Raymond Lifestyle Limited

Financial Performance Highlights

Q2 FY27 Performance (Quarter Ended September 30, 2026):

  • Total Income: ₹2,125 crores (14% YoY growth from ₹1,865 crores in Q2 FY26)
  • Revenue from Operations: ₹2,075 crores (13% YoY growth)
  • Consolidated EBITDA: ₹270 crores (4% YoY growth from ₹259 crores)
  • EBITDA Margin: 12.7% (120 bps YoY decline due to input cost pressures)
  • PBT before exceptional items: ₹91 crores
  • Net Finance Cost: ₹25 crores (7% reduction from ₹27 crores)

H1 FY27 Performance (Half Year Ended September 30, 2026):

  • Total Income: ₹3,685 crores (10% YoY growth from ₹3,340 crores)
  • EBITDA: ₹404 crores (6% YoY growth)
  • EBITDA Margin: 11%
  • PBT before exceptional items: ₹53 crores

Sequential Performance (Q2 vs Q1 FY27):

  • Total Income growth: 36%
  • EBITDA growth: 100%
  • PBT growth: 337%

Balance Sheet and Cash Flow Position

  • Net Cash Surplus: ₹69 crores as of September 2026 (significant turnaround from net debt of -₹246 crores in September 2025)
  • Net Cash Accretion: ₹300+ crores improvement year-over-year
  • Net Working Capital Cycle: Reduced to 82 days (23-day improvement from 105 days in September 2025)
  • Absolute Net Working Capital: Contracted to ₹1,622 crores from ₹1,870 crores despite ₹240 crores sales increase

Segment Performance (New Reporting Structure)

The company has instituted a segment reclassification with five reporting segments:

1. Branded Textile:

  • Q2 Revenue: ₹971 crores (7% YoY growth from ₹906 crores)
  • H1 Revenue: ₹1,650 crores (3% YoY growth)
  • Q2 EBITDA: ₹188 crores
  • EBITDA Margin: 19.3%
  • Sequential growth: 42% from Q1

2. Branded Apparel:

  • Q2 Revenue: ₹559 crores (20% YoY growth from ₹465 crores) - highest-ever quarterly revenue
  • H1 Revenue: ₹908 crores (14% YoY growth)
  • Q2 EBITDA: ₹49 crores (20% YoY growth)
  • EBITDA Margin: 8.8%
  • Sequential growth: 60% from Q1

3. Garmenting:

  • Q2 Revenue: ₹339 crores (26% YoY growth)
  • H1 Revenue: ₹635 crores (36% YoY growth)
  • Q2 EBITDA: ₹25 crores (75% YoY growth)
  • EBITDA Margin: 7.4% (207 bps expansion)
  • Sequential growth: 15% from Q1

4. High Value Cotton Shirting:

  • Q2 Revenue: ₹222 crores (5% YoY growth)
  • Q2 EBITDA: ₹21 crores
  • EBITDA Margin: 9.5%
  • Sequential growth: 14% from Q1

5. Emerging Businesses (Ethnix, Raymond Home, Park Avenue Innerwear, Sexual Wellness, Chairman's Collection):

  • Q2 Revenue: ₹100 crores (15% YoY growth) - first time reaching ₹100 crores
  • H1 Revenue: ₹179 crores
  • Q2 EBITDA: -₹23 crores (incubation phase)
  • Sequential growth: 27% from Q1

Operational Metrics

  • Retail Footprint: 1,634 active stores across 600+ towns and cities
  • 1,134 The Raymond Shops
  • 450 EBOs (Exclusive Brand Outlets)
  • 50 Made to Measure stores
  • Store Rationalization: Exited 53 lower-productivity stores while opening 24 high-yielding premium stores (net reduction of 29 stores)
  • Target: Net 20+ store additions for FY27

Strategic Initiatives and Updates

Capacity Expansion:

  • Garmenting capacity expansion with new plant in Hindupur, Andhra Pradesh
  • Initial plan: 3 lines, expanded to 10 lines due to FTA opportunities
  • Current status: 3 lines operational, 4th line expected by November-December 2026
  • Remaining 6 lines to be operational over 18-20 months
  • Peak capacity target: 10 million units

Geographic Diversification:

  • Leveraging US-India tariff rationalization and UK-India FTA
  • EU FTA expected to be signed in December 2026
  • Europe business: 30% growth in H1, 50% growth in Q2

Product Strategy:

  • Premiumization focus: shifting fabric mix towards high-margin pure wool and linen
  • Casualization expansion: polos, chinos, denims with proprietary technologies (Air Shield, Flexfit, Techno-Clean)
  • Tier 2-4 penetration through MBOs (Multi-Brand Outlets)
  • Scaling LFS (Large Format Stores) and digital channels

Marketing Initiatives:

  • Increased marketing investments ahead of festive season
  • Campaigns: ColorPlus "Live the Pause", Ethnix "Wedding on Wheels"
  • Marketing spend: ₹116 crores in Q2 (18% YoY increase, 7.2% of B2C sales)

ESG Initiatives:

  • Targeting 15% reduction in Scope 1 and Scope 2 emissions
  • Renewable energy: 25% (up from 15.1% last year)
  • Zero waste to landfill, zero liquid discharge at Chhindwara plant
  • Target: 40% female representation
  • CSR programs: Project Neev, Project Good Neighbor, Project Weave

Order Book and Capacity Utilization

  • Garmenting plants operating at 90%+ capacity utilization
  • Order book visibility: Booking February 2027 orders currently
  • Factories full until January-end/early February 2027

Capex Guidance

  • FY27 Capex: ₹200 crores
  • >₹70 crores for Hindupur garmenting expansion
  • COCO store expansion
  • IT upgrades (SAP S/4HANA implementation)
  • Plant upgrades and ESG investments
  • FY28 Capex: Budget not yet finalized

Management Guidance for FY27

  • Double-digit revenue growth
  • Mid-double-digit EBITDA growth
  • Net cash position: ₹300+ crores
  • PBT target: ~₹220-225 crores (double-digit growth)
  • Working capital target: Below 70 days by year-end

Market Context and Challenges

  • Macroeconomic headwinds: Elevated Brent crude ($105-110/barrel), high raw material costs
  • Currency impact: INR trading at 94-95 against USD increasing import costs
  • Domestic challenges: Unseasonal rainfall affecting agricultural yields, firm wool and cotton prices
  • RBI repo rate increased by 25 bps to 5.50%
  • Festive season delay: Diwali shifted to November 8-9, 2026 (vs October 22-23, 2025)

Emerging Businesses Outlook

  • Raymond Home: Double-digit growth, introduced super-premium line, expected breakeven+ by year-end
  • Innerwear: Channel expansion, expected breakeven by year-end (excluding sleepwear segment)
  • Ethnix: Store rationalization (27 stores closed), transition to asset-light model, breakeven expected in 18-24 months
  • Chairman's Collection: One super-luxury store in Bandra, in early stages