Raymond Lifestyle Limited , a leading player in India's textile and apparel industry, has reported a robust performance for the second quarter, with total income reaching INR 1,865.00 crores, marking an 8% year-on-year growth. The company's EBITDA stood at INR 259.00 crores with a margin of 13.9%, demonstrating resilience in a challenging global economic environment.

Segment-wise Performance

Branded Textile Segment

The branded textile segment emerged as the star performer, registering a 10% revenue growth to INR 937.00 crores. This segment also saw an improvement in EBITDA margin, which rose to 20% from 18.9% in the same quarter last year.

Branded Apparel Segment

The branded apparel segment showed strong growth, with revenue increasing by 11% to INR 491.00 crores. However, the segment experienced margin compression, with EBITDA margin declining to 5.2%. This was attributed to increased marketing spend and costs associated with new store openings.

Garmenting Export Segment

Despite facing challenges from US tariff pressures, the garmenting export segment managed to grow revenue by 4% to INR 269.00 crores. However, EBITDA margin for this segment declined to 5.4% from 9.6% in the previous year, reflecting the impact of US tariffs on margins.

High-Value Cotton Shirting

This segment reported a revenue of INR 212.00 crores, a 7% year-on-year decrease due to subdued demand from export markets. Despite the revenue decline, the segment's EBITDA margin improved to 11.8% from 9.7% in the same quarter last year.

Retail Expansion and Optimization

Raymond Lifestyle continues to optimize its retail network, focusing on profitability and strategic expansion. During the quarter, the company opened 19 new stores while closing 31 underperforming locations, ending with a total of 1,663 stores. This reflects a net increase of 71 stores compared to the same period last year.

Financial Position

The company maintains a net debt of INR 246.00 crores, with working capital at 105 days. Management indicated that the increase in working capital was partly due to inventory build-up for the festive and wedding seasons, as well as changes in the export business model.

Market Outlook

Raymond Lifestyle's management expressed optimism about domestic demand, driven by the festive season and wedding bookings. They also highlighted potential benefits from recent GST rate reductions and income tax cuts, which are expected to boost consumer spending.

Challenges and Opportunities

While the domestic market shows promise, the export business faces headwinds due to US tariff pressures. However, the company remains hopeful about potential opportunities arising from the India-UK Free Trade Agreement, which could provide zero-duty access for Indian textile and garment exports to the UK market.

Raymond Lifestyle's performance demonstrates its ability to capitalize on domestic market opportunities while navigating global challenges. The company's focus on retail optimization, product innovation, and market expansion positions it well for future growth in India's evolving textile and apparel sector.

Conference Call Highlights

During the earnings conference call, management provided additional insights:

• The company is seeing positive sentiment across the country, with wedding halls fully booked until May end, barring a brief period in December-January.
• Raymond is focusing on expanding its presence in multi-brand outlets (MBOs), gaining market share from imported fabrics.
• The branded apparel segment is in a build phase, with increased marketing spend expected to continue for the next few quarters.
• Management expects to reach an annual revenue run rate of INR 2,300.00-2,500.00 crores in the branded apparel segment within the next two to two and a half years.
• The company is cautiously optimistic about its export business, particularly in light of the potential benefits from the India-UK Free Trade Agreement.

As Raymond Lifestyle navigates the evolving market dynamics, its strong brand equity and strategic initiatives position it well to capitalize on the growing domestic demand while working to overcome challenges in the export market.

Raymond Lifestyle Limited , India's leading integrated manufacturer of worsted suiting and high-value shirting fabrics, has announced robust financial results for the second quarter of fiscal year 2026, driven by strong domestic consumption despite global headwinds.

Key Financial Highlights

The company reported a total income of ₹1,865.00 crore in Q2 FY26, marking an 8.00% year-on-year growth from ₹1,735.00 crore in Q2 FY25. EBITDA also saw a healthy increase of 7.00%, reaching ₹259.00 crore, while maintaining a stable EBITDA margin of 13.90%.

Segment Performance

Branded Textile

• Revenue grew by 10% to ₹937.00 crore
• EBITDA increased by 16% to ₹188.00 crore
• EBITDA margin improved to 20.00% from 18.90% in Q2 FY25

Branded Apparel

• Revenue rose by 11% to ₹491.00 crore
• EBITDA decreased to ₹25.00 crore from ₹57.00 crore in Q2 FY25
• EBITDA margin declined to 5.20% from 13.00% due to increased marketing spend and new store openings

Garmenting

• Revenue grew by 4% to ₹269.00 crore
• EBITDA margin decreased to 5.40% from 9.60% due to US tariff impacts

High Value Cotton Shirting

• Revenue declined by 7% to ₹212.00 crore
• EBITDA increased to ₹25.00 crore from ₹22.00 crore
• EBITDA margin improved to 11.80% from 9.70%

Domestic Growth Offsets Global Challenges

The company's performance was primarily fueled by accelerating domestic demand across India, particularly in its core Branded Textile and Branded Apparel segments. This strong domestic consumption helped offset challenges in the international business, especially in the garmenting and B2B export segments, which faced headwinds due to steep US tariffs.

Gautam Hari Singhania, Executive Chairman of Raymond Lifestyle Limited, commented on the results: "Our quarterly performance reflects encouraging momentum driven by a strong domestic demand across core lifestyle categories. Even as we navigate global macroeconomic headwinds, we remain focused on agility and strategic foresight—closely tracking opportunities from the UK-India Free Trade Agreement and potential risks from US tariff changes."

Strategic Focus and Outlook

Raymond Lifestyle is capitalizing on buoyant consumer sentiment in the home market while navigating global challenges. The company has increased its advertising expenditure as a calibrated investment to strengthen long-term brand equity and consumer engagement.

As of September 30, 2025, the company's retail network expanded to 1,663 stores, up from 1,592 stores a year earlier. However, the company noted that recently opened stores are expected to take more time to reach full maturity, and it continues to optimize its retail network for long-term growth and profitability.

The company reported a net debt position of ₹246.00 crore in Q2 FY26, attributed to inventory build-up for the upcoming festive and wedding season.

Despite the positive domestic performance, Raymond Lifestyle remains cautious about global macroeconomic factors, particularly the impact of US tariffs on its international business. The company is closely monitoring potential opportunities arising from the UK-India Free Trade Agreement while managing risks associated with changes in US tariff policies.

As Raymond Lifestyle continues to navigate these mixed market conditions, its focus on domestic growth, strategic investments, and agile management approach positions it to capitalize on India's robust consumer demand while working to mitigate international challenges.