Raymond Lifestyle: Weaving Growth Amidst Global Headwinds in Q2 FY26

Raymond Lifestyle Limited, a stalwart in the Indian fashion and textile industry, has demonstrated a resilient performance in the second quarter and first half of fiscal year 2026. The company, known for its iconic brands and extensive retail presence, navigated a complex macroeconomic landscape marked by global uncertainties, yet delivered robust domestic growth driven by strategic initiatives and a strong festive season. For Q2 FY26, Raymond Lifestyle reported a total income of INR 1,865 crore, marking an 8% year-on-year increase. The company's EBITDA stood at INR 259 crore, a 7% rise from the previous year, maintaining a healthy EBITDA margin of 13.9%. Net Profit for the quarter was INR 79 crore, though it saw a 22% decline year-on-year. For the first half of FY26, total income reached INR 3,340 crore, reflecting a 12% growth over H1 FY25. EBITDA for H1 FY26 was INR 381 crore, up 15%, with a margin of 11.4%. This performance underscores the company's ability to capitalize on domestic demand while managing international headwinds.

Segmental Performance and Product Innovation

The Branded Textile segment emerged as a significant growth driver, recording a 10% revenue increase to INR 937 crore in Q2 FY26 and a 17% increase to INR 1,653 crore in H1 FY26. This growth was fueled by strong volume expansion, an early festive season, and robust bookings. The segment also saw its EBITDA grow by 16% in Q2 and 35% in H1, with margins expanding due to an improved product mix. Raymond Lifestyle introduced several new products in suiting, including 'Venizo' (a super 130s wool-rich blend), 'Royal Soft' (pure wool super 70s jacketing), 'Super Luxe' (finest wool rich fabric in SUPER 200s), and 'Drape Code' (bio polished SUPER 140s and 120s Merino wool). In shirting, 'Woolvance' (100% wool and wool/cotton blends) and 'Denigma' (denim-look prints and authentic 100% denim fabric) were launched, catering to evolving fashion trends.

The Branded Apparel segment also showed strong growth, with revenue increasing by 11% to INR 491 crore in Q2 FY26 and 16% to INR 861 crore in H1 FY26. This growth was witnessed across all brands and key channels. However, the segment's EBITDA saw a decline of 56% in Q2 and 39% in H1, primarily due to increased marketing expenditures and lower sales from newly opened stores. The Garmenting and High Value Cotton Shirting segments faced challenges. Garmenting revenue grew marginally by 4% in Q2 to INR 269 crore but declined by 9% in H1 to INR 466 crore. EBITDA for this segment was significantly impacted, decreasing by 41% in Q2 and 80% in H1, largely due to US tariff uncertainties and a weaker order book. High Value Cotton Shirting revenue de-grew by 7% in Q2 to INR 212 crore, attributed to subdued demand from B2B customers. Despite this, its EBITDA grew by 13% in Q2 and 37% in H1, driven by an improved product mix.

Strategic Retail Expansion and Market Dynamics

Raymond Lifestyle continued its retail network optimization strategy, opening 19 new stores and exiting 31 low-performing ones in Q2 FY26, resulting in a net increase of 71 stores year-on-year, bringing the total store count to 1,663. For its 'Ethnix by Raymond' brand, 3 new stores were opened, and 4 underperforming ones were closed, taking the total to 139 stores. The company is adopting a more cautious, franchisee-led expansion for Ethnix, leveraging its existing 'The Raymond Shop' (TRS) and Multi-Brand Outlet (MBO) channels.

The management highlighted the positive impact of government measures, such as income tax reductions and GST rate rationalization, which are expected to boost disposable income and urban demand. The India-UK Free Trade Agreement is also seen as a significant opportunity, potentially doubling UK sales in the next two to two and a half years by providing zero-duty access for Indian textile and garment exports. The company's net working capital increased to 105 days in September 2025, up from 97 days in September 2024. This was a planned build-up of inventory to meet the anticipated festive season and wedding demand, as well as changes in export business terms.

Outlook and Management Commentary

Gautam Hari Singhania, Executive Chairman, emphasized the encouraging momentum driven by strong domestic demand and the company's focus on agility and strategic foresight amidst global macroeconomic headwinds. He highlighted the opportunities arising from the UK-India Free Trade Agreement and the disciplined approach to managing US tariff changes. The management expressed confidence in a stronger performance in the second half of FY26, driven by the festive and wedding seasons. They anticipate continued strong bookings in Branded Textiles, increased marketing spends for brand visibility, and an improved order book in the Garmenting business. The company is also committed to profitability improvements through operating leverage and enhanced efficiencies. Raymond Lifestyle's Q2 FY26 performance reflects a company that is strategically adapting to market realities, leveraging its core strengths in domestic demand and product innovation, while carefully navigating external challenges. The focus on retail optimization and capitalizing on new trade agreements positions it for sustained growth in the evolving fashion and lifestyle landscape.