Raymond Lifestyle (RAYMONDLSL) Q3 25/26 earnings summary

Executive summary

• Achieved record Q3 FY26 revenue of ₹1,883 Cr, up 5% year-over-year, driven by strong domestic demand in branded textile and apparel, despite international headwinds and US tariff challenges.

• EBITDA for Q3 FY26 increased 23% year-over-year to ₹271 Cr, with margin expansion to 14.4% from 12.3%.

• Net profit for Q3 FY26 was ₹4,286 lakhs, impacted by a one-time exceptional loss due to new labour code implementation.

• Retail network expanded with 21 new stores opened and 9 low-performing stores exited, supporting disciplined expansion.

• Net debt stood at ₹15 Cr as of December 2025, with operating cash at ₹155 Cr.

Financial highlights

• Q3 FY26 total income: ₹1,883 Cr (Q3 FY25: ₹1,796 Cr); 9M FY26: ₹5,223 Cr (9M FY25: ₹4,780 Cr).

• Q3 FY26 EBITDA: ₹271 Cr (Q3 FY25: ₹221 Cr); 9M FY26: ₹652 Cr (9M FY25: ₹552 Cr).

• Q3 FY26 PBT before exceptional items: ₹118 Cr (Q3 FY25: ₹87 Cr); net profit post-exceptional items at ₹43 Cr.

• Average selling price increased by ₹26 per meter, reflecting a premium product mix.

• Net working capital days increased to 94 in Dec'25 from 89 in Dec'24, mainly due to inventory build-up and lower garmenting sales.

Outlook and guidance

• Management remains optimistic about domestic demand, focusing on leveraging FTAs and managing US trade policy risks.

• Continued investment in brand equity, marketing, and retail network optimization, with further store rationalization expected.

• Garmenting order book expected to improve in H2, with efforts to reduce customer concentration risk.

• Ethnic segment expected to take another 2-3 years to mature, with ongoing investment in brand building.