/** Raymond Lifestyle Q4 FY26 and FY26 Investor Update */

Raymond Lifestyle FY26: A Recovery Year Sets Up FY27 Consolidation

Raymond Lifestyle Limited closed FY26 with its first ever crossing of the INR 7,000 crore mark in total income, reporting consolidated total income of INR 7,034 crore, up 11 percent year on year. EBITDA rose to INR 804 crore, up 23 percent, taking the EBITDA margin to 11.4 percent versus 10.2 percent in FY25. For Q4 FY26, total income stood at INR 1,810 crore, up 15 percent year on year, while EBITDA increased 53 percent to INR 152 crore.

The company also highlighted a stronger balance sheet and operating discipline. It reported being net debt free with a net cash surplus of INR 179 crore. Working capital improved meaningfully, with net working capital days down to 77 in March 2026 from 87 days in March 2025.

Q4 and FY26 in numbers, and what changed

The P and L table shows a sharp improvement in operating profitability, but also volatility below EBITDA. For Q4 FY26, profit before tax was negative INR 1 crore, compared with negative INR 45 crore in Q4 FY25, while net profit after exceptionals was negative INR 52 crore.

For FY26, profit before tax was INR 200 crore, up 63 percent year on year, but net profit after exceptionals was INR 46 crore, down 44 percent year on year, reflecting the larger exceptional charge of negative INR 129 crore in FY26.

A key theme in management commentary was that headline margin comparisons can be distorted by one-time items in the base period. On the concall, the CEO pointed to a one-time subsidy of INR 53 crore in Q4 FY25 in the high value cotton shirting business as a factor that can skew gross margin comparisons.

Segment performance: textiles lead, apparel mixed, garmenting recovery signs

Raymond Lifestyle operates across Branded Textile, Branded Apparel, Garmenting and High Value Cotton Shirting. In FY26, Branded Textile remained the largest segment, reporting INR 3,435 crore of total income, up 14 percent, and EBITDA of INR 613 crore, up 46 percent. Its FY26 EBITDA margin expanded to 17.8 percent from 14.0 percent.

Branded Apparel reported FY26 total income of INR 1,812 crore, up 14 percent, but EBITDA declined to INR 98 crore from INR 118 crore, taking margin to 5.4 percent from 7.4 percent. Management added an important nuance: the reported Branded Apparel segment includes emerging and new businesses that are in an investment phase. The CEO stated that the emerging and new businesses contributed about INR 140 crore of revenue for the year and are loss-making due to ongoing investments. The company also indicated that it intends to report core apparel brands separately from emerging businesses starting next quarter.

Garmenting reported flat FY26 total income at INR 1,066 crore, with EBITDA declining to INR 32 crore from INR 50 crore. However, Q4 showed a sharper rebound with revenue up 38 percent to INR 342 crore and EBITDA improving to INR 14 crore from negative INR 7 crore in Q4 FY25.

High Value Cotton Shirting reported FY26 total income of INR 818 crore, up 2 percent, and EBITDA of INR 87 crore, down from INR 114 crore, with management again referencing the Q4 FY25 one-time subsidy as a base effect.

FY27 focus: consolidation, premiumization, and a tighter operating engine

Management framed FY27 as a Year of Consolidation. The CEO said the company will shift focus towards sustainable profitability through a lean and high-performing network. A key operational callout was store expansion with discipline. The company ended March 2026 with 1,653 stores and stated it had opened 89 premium stores and exited 124 low-performing units during FY26. For FY27, management guided to adding more than 100 stores on a gross basis while continuing to close underperforming stores, with a net increase expected at 30 to 40 stores. Management also indicated that the store count could be around 1,700 by the end of FY27.

Working capital is another area of stated execution. Net working capital stood at 77 days in March 2026 versus 87 days in March 2025. On the concall, the CFO indicated a target of less than 70 days of working capital in FY27, with levers focused on debtors and inventory.

Strategically, Raymond Lifestyle highlighted five pillars for FY27.

Premiumization is a central theme, with management calling out a shift in mix towards wool and linen across Branded Textile, Branded Apparel and Garmenting. Management said premium products should directionally support gross margins, although it also flagged rising Merino wool and flax prices as headwinds that could limit the magnitude of improvement.

Casualization is the second pillar, with the company aiming to capitalize on the shift in Branded Textile towards relaxed and versatile wearability. In Branded Apparel, management spoke about launches in smart casual categories such as polos, chinos, t-shirts, corduroy and denim, along with leveraging innovations including Airshield, Flex Tech and Techno Clean.

On channels, management spoke about distribution expansion in MBOs and LFS counters and reiterated that EBO remains the most profitable channel. The CEO also discussed the role of LFS in building brand stature, which in turn can support broader distribution.

On marketing, management said it intends to move from fragmented marketing to a connected omnichannel approach across the consumer journey, with sharper positioning for individual brands. It highlighted higher impact media presence in FY26, including cricket and cinema, and said linen has performed well.

Finally, the company reiterated its ESG roadmap, including targets of 25 percent renewable energy by 2030 and 15 percent reduction in Scope 1 and 2 emissions by 2030. Management said renewable energy share is expected to increase by 5 to 6 percent in the year relative to the FY25 baseline and that Scope 1 and 2 emissions were reduced by 4 to 5 percent versus the baseline year.

Capex, systems, and portfolio clean-up

Capex for the year was discussed at about INR 180 crore. The CFO provided a split: INR 50 crore for SAP implementation, about INR 60 crore for a new garmenting factory in Hyderabad, and the balance for new stores and plant maintenance capex. Management also indicated that capex for the next year should remain on similar lines.

Portfolio clean-up also featured in the call. Management stated that it is stopping the sleepwear business and quantified the annual EBITDA drag at about INR 20 crore, while also noting that provisions have been taken as part of the exit.

Takeaways

Raymond Lifestyle delivered a clear FY26 recovery on the operating line, supported by domestic demand and improved working capital. Branded Textile remained the key profit pool with expanding margins, while Branded Apparel showed growth but faced profitability pressure, partly due to losses in emerging businesses that the company plans to disclose separately.

The FY27 messaging is anchored in consolidation: disciplined store expansion, working capital reduction to below 70 days, and product strategy built on premiumization and casualization. Exceptional items and input inflation in wool and flax remain key variables to track, alongside progress in reducing garmenting dependence on the US market.