Raymond Lifestyle (RAYMONDLSL) Q2 25/26 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of ₹1,865 Cr, up 8% year-over-year, driven by strong domestic demand and volume growth in Branded Textile and Apparel segments, despite global headwinds and increased marketing spend.

• EBITDA for Q2 FY26 rose 7% YoY to ₹259 Cr, with margin at 13.9%; net profit post-exceptional items surged 77% YoY to ₹74 Cr.

• Domestic business outperformed with double-digit growth, while exports faced pressure from U.S. tariffs and global volatility.

• Retail network optimized with 19 new stores opened and 31 closed in Q2; total store count at 1,663 as of September 2025.

• Strategic focus on operational efficiency, retail network optimization, and leveraging policy reforms for future growth.

Financial highlights

• H1 FY26 total income was ₹3,340 Cr, up 12% YoY; EBITDA was ₹381 Cr, up 15%; net profit post-exceptional items at ₹55 Cr, up 188% YoY.

• Net working capital days increased to 105 in Sep'25 from 97 in Sep'24 due to inventory build-up for festive and export demand.

• Net debt at ₹246 Cr as of Q2 FY26.

• Profit before tax (before exceptional items) for Q2 FY26 was ₹108 Cr, with a margin of 5.8%.

• Basic and diluted EPS for Q2 FY26 stood at ₹12.34.

Outlook and guidance

• Expecting continued strong domestic demand, supported by GST and income tax cuts, and robust wedding season bookings.

• Branded apparel margins expected to recover to early double digits in 2-3 quarters as new stores mature and marketing investments normalize.

• Branded apparel segment targeting ₹2,300–2,500 Cr annual revenue in 2–2.5 years.

• U.K. FTA could double U.K. exports in 2–2.5 years once enacted.

• Focus on profitability improvements through operating leverage and efficiency enhancements.