Raymond shares extend fall after Q3 results; what lies ahead for the stock?

Shares of Raymond Ltd extended their decline for a second consecutive session on Thursday, slipping 3.03 per cent to Rs 375.55 in early trade.

On the earnings front, the company's net profit for Q3 FY26 plunged 90 per cent year-on-year (YoY) to Rs 7 crore, compared with Rs 72.3 crore in the corresponding quarter last year. Profitability during the quarter was impacted by a one-time cost arising from the implementation of new labour codes, which resulted in an exceptional item of Rs 14 crore.

Total income, however, rose 18 per cent YoY to Rs 580 crore in Q3 FY26 from Rs 493 crore in Q3 FY25. EBITDA increased 27 per cent to Rs 83 crore from Rs 65 crore a year ago, while EBITDA margin improved by around 100 basis points (bps) to 14.3 per cent from 13.3 per cent.

Raymond also maintained a strong balance sheet, remaining net debt-free with a net cash surplus of Rs 214 crore as of the end of the quarter.

The aerospace and defence segment continued to be a key growth driver. During Q3 FY26, the segment generated revenue of Rs 105 crore, marking a robust 48.9 per cent increase over Rs 70 crore in Q3 FY25. EBITDA from the segment grew 39.4 per cent YoY to Rs 19 crore, compared with Rs 14 crore in the year-ago period.

From a technical standpoint, some analysts largely remain cautious on Raymond, with the stock hovering near key support levels around Rs 350–365.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said Raymond has been in a secular downtrend for the past six to seven months and continues to struggle below its 20 DEMA, indicating underlying weakness. He pointed out that the stock is currently trading near a key historical neckline support in the Rs 365–350 zone. With momentum indicators in the oversold territory, the stock may stabilise at these levels. He advised a cautious approach for now, noting that resistance is placed in the Rs 430–440 range, and a decisive breakout above this zone could trigger fresh momentum going ahead.

AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, said Raymond’s stock appears bullish on the daily charts, with strong support around Rs 361. He added that a daily close above the Rs 397 resistance level could open the door for a near-term target of Rs 441.

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said immediate support for the stock is seen at Rs 360, while resistance is placed at Rs 408. He noted that a clear move above Rs 408 could push the stock towards Rs 420, with the expected short-term trading range seen between Rs 360 and Rs 420.