Event Type: Q1 FY27 Earnings Conference Call hosted by Motilal Oswal Financial Services

Date and Time: The conference call was held on August 03, 2026. The specific time was not mentioned in the disclosure.

Purpose of Event: Discussion of financial results for the first quarter ended June 30, 2026, and providing strategic updates to investors and analysts.

Management Participants:

  • Mr. Satyaki Ghosh – Chief Executive Officer
  • Mr. E. C. Prasad – Chief Financial Officer
  • Mr. Sunny Desa – Head, Investor Relations

Moderator: Mr. Avinash Karumanchi from Motilal Oswal Financial Services Limited

Availability of Materials: The transcript of the conference call has been uploaded on the Company's website at https://raymondlifestyle.com/home

Financial Period Discussed: Q1 FY27 (first quarter ended June 30, 2026)

Financial Highlights:

  • Total Income: INR1,560 crores in Q1 FY27 vs INR1,475 crores in Q1 FY26 (6% YoY growth)
  • EBITDA: INR135 crores (11% YoY growth)
  • EBITDA Margin: 8.6% (40 basis point expansion YoY)
  • Net Cash Surplus: INR154 crores in June '26 vs Net Debt of INR55 crores in June '25
  • Net Working Capital Days: 75 days in Q1 FY27 vs 90 days in Q1 FY26

Segment-wise Performance:

The company has reclassified into five reporting segments:

1. Branded Textiles: Revenue INR684 crores (vs INR699 crores YoY), EBITDA INR95 crores, Margin 13.9%

2. Branded Apparel: Revenue INR349 crores (4% YoY growth), EBITDA INR18 crores, Margin 5.1%

3. Garmenting: Revenue INR296 crores (50% YoY growth), EBITDA INR22 crores (vs negative INR8 crores YoY), Margin 7.3% (1,100 bps improvement)

4. High Value Cotton Shirting: Revenue INR195 crores (vs INR205 crores YoY), EBITDA INR19 crores, Margin 9.7%

5. Emerging Business: Revenue INR79 crores (9% YoY growth), includes Ethnix by Raymond, Raymond Home, Park Avenue Innerwear, Chairman's Collection, and Sexual Wellness

Strategic Themes and Forward-looking Statements:

  • Premiumization: Shifting product mix towards high-value wool, poly-wool blends, and pure linen collections
  • Casualization: Expanding smart casuals, polos, chinos, knits, corduroys, and denims
  • Geographical Diversification: Leveraging UK-EU FTAs to expand market share in European markets
  • Store Optimization: Exited 133 underperforming stores since June 2025, opened 85 new locations
  • Marketing Initiatives: Launched 2026 Garment Exchange Program themed "Refresh Your Style with Perfect Tailoring"
  • Loyalty Program: Reached 12.4 million members

Raw Material Cost Pressures:

Management highlighted significant inflation in:

  • Wool prices: Increased ~100% YoY
  • Cotton and flax: Increased ~20% YoY
  • Chemicals: Increased ~30% YoY

The company is implementing cost mitigation strategies including vendor diversification, "Make in India" initiatives, and planned price increases of 5-7% in apparel and 7-9% in fabrics.

Order Book Visibility:

  • Garmenting capacity fully booked through December 2026
  • Orders for January 2027 onwards currently being booked
  • Geographic mix: US ~59-60%, UK ~12%, Europe ~7-8%, with goal to reduce US dependence to 55%

Store Network Strategy:

  • Active network: 1,627 stores across 600 cities
  • Continuing store rationalization with net EBO closures expected for FY27
  • Focus on high-impact locations and channel diversification (e-commerce, LFS)

ESG Commitments:

  • On track to achieve 2030 ESG goals
  • Renewable energy usage increased from 8-9% to 12% currently, targeting 25% by 2030

Additional Notes Section

The document includes the full transcript of the earnings conference call with detailed Q&A session covering:

  • Raw material cost management strategies
  • Garmenting segment margin outlook
  • Depreciation increase explanation (INR11 crores one-off item)
  • New international clients (Next, El Corte Ingles, OVS, Carl Gross, T.M. Lewin)
  • Ethnix business model transformation to Made-to-Measure for premium products
  • Impact of Adhik Maas on Q1 retail performance
  • Medium-term growth targets (aiming to double business in 3-5 years)