Operating Leverage Inflection
Expected: OngoingHIGH confidence
What: EBITDA Margin Expansion: 270 bps
“EBITDA margin was at 16.10% as against 13.40%... on account of increased contribution margin per unit with higher capacity utilization.”
Rajoo Engineers Ltd: Stock Analysis & Fundamentals
Data from 3w agoRajoo Engineers Ltd (Engineering - Heavy - Plastic Machinery) — fundamental analysis, earnings data, and key metrics. PE: 22.8. ROE: 18.8%. This stock is not currently in the Nifty 500 momentum outperformers list.
Rajoo Engineers Ltd Key Facts
What's Happening
💪Debt reduced 25% YoY — balance sheet strengthening
👔Promoter stake down 5.9% this quarter
🌐FII stake increased 2.1% this quarter
🏛️DII accumulation — stake up 2.1%
Earnings Acceleration Triggers
1. Operating Leverage Inflection
OngoingHIGH
2. New Product Or Brand Launch
FY25HIGH
3. Order Book Or Contract Wins
6-24 monthsMEDIUM
Key Risks
1. Raw material prices have been stable but are subject to global volatility
LOW2. Global situations can affect raw material pricing and logistics
LOWSector-Specific Signals
Order Book₹200 Cr+
Export Revenue %74%
Capacity Utilisation80-85%
Outstanding Pipeline (Leads)₹1,000 Cr
Key Numbers
Current Price
₹61
Dividend Yield
0.24%
Market Cap
1.1K Cr
Valuation
N/AWhy Are Rajoo Engineers Ltd's Earnings Accelerating?
Based on Q2 FY26 earnings • Updated Apr 18, 2026
New Product Or Brand Launch
Expected: FY25HIGH confidence
What: ProEX Series: 900 kg/hr output
“ProEX series featuring high performance blown film technology... enabling Indian markets to have the solution from India itself instead of getting it from the European market.”
Order Book Or Contract Wins
Expected: 6-24 monthsMEDIUM confidence
What: Order Book: ₹200 Cr+
“Our order book continues to improve, consistently reaching new heights... current order booking is around Rs. 200 crores plus.”
Geographical Expansion
Expected: CurrentMEDIUM confidence
What: Export Revenue %: 74%
“the current quarter and in the last quarter we did around 74% revenue coming from the export market.”
Value Added Product Mix Shift
Expected: FutureMEDIUM confidence
What: High-value machine focus: ₹25 Cr per machine
“in the coming days a few of them would be shredded considering the low value product, and the company would continue to focus on the high value added products.”
EBITDA Margin of 16.10% vs 13.40% YoY
HIGH confidence
What: EBITDA Margin of 16.10% vs 13.40% YoY
“EBITDA margin was at 16.10% as against 13.40%, a Y-o-Y increase of 270 basis point on account of increased contribution margin per unit.”
EBITDA Margin guidance raised
HIGH confidence
What: 14% → 16-17%
“Well, we have done so far 14% and we feel that there would be an improvement by another 2% to 3%.”
What Are the Key Risks for Rajoo Engineers Ltd?
Earnings deceleration risks from management commentary
Raw material prices have been stable but are subject to global volatility
LOWTrigger: Changes in technology require different raw materials, which can increase costs.
Management view: Standardization of products to manage material needs.
Monitor: commodity
Global situations can affect raw material pricing and logistics
LOWTrigger: Instability in various parts of the world.
Management view: Not explicitly stated.
Monitor: geopolitical
What Is Rajoo Engineers Ltd's Management Saying?
Key quotes from recent conference calls
“So, for the coming years we would continue to maintain the growth of 12% to 15% and we have a good order booking pipeline. [Previous Revenue Growth guidance]”
“ProEX series featuring high performance blown film technology capable of producing films at 900 kilograms per hour with the thickness of just 20 microns. [Initiative: ProEX Series Launch]”
“We are expecting another two more projects coming in in another next two years and the revenue would be around Rs. 20 crores to Rs. 25 crores. [Initiative: Solar Cell Encapsulation Sheets]”
“the raw material prices have remained more or less in the range of previous... but the situation happening at the various parts of the world, of course, they have affected. [Risk (commodity): LOW]”
What Did Rajoo Engineers Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹56.81 Cr
YoY +6.12%QoQ +1.3%
Why: Growth was driven by a healthy order book resulting in production and dispatches being in full swing during the period.
Revenue growth was steady but significantly lower than the H1 average of 27%.
EBITDA
₹9.14 Cr
YoY +27.47%Margin 16.1%
Why: Expansion was driven by increased contribution margin per unit from higher capacity utilization and improved operational efficiency through process optimization.
EBITDA growth significantly outpaced revenue growth, indicating strong operating leverage.
PAT
₹7.24 Cr
YoY +36.74%
Why: Profitability improved due to the flow-through of higher EBITDA margins and a debt-free balance sheet minimizing interest costs.
PAT margin improved by 285 basis points year-on-year to 12.74%.
Other Highlights
• H1 FY25 revenue reached ₹107.68 Cr, a 27.07% YoY increase.
• Export revenue contributed 74% of total revenue in the current quarter.
• Company remains debt-free with healthy cash flows to support 12-15% sustainable growth.
What Sector Metrics Matter for Rajoo Engineers Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
₹200 Cr+
Why: Securing significant contracts based on bids and strong market demand.
Export Revenue %
74%
Why: Strong performance in international markets which offer better margins.
Capacity Utilisation
80-85%
Why: High production levels to fulfill the strong order book.
Outstanding Pipeline (Leads)
₹1,000 Cr
Why: High volume of bids placed in the capital goods industry.
Pipeline to Order Conversion
8-9%
Why: Typical conversion rate for large capital goods projects.
Repeat Orders %
40-45%
Why: Strong customer stickiness with existing clients.
Average Selling Price per Machine
₹1.5 Cr
Why: Reflects the mix of low-value and high-value machines in the portfolio.
PVC Installed Capacity Market Share
33%
Why: Strong position in terms of installed capacity despite being a late entrant.
What Is Rajoo Engineers Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
13%
OPM Guidance
12–15%
Revenue Outlook
13% to 15%
Margin Outlook
REAFFIRMED
Management Tone: BULLISH
Guidance Changes
RAISED
EBITDA Margin: 14% → 16-17%
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Rajoo Engineers Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Rajoo Engineers Ltd's latest quarterly results?
Rajoo Engineers Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: -88.0%
- Revenue Growth YoY: -11.7%
- Operating Margin: 2.0%
What is Rajoo Engineers Ltd's current PE ratio?
Rajoo Engineers Ltd's current PE ratio is 22.8x.
- Current PE: 22.8x
- Market Cap: 1.1K Cr
- Dividend Yield: 0.24%
What is Rajoo Engineers Ltd's price-to-book ratio?
Rajoo Engineers Ltd's price-to-book ratio is 3.1x.
- Price-to-Book (P/B): 3.1x
- Book Value per Share: ₹19
- Current Price: ₹61
Is Rajoo Engineers Ltd a fundamentally strong company?
Rajoo Engineers Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 24.0%
Is Rajoo Engineers Ltd debt free?
Rajoo Engineers Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹24 Cr
What is Rajoo Engineers Ltd's return on equity (ROE) and ROCE?
Rajoo Engineers Ltd's return ratios over recent years
- FY2024: ROCE 22.0%
- FY2025: ROCE 33.0%
- FY2026: ROCE 24.0%
Is Rajoo Engineers Ltd's cash flow positive?
Rajoo Engineers Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹68 Cr
- Free Cash Flow (FCF): ₹-127 Cr
- CFO/PAT Ratio: 139% (strong cash conversion)
What is Rajoo Engineers Ltd's dividend yield?
Rajoo Engineers Ltd's current dividend yield is 0.24%.
- Dividend Yield: 0.24%
- Current Price: ₹61
Who holds Rajoo Engineers Ltd shares — promoters, FII, DII?
Rajoo Engineers Ltd's shareholding pattern (Mar 2026)
- Promoters: 60.7%
- FII (Foreign): 1.7%
- DII (Domestic): 0.8%
- Public: 36.9%
Is promoter holding increasing or decreasing in Rajoo Engineers Ltd?
Rajoo Engineers Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 60.7% (Mar 2026)
- Previous Quarter: 60.7% (Dec 2025)
- Change: 0.00% (stable)
Is Rajoo Engineers Ltd a new momentum entry or an established outperformer?
Rajoo Engineers Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Rajoo Engineers Ltd?
Rajoo Engineers Ltd has 7 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Higher capacity utilization is allowing fixed costs to be absorbed more efficiently.
- New Product Or Brand Launch — New technology allows competition with European manufacturers on performance and price.
- Order Book Or Contract Wins — Healthy pipeline ensures production visibility for the next several quarters.
- Geographical Expansion — Higher margins in export markets compared to domestic sales.
What are the key risks in Rajoo Engineers Ltd?
Rajoo Engineers Ltd has 2 key risks worth monitoring
- [LOW] Raw material prices have been stable but are subject to global volatility — Changes in technology require different raw materials, which can increase costs.
- [LOW] Global situations can affect raw material pricing and logistics — Instability in various parts of the world.
What did Rajoo Engineers Ltd's management say in the latest earnings call?
In Q2 FY26, Rajoo Engineers Ltd's management highlighted
- "So, for the coming years we would continue to maintain the growth of 12% to 15% and we have a good order booking pipeline. [Previous Revenue Growth g..."
- "ProEX series featuring high performance blown film technology capable of producing films at 900 kilograms per hour with the thickness of just 20 micro..."
- "We are expecting another two more projects coming in in another next two years and the revenue would be around Rs. 20 crores to Rs. 25 crores. [Initi..."
What is Rajoo Engineers Ltd's management guidance for growth?
Rajoo Engineers Ltd's management has provided the following forward guidance for FY26
- Revenue growth target: 13%
- OPM guidance: 12–15%
- Capex plan: Not Given for Expansion in machining center and tooling
- Management tone: bullish
- Milestone: [RAISED] EBITDA Margin: 14% → 16-17%
What sector-specific metrics matter most for Rajoo Engineers Ltd?
Rajoo Engineers Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book: ₹200 Cr+ — Securing significant contracts based on bids and strong market demand.
- Export Revenue %: 74% — Strong performance in international markets which offer better margins.
- Capacity Utilisation: 80-85% — High production levels to fulfill the strong order book.
- Outstanding Pipeline (Leads): ₹1,000 Cr — High volume of bids placed in the capital goods industry.
- Pipeline to Order Conversion: 8-9% — Typical conversion rate for large capital goods projects.
- Repeat Orders %: 40-45% — Strong customer stickiness with existing clients.
Is Rajoo Engineers Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Rajoo Engineers Ltd may be worth studying
- Cash flow is positive — CFO ₹68 Cr
What is the investment thesis for Rajoo Engineers Ltd?
Rajoo Engineers Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Key risk: Raw material prices have been stable but are subject to global volatility
What is the future outlook for Rajoo Engineers Ltd?
Rajoo Engineers Ltd's forward outlook based on current data signals
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Raw material prices have been stable but are subject to global volatility
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.