Raymond hits record high as Aerospace and Defence Transformation gains momentum

Mumbai: Shares of Raymond Limited surged to a fresh lifetime high on Tuesday as investors increasingly focused on the company's transformation into an engineering-led business with growing exposure to aerospace, defence and precision manufacturing.

The company's aerospace business has emerged as a key growth driver. Aerospace revenue grew 40% in Q1 FY27 to ₹123 crore, while Raymond's engineering arm now manufactures more than 1,350 aerospace components for global customers, including over 350 parts for LEAP engine programmes.

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Raymond's aerospace business has a ₹5,960+ crore 10-year order book, more than 15 times its FY26 aerospace revenue, along with an active RFQ pipeline worth around ₹1,632 crore. The company has also secured preferred-supplier status with the world's three largest aircraft-engine manufacturers.

The company is investing around ₹1,000 crore in new capacity, including roughly ₹510 crore for aerospace. A new Andhra Pradesh facility is expected to begin production by late 2027 and will bring additional capabilities such as heat and surface treatment in-house.

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Raymond is simultaneously building a dedicated defence business, led by former Bharat Electronics chief Bhanu Prakash Srivastava, as it seeks to participate more deeply in India's defence-indigenisation push.

The strategy is increasingly centred on using capabilities developed for aerospace—precision manufacturing, specialised materials and advanced processes—across both civil aviation and defence.

This approach could help Indian manufacturers achieve the scale and technological maturity required to move higher up global defence and aerospace supply chains.

India is rapidly expanding its aerospace manufacturing ecosystem as aircraft and engine companies increase sourcing from the country. Raymond's management argues that the opportunity is no longer primarily about being a low-cost supplier; quality, reliability and on-time delivery are becoming the competitive advantage.

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