RAJOOENG - Rajoo Engineers
📢 Recent Corporate Announcements
Rajoo Engineers Limited has provided a clarification to the National Stock Exchange regarding an error in its Q3 FY26 financial results. The company admitted that 'Excess / Short Provision Written-Off' under Tax Expense was inadvertently not deducted in the consolidated results. This error resulted in the initial reporting of overstated Net Profit (PAT) and Earnings Per Share (EPS) figures. The company has since filed a corrigendum with revised financial results to rectify the mismatch between its PDF and XBRL filings.
- Initial Q3 FY26 consolidated Net Profit and EPS were overstated due to a tax accounting error
- The error involved failing to deduct 'Excess / Short Provision Written-Off' from the Tax Expense head
- A mismatch was identified between the XBRL data and the PDF financial results submitted on January 20, 2026
- The company has issued a corrigendum with revised figures to the exchange to correct the reporting lapse
Rajoo Engineers issued a corrigendum for its Q3 and 9M FY26 financial results to rectify an inadvertent error where 'Excess/Short Provision Written-Off' was not deducted from tax expenses. This correction resulted in a downward revision of the previously reported net profit, which was overstated. Despite this technical correction, the company's financial performance remains robust, with Q3 revenue growing 56% year-on-year to ₹87.60 crore. For the nine-month period, net profit has more than doubled compared to the previous year, reaching ₹44.85 crore.
- Q3 FY26 Revenue from operations increased to ₹87.60 crore from ₹56.08 crore in Q3 FY25.
- Corrected Net Profit for Q3 FY26 stands at ₹16.82 crore after adjusting for tax provision errors.
- 9M FY26 Consolidated Revenue reached ₹264.92 crore, a significant jump from ₹163.76 crore YoY.
- Consolidated Net Profit for 9M FY26 more than doubled to ₹44.85 crore from ₹21.47 crore in the prior year.
- Basic and Diluted EPS for the quarter ended December 31, 2025, is reported at ₹0.92.
Rajoo Engineers reported a strong year-on-year performance for the quarter ended December 31, 2025, with consolidated net profit rising 90% to ₹17.88 crore. Revenue from operations grew by 56% YoY to ₹87.60 crore, despite a slight sequential decline from Q2. The nine-month (9M) performance is exceptionally robust, with net profit more than doubling to ₹47.07 crore compared to ₹22.77 crore in the previous year. The company's subsidiary, Kohli Printing, contributed ₹2.60 crore to the quarterly profit, highlighting successful diversification.
- Consolidated Revenue for Q3 FY26 grew 56.2% YoY to ₹87.60 crore from ₹56.08 crore.
- Net Profit for the quarter jumped 90.2% YoY to ₹17.88 crore compared to ₹9.40 crore in Q3 FY25.
- 9M FY26 Net Profit reached ₹47.07 crore, already surpassing the full-year FY25 profit of ₹38.12 crore.
- Basic EPS increased significantly to ₹0.94 in Q3 FY26 from ₹0.56 in the corresponding quarter last year.
- Subsidiary Kohli Printing and Converting Machines reported a healthy profit after tax of ₹2.60 crore for the quarter.
Rajoo Engineers Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period ended December 31, 2025. The certificate, issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited, confirms that all dematerialization requests were processed within prescribed timelines. It further verifies that physical share certificates were mutilated and cancelled after due verification. This is a standard administrative filing required by all listed companies to ensure the integrity of electronic shareholding records.
- Compliance certificate submitted for the third quarter ended December 31, 2025.
- Issued by Registrar and Share Transfer Agent (RTA) MUFG Intime India Private Limited.
- Confirms that securities received for dematerialization have been listed on BSE and NSE.
- Confirms that physical certificates were mutilated and cancelled as per SEBI guidelines.
- Verification ensures the name of depositories has been substituted in the register of members.
Rajoo Engineers Limited has responded to a surveillance query from the National Stock Exchange regarding a significant increase in trading volume. The company clarified that there is no undisclosed price-sensitive information or pending announcements that would impact the stock's performance. Management stated that the volume increase is purely market-driven and not linked to any internal corporate developments. The company confirmed it remains compliant with all regulatory disclosure requirements as of January 06, 2026.
- NSE issued a surveillance query (Ref: NSE/CM/Surveillance/16291) on January 05, 2026, regarding volume spurt.
- Company responded on January 06, 2026, denying any undisclosed price-sensitive information (UPSI).
- Management attributed the volume movement to market-driven factors rather than internal news or decisions.
- The company confirmed all necessary disclosures have been made to the stock exchanges as required.
Rajoo Engineers Limited has announced the closure of its trading window starting January 01, 2026, in compliance with SEBI Insider Trading regulations. This closure is a standard procedure ahead of the declaration of the unaudited standalone and consolidated financial results for the third quarter ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are officially announced. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure commences on January 01, 2026.
- Closure pertains to the financial results for the third quarter ended December 31, 2025.
- Restriction applies to all designated persons and their immediate relatives.
- The window will reopen 48 hours after the results are declared to the stock exchanges.
Rajoo Engineers has received shareholder approval via postal ballot for the appointment of Ms. Lakshmi Ramakrishnan as a Non-Executive Independent Director. She brings over 28 years of extensive experience in manufacturing and engineering, having previously served as the CEO of Essen Speciality Films where she managed an annual turnover exceeding Rs. 100 Crores. Her five-year term is effective from September 23, 2025, and she is expected to strengthen the board's expertise in corporate governance and strategic operations.
- Appointment of Ms. Lakshmi Ramakrishnan as Independent Director for a 5-year term starting September 23, 2025.
- Brings over 28 years of industry experience (1992–2020) across manufacturing, engineering, and retail sectors.
- Former CEO of Essen Speciality Films, where she led the company to an annual turnover exceeding Rs. 100 Crores.
- Extensive experience in corporate governance and managing audits for global organizations like IKEA and Walmart.
Rajoo Engineers Limited has announced the successful passage of a special resolution to appoint Ms. Lakshmi Ramakrishnan as a Non-Executive Independent Director. The resolution was passed via a postal ballot process that concluded on December 19, 2025, with an overwhelming majority of 99.9972% votes in favor. Ms. Ramakrishnan's appointment is for a five-year term effective from September 23, 2025. This move strengthens the company's board independence and ensures compliance with SEBI listing regulations.
- Special resolution passed with 99.9972% of votes (109,743,027 votes) in favor.
- Only 3,068 votes (0.0028%) were cast against the appointment.
- Ms. Lakshmi Ramakrishnan appointed for a five-year term starting September 23, 2025.
- A total of 109,746,095 valid votes were polled during the e-voting period.
- The appointment was conducted through a remote e-voting process as per MCA and SEBI guidelines.
Financial Performance
Revenue Growth by Segment
The company reported a consolidated revenue of INR 253.66 Cr in FY25, representing a 28.5% growth from INR 197.35 Cr in FY24. For H1 FY26, revenue from operations surged to INR 177.33 Cr, a 64.67% YoY increase from INR 107.68 Cr in H1 FY25, driven by a robust order book and full-capacity dispatches.
Geographic Revenue Split
While specific regional percentages are not fully itemized, the company noted a significant increase in the proportion of export sales, which contributed to a 480 bps improvement in PBILDT margins in FY25. Domestic sales remain a core component, supported by a 40-45% repeat customer rate.
Profitability Margins
Profitability showed strong upward momentum. Net Profit Margin improved from 9.95% in FY24 to 13.89% in FY25. In H1 FY26, the PAT margin further expanded to 15.81% compared to 11.68% in H1 FY25, an increase of 413 bps due to better operational efficiency and higher contribution margins per unit.
EBITDA Margin
EBITDA margin (excluding other income) stood at 20.80% in H1 FY26, a massive 1,570 bps increase from 15.10% in H1 FY25. For FY25, the PBILDT margin was 18.44%, up from 13.64% in FY24, reflecting process optimization and higher capacity utilization.
Capital Expenditure
In FY25, the company invested INR 12.26 Cr in the purchase of Property, Plant, and Equipment and Intangible assets, slightly up from INR 11.85 Cr in FY24. This investment is aimed at expanding manufacturing capabilities to meet the growing order book.
Credit Rating & Borrowing
The company is rated CARE A-; Positive for long-term facilities and CARE A2+ for short-term facilities. It maintains a strong financial profile with zero debt as of March 31, 2025, and negligible utilization of working capital limits, resulting in minimal interest costs (INR 0.84 Cr in H1 FY26).
Operational Drivers
Raw Materials
Key raw materials include steel, machinery components, and electronic controllers. Raw material costs accounted for INR 167.56 Cr (66% of revenue) in FY25 and INR 105.56 Cr (59.5% of revenue) in H1 FY26.
Import Sources
The company sources high-end components globally to maintain quality standards for its extrusion lines, though specific country-wise splits are not disclosed. Local sourcing from Gujarat and Maharashtra is utilized for structural steel and standard components.
Key Suppliers
Not specifically disclosed by name, but the company manages a diverse vendor base for specialized mechanical and electronic components to mitigate dependency risks.
Capacity Expansion
The company is currently operating at full capacity to fulfill its strong order book. It has raised approximately INR 160 Cr through a QIP in July 2025 to fund future capacity expansion and strategic initiatives.
Raw Material Costs
Raw material costs as a percentage of revenue decreased from 77.5% in FY24 to 66% in FY25. This 11.5% reduction in relative cost is attributed to better product mix and increased sales of high-value customized machines.
Manufacturing Efficiency
Manufacturing efficiency is high, with the company reaching a level of standardization where certain machines no longer require extensive trials, allowing for faster turnaround and higher capacity utilization.
Logistics & Distribution
Distribution costs are managed as part of 'Other Expenses'; the company's focus on exports necessitates robust logistics for shipping large-scale machinery globally.
Strategic Growth
Expected Growth Rate
25-30%
Growth Strategy
Growth will be achieved through a combination of organic and inorganic strategies: 1) Forward integration via the 60% acquisition of Kohli Printing And Converting Machines, 2) Utilizing INR 160 Cr QIP proceeds for capacity expansion, 3) Increasing the mix of high-value customized machines with higher ASP (Average Selling Price) of ~INR 1.5 Cr, and 4) Expanding export market penetration.
Products & Services
Plastic extrusion machinery, blown film lines, sheet extrusion lines, thermoforming machines, and printing/converting machinery (post-acquisition).
Brand Portfolio
Rajoo
New Products/Services
The company is focusing on high-end customized extrusion machines and integrated printing solutions through its new acquisition, expected to contribute significantly to the 12-15% margin target.
Market Expansion
Targeting increased export sales and forward integration into the machinery segment to provide end-to-end solutions for the packaging industry.
Market Share & Ranking
Operates in a niche machinery manufacturing segment with a strong competitive position in the Indian plastic extrusion market.
Strategic Alliances
Maintains a Joint Venture which contributed a share of profit of INR 2.82 Cr in FY25. Recently signed an NBIO for a 60% stake in Kohli Printing And Converting Machines.
External Factors
Industry Trends
The machinery segment is evolving towards higher automation and energy efficiency. Rajoo is positioning itself by moving toward standardized, high-quality machines that require less manual intervention and testing.
Competitive Landscape
Competes with both domestic manufacturers and international players in the plastic machinery space, maintaining an edge through customization and cost-effective engineering.
Competitive Moat
The moat is built on 30+ years of management experience, a niche focus on plastic extrusion, and a strong repeat customer base (45%). This is sustainable due to the high switching costs and technical expertise required in machinery manufacturing.
Macro Economic Sensitivity
Sensitive to industrial capex cycles and plastic consumption trends; a slowdown in the packaging industry would directly impact demand for extrusion lines.
Consumer Behavior
Increased demand for sophisticated packaging is driving plastic processors to upgrade to high-end multi-layer blown film lines produced by the company.
Geopolitical Risks
Trade barriers or shipping disruptions could impact the delivery of export orders, which are a key driver of the current margin expansion.
Regulatory & Governance
Industry Regulations
Subject to industrial safety norms and pollution control regulations for manufacturing units. Export products must meet international quality and safety certifications.
Environmental Compliance
The company complies with manufacturing standards; however, specific ESG compliance costs are not disclosed.
Taxation Policy Impact
The effective tax rate for FY25 was approximately 24.5% (INR 11.47 Cr tax on INR 46.71 Cr PBT).
Legal Contingencies
As of March 31, 2025, there are no pending litigations that would impact the financial position of the parent or the joint venture.
Risk Analysis
Key Uncertainties
Volatility in raw material prices (steel/electronics) and the successful integration of the Kohli acquisition are key risks that could impact margins by 2-3%.
Geographic Concentration Risk
While expanding exports, a significant portion of manufacturing is concentrated in Rajkot/Shapar, Gujarat.
Third Party Dependencies
Dependency on specialized component suppliers for high-end extrusion lines; however, customer advances help secure these components early.
Technology Obsolescence Risk
The company mitigates technology risk through continuous innovation and moving toward standardized high-end products.
Credit & Counterparty Risk
Low credit risk as the company operates with high customer advances (INR 118.33 Cr), significantly covering its trade receivables and procurement needs.