Raymond refashions itself after demergers as profit rises to Rs 53 crore

MUMBAI: Raymond Limited is looking to prove it is still a cut above the rest, even after unpicking its historic fabric to fashion a brand-new corporate design. Having spent the last two years stripping down its legacy empire through massive structural transformations, the group’s newly published annual report reveals a business that has thoroughly re-tailored itself. With its lifestyle division spun off into Raymond Lifestyle Limited and its real estate arm sliced away into Raymond Realty Limited, the parent entity is left holding its engineering business via subsidiaries and a denim operation through a joint venture.

For the financial year ended 31 March 2026, Raymond Limited reported a 14 per cent increase in consolidated revenue from operations, which rose to Rs 2,212 crore from Rs 1,947 crore in the previous fiscal year. However, consolidated other income declined to Rs 100 crore from Rs 158 crore. Total consolidated income reached Rs 2,312 crore, representing a 10 per cent year-on-year growth compared to Rs 2,105 crore in the prior year.

Consolidated expenses increased to Rs 1,977 crore from Rs 1,770 crore, keeping consolidated EBITDA flat at Rs 335 crore. Consequently, the EBITDA margin compressed to 14.5 per cent from 15.9 per cent. Profit before tax (PBT) decreased by 20 per cent to Rs 99 crore from Rs 123 crore, with the PBT margin falling to 4.3 per cent from 5.9 per cent. Consolidated net profit grew by 3 per cent, moving up to Rs 53 crore from Rs 52 crore in the previous year.

Due to the demergers, the company noted that standalone financial indicators are not directly comparable to historical figures. Standalone revenue from operations was recorded at Rs 425 lakh, down from Rs 609 lakh in the prior year, while standalone other income fell to Rs 10,560 lakh from Rs 18,426 lakh.

The standalone financial ratios changed as follows:

Current ratio: Decreased to 12.84 times from 14.29 times.
Debt-equity ratio: Dropped to 0 times from 0.03 times.
Debt service coverage Ratio: Declined to 16.60 times from 39.29 times.
Return on equity (ROE): Fell to -0.52 per cent from 9.49 per cent.
Net profit ratio: Swung to -311.04 per cent from 589.87 per cent.
Return on capital employed (ROCE): Dropped to -0.79 per cent from 12.93 per cent.
Inventory turnover ratio: Softened to 0.35 times from 0.59 times.
Trade receivables turnover: Decreased to 8.16 times from 11.76 times.
According to the group’s accounting disclosures under Note 42(a), the parent company Raymond Limited accounts for 57.31 per cent of consolidated net assets (Rs 1,78,667 lakh) and generated 98.55 per cent of total profit (Rs 5,26,404 lakh) before broader consolidation adjustments.

The financial breakdown of its domestic subsidiaries and business units shows:

J K Maini Precision Technology Limited: Contributed 14.45 per cent of consolidated net assets (Rs 45,045 lakh) and reported a net profit of Rs 4,037 lakh.
J K Maini Global Aerospace Limited: Held 13.82 per cent of net assets (Rs 43,094 lakh) and added Rs 2,023 lakh to net profit.
J.K. Files (India) Limited: Accounted for 0.02 per cent of net assets (Rs 73 lakh) with a net profit of Rs 882 lakh.
Everblue Apparel Limited: The denim garmenting unit reported gross revenue of Rs 14,882.19 lakh, representing 0.51 per cent of net assets (Rs 1,577 lakh) and a net profit of Rs 63 lakh.
Pashmina Holdings Limited & Raymond Woollen Outerwear Limited: Contributed modest profits of Rs 13 lakh and Rs 10 lakh respectively.
Intercompany eliminations and real estate disposal entries reduced consolidated net assets by Rs 51,233 lakh (-16.43 per cent) but adjusted the final bottom line upward by Rs 3,028 lakh (0.57 per cent).

The 101st AGM’s key resolutions include the re-appointment of non-executive director Harmohan Sahni, who attended 6 out of 7 board meetings and received a remuneration of Rs 29,24,661 in FY 2025-26. Additionally, a resolution proposes a commission payout to non-executive directors of up to 1 per cent of annual net profits for a three-year period ending March 2029.

The company met its mandatory 2 per cent corporate social responsibility (CSR) obligation, spending Rs 1,058 lakh on community programmes under CSR Chairman Ashish Kapadia and Managing Director Gautam Hari Singhania. Furthermore, the firm recorded an expenditure of Rs 354 lakh related to options granted under the Raymond Employee Stock Option Plan 2023.