Raymond Lifestyle (RAYMONDLSL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 2% year-over-year to INR 1,796 crores, despite weak consumer demand and macroeconomic headwinds.

• EBITDA for Q3 FY25 was INR 221 crores with a margin of 12.3%, down 30% year-over-year due to scale deleverage, upfront investments, and adverse segment mix.

• Net debt-free status achieved with net cash of INR 61 crores as of December 2024.

• Retail network expanded to 1,653 stores across 600+ towns, with 61 new stores opened in Q3 FY25.

• The company completed the demerger of its lifestyle business and listed new shares in September 2024.

Financial highlights

• Branded textiles revenue declined 6% year-over-year to INR 856 crores; EBITDA margin at 18%.

• Branded apparel revenue grew 5% to INR 458 crores; EBITDA margin dropped to 9.6% due to higher advertising and store expansion costs.

• Garmenting segment revenue rose to INR 309 crores (up from INR 261 crores); EBITDA margin fell to 7.8% from 11.3% due to product mix and higher costs.

• High-value cotton shirting revenue declined 6% to INR 201 crores; EBITDA margin at 10.3%.

• Net working capital reduced to 89 days (INR 1,553 crores) from 97 days (INR 1,692 crores) sequentially, driven by lower receivables and inventory control.

Outlook and guidance

• Management expects gradual demand recovery, with a return to growth trajectory in FY 2026.

• Sustainable EBITDA margin target of 15% once retail expansion stabilizes, expected by FY 2026.

• Focus remains on long-term sustainable and profitable growth through retail expansion and new category launches.

• Positive trends in bookings for textiles and apparel for the next year, indicating early signs of recovery.

• Long-term EBITDA aspiration of INR 2,200 crores by FY28 remains, though timing may shift by 12–18 months due to macro headwinds.