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    Raymond Lifestyl

    RAYMONDLSL
    Textiles·7 May 2026
    Management Summary

    Raymond Lifestyle delivered a strong FY26, marked by record total income and robust EBITDA growth, driven by domestic consumption and operational efficiencies. The company is debt-free with a net cash surplus and improved working capital. Q4 FY26 continued this positive momentum, with significant growth in Branded Textile and Garmenting segments. The company is now focusing on 'consolidation' in FY27, with strategic initiatives in premiumization, casualization, and digital transformation, while navigating global macroeconomic headwinds and raw material price volatility.

    Highlights

    5

    • Achieved highest-ever total income of ₹7,034 crores in FY26, growing 11% YoY.

    • EBITDA for FY26 grew 23% YoY to ₹804 crores, with margin expanding to 11.4%.

    • Q4 FY26 saw a 53% YoY EBITDA growth to ₹152 crores, with margin improving 210 bps QoQ to 8.4%.

    • Net working capital improved significantly by 10 days, from 87 to 77 days, indicating efficiency gains.

    • Garmenting business showed strong recovery in Q4 FY26 with 38% YoY revenue growth and positive EBITDA of ₹14 crores, driven by US-India trade deal and duty-paid terms.

    Concerns

    4

    • Q4 FY26 gross margins were impacted by the absence of a one-time government subsidy of ₹53 crores received in Q4 FY25 for the Amravati plant.

    • Emerging and new businesses within Branded Apparel incurred a ₹30 crores loss on a ₹140 crores turnover for the year, diluting overall segment profitability.

    • Raw material prices for wool (Merino) and flax are 'going through the roof,' posing a challenge to gross margin expansion despite premiumization efforts.

    • The sleepwear segment was an annual drag of ₹20 crores on EBITDA, leading to provisions being taken this year.

    Key financials

    Metrics

    6

    Periods

    2

    Q4 FY26

    3
    • Total Income
      ₹1,810 Cr
      YoY+15%
    • EBITDA
      ₹152 Cr
      YoY+53%
    • EBITDA Margin
      8.4%
      QoQ+2.1%

    FY26

    3
    • Total Income
      ₹7,034 Cr
      YoY+11%
    • EBITDA
      ₹804 Cr
      YoY+23%
    • EBITDA Margin
      11.4%

    Segment breakdown

    • Branded Textile₹831 Cr45.2%
    • Branded Apparel₹469 Cr25.5%
    • Garmenting₹342 Cr18.6%
    • High Value Cotton Shirting (B2B)₹197 Cr10.7%
    Donut· Share of Revenue (Q4 FY26)

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹180 crores

    Debt

    Net ₹-179 crores

    Liquidity

    Cash ₹179 crores

    Net cash surplus for the company.

    Guidance & targets

    9
    CategoryTargetPriority
    Profitability
    Core Branded Apparel EBITDA Margin
    double-digits
    		Medium
    Store Expansion
    Gross EBO Stores Added
    100
    		Medium
    Store Expansion
    Net EBO Stores Added
    30-40
    		Medium
    ESG
    Renewable Energy Percentage
    25%
    		High
    ESG
    Scope 1 & 2 Emissions Reduction
    15%
    		High
    Working Capital
    Working Capital Days
    <70 days
    		High
    Product Mix
    Casual Portfolio Share of Revenue
    20-25%
    		Medium
    Product Mix
    Casual Portfolio Share of Revenue
    45%
    		Low
    Capex
    FY27 Capex
    similar to FY26
    		Medium

    Core Branded Apparel EBITDA Margin

    next two years
    Current7.8% (FY26)
    TargetProgress towards double-digits

    Why it matters

    This indicates the underlying profitability improvement of the core apparel brands, excluding new ventures.

    So, the core brands are actually quite okay at 7.8% and we will endeavour to take it to double-digits over the next two years' time.

    How to verify

    key_financials.segment_breakdown[name='Branded Apparel'].metrics[label='Core Brands EBITDA Margin (FY26)']

    Risks & concerns

    5
    RiskSeverity

    Macroeconomic Volatility

    Volatile macroeconomic environment with global headwinds (US-Iran conflict, Brent crude >$100) and domestic challenges (heat waves, below-average monsoon forecast at 92%). — Management acknowledged

    medium

    Raw Material Price Inflation

    Wool (Merino) and flax prices are 'going through the roof,' which could temper gross margin improvement despite premiumization efforts. — Management acknowledged

    medium

    Slowdown in Conspicuous Consumption

    West Asia conflict and stock market performance may lead to reduced discretionary spending, impacting Branded Apparel demand, though small price point discretionary items tend to bounce back. — Management acknowledged

    medium

    Single Geography Dependency (Garmenting)

    Past high dependency (65-67%) on the US market in garmenting made the business susceptible to tariffs; company is diversifying to Asian, European, and UK markets. — Management acknowledged

    low

    Customization Challenge in Ethnix Segment

    Difficulty for a national brand to replicate highly customized regional wedding dresses, leading to a strategy shift to focus on lighter, less structured products for the bridegroom's friends. — Management acknowledged

    low

    Q&A highlights

    6

    “Our factory utilizations, which traditionally used to be between 80%-85%, have all gone above 90%. There are factories which we have operated at 95% plus also, and this has given us a lot of scale advantage. It has given us drop in opex, which has flown into EBITDA. So, these -- the whole idea is that if we do a higher turnover this year than last year, then the factories should keep running at this pace and hence the opex reduction should be sustainable and hence EBITDA should hold.”

    Analyst questioned if the observed decline in manufacturing expenses and employee costs, leading to EBITDA margin expansion, was sustainable or a one-time event, which management clarified as sustainable due to higher factory utilization.

    asked by Vijay Jangir

    3 min read7 chapters

    Detailed Narrative

    01

    Strong FY26 Performance Driven by Domestic Consumption

    Raymond Lifestyle reported its highest-ever total income of ₹7,034 crores for FY26, marking an 11% year-on-year growth. EBITDA for the year increased by 23% to ₹804 crores, achieving an EBITDA margin of 11.4%. The company also maintained a debt-free status with a net cash surplus of ₹179 crores. Net working capital days improved significantly by 10 days, reducing from 87 to 77 days, reflecting enhanced operational efficiency.

    02

    Resilient Q4 FY26 Amidst Global Headwinds

    Despite a volatile macroeconomic environment, Raymond Lifestyle delivered a resilient Q4 FY26 performance. Total income reached a record ₹1,810 crores, growing 15% year-on-year. EBITDA for the quarter surged by 53% to ₹152 crores, with the EBITDA margin improving by 210 basis points quarter-on-quarter to 8.4%. The company generated close to ₹200 crores of net cash during this quarter, demonstrating robust cash flow generation.

    03

    Segmental Growth and Profitability Drivers

    The Branded Textile segment's revenue grew 14% to ₹831 crores in Q4, with EBITDA soaring 126% to ₹115 crores, attributed to robust volume growth, premiumization, and improved product mix. The Garmenting business saw a strong recovery, with Q4 revenue up 38% to ₹342 crores and EBITDA turning positive at ₹14 crores from a negative ₹7 crores in Q4 FY25. The Branded Apparel segment reported ₹469 crores in Q4 revenue, growing 20% YoY, with core brands achieving a 7.8% EBITDA margin for FY26, excluding emerging businesses.

    04

    FY27: The Year of Consolidation and Strategic Focus

    FY27 is designated as the 'Year of Consolidation,' focusing on sustainable profitability and a lean operating network. The company plans to add approximately 100 gross EBO stores, with a net increase of 30-40 stores after exiting underperforming ones. Strategic growth initiatives include premiumization across all segments (wool in suiting, linen in shirting), casualization with ColorPlus as a frontrunner, and GTM expansion in MBOs and LFS counters. The goal is to achieve double-digit top-line and bottom-line growth even during this consolidation phase.

    05

    Capital Expenditure and Working Capital Management

    Total capital expenditure for FY26 was ₹180 crores, allocated with ₹50 crores for SAP implementation, ₹60 crores for a new garmenting factory in Hyderabad, and the balance for new stores and plant maintenance. Capex for FY27 is expected to be 'almost on similar lines.' The company aims to further reduce net working capital days to less than 70 in the next financial year, building on the 10-day improvement seen in FY26.

    06

    ESG Commitments and Leadership Transitions

    Raymond Lifestyle is advancing its ESG roadmap, targeting a 25% renewable energy share by 2030 (from 5-6% in FY25) and a 15% reduction in Scope 1 and 2 emissions by 2030 (from 4-5% reduction this year). The company has undergone significant leadership transitions, including new Group CFO, Lifestyle CFO, CEO, and CMO, with a search for a new CIO underway, aiming to accelerate growth and operational efficiencies.

    07

    Strategic Roadmap Development

    The CEO, having recently joined, indicated that the company has engaged a top consultancy firm to develop a comprehensive three-year strategy. The work is expected to commence by late May, with the strategic plan anticipated to be ready around October/November, leading to execution in Q3 FY27. This initiative aims to provide a clear long-term growth path and specific targets for the company.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.