Macro Economic Context

The presentation outlines a challenging macro environment with Brent crude trading above $105–$110/bbl, maintaining cost pressures on synthetic fiber inputs, dye chemicals, and freight. The Indian Rupee is near record lows at 94–95 USD/INR, elevating import costs for raw materials. The RBI has raised India's FY27 real GDP growth projection to 7.1% but revised CPI inflation projection to 5.2% due to persistent input cost pressures.

Financial Performance - Consolidated (₹ Crore)

Q2FY27 Performance

  • Revenue from Operations: ₹2,075 (vs. ₹1,832 in Q2FY26; +13% YoY)
  • Other Income: ₹49 (vs. ₹33 in Q2FY26)
  • Total Income: ₹2,125 (vs. ₹1,865 in Q2FY26; +14% YoY)
  • EBITDA: ₹270 (vs. ₹259 in Q2FY26; +4% YoY)
  • EBITDA Margin: 12.7% (vs. 13.9% in Q2FY26; -120 bps)
  • Depreciation: ₹105 (vs. ₹91 in Q2FY26)
  • Interest Expense: ₹74 (vs. ₹60 in Q2FY26)
  • PBT: ₹91 (vs. ₹108 in Q2FY26; -16% YoY)
  • PBT Margin: 4.3% (vs. 5.8% in Q2FY26)
  • Taxes: ₹(23) (vs. ₹(28) in Q2FY26)
  • Net Profit: ₹68 (vs. ₹80 in Q2FY26; -15% YoY)
  • Exceptional Items: ₹0 (vs. ₹(5) in Q2FY26)
  • Net Profit Post Exception: ₹68 (vs. ₹75 in Q2FY26; -10% YoY)

H1FY27 Performance

  • Revenue from Operations: ₹3,591 (vs. ₹3,263 in H1FY26; +10% YoY)
  • Other Income: ₹94 (vs. ₹78 in H1FY26)
  • Total Income: ₹3,685 (vs. ₹3,340 in H1FY26; +10% YoY)
  • EBITDA: ₹404 (vs. ₹381 in H1FY26; +6% YoY)
  • EBITDA Margin: 11.0% (vs. 11.4% in H1FY26)
  • Depreciation: ₹214 (vs. ₹180 in H1FY26)
  • Interest Expense: ₹137 (vs. ₹117 in H1FY26)
  • PBT: ₹53 (vs. ₹83 in H1FY26; -37% YoY)
  • PBT Margin: 1.4% (vs. 2.5% in H1FY26)
  • Taxes: ₹(8) (vs. ₹(23) in H1FY26)
  • Net Profit: ₹45 (vs. ₹60 in H1FY26; -25% YoY)
  • Exceptional Items: ₹0 (vs. ₹(5) in H1FY26)
  • Net Profit Post Exception: ₹45 (vs. ₹55 in H1FY26; -19% YoY)

Segment Performance (₹ Crore)

Branded Textile

Q2FY27: Revenue ₹971 (+7% YoY), EBITDA ₹188 (+1% YoY), EBITDA Margin 19.3% (vs. 20.6% in Q2FY26)

H1FY27: Revenue ₹1,654 (+3% YoY), EBITDA ₹283 (-4% YoY), EBITDA Margin 17.1% (vs. 18.3% in H1FY26)

Performance driven by volume growth despite late festive onset, with favorable sales mix offset by elevated raw material and freight costs.

Branded Apparel

Q2FY27: Revenue ₹559 (+20% YoY), EBITDA ₹49 (+20% YoY), EBITDA Margin 8.8% (flat YoY)

H1FY27: Revenue ₹908 (+14% YoY), EBITDA ₹67 (flat YoY), EBITDA Margin 7.4% (vs. 8.4% in H1FY26)

Growth driven by casualization strategy across LFS, Trade & E-commerce channels. Margins impacted by adverse channel mix and higher raw material prices, partially offset by closure of non-performing stores.

Garmenting

Q2FY27: Revenue ₹339 (+26% YoY), EBITDA ₹25 (+75% YoY), EBITDA Margin 7.4% (vs. 5.3% in Q2FY26)

H1FY27: Revenue ₹635 (+36% YoY), EBITDA ₹47 (+643% YoY), EBITDA Margin 7.4% (vs. 1.3% in H1FY26)

Strong performance due to order book execution following US-India tariff rationalization, UK-India FTA, and onboarding of new global clients. EBITDA improved from higher volumes and increased ASP.

High Value Cotton Shirting

Q2FY27: Revenue ₹222 (+5% YoY), EBITDA ₹21 (-17% YoY), EBITDA Margin 9.5% (vs. 12.0% in Q2FY26)

H1FY27: Revenue ₹417 (flat YoY), EBITDA ₹40 (-9% YoY), EBITDA Margin 9.6% (vs. 10.6% in H1FY26)

Revenue higher due to strong linen performance and higher ASP. EBITDA impacted by higher raw material prices and freight costs, partially offset by higher ASP.

Emerging Businesses (Ethnix, Home, IW)

Ethnix reduced retail footprint by net 27 stores since Sep'25 and is changing its business model. Home delivered strong double-digit growth and launched a super-premium line. IW witnessed growth across key channels. These businesses continue to be in investment mode.

Operational and Strategic Highlights

  • Net Cash Position: Improved to ₹69 Cr net cash in Sep'26 from net debt of ₹(246) Cr in Sep'25, representing cash generation of ₹300+ Cr.
  • Working Capital: NWC cycle improved by 23 days to 82 days in Sep'26 from 105 days in Sep'25, due to better collections and inventory management.
  • Retail Network Optimization: 53 underperforming stores exited; 24 new locations added; net closure of 29 stores since Sep'25.
  • Distribution Footprint: 1,134 TRS outlets, 450 EBOs, 20,000+ trade points, and 12.4 million loyalty members.
  • Manufacturing Capacity: 43 Mn sq. meters fabric (Vapi, Chhindwara, Jalgaon), 23 Mn sq. meters fabric (Amravati, Kolhapur), 8.4 Mn pieces (Bangalore, Hindupur), 1.7 Mn pieces (Ethiopia).
  • Strategic Focus: Premiumization, casualization, geographical diversification, and international expansion into EU & UK via FTAs.

Management Commentary

Satyaki Ghosh, Whole-time Director & CEO, stated: "Our performance in Q2 and H1 FY27 demonstrates sustained operational continuity, strategic resilience, and focused commercial execution across domestic and international markets. Our Garmenting business continued to deliver robust growth, capitalizing on global supply chain realignments, while our Branded Apparel business expanded by 20%, spearheaded by strong momentum across our casual brands ColorPlus and Parx. While elevated input costs and channel mix dynamics influenced near-term operating margins, our disciplined pricing, substantial working capital contraction, net debt-free balance sheet with ₹ 69 Cr in net cash provide tremendous operational resilience. As we enter the peak festive and wedding season, domestic demand indicators remain strong. Supported by retail network optimization, brand investments, and capacity ramp-ups, we remain firmly confident in our strategic direction and on track to achieve our stated FY27 guidance."

ESG and CSR Initiatives

  • ESG Targets 2030: Based on BRSR FY25-26 with FY24-25 baseline. Key achievements include 3.7% reduction in Scope 1 & 2 emissions, 18.52% energy from renewable sources, 24.26% reduction in waste to landfill, 73.54% increase in liquid discharge, and 37.22% progress on improving female representation.
  • CSR Programs: Three strategic pillars:

1. Project Neev: Integrated Village Adoption across 3 manufacturing hubs (Amravati, Vapi, Doddaballapur).

2. Raymond Good Neighbor Project: Centralized social interventions under "Neighborly Fixes," "Neighborly Care," and "Neighborly Time" themes.

3. Project Weave: Strengthening artisan livelihoods through heritage preservation, sustainable livelihoods, and enterprise incubation.

Leadership and Governance

The company is led by a management team including E C Prasad (CFO), Vikram Mahaldar (CBO - Suiting), Anupam Dikshit (CBO - Shirting), Neeraj Nagpal (CBO - Apparel, MTM & TRS), Manish Bharati (CBO - Garmenting & IB), Vipul Mathur (CBO - Home & Ethnix), Debdeep Sinha (CBO - Sleepz & IW), Hrishikesh Singh (CIO), Kalpana Singh (CMO), and MLN Patnaik (CHRO). The board includes independent directors K. Narasimha Murthy, Vineet Nayar, Anisha Motwani, Girish C. Chaturvedi, Dinesh Lal, and Rajiv Sharma.