Raymond Lifestyle (RAYMONDLSL) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue declined 9% year-over-year to INR 1,580 million due to high inflation, weak consumer demand, and a ransomware attack disrupting operations for 25-26 days, impacting sales and profitability.

• FY25 total income was INR 6,360 million with EBITDA of INR 651 million (margin 10.2%), both down year-over-year due to subdued demand, inflation, and operational disruptions.

• The retail network expanded to 1,688 stores as of March 2025, with 170 new stores opened in FY25, including 35 in Q4 and over 150 ethnic wear stores.

• Ethnic wear segment crossed INR 100 crore in revenue and now has over 150 stores, with plans to reach 300 stores in 3 years and a shift to a franchisee-led model.

• Focus remains on long-term sustainable growth, retail expansion, and building new categories such as ethnic wear, sleepwear, and innerwear.

Financial highlights

• Q4 FY25 EBITDA fell 66% year-over-year to INR 99 million (margin 6.3%); FY25 EBITDA down 40% to INR 651 million (margin 10.2%).

• Q4 FY25 PBT before exceptional items was a loss of INR 45 million (margin -2.9%); FY25 PBT at INR 122 million, down 81% year-over-year.

• Net profit for FY25 was INR 100 million, a significant decline from INR 489 million in FY24.

• Net cash position at INR 90 million as of March 2025; company remains net debt free.

• Discontinued FMCG business sale in FY25 resulted in a one-time gain of INR 2,66,684 lakhs.

Outlook and guidance

• FY26 expected to be a year of recovery, with early signs of demand improvement and bookings up 12-13% year-over-year.

• Management expects 10-15% or slightly higher revenue growth in FY26, with margin recovery in branded textile and overall lifestyle business.

• Continued focus on retail expansion and new category development to drive future growth.

• India-UK Free Trade Agreement expected to strengthen export opportunities and global value chain integration.