Raymond Lifestyle Limited recorded a 14% year-on-year rise in total income to Rs 2,125 crore in the second quarter of fiscal 2026-27.
Although the garmenting and apparel businesses lifted sales, profit before tax fell 16% to Rs 91 crore in the quarter ending September 30, 2026, weighed down by costlier raw materials and heavier marketing outlay.
EBITDA came in at Rs 270 crore, up 4% year on year, but the margin narrowed by 120 basis points to 12.7%, from 13.9% in the same period a year earlier.
Management blamed the squeeze on higher marketing spend and a sharp jump in raw material and freight costs, which more than cancelled out the benefit of a better sales mix.
Segment highlights
Garmenting was a principal growth engine, with revenue up 26% year on year to Rs 339 crore, driven by robust execution of orders after the rationalisation of US-India tariffs and the addition of new global customers.
Branded Apparel revenue advanced 20% to Rs 559 crore, underpinned by a casualisation strategy across labels such as ColorPlus and Parx.
By comparison, Branded Textile revenue edged up 7% to Rs 971 crore, while High Value Cotton Shirting managed a modest 5% increase to Rs 222 crore.
The Emerging Business segment, which spans Raymond Home and Ethnix, grew revenue 15% to Rs 100 crore, but remains in investment mode, with negative EBITDA of Rs 23 crore.
Balance sheet and operating metrics
The company stayed net debt-free, holding net cash of Rs 69 crore as of September 2026. Working capital efficiency improved considerably, with the net working capital (NWC) cycle shortening to 82 days from 105 days a year earlier, helped by stronger collections and tighter inventory control.
Streamlining of the retail network continued, with 53 underperforming stores closed and 24 new outlets opened, leaving a net reduction of 29 and a total of 1,634 stores as of September 2026.
Reading the numbers
A gap has opened between top-line growth and bottom-line decline. Total income grew 14%, yet profit before tax dropped 16%, largely because operating costs rose out of proportion to revenue.
Depreciation climbed from Rs 91 crore to Rs 105 crore and interest costs from Rs 60 crore to Rs 74 crore. These higher fixed charges, together with the 120 bps margin squeeze in EBITDA, ate into profitability despite solid volume-led revenue gains in Garmenting and Apparel.
