Raymond Lifestyle net loss widens 14% in Q1FY27 on higher costs
Raymond Lifestyle reported a 14% YoY widening in consolidated net loss to ₹23 crore for Q1FY26, driven by higher depreciation and interest expenses. Despite this, total income grew 6% to ₹1,560 crore and EBITDA rose 11% to ₹135 crore. The Garmenting segment led growth with a 50% revenue surge, while the company maintained a net cash position of ₹154 crore.
*this image is generated using AI for illustrative purposes only.
Raymond Lifestyle reported a 14% year-on-year widening in consolidated net loss to ₹23 crore for the first quarter ended June 30, 2026, driven by significant increases in depreciation charges and interest expenses. Despite the bottom-line deterioration, the company delivered a 6% increase in total income to ₹1,560 crore and an 11% growth in EBITDA to ₹135 crore, reflecting operational resilience amid rising input costs. The divergence between top-line growth and net profitability highlights the impact of capital intensity and debt servicing on current earnings, although the Garmenting segment emerged as a key growth driver with a 50% revenue surge.
The Board of Directors approved the unaudited financial results on July 31, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandio & Co LLP served as the statutory auditor, issuing a limited review report on both standalone and consolidated results. Standalone results showed a net loss of ₹35 crore (₹3,486 lakhs) compared to a negligible loss of ₹2 crore (₹165 lakhs) in the previous year, driven by higher finance costs and depreciation.
Financial Performance
Consolidated total income rose to ₹1,560 crore from ₹1,475 crore in Q1FY26. Operating expenses increased to ₹1,426 crore from ₹1,353 crore. Although EBITDA improved to ₹135 crore (₹122 crore in Q1FY26), with margins expanding by 40 basis points to 8.6%, the profit before tax (PBT) position deteriorated significantly to a loss of ₹38 crore from a loss of ₹25 crore. This reflects a 55% widening in pre-tax losses, primarily due to depreciation jumping to ₹109 crore from ₹89 crore and interest expenses rising to ₹63 crore from ₹57 crore.
| Particulars (₹ Cr.) | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Total Income | 1,560 | 1,475 | 6% |
| Expenses | 1,426 | 1,353 | - |
| EBITDA | 135 | 122 | 11% |
| EBITDA Margin % | 8.6% | 8.2% | - |
| Depreciation | 109 | 89 | - |
| Interest Expense | 63 | 57 | - |
| PBT | (38) | (25) | (55%) |
| PBT Margin % | (2.5%) | (1.7%) | - |
| Taxes | 16 | 5 | - |
| Net Profit | (23) | (20) | (14%) |
Segment Analysis
Segment-wise performance showed mixed results following a revision in operating segment reporting structure. The Branded Textile segment saw revenue decline by 2% to ₹684 crore with EBITDA falling 11% to ₹95 crore, though margins remained robust at 13.9%. In contrast, the Garmenting segment emerged as a key growth driver, recording a 50% revenue surge to ₹296 crore from ₹197 crore, turning EBITDA positive at ₹22 crore compared to a loss of ₹8 crore in the prior year. This growth was attributed to order book execution following US-India tariff rationalization and the onboarding of new global clients.
The High Value Cotton Shirting segment reported revenue of ₹195 crore, down from ₹205 crore last year, but maintained stable EBITDA at ₹19 crore with margin improvement to 9.7%. The Emerging Business segment, including Ethnix by Raymond and Raymond Home, recorded a 9% revenue rise to ₹79 crore. The Branded Apparel segment grew 4% to ₹349 crore, but EBITDA contracted by 33% to ₹18 crore due to adverse channel mix.
What the Numbers Show
A critical divergence exists between operational efficiency and bottom-line profitability. While Raymond Lifestyle successfully expanded EBITDA margins by 40 basis points despite rising input costs, this operational gain was entirely eroded by non-operating factors. Depreciation costs rose by approximately 22% year-on-year, and interest expenses increased, suggesting that capital intensity and debt servicing remain significant drags on net profitability. The improvement in net cash position to ₹154 crore from a deficit of ₹55 crore indicates strengthened liquidity, potentially aiding future deleveraging efforts. Additionally, the company maintains a debt-equity ratio of 0.10 times and an asset cover ratio of 2.90 times for its secured NCDs, reflecting a stable balance sheet structure.
Strategic Updates
The company continues to optimize its retail network, having exited 133 underperforming stores while opening 85 new locations, resulting in a net closure of 48 stores since June 2025, bringing the total count to 1,627 stores. The broader macro outlook cited in the presentation notes geopolitical tensions pushing Brent crude to $100/bbl and RBI revising FY27 growth outlook to 6.6%. Wool and cotton prices remain under upward pressure due to supply constraints and high global demand. The Board also declared a final dividend of ₹1 per equity share for FY26, approved by shareholders on July 14, 2026.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE02ID01020/220542317c5049fb.pdf
Historical Stock Returns for Raymond Lifestyle
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.53% | -1.57% | +0.05% | -20.11% | -41.37% | -74.66% |
How will the continued execution of the Garmenting segment's order book, driven by US-India tariff rationalization, impact Raymond Lifestyle's revenue mix and margin profile in Q2 FY27?
Given the 22% year-on-year surge in depreciation charges, what specific capital expenditures or asset write-downs are driving this increase, and will these costs persist in subsequent quarters?
With wool and cotton prices facing upward pressure due to supply constraints, what hedging strategies or pricing mechanisms is the company employing to protect EBITDA margins in the Branded Textile segment?
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