptible to economic downturns, consumer spending, and industrial production cycles.
**Global Trade Policies:** Escalating tariffs in the U.S. are noted as a potential temporary headwind for JKMPTL, creating new challenges for exports.
**Inflationary Pressures:** Modest inflationary pressures in titanium and select aluminum alloys, along with alloy and logistics cost volatility, can impact profitability if not effectively managed or passed on to customers.

Cyclicality and Economic Sensitivity

**Aerospace & Defense:** Less cyclical in the short-term due to long-term commercial aircraft backlogs (12-15 years visibility) and steady defense spending. However, major global economic crises can impact airline profitability and new aircraft orders in the long run.
**Precision Technology & Auto Components:** More sensitive to economic cycles. Domestic demand for auto components is tied to vehicle sales, which can fluctuate. The Tools & Hardware business can be affected by construction activity (e.g., heavy monsoon slowing activity in July-August).

Regulatory and Policy Risks by Geography

**Certification Delays:** A significant risk for JKMGAL. Certification delays at global OEMs can postpone revenue generation from new parts and programs.
**Defense Policies:** Changes in defense budgets or procurement policies in key customer countries could impact demand for defense-related components.
**Environmental Regulations:** Evolving environmental regulations, particularly in the automotive sector (emissions standards, EV mandates), can necessitate significant R&D and production adjustments. JKMPTL's focus on hybrid/EV components is a proactive response to this.

Technology Disruption Threats

**Automotive Sector:** Rapid advancements in EV and hybrid technologies pose a threat to manufacturers focused solely on traditional internal combustion engine (ICE) components. JKMPTL is mitigating this by actively developing parts for EV & Hybrid markets.
**Aerospace Sector:** While less prone to rapid disruption for core engine components, new materials or manufacturing processes (e.g., additive manufacturing) could emerge as competitive threats or opportunities.

ESG and Sustainability Challenges

**Supply Chain Ethics:** Sourcing raw materials globally requires adherence to ethical sourcing practices and environmental standards.
**Manufacturing Footprint:** Operating 17 manufacturing facilities requires managing environmental impact, waste, and energy consumption.
**Resource Scarcity:** Reliance on specific alloys (titanium, Inconel) could face long-term scarcity or price volatility due to sustainability concerns.

Supply Chain Vulnerabilities

**Raw Material Lead Times:** Lead times up to two years for aerospace raw materials create vulnerability to supply disruptions and price fluctuations.
**Concentrated Sourcing:** While Raymond uses multiple mills, reliance on a few specialized global suppliers for critical alloys can be a vulnerability.
**Logistics Disruptions:** Global logistics can be impacted by geopolitical events, natural disasters, or pandemics, affecting timely delivery of raw materials and finished goods.

Competitive Threats (New Entrants, Substitutes)

**New Entrants:** While high barriers exist, new players with disruptive technologies or strong government backing could emerge, especially in the long term.
**Existing Competitors:** Intense rivalry for new programs and market share from established global players.
**Certification Process:** Competitors achieving faster certification or developing superior parts could gain an edge.

Customer Concentration Risks

**JKMGAL:** Preferred supplier to the **top 3 Global Aircraft Engine Manufacturers**. While this indicates strong relationships, it also implies a degree of customer concentration. Any significant shift in strategy or demand from these key customers could have a material impact.
**JKMPTL:** Supplies to **top 15 OEMs globally**. This diversification helps mitigate concentration risk compared to JKMGAL.

G. CAPITAL ALLOCATION & INVESTOR RETURNS

Raymond Limited's capital allocation strategy is geared towards growth, particularly in its high-potential engineering segments, while maintaining a strong financial position.

Capex Trends and Requirements (Growth vs Maintenance)

**Significant Growth Capex:**
**Asset Turns:** For JKMGAL, the current asset turn ratio is roughly **1:2 (capex to revenue)**. Management indicates this could decrease with higher complexity parts, meaning more capital investment per unit of revenue for advanced products. This implies a strategic choice to invest heavily for future high-value growth, even if it temporarily impacts capital efficiency metrics.
**Overall Capital Intensity:** The engineering businesses are capital-intensive, requiring continuous investment in advanced machinery and facilities to maintain technological leadership and meet demand.

R&D Investment Levels as % of Revenue

Specific R&D expenditure as a percentage of revenue is not provided.
However, the significant investment in New Product Development (NPD) indicates a strong commitment to R&D:
The emphasis on developing complex parts and moving towards modules suggests a high level of R&D intensity relative to revenue, especially in the aerospace segment.

Dividend Policies and Payout Ratios

No information on dividend policies or payout ratios is provided in the extracted data.

Share Buyback Programs

No information on share buyback programs is provided.

M&A Activity and Strategy

**Internal Restructuring:** Raymond Limited''s approval of the restructuring scheme for its Engineering business (effective August 1, 2025) into two separate subsidiaries (JKMPTL and JKMGAL) is a key strategic move. This aims at "Unlocking shareholder value by building pure-play businesses."
**Future Inorganic Growth:** Raymond Ltd. is "evaluating opportunities for future organic or inorganic growth" for the cash kept on its balance sheet. This suggests a potential for M&A activity in the future to complement organic expansion.

Cash Generation and Free Cash Flow Profiles

**Net Debt-Free Business:** As of September 30, 2025, Raymond Limited is a Net Debt-Free Business.
**Net Cash Flow Surplus:** The company reported a Net Cash Flow Surplus of **INR 27 crores**.
**Cash and Cash Equivalents:** Total Cash and Cash Equivalents stood at **INR 999 crores** as of September 30, 2025.
**Gross Debt:** Total Gross Debt was **INR 972 crores**.
The substantial cash balance and net debt-free status provide significant financial flexibility for future growth investments (capex, M&A) and managing working capital requirements (which are higher due to long raw material lead times and inventory).
**Working Capital:** Higher working capital is noted as a characteristic of the business, implying that a portion of operating cash flow is reinvested into inventory and receivables.

Capital Efficiency Improvements

While specific metrics are not provided, the focus on "cost engineering and value-added processes for sustainable margin growth" (JKMPTL) and the strategic trade-off of "higher investment, slightly lower ROCE, but higher EBITDA for complex parts" (JKMGAL) indicate a conscious effort to optimize capital deployment for maximum strategic benefit, even if traditional efficiency ratios might fluctuate.
The restructuring into pure-play businesses is also aimed at improving capital allocation and transparency, potentially leading to better capital efficiency in the long run as each business can be managed with its specific capital requirements and return profiles.

H. FUTURE OUTLOOK & PROJECTIONS

The future outlook for Raymond Limited's engineering businesses is highly optimistic, driven by strong market tailwinds, strategic investments, and continuous innovation.

Industry Growth Projections (with timeframes)

**Indian Aerospace Components Market:** Projected to reach **$4.0 billion** in the next 4 years, growing at a substantial **~28% CAGR** from its current $1.5 billion.
**Global Aerospace Components Market:** Projected to reach **$132 billion** with a **10% CAGR**.
**Aircraft Engine & Other OEM Market:** Projected to grow at a **CAGR of 9%** (engines) and **6%** (other OEM) over the next 5 years.
**OEM Market (Auto Components):** Projected to grow at a **CAGR of ~4.7%** over the next 5 years.
**India's Automotive Industry:** Set to become the **3rd largest Automotive Market globally by 2030**.
**Commercial Aircraft Backlog:** Exceeding **16,000 units**, offering **12-15 years of visibility** for aerospace component manufacturers.

Management Guidance Across Companies

**Raymond Consolidated:**
**JK Maini Global Aerospace Limited (JKMGAL):**
**JK Maini Precision Technology Limited (JKMPTL):**

Emerging Opportunities and Whitespace

**'China + 1' Sourcing:** Continued and increasing opportunities as global OEMs and Tier 1s de-risk Western supply chains by sourcing from India.
**New Product Categories:**
**New Geographies:** Strategic entry into UAE market for aerospace; expansion into new international geographies for precision technology.
**Defense Modernization:** Continued government budget allocations for defense, particularly aircraft and aero engines, will drive new orders.

Transformation Themes and Inflection Points

**Engineering Business Restructuring:** The NCLT-approved restructuring into JKMGAL and JKMPTL is a significant transformation, creating pure-play businesses to unlock shareholder value. This allows for focused management and capital allocation for each segment.
**EV/Hybrid Transition:** The global automotive industry's shift towards electric and hybrid vehicles is a major inflection point. JKMPTL's proactive development in this area positions it well for future growth.
**Digitalization & Smart Manufacturing:** Advancements in smart manufacturing will continue to drive efficiency and innovation in the OEM market.

Long-term Structural Trends (5-10 year view)

**Global Aerospace Growth:** Driven by increasing air travel demand, fleet modernization, and defense spending, providing sustained demand for components for over a decade (12-15 years visibility from aircraft backlog).
**India as a Manufacturing Hub:** India's positioning as a reliable precision machining and manufacturing hub will continue to strengthen, attracting more global sourcing.
**Automotive Electrification:** The long-term trend towards electrification (EV and hybrid) will reshape the auto components market, favoring companies that adapt and innovate.
**Supply Chain Resilience:** Global focus on building more resilient and diversified supply chains will continue to benefit Indian manufacturers.

Potential Disruptions on the Horizon

**Geopolitical Instability:** Prolonged global conflicts or trade wars could severely disrupt global supply chains and demand.
**Technological Leapfrogging:** Rapid advancements in areas like advanced materials or additive manufacturing could alter traditional component manufacturing.
**Economic Downturns:** Severe global recessions could impact commercial aircraft orders and auto sales, though aerospace has a significant backlog buffer.
**Raw Material Price Shocks:** Unforeseen spikes in critical raw material prices could squeeze margins.

Expected Margin Evolution

**JKMGAL:** Management targets **22%-25% EBITDA margin** on a consistent long-term basis, indicating an expectation of further margin expansion from the current 21-22%.
**JKMPTL:** Expects **quarter-on-quarter improvements in margins** (excluding seasonal variations), suggesting a positive trajectory from the current 12-14% (10.76% adjusted).
**Raymond Consolidated:** Targeted EBITDA margin in the **14%-15% range**, implying that the higher margins from aerospace will likely offset lower-margin businesses or corporate overheads to achieve this consolidated target. The decline in other income was a temporary headwind, and with its stabilization, consolidated margins are expected to align with guidance.

I. COMPANY-BY-COMPANY PROFILES

This section provides detailed profiles for Raymond Limited (Consolidated) and its two newly formed engineering subsidiaries, JK Maini Global Aerospace Limited and JK Maini Precision Technology Limited, based on the extracted data.

Raymond Limited - Consolidated

**Brief Description:** Raymond Limited is a diversified Indian conglomerate with interests spanning textiles, apparel, real estate, FMCG, and engineering. The provided data focuses on the consolidated performance and the strategic restructuring of its engineering businesses. The group's philosophy is centered on unlocking shareholder value by building pure-play businesses.

**Scale Metrics:** * **Total Income (FY25):** INR 2,100+ crores * **Total Income (H1 FY26):** INR 1,119 crores * **Revenue from Operations (H1 FY26):** INR 1,052 crores * **Gross Debt (Sep 30, 2025):** INR 972 crores * **Cash and Cash Equivalents (Sep 30, 2025):** INR 999 crores * **Net Debt Position (Sep 30, 2025):** Net Debt-Free with a Net Cash Flow Surplus of INR 27 crores. * **Industry Segments (combined engineering business):** Operates across 8 different segments. * **Customers (combined engineering business):** 100+ customers in 25+ countries. * **Revenue from Exports (combined engineering business):** More than 3/5th.

**Financial Performance Summary:** * **Total Income Growth (H1 FY26 YoY):** 11% (INR 1,119 crores vs INR 1,011 crores H1 FY25). * **EBITDA (H1 FY26):** INR 167 crores (14.9% margin), a (3)% YoY decline from H1 FY25 (INR 172 crores, 17.0% margin). Q2 FY26 EBITDA was INR 79 crores (14.1% margin), a 3% YoY increase. *Note: Q2 FY26 EBITDA includes a one-time gain of ~INR 13 crores on account of sale of land.* * **PBT (before exceptions) (H1 FY26):** INR 50 crores (4.4% margin), a (27)% YoY decline from H1 FY25 (INR 68 crores, 6.7% margin). Q2 FY26 PBT was INR 19 crores (3.4% margin), a (20)% YoY change. * **Net Profit (H1 FY26):** INR 35 crores, a 46% YoY increase from H1 FY25 (INR 24 crores). Q2 FY26 Net Profit was INR 14 crores, a 46% YoY increase from Q2 FY25 (INR 1 crore). *The high YoY growth in Net Profit is partly due to a very low base in Q2 FY25.* * **Other Income (H1 FY26):** INR 67 crores, a 24% decline YoY, contributing to EBITDA margin compression.

**Strategic Priorities and Focus Areas:** * **Restructuring Engineering Business:** Approved by NCLT on July 4, 2025, effective August 1, 2025, creating JKMPTL and JKMGAL. * **Unlocking Shareholder Value:** By building pure-play businesses. * **Growth Opportunities:** Evaluating opportunities for future organic or inorganic growth, leveraging its strong cash position. * **Expansion Strategy:** Optimistic about future growth trajectory given expansion strategy in new product categories and new geographies.

**Competitive Advantages and Positioning:** * **Diversified Portfolio:** Mitigates risk across various industrial cycles. * **Strong Financial Health:** Net debt-free status provides flexibility for strategic investments. * **Strategic Restructuring:** Aims to create focused, agile business units.

**Key Metrics and KPIs Specific to the Company:** * Consolidated Total Income Growth: 11% (H1 FY26 YoY). * Consolidated EBITDA Margin: 14.9% (H1 FY26). * Net Debt-Free Status.

**Management Outlook and Guidance:** * Consolidated EBITDA margin targeted in the **14%-15% range**. * Job processing and non-scheduled airline operations expected to stay in the range of INR 1-2 crores loss per quarter.

**Recent Developments and Initiatives:** * Restructuring of Engineering business into two separate subsidiaries (JKMPTL and JKMGAL). * Accumulation of significant cash and cash equivalents.

Raymond Limited - Aerospace & Defense Business (JK Maini Global Aerospace Limited - JKMGAL)

**Brief Description:** JK Maini Global Aerospace Limited (JKMGAL) is a leading exporter of highly critical Aero engine components, supplying high-precision, mission-critical components to Global OEMs and Tier 1 suppliers. It is a key part of Raymond's engineering segment, recently spun off as a pure-play subsidiary.

**Scale Metrics:** * **Revenue (H1 FY26):** INR 168 crores * **Precision Aero Engine Parts Developed:** 1,200+ * **Parts of Latest LEAP Engines Variants:** 350+ * **Global Aero Components Manufacturing Clients:** 25+ * **Experience:** 2 Decades Relationship with Top Aero OEMs and Tier 1 Suppliers. * **Exports Percentage:** 90% of aerospace revenue. * **Dedicated NPD Engineers:** 57 * **Dedicated NPD Machines:** 20 State-of-the-Art Machines. * **Nozzle Guide Vanes Capacity:** Dedicated facility to make 8000 units per year. * **Raw Material Consumption:** 500 Tonnes Annually (110 Varieties).

**Financial Performance Summary:** * **Revenue Growth (H1 FY26 YoY):** 26% (INR 168 crores vs INR 134 crores H1 FY25). Q2 FY26 revenue was INR 81 crores, a 15% YoY growth. * **EBITDA (H1 FY26):** INR 38 crores (22.4% margin), a 32% YoY growth from H1 FY25 (INR 29 crores, 21.4% margin). Q2 FY26 EBITDA was INR 17 crores (21.0% margin), a 34% YoY growth. * **Profitability:** Superior and improving EBITDA margins, significantly higher than consolidated average.

**Strategic Priorities and Focus Areas:** * **Capacity Expansion:** New facility in Andhra Pradesh (INR 510 crores outlay); annual capex of INR 100 crores. * **New Product Development:** 150 new parts in the pipeline, 2,000 RFQ part numbers; moving towards more complex parts, modules, subassemblies. * **Customer & Geographic Expansion:** Successfully onboarded key global customers, strategic entry into UAE market. * **Deepening OEM Relationships:** Completion of audit compliance by one major OEM, positive FAIR approvals. * **Diversification within Aerospace:** Accessing systems and structures (landing gears, fuel, hydraulics) beyond engine components.

**Competitive Advantages and Positioning:** * **Market Leadership:** Preferred Supplier to top 3 Global Aircraft Engine Manufacturers, holding 88% market share. Believed to be the only company working with this range of engine OEMs. * **Technological Edge:** Expertise in handling 110 complex materials, advanced machinery, self-certification with 5 customers. * **Long-Term Visibility:** Commercial aircraft backlog exceeding 16,000 units (12-15 years visibility); order book 2.5x to 3x of annual revenue (5-10 year contracts). * **'China + 1' Beneficiary:** Leveraging India's position as a reliable manufacturing hub.

**Key Metrics and KPIs Specific to the Company:** * Revenue Growth: 26% (H1 FY26 YoY). * EBITDA Margin: 22.4% (H1 FY26). * Order Book: 2.5x to 3x annual revenue. * NPD Pipeline: 150 new parts, 2,000 RFQs. * Exports: 90% of revenue.

**Management Outlook and Guidance:** * Aim to **double this business in the next 4 to 5 years**. * Targeting **22%-25% EBITDA margin** on a consistent long-term basis. * Healthy growth expected over many years.

**Recent Developments and Initiatives:** * Installation of critical machinery (GROB machine). * Pratt & Whitney program progressing well. * Alignments with Tier-1 programs.

Raymond Limited - Precision Technology & Auto Components Business (JK Maini Precision Technology Limited - JKMPTL)

**Brief Description:** JK Maini Precision Technology Limited (JKMPTL) is a trusted Tier-1 supplier of precision technology and auto components, serving a diverse range of industries including automotive (conventional, hybrid, EV), hydraulics, industrials, agriculture, locomotives, and marine. It also holds market leadership in steel files, ring gears, and flex plates.

**Scale Metrics:** * **Revenue (H1 FY26):** INR 808 crores * **Auto Components Manufactured:** 2,000+ * **Large Customers:** 100+ across the globe. * **Global Customer Locations:** 18+ * **Hybrid/EV Business:** Roughly 15% of auto business revenue. * **Fuel Pump Bodies:** Makes 0.5 million for automotive customers (exports). * **Domestic Presence (B2C):** Pan India ~1.5 lac POS across 600 towns & cities. * **International Presence:** Caters to leading global players across 65+ countries.

**Financial Performance Summary:** * **Revenue Growth (H1 FY26 YoY):** 11% (INR 808 crores vs INR 728 crores H1 FY25). Q2 FY26 revenue was INR 409 crores, a 10% YoY growth. * **EBITDA (H1 FY26):** INR 99 crores (12.3% margin), a 31% YoY growth from H1 FY25 (INR 75 crores, 10.4% margin). Q2 FY26 EBITDA was INR 57 crores (13.9% margin), a 57% YoY growth. * *Note: Q2 FY26 EBITDA margin improvement includes a one-time gain of INR 13 crores on account of sale of land. Adjusted Q2 FY26 EBITDA margin (excluding gain) would be ~10.76%.* * **Profitability:** Improving margins, driven by robust demand and operational efficiencies.

**Strategic Priorities and Focus Areas:** * **New Market & Geography Expansion:** Expansion into new international geographies and industrial sectors. * **Hybrid & EV Focus:** Developing critical parts for the hybrid market in Europe; horizontally deploying hybrid product experience globally. * **Product Line Diversification:** Expanding capabilities and product lines in Clean Powertrain, EV & Hybrid, Hydraulics, Industrials, Agriculture, Locomotive, Marine, Automotive, Power Tools. * **Cost Engineering:** Focused on cost engineering and value-added processes for sustainable margin growth and new program wins. * **Optimizing Legacy Business:** For better EBITDA.

**Competitive Advantages and Positioning:** * **Market Leadership:** #1 in India for Steel Files (60%+ MS), #1 globally in installed capacity (~25% MS). #1 in India for Ring Gears (55% PV, 45% CV). Sole domestic manufacturer of Flex Plates (~25% MS in India). * **Diversified Product Portfolio:** Across 8 different segments, serving top 15 OEMs globally. * **Trusted Tier-1 Supplier:** Established relationships with domestic and global OEMs. * **'China + 1' Beneficiary:** Gaining momentum from global sourcing diversification. * **Manufacturing Excellence:** USP of manufacturing excellence, strong engineering integration.

**Key Metrics and KPIs Specific to the Company:** * Revenue Growth: 11% (H1 FY26 YoY). * EBITDA Margin: 12.3% (H1 FY26). * Hybrid/EV Revenue: ~15% of auto business. * Market Share: 60%+ in Indian Steel Files, 55% PV/45% CV in Indian Ring Gears.

**Management Outlook and Guidance:** * Expect quarter-on-quarter improvements in margins unless seasonal variations. * Believe hybrid market will grow faster than EV due to charging infrastructure issues in Europe.

**Recent Developments and Initiatives:** * Launch of ‘Three Files’ reinforcing leadership in India's files segment. * Stronger engineering integration and rising demand in EV, hybrid, and motion control segments.

J. TABLES

**Table 1: Raymond Limited - Consolidated Financial Performance Summary**

| Metric | Q2 FY26 (INR Crores) | Q1 FY26 (INR Crores) | Q2 FY25 (INR Crores) | H1 FY26 (INR Crores) | H1 FY25 (INR Crores) | FY25 (INR Crores) | YoY Change Q2 FY26 | YoY Change H1 FY26 | | :---------------------- | :------------------- | :------------------- | :------------------- | :------------------- | :------------------- | :---------------- | :----------------- | :----------------- | | Total Income | 564 | 555 | 512 | 1,119 | 1,011 | 2,100+ | 10% | 11% | | Revenue from Operations | 528 | - | - | 1,052 | - | - | 11% | 14% | | Other Income | 36 | - | - | 67 | - | - | (6)% | (24)% | | Expenses | 484 | - | - | 952 | - | - | - | - | | EBITDA | 79 | 87 | 77 | 167 | 172 | - | 3% | (3)% | | *EBITDA Margin* | *14.1%* | *15.7%* | *15.1%* | *14.9%* | *17.0%* | - | | | | Depreciation | 38 | - | - | 77 | - | - | - | - | | Interest Expense | 22 | - | - | 40 | - | - | - | - | | PBT (before exceptions) | 19 | 30 | 24 | 50 | 68 | - | (20)% | (27)% | | *PBT Margin* | *3.4%* | *5.4%* | *4.7%* | *4.4%* | *6.7%* | - | | | | Exceptional Items | (167) | - | - | (167) | - | - | - | - | | Taxes | 162 | - | - | 155 | - | - | - | - | | Net Profit | 14 | 21 | 1 | 35 | 24 | - | 46% | 46% |

*Note: Q2 FY26 EBITDA includes a one-time gain of ~INR 13 crores on account of sale of land.*

**Table 2: Raymond Limited - Debt and Cash Position (as of September 30, 2025)**

| Metric | Amount (INR Crores) | | :------------------------ | :------------------ | | Total Gross Debt | 972 | | Cash and Cash Equivalents | 999 | | Net Cash Flow Surplus | 27 | | **Net Debt Status** | **Net Debt-Free** |

**Table 3: Raymond Limited - Aerospace & Defense Business (JKMGAL) Financial Performance**

| Metric | Q2 FY26 (INR Crores) | Q2 FY25 (INR Crores) | H1 FY26 (INR Crores) | H1 FY25 (INR Crores) | YoY Growth Q2 FY26 | YoY Growth H1 FY26 | | :------------ | :------------------- | :------------------- | :------------------- | :------------------- | :----------------- | :----------------- | | Revenue | 81 | 70 | 168 | 134 | 15% | 26% | | EBITDA | 17 | 13 | 38 | 29 | 34% | 32% | | *EBITDA Margin* | *21.0%* | *18.0%* | *22.4%* | *21.4%* | | |

**Table 4: Raymond Limited - Precision Technology & Auto Components Business (JKMPTL) Financial Performance**

| Metric | Q2 FY26 (INR Crores) | Q2 FY25 (INR Crores) | H1 FY26 (INR Crores) | H1 FY25 (INR Crores) | YoY Growth Q2 FY26 | YoY Growth H1 FY26 | | :------------ | :------------------- | :------------------- | :------------------- | :------------------- | :----------------- | :----------------- | | Revenue | 409 | 373 | 808 | 728 | 10% | 11% | | EBITDA | 57 | 36 | 99 | 75 | 57% | 31% | | *EBITDA Margin* | *13.9%* | *9.7%* | *12.3%* | *10.4%* | | |

*Note: Q2 FY26 EBITDA margin improvement includes a one-time gain of INR 13 crores on account of sale of land.*

**Table 5: Key Market Projections for Raymond's Engineering Segments**

| Market Segment | Current Size / Value | Projected Size / Value | Growth Rate (CAGR) | Timeframe | | :---------------------------------- | :--------------------------- | :--------------------------- | :----------------- | :--------------- | | Global Aerospace Components Market | - | $132 Bn | 10% | - | | Indian Aerospace Components Market | $1.5 Bn | $4.0 Bn | ~28% | Next 4 years | | Aircraft Engine OEM Market | - | - | 9% | Next 5 years | | Other Aerospace OEM Market | - | - | 6% | Next 5 years | | India's Automotive Industry | ~$222 Bn | 3rd largest globally | - | By 2030 | | Auto Components OEM Market | - | - | ~4.7% | Next 5 years | | Commercial Aircraft Backlog | >16,000 units | - | - | 12-15 yrs visibility |

**Table 6: JKMGAL Raw Material Portfolio (Annual Consumption)**