Raymond Lifestyle Limited (NSE: RAYMONDLSL) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Rakessh Tiwary — Group Chief Financial Officer
Satyaki Ghosh — Chief Executive Officer
S.L. Pokharna — President, Corporate Commercial
Amit Agarwal — President
Analysts:
Aditya Bansal — Analyst
Sukrit Patil — Analyst
Avinash Karumanchi — Analyst
Deepali Kumari — Analyst
Chetan Sharma — Analyst
Hiten Pradhan — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Raymond Lifestyle Limited Q3, FY26 and 9 month FY26 earning conference call hosted by Motilal Oswal Financial Services. As a reminder all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing star then zero on your touch tone phone. I now hand the conference over to Mr. Aditya Bansal from Motilal Oswal Financial Services. Thank you. And over to you sir.
Aditya Bansal — Analyst
Thank you Danish Good evening everyone. On behalf of Motilal Oswal Financial Services I welcome all the participants to the 3Q, FY26 and 9 month FY26 earnings call of Raymond Lifestyle Limited. Today we have with us from the senior management Mr. Atul Pokarna Non Executive Director, Mr. Rakesh Tiwari Group CFO Mr. Satyaki Ghosh, Chief Executive Officer Mr. Amit Agarwal President of Chairman’s Office Mr. E.C. prasad, Chief Financial Officer and Mr. Sunny Dita Head Investor Relations. Without taking further time I would like to hand over the call to Mr. Rakesh Tiwari for his opening remarks. Over to you Rakesh sir.
Rakessh Tiwary — Group Chief Financial Officer
Thank you. Good evening everyone and thank you for joining us for Raymond Lifestyle Ltd. Quarter three and nine months financial year 26 earning call. I would like to begin by wishing you all a very happy Republic Day. Republic Day stands for strong institutions, long term thinking and responsible leadership values that are deeply embedded in the Raymond legacy. I thank you for your continued trust and engagement within the company. I trust you have had the opportunity to review our financial results and investor presentation both available on the stock exchanges and on our website. Let me begin by briefly setting the macro and the industry context before moving to our performance.
India’s economic momentum strengthened meaningfully during quarter three financial year 26 with GDP growth expectations revised upward to around 7.3%. Domestic demand remained resilient, manufacturing activity was robust and policy support through fiscal measures and income tax relief translated into higher discretionary spending. The festive and wading season further accelerated consumptions particularly in Tier 2 and Tier 3 market which continue to be important growth engines for the lifestyle category. From an industry spend standpoint we are seeing clear structural shifts, premiumization of the demand, continued formalization post GST and strong price inelastic consumption around weddings and occasions. These trends are highly aligned with the Raymond lifestyle brand strength and portfolio positioning against this backdrop.
Quarter three financial year 26 was a landmark quarter for the company. We delivered the highest quarterly revenue in our history with total income of 1883 crore 1883 crore. EBITDA stood at 273 crore reflecting a 23% year on year growth with margin expanding from 12.3% to 14.4%. For the nine month period, revenue grew 9% to 5223 crore with EBITDA increased to 18% to 652 crore with margin improving from 11.6% to 12.5%. This performance was driven by strong volume growth in our core textile and apparel business. Margin expansion through premiumization and product mix improvement and operating leverage from higher capacity utilization.
Average selling price increases by about rupees 26 per meter reflecting the growing contribution of premium and technical fabrics. Importantly, this was achieved while investing meaningfully in brand building and future capability. A key pillar of our growth continues to be product innovation. During the quarter we expanded our techno series in fabrics designed specifically to address modern consumer needs. These fabrics offer features such as stretch, wrinkle resistance and stain resistance, catering to evolving work wear and lifestyle preferences. Demand for such functional yet premium products continue to grow and this range is gaining strong traction. Our centenary year also marked the launch of distinctive brands such as Spectra and RoyalSoft offering 100 shades in a single quality, a proposition that strengthens choice, recall and differentiation at the retail level.
In the super premium segment, we further strengthen our suiting portfolio through Regio Italia, Bello Italia, Super Luxe and Drape Coat under the exotic wool collection. These offerings reinforces our leadership in luxury fabrics supported by innovations such as Wool Rich Luxura and multi directional stretch wool blends. Ethnics continue to play an important strategic role in our portfolio. It is not a stand alone business but a natural extension that complements our suiting and sorting franchises. The expendable festival and wedding collections along with a growing focus on smart ethnics and fusion apparel allow us to participate meaningfully in occasion let consumption while adopting to modern sellouts and preferences.
We also recognize that casualization of dress code is a structural trend. Our response is not to retreat but to adopt by focusing on premium casual and fusion wear that blend comfort and craftsmanship and also brand appeal. Apparel performance during the period reflects ongoing investment in brand building and new stores which we expect to mature and contribute more meaningfully over the time. On the retail front, our expansion strategy remains calibrated and disciplined. We expanded selectively across formats and geographies with a clear differentiation in store formats for tier 2 and tier 3 markets. Shorter format stores, an asset light franchisee LED model and capital partnering enable us to grow efficiently while protecting returns.
At the same time, we continue to rationalize the network by exiting low performing stores ensuring that footprint expansion is aligned with the productivity and profitability. Back end capabilities are another area of SAR focus. We are strengthening analytics and supply chain system to stay ahead of the demand curve. Store level inventory planning, auto replenishment system and real time demand tracking are improving responsiveness and efficiency. Inventory build during the quarter reflects festive demand and the new store expansion rather than structural inefficiency. That is an investment which you are doing for building the modern capabilities. Turning to exports Global headwinds particularly the US tariff uncertainty impacted the garmenting performance during the quarter.
Our response has been proactive and strategic. Over time we have reduced our dependency on the US market from about 50% to 35%. We are increasingly focusing on UK Europe and Asia Pacific regions supported by recently signed FTA. We are also shifting from fabric exports to higher value added finished and semi finished apparel upgrading product mix so that tariff impact can be absorbed through margins rather than volumes. Supply chain diversification including the Ethiopia and cost structure optimizations are further strengthening export resilience. In this context, the India Free Trade Agreement is structurally positive for Raymond Lifestyle. Reduced tariff on textiles and apparel improve competitiveness in premium European markets and align well with our focus on high value fabrics and finished garments.
This agreement strengthens India’s position as a global sourcing hub and we believe Raymond is well placed to benefit as the agreement moves towards full implementation. Despite input cost volatility including a nearly 25% increase in wool prices, our margins have remained resilient driven by product mix, pricing discipline and cost control. Industry growth remains the mid single digits while the trade channel in fact the Raymond lifestyle trade channel is growing in double digits reinforcing the shift towards organized branded player. From the balance sheet perspective the company remains on strong footing. Net Debt is effectively zero at 15 crore cash is times I mean operating cash and Talk about the CAs is close to 155 crore and working capital investment reflects the growth initiatives which is in including the new stores, your inventory and deposits rather than stress.
Capital allocation remains focused on debottlenecking, automation and the selective expansion. As we look forward, financial year 26 represents a pivotal year in our journey while global uncertainties persist, India consumption story particularly in tier 2 and tier 3 markets continue continue to provide a strong Runway. Our priorities are clear drive, volume Growth in textiles and apparel expand margin through premiumization and scale leverage interest in future capabilities. Rather invest in future capabilities and compound value with discipline. Raymond Lifecycle today is not just participating in India’s consumption growth, we are shaping it and strong brands, premium products and disciplined execution and a clear path to long term value creation.
Before I close, I would like also to briefly touch upon ESG which remains integral to how we run the business. From a governance standpoint, all our entities operate at 100% independent director ensuring strong oversight, transparency and accountability. Even though from LODR point of view we are not required to have 100% independent director, but in order to have a clear cut governance mechanism, we have taken a step ahead in this direction. On the people front, we continue to maintain single digit employee attrition reflecting a stable engaged workforce with Women comprising approximately 40% of our employee base.
Underscoring our commitment to diversity and inclusion on the environmental side, we have laid out clear miserable targets. A 15% reduction in scope one and scope two, greenhouse gas emission, 25% renewable energy mix by 2030 and a commitment to zero waste to landfill and zero liquid discharge by 2030. These are not aspirational statement, mind it, but it’s an operational commitment that are embedded into our capital planning and execution roadmap. As we look ahead, our priorities remain clear. Strengthen our leadership in branded textiles, scale apparel with discipline, deepen our presence in high potential markets and continue investing in the product innovation and supply chain excellence.
With a near zero net debt balance sheet, strong cash generation, a brand that resonates with evolving consumer preferences, Raymond Lifestyle is well positioned to convert India’s consumption growth into consistent and long term value creation. Thank you all for your continued support. We will now be happy to take your questions.
Questions and Answers:
operator
Thank you so much sir. Ladies and gentlemen, we’ll begin with a question and answer session. Anyone who wishes to ask a question press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Foreign. Ladies and gentlemen, we’ll begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchdown telephone. Anyone who wishes to ask a question may press star and 1. The first question comes from the line of Sucre the depart from Eyesight Fintrade Private Limited. Please go ahead.
Sukrit Patil
Good evening to the team. I have a following question for Mr. Ghosh. As consumer demand in lifestyle and apparel remains selective with a visible tilt towards more Exclusive products. How is Raymond Lifestyle sharpening its brand portfolio, product innovation and channel tactics to drive sustainable growth? In this context, how do you balance investments in brand building and retail expansion while ensuring agility in responding to the ever changing fashion cycles and consumer demands? Thank you. Hello.
Rakessh Tiwary
Hello.
Satyaki Ghosh
Yeah, yeah. Satyaki Ghosh here. Thank you for the question, very relevant one. But just to come transparently to you, I have joined the organization Last Monday on the 19th of January and I may not be best placed at this point in time to answer all the questions because it’s a very deep question and I would request Mr. Pokarna to take it on my behalf. I will come back to you next quarter with in a much better prepared manner. I’ve just done four days of office here.
S.L. Pokharna
Yeah, thank you Satyagi. And as you rightly said, question is very deep and big one but we’ll try to answer it. One is you know that Raymond stands for very trustworthy brand and we have a big customer portfolio with us. Now as you rightly said, dynamics are changing continuously and we are in the opening statement of Mr. Tiwari mentioned we are continuously working on innovation. Also working on our strength of promoting worsted suiting fabric which we have successfully done it. Then as you have said, per capita income of this country is going up and we are expanding our footprints in tier 2 tier 3 in a big way to regain the market share and meet the customer aspirations of the tier 23 tier 3 customers.
Also on branding side we are continuously innovating the product and communicating to the consumer in a big way through social media and through our electronic media communication. Also keeping in mind the pricing strategy that which market needs, which kind of price, we are working on that and meeting the aspirations of the customers. Further, as you know Prime Minister has a vision of promoting Desi so Swadeshi. So we are working on that and we are creating products to compete with the requirement of domestic customers in a big way. So we are completely aligned with Prime Minister’s vision of Swadeshi.
Promotion of Swadeshi and that is helping us. So in this year when we are closing quarter three we had the best result. We had better growth than industry average and also expanded our market share in worsted shooting and also expanded our market share in tier 2 and tier 3 towns in a big way. So there are. There’s a. Since this question is long, I think strategically these are the inputs and we are to meet the customer expectations. We also can give the authenticity to the customers that these are authentic products available from Raymond. We are expanding our retail network also in the tier 2 tier 3 towns and we are getting the result out of it.
So the strategy is very clear. Expand market share, meet the customer expectations, communicate rightly to the consumer and also expand our footprints in tier 2 tier 3 towns in a big way which is emerging and consumer aspirations are being met. Also we are taking note of per capita income going up in the country. So these are so many factors which are putting us together and giving us confidence to grow at a faster rate. Thank you. Thank you.
Sukrit Patil
Question. You just mentioned that you you are promoting I think make in India or type of apparel. So just want to understand the particular. Set of style apparel would be targeted to your regular customers or you would be targeting them to some specific customers that you have in the mind.
S.L. Pokharna
We have customers also in the mind who are currently not our customers maybe because of product strategy and because of pricing. So we are entering into, we are studying it and research being commissioned to identify the needs of the customer who are not presently coming into us. Maybe because of their perception of the Raymond that it’s a costly brand and we can’t afford it. So all those communication strategy strategies are being worked out and being communicated to the consumer. So we are seeing the result are flowing through and expanding. Our like say international brands are available in Metro Towns and Second Level Towns and Semi Metro Towns.
While in Tier 3 and Tier 4 Raymond still stands a very big brand for them. And if we offer them product of their affordability range and all, they are with us. So we are working on that.
Sukrit Patil
Thank you and best of luck for the next quarter.
S.L. Pokharna
Pardon. Thank you. Thank you very much. Thanks a lot.
operator
Thank you so much. Next question come from the line of Avinash Karmyanchi from Motilal as well. Please go ahead.
Avinash Karumanchi
Hi sir, Good evening. So my question is on the working capital. So you can see the working capital increase both on a quarter, on quarter and world over basis. So the storage passion is also only 1% of this was during this quarter. So where is the working capital? Is there any lag between the primary and secondary sales?
Aditya Bansal
Amit, you would like to answer it?
Amit Agarwal
Yeah, yeah, I will answer. So basically if you see the working capital primarily what has happened is because of the change in the trend, the way US sales are happening, your inventory which used to be in the form of receivables and the cycle would be shorter, we have now to keep a larger inventory in order to ship out the goods to the un. So that is one very large reason for increase in the working capital. Days second is just the volume. We have increased shares more in the apparel segment. And in the apparel segment as well as in the domestic market, you will have a longer cycle vis a vis the garmenting cycle.
And garmenting always has to be a lower working capital cycle, which is an export business. So therefore these are the two changes and we are continuously at it. And by March you would see the working capital further reducing.
Sukrit Patil
Okay, can you throw some light on how the channels are working primary and secondary? Is there any difference in the gap between the growth rates across these two channels?
Amit Agarwal
Actually, if you see the domestic markets and as you all know that the tax benefit, direct tax benefit by putting money in the hands of the consumers to the tune of 1 lakh crore as well as the GST benefit which is primarily seen for the car and the white goods, people have more money to spend. And we have clearly seen this Diwali or the wedding season has done very, very well in the tertiary segment. We get reports directly from all across the society, across the markets. And we have seen a very healthy movement. And accordingly we have managed the primary.
So there is actually, if you see at the secondary level, the inventory levels have come off compared to going up which was the case in the last year. So therefore we are seeing a clearly improvement in the consumption cycle in the third quarter. And that is reflected very well in our numbers. Also.
Aditya Bansal
I add little bit here again also moving forward, we are seeing very strong wedding seasons. Wedding dates are very high and sprints are going up. So that will also help us in getting a better traction of the sales in secondary markets. Thank you.
Sukrit Patil
Okay, okay, got it. And since you spoke enough regarding the weddings, how is the ethnic segment performing? So in the first half we have seen that ethics the growth rate somewhere in the wind of 10 to 12%. How was the growth rate there? And point number two is regarding the store expansion, if you look at it on an analyst basis, this year we have net flow somewhere around 10 to 15 stores. So when this would number be turning positive and how it build the outlook for FY27 and 28.
Amit Agarwal
Yeah. So let me go one by one. If you talk about the ethnics, ethnics has been. If you see the first few months, there has been a lackluster across the industry. We have seen in the ethnics market there has been a weaker growth compared to the other apparel segment and such things. But based on our base, I think we have seen still high single digit growth on the ethnic side. And we continue to stabilize this business by providing the right kind of Product advertisement communication to the market. And as we had said not today long back that it is a journey of let’s say four years or so.
I think we are in that journey. We have just completed one and a half, almost two years in this journey. And it would take another two years to really see a decent growth in this ethnic business. As far as the store expansion is concerned. You know we did expand lot of stores and considering the slowness, the weakness in the economic demand, we have started to see some rationalization which was also known that we would do some rationalization of stores. And I think over the next 18 months or so you would see a bigger expansion on the stores.
Because we want to be very careful as the stores opening today, the mall rentals and everything is going up. We want to make sure that consciously the stores become profitable over the 36 to 42 months and accordingly we would open the stores. But right now your views are writing that we have shut many of the stores which were not profitable or which we had the envisage that they would not get profitable.
Sukrit Patil
Okay, is the rationalization bandwidth or are we going to see it going into the FY27 as well?
Amit Agarwal
We will have some more rationalization to go. Rationalization includes expansion of network also. So we will. We will be coming out with the new stores for locations which are ideal for us. And also we are working on it like the wedding was our strength at seven. So we say we will be working on it that who knows better of wedding needs then Raymond. So that according to accordingly we’ll be designing our designing our strategies to capture the wedding. Customers for ethnics.
Avinash Karumanchi
That’s information. I’ll join the queue. Thank you.
operator
Thank you.
Aditya Bansal
Thank you.
operator
Our next question comes from the line of Deepali Kumari from Arihant Capital Markets limited Please go ahead.
Deepali Kumari
Yeah, thank you for the opportunity. Congratulations for Gustav. Soft number. Yeah, I have just few questions. The company recorded a substantial expense loss of 57 crore due to implementation of new labor code. Is this a final one time impact or do you foresee further revising in this?
Amit Agarwal
No, this is the final impact because we got it done from the actuarial valuation. You know, primarily it is a non cash. It is on account of the gratuity as well as on the leave. Because this being a 100 year old business you will have quite a number of employees who were structured on their basic salary differently. So therefore this impact has come and I think there would not be any significant impact. Few small could be but otherwise it will not be a significant impact.
Deepali Kumari
Okay.
Amit Agarwal
Going forward.
Deepali Kumari
Okay. And so what is the current revenue for sleepier and inner wear? And what is incremental EBITDA do you expect from this segment?
Amit Agarwal
As we talked about, both the innerwear and sleepwear are very small businesses. And this business was started our main motto being the complete man. And when you take the complete man journey, it is not just only with the suits, shirts and trousers, the formal wears, you are also participating in the life of individual of a man, whether it is in the beginning of the day or at the end of the day when he is sleeping. So therefore these products have been put into the system or into our bouquet in order to ensure that the man buys and sleeps with and does take all the Raymond products.
And that was the journey. So therefore you would not see a very significant revenue coming out of these things, but it was to complete the portfolio of the complete man.
Deepali Kumari
Okay. And sir, in the garmenting segment we have witnessed peak growth and margin decline. So beyond uk, India, fda, what specific strategy you are implementing to mitigate customer concentration risk and stabilize the international order book for remainder FY26 and beyond.
Amit Agarwal
So you look governmenting and you all know that for everyone in India, the largest export in terms of textile happens to the US markets and us. All of us are aware that we are sitting with a 50% tariff and there are countries who are also in the garmenting exports which are currently at 20, 25% also. So therefore very clear distinct advantage people have in the US to buy from such countries. But we don’t have that advantage. We are hoping from today to tomorrow, every day, that when this punitive 25% goes away. But on the other hand, you know, this business of garmenting is for white label for third party customers, where the businesses are being booked on a season to season basis.
So it is an autumn, winter or summer spring. So every time when you change the customer or go to a newer customer, you will take at least 12, 18, 24 months. And if we talk about the UK FTA, actually so far only the sentiment has become positive. There has not been any even a conversation completed in the UK Parliament to clear this proposal. So therefore these FTA announcements are done. Good for the sentiment immediate basis. However, to convert into the volume, it takes little longer. We have though we have diversified into many of the European countries and unfortunately the quantum of orders which you get from the European customers are much smaller vis a vis what you get for the US orders.
So a complete substitution, say from the US to the European markets or to the Japanese markets will not be possible. But we have started the journey and we have started not this journey. Now we have been trying to do this journey for the last three to four years. And therefore our share from the European market is to the tune of 35, 40%. And I think our endeavor would be that hopefully the tariffs would go away. If not it would take at least another 18 months or so when you are in a position to really say that we have been successfully substitute the US market demand.
Aditya Bansal
So Amiti, you would like to add cost rationalization. We have done it to in the garmenting industry. Hello.
Amit Agarwal
Yes, I think you. I think you have said it. It is true that in spite of the challenging situations, we are working hard on the cost rationalization. But you know the kind of gross margin which you get because we have our own top quality woolen wool fabrics, worsted fabrics, which gets converted into high quality stitched fabric for the US customers that gives a much stronger gross margin. But your ability to control the cost is quite limited. Therefore you will not be able to earn that kind of a margin. And that is why it is reflected in the margins in this quarter vis a vis last year where the duty and the tariffs was non existent.
Deepali Kumari
So what is the US contribution in revenue?
Amit Agarwal
So as I said US is close to 45, 46% is US contribution.
Deepali Kumari
Okay. And so how do same store sale growth trends differ from evo, mbo, LFS and online? And which channel is seeing the fastest recovery.
Amit Agarwal
In India? I think our EBOs have done very well. We have seen a good mid double digit mid teens growth in the like to like stores. So that is very very attractive. Even the LFS are seeing good 11 12% growth like to like basis. Plus we still have a lot of room to go with the MBOs. We have been expanding with the multi brand outlets and that is helping the sales and that is clearly reflected if you see in our apparel sales that it has grown very well.
Deepali Kumari
Okay, so one last question. Can you please share the medium term revenue growth and margin guidance for this for the segment as its capacity utilization improves in branded textiles.
Amit Agarwal
In branded textiles. We are utilizing our facility to the full and that is why which Mr. Pokarna also mentioned about the cost rationalization that has helped clearly in terms of delivering superior margin and delivering over 21% in this quarter. So we are utilizing the facility in full. I think the journey going forward is clearly optimizing the right product mix and we are not going to give the guidance right now. I think what we are working on is consistent growth in the domestic market and capitalizing on it. And if you look at the domestic growth, it is more than 12% overall in the business, which is very, very healthy compared to many of the peer groups.
Deepali Kumari
Thank you so much.
Aditya Bansal
Thank you.
operator
Thank you. Our next question comes from the line of Chetan from Systematics Group. Please go ahead.
Chetan Sharma
Yeah, hi sir. Thank you for the opportunity and congratulations on a healthy set of numbers. My first question is on exclusive brand outlets. So our EVO number, if we see, has somewhat remained a bit stagnant over the year. So how should we look at say brand wise EBO expansion going ahead? Or is there any specific brand where we expect to see a higher number of store editions?
Amit Agarwal
Okay, if you look at all the four brands which we have in terms of the apparel and then the ethnics, I think all are broadly in that hundred numbers of each brand. And as I mentioned in response to an earlier question that we are working clearly on an optimization strategy for the ecos because we have, so to speak, a captive TRS channel. TRS is almost thousand stores plus which is also available for the distribution of our product and exclusively for our products. So therefore we look at it overall comparable number is we are talking 1500, 1600 stores which we have across the country to service our customers.
Now what has happened is we did open more than 400 stores in the last three years and you would never see that all the stores which you open will do well and that rationalization was required. We have done some bit of rationalization and further, some more rationalization has to be done going forward. I think in the next six months or so we will be done with the rationalization part of the story and then we will work out very, very carefully in terms of store expansion. But the whole philosophy is that the customers will have the product availability reach very well across the country.
We have today got more than 1700 MBOs across the country who are taking care of our products. We have got more than 1600 LSS doors which are taking care. So to that extent and many, many small retail outlets. So to that extent, I don’t think we have a challenge in terms of a distribution reach. And it is the methodology. Whether you sell through your TRS EBO route or you sell through the MBO route, it is one and the same. The product should be reached to the last mile. Customer. And online is also quite well. We have been working hard and if I look at this year, I think we should be achieving over 10% of our revenues on the online side as well.
Aditya Bansal
So actually, if you look at that. As Amitji rightly mentioned, there are imbos and there are Raymond shops and there are MBOs and there are smaller embryos which are being fed through our distribution network through wholesale channel. So while we put up new embodies or a new mbo, new Raymond shop or anything, we need to take into account that we cannibalization doesn’t happen and we just lend up into cost escalation and no gain in the consumer. So there is a very proper system to study the catchment area and then put up a outlet on that side.
So we are doing that way.
Chetan Sharma
Right sir. Got it. And lastly, can you put some light on where are we in terms of say distribution and presence in our sleepwear and innerwear segments?
Amit Agarwal
Yeah, so actually, you know, as we mentioned, both innerwear and sleepwear are clearly available in our TRSS ebos. Clearly available. And because the product is such that we have identified some of the MBOs and we have appointed dealers and distributors all across the country which are primarily in, let’s say top 50 to 60 cities in the country where we have put the product. Because we want to ensure that the product is rightfully placed, the supply chain is getting stabilized and therefore we wanted to focus on the 50 to 60 cities where we have put our products right now through the dealer and distributor network.
Chetan Sharma
Got it, Got it. Thank you and all the best.
Amit Agarwal
Thank you.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and one on the touch tone telephone. Our next question comes from the line of Hitenza Pradhan from Maximal Capital. Please go ahead.
Hiten Pradhan
Yeah, hi sir, thanks for the opportunity. So my question is again related to the apparel segment. So you yourself mentioned during your opening remarks that casualization is a structural trend and I guess you know, most of portfolio and kind of positioned for that. So what is our turnaround strategy and what is our like organic growth expectation? Long term organic growth expectation from our apparel segment?
Amit Agarwal
Yeah, so very clearly, and I think this is very clearly evident if I take the era pre Covid and post Covid and Raymond is known very well to catch the Trend. I’m a 100 year old company so I know exactly how the trend changes and shifts and adapt to that. So pre Covid we were sub 5% in terms of casualization. Now we have reached close to 15 to 17% in terms of casualization plus in terms of the fits. And I would really encourage all of you to visit the Color plus stores which was a very, very different product range.
Now we have brought a product range which is much more trendier, fitter and for slim fit and such things which was not available in the past, which was only for a regular or a contemporary fit. So the journey of casualization is on and there is a brand ethos under which we need to work and we are going to continuously improve the percentage of casualization but very carefully that don’t dilute the brand where people have a pride in wearing a Raymond ready to wear shirt to the office or a Park Avenue shirt or a suit to the office.
So we need to keep a right balance because there are some very dedicated, loyal customers for us who keep buying for their office there as well. So it is an added.
Aditya Bansal
Sorry, yeah, please carry on.
Amit Agarwal
It is an added product bouquet which we have considered in the casual line.
Aditya Bansal
Also we have a brand Parks which is much on the affordable range side. And we are purely a casual brand which has also done doing well now. So we are working on the product line which is requirement of current generation and current trends.
Hiten Pradhan
In terms of your geographical presence in tier one, tier two, if you can give any color on your strategy, you know what is the current mix and do you want to, you know, change that.
Amit Agarwal
So we are clearly present in that tier one to tier six cities you would find our product. And I’m sure if you travel across the country, the Raymond board, the sign of the neon Raymond board, you would find even a small Paluka small town district. And I think that is the beauty of this, that it is practically impossible to replicate the Raymond distribution strength. And that is what we have a big advantage. And we enjoy the customer relationship, the trade relationship for more than 60, 70 years. So in terms of reach, we are already there.
Obviously as things continue to expand, India gets more economically moving forward, you will see much more towns and kasbahs are getting much more affluent. And there you have the possibility to keep expanding their own stores. Either TRSs, EBOs or the MBOs keep coming up. We will be there to place the product. And we have a very unique system of a wholesaler and a distributor model. So places where we cannot reach directly our wholesalers and distributors are there in order to provide such product to a smaller customer in a very small town. So our suitings are practically available in more than 15,18,000 point of sale across the country.
So you can imagine how wide is the distribution.
S.L. Pokharna
You know, we call them tech dealers. So we identify small dealers who are located in smaller towns or within even big city. The location is such that the catering can be done only by smaller dealers. So we take them to our wholesaler and we recognize them as a tag dealer and give support of distribution. So that’s the mechanism. So almost about 20,000 distribution networks we are working on. Small or big put together.
Hiten Pradhan
Okay, sir, so my, my third question is related to the ethnics, you know? [Ends Abruptly].