Big Defence Move: Raymond Wins Major Tender To Enter Aircraft Structures

Raymond Limited is set to enter the aircraft structures segment after its subsidiary, JK Maini Global Aerospace Limited, emerged successful in a tender conducted by a leading Indian aerospace and Defence original equipment manufacturer.

The tender covers assembly of wing structures and centre fuselage structures for a major indigenous fighter aircraft programme. Raymond did not disclose the customer’s name, programme value, execution schedule or the potential revenue contribution from the contract.

The development is strategically relevant because it moves the group beyond precision-manufactured aerospace components into complex aircraft assemblies, a segment that generally requires stronger programme-management capability, quality assurance and execution credentials. The company said the programme would use the customer’s existing infrastructure, allowing it to build aircraft-structure capabilities without immediately undertaking large capital expenditure.

Rakesh Tiwary, Group CFO of Raymond Group, said the opportunity was ‘strategically much larger than its immediate business potential’ as it provides an entry into the high-value aircraft structures segment while maintaining capital efficiency.

‘More importantly, it gives us an opportunity to establish critical execution credentials that can position Raymond’s subsidiaries for participation in larger aerospace programmes in India and globally. Our focus will be on execution excellence and building this capability into a scalable growth platform,’ Tiwary said.

The tender win aligns with Raymond’s stated strategy of moving towards higher-value aerospace products, sub-assemblies and deeper integration with customers. In its latest management commentary, the company had indicated that aerospace demand remained ahead of available supply, although it was selectively pursuing opportunities based on margins, return on capital employed and execution capacity.

Raymond’s aerospace and defence segment reported revenue of Rs 392.38 crore in FY2025-26, up about 26 per cent from Rs 311.44 crore in the preceding year. JK Maini Global Aerospace separately reported revenue of around Rs 390 crore during the year. The new aircraft-structures programme therefore opens a new business vertical for a division that has so far been driven primarily by precision aerospace manufacturing and export-oriented programmes.

The company’s wider engineering business includes aerospace and defence, tools and hardware, and auto and precision components. Its aerospace operations are export intensive, with exports accounting for about 79 per cent of aerospace revenue according to its annual report. The fighter-aircraft programme could help increase its exposure to domestic defence manufacturing while strengthening the qualifications needed for future global aircraft-assembly work.

The announcement also comes as Raymond develops additional aerospace capacity in Andhra Pradesh. Management has previously said commercial production at the greenfield facility is targeted for late 2027, although meaningful revenue contribution may begin only from FY2028 because customer approvals and aerospace production ramps take time. The present tender could allow the company to develop assembly expertise before that new facility becomes operational.

Execution will remain the central factor. Aircraft structures involve stringent quality, traceability, certification and delivery requirements, while defence programmes can have long qualification cycles. Raymond has also cautioned that it is seeking to avoid overextension as aerospace demand expands, making customer approvals and programme execution more important than the immediate tender announcement alone.

In the latest reported quarter, Raymond posted net sales of Rs 605.61 crore, up 15.51 per cent year-on-year, while PBIDT excluding other income rose 37.35 per cent to Rs 77.30 crore. The margin on that basis improved to 12.76 per cent from 10.73 per cent a year earlier.

As of 3:22 pm on September 23, 2026, Raymond shares were trading at Rs 1,109, down 0.42 per cent from the previous close of Rs 1,113.65. The stock has gained 80.04 per cent over the preceding year, compared with a 3.73 per cent decline in the BSE 500 over the same period.

Disclaimer: The article is for informational purposes only and not investment advice.