Incorporated in 2024, Raymond Lifestyle Ltd offers fashion products and services with branded textile, apparel brands across formal casual and ethnic wear.
Q3 FY26 Earnings Results
Revenue from Operations / Total income:
- Revenue from operations at ₹1,849 crore, up about 5.4% YoY versus ₹1,754 crore in Q3 FY25; total income around ₹1,883 crore, implying 5% YoY growth, led by domestic branded textiles and apparel.
EBITDA / Operating profit:
- EBITDA of about ₹271 crore in Q3 FY26, up 23% YoY from roughly ₹220 crore in Q3 FY25, with margin expanding to around 14.4% versus 12.3% a year ago, driven by richer product mix and retail optimisation.
Profit Before Tax (PBT):
- PBT of roughly ₹118 crore in Q3 FY26, higher by about 36% YoY, reflecting operating leverage despite headwinds in export garmenting and B2B segments.
Profit After Tax (PAT) and margins:
- Consolidated net profit at ₹42.86 crore, down 33% YoY from ₹64.17 crore in Q3 FY25 and down 44% QoQ from ₹75 crore in Q2 FY26, as higher depreciation/finance costs and weaker export profitability offset operating gains; implied PAT margin around 2.3% versus 3.7% in Q3 FY25.
Segment / 9M performance and leverage:
- Branded apparel revenue grew about 5% YoY to ₹482 crore, though segment EBITDA margin compressed to 7.3% on elevated marketing investments and underperformance of newly opened stores; total store count reached 1,675 as of Q3.
- For 9M FY26, total revenue stood near ₹5,223 crore (up 9% YoY from ₹4,796 crore), with net income about ₹982 crore versus ₹831 crore in 9M FY25; basic EPS from continuing operations rose to ₹16.12 from ₹13.65.
Management Commentary & Strategic Decisions
- Management and market commentary highlight a “two-speed” quarter: robust domestic demand in core lifestyle/retail (branded textiles and apparel) versus pressure in international business due to steep US tariffs, deferred orders and pricing pressure from overseas buyers, which weighed on profitability despite mid‑single‑digit topline growth.
- The 23% YoY EBITDA growth and 210 bps margin expansion are attributed to mix improvement, store optimisation and tight cost control, even as higher ad and brand‑building spends were consciously maintained to drive long‑term franchise strength.
- Strategic focus areas include:
- Continuing to deepen the domestic retail footprint with a calibrated store expansion strategy (1,675 stores vs 1,663+ in Q2), while sharpening performance of recent store additions.
- Optimising the portfolio mix towards higher‑margin domestic categories and premium products to offset structural volatility in exports.
- Maintaining a lean balance sheet with net debt near ₹15 crore and disciplined working capital to preserve flexibility for brand, distribution and omnichannel investments.
Q2 FY26 Earnings Results
Revenue from Operations / Total income:
- Consolidated revenue from operations at ₹1,832.4 crore, up 8% YoY versus ₹1,708.3 crore in Q2 FY25, supported by strong domestic demand in lifestyle and fashion retail; total income for the quarter was about ₹1,865 crore, also up 8% YoY.
EBITDA / Operating profit:
- EBITDA of roughly ₹259 crore (reporting/analyst bases), up about 6% YoY, with margin at 13.9% in Q2 FY26 versus around 14.3% in the prior period, indicating a modest 20 bps contraction due to sharply higher advertising and marketing spends (ad‑spend at 2.9% of revenue, up 90 bps YoY).
Profit After Tax (PAT) and margins:
- Consolidated PAT of ₹75.19 crore in Q2 FY26, up 78.3% YoY from ₹42.18 crore in Q2 FY25, with implied PAT margin at about 4.1% versus 2.5% a year earlier, reflecting operating leverage from scale and better domestic mix.
Standalone snapshot and H1:
- Standalone revenue stood at ₹1,457.4 crore versus ₹1,315.5 crore in Q2 FY25, while standalone PAT rose to ₹65.14 crore from ₹26.14 crore, underscoring stronger profitability in the core domestic lifestyle entity.
- Q2 FY26 built on Q1 gains, taking H1 FY26 revenue and earnings meaningfully above the prior year, with commentary pointing to sustained domestic strength even as international headwinds persisted.
Management Commentary Q2
- Management and analyst commentary emphasised that Q2 FY26 was a “steady” quarter where domestic branded textile and apparel growth more than offset softness in international garmenting/B2B exports, demonstrating the resilience of India‑focused lifestyle demand.
- Margin compression versus potential was framed as a deliberate choice to step‑up advertising and brand‑building investment in apparel and retail, aimed at strengthening long‑term brand equity and driving higher realisations per store.
- Strategic direction reiterated around: scaling the domestic retail network, refining product mix in high‑value cotton shirting and apparel, and gradually de‑risking export‑heavy segments from tariff and demand shocks through diversification and value‑added offerings.
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