Raymond Lifestyle (RAYMONDLSL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 delivered record revenue of ₹1,475 Cr, up 18% year-over-year, driven by branded textiles and apparel volume gains.

• EBITDA rose 36% year-over-year to ₹122 Cr, with margin improvement to 8.2% from 7.1% in Q1 FY25, despite increased marketing investments.

• Net loss narrowed to ₹20 Cr from ₹23 Cr year-over-year, with consolidated net loss at ₹1,982 lakhs, reflecting improved operational performance.

• Retail network optimized with 35 underperforming stores closed and 22 new stores opened in the quarter; store count at 1,675 as of June 30, 2025.

• Garmenting segment revenue declined to ₹197 Cr due to US tariff uncertainty, impacting order book and profitability.

Financial highlights

• Branded Textiles revenue grew 27% year-over-year to ₹716 Cr; EBITDA nearly doubled to ₹103 Cr, margin at 14.3%.

• Branded Apparel revenue up 22% year-over-year to ₹370 Cr; EBITDA at ₹19 Cr, margin at 5%.

• High-value Cotton Shirting revenue up 10% to ₹205 Cr; EBITDA doubled to ₹20 Cr, margin at 9.5%.

• Garmenting revenue declined to ₹197 Cr (from ₹252 Cr), with EBITDA margin at (3.9%) due to US tariff uncertainty.

• Net debt stood at ₹55 Cr as of June 30, 2025; net working capital days increased to 90 due to inventory buildup.

Outlook and guidance

• Fiscal 2026 expected to be a strong recovery year, with robust forward bookings for Autumn-Winter 2026 and early festive season demand.

• Margins anticipated to improve in subsequent quarters due to operating leverage; Q1 margins not indicative of full-year performance.

• Branded Textiles margin targeted around 20% for the year; garmenting margins expected in the 7-9% range depending on volume.

• Focus on operational efficiency, retail network optimization, and leveraging market opportunities.

• Garmenting order book expected to improve in H2; efforts underway to lower customer concentration risks.