Raymond Ltd. is shifting its strategic focus toward real estate and expanding its presence in the aerospace and defense sectors through its engineering division, according to Amit Agarwal, Group Chief Financial Officer. The company’s consolidated net profit for Q1 FY25 surged by 26.7% year-on-year to ₹57 crore, driven by a near-doubling in revenue. This marks a significant improvement from ₹45 crore in the same period last year.

During the quarter, Raymond completed the demerger of its lifestyle business into Raymond Lifestyle Ltd. on June 30. Agarwal emphasized a new strategy for the real estate segment, adopting a “build fast, sell fast, and collect fast” approach. Raymond is currently developing a 100-acre project in Thane and has a joint development agreement in Bandra, Mumbai. The company reported robust sales bookings of over ₹600 crore in Q1 and aims to reach ₹4,000 crore in the next 3 to 4 years.

Key financial highlights include a 93% year-on-year increase in revenue to ₹998 crore and an 81.6% rise in EBITDA to ₹162 crore. However, the EBITDA margin slightly declined to 16.2% from 17.3%. The lifestyle business faced challenges, with an 8% drop in revenue and an 18% decline in textiles, attributed to factors like excessive heat, lack of weddings, and election-related distractions. Agarwal remains optimistic about a recovery in the latter half of the year.

In the engineering segment, Agarwal sees significant growth potential in aerospace and defense, where India currently holds just 1% of the $100 billion market. Raymond’s acquisition of a 59.25% stake in Maini Precision Products Ltd. underscores this strategic focus. Despite challenges, the company is poised to capitalize on new opportunities, particularly amid the political crisis in Bangladesh.

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