Raymond Lifestyle Limited garmenting rises 36% with positive EBITDA

Raymond Lifestyle reported garmenting revenue of Rs 635 crore in H1 FY27, up 36% year on year, and positive earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 47 crore at a 7.4% margin. Management attributed growth to export-order conversion following US-India tariff rationalisation.

How did Raymond Lifestyle garmenting perform in H1 FY27?

Raymond Lifestyle’s garmenting revenue increased by Rs 169 crore to Rs 635 crore in H1 FY27 from Rs 466 crore in H1 FY26. The segment generated positive EBITDA of Rs 47 crore, with a reported EBITDA margin of 7.4%, which the company presented as a garmenting turnaround.

Garmenting was the fastest-growing reported segment in the first half, exceeding the 14% growth in Branded Apparel, 12% increase in Emerging Business and 3% increase in Branded Textile. High Value Shirting was broadly unchanged, rising to Rs 417 crore from Rs 416 crore. Garmenting’s Rs 169 crore revenue increase was also larger than Branded Apparel’s Rs 108 crore increase.

The 7.4% garmenting margin matched Branded Apparel’s H1 FY27 margin. It was below Branded Textile’s 17.1% margin and High Value Shirting’s 9.6% margin, while Emerging Business reported a negative margin of 23.3%. The presentation does not provide a garmenting EBITDA figure for H1 FY26, so the scale of the profit change cannot be calculated from the disclosed data.

What did Q2 FY27 show for Raymond Lifestyle garmenting?

Raymond Lifestyle’s garmenting revenue rose 26% to Rs 339 crore in Q2 FY27 from Rs 269 crore in Q2 FY26, while EBITDA was positive at Rs 25 crore. The Q2 EBITDA margin was 7.4%, the same margin reported for garmenting in H1 FY27.

The Q2 growth rate of 26% was lower than the 36% growth rate reported for the full first half, although the periods are not directly comparable. Q2 accounted for Rs 339 crore of the Rs 635 crore H1 FY27 garmenting revenue and Rs 25 crore of the Rs 47 crore H1 EBITDA. The presentation does not disclose a separate Q1 FY27 garmenting comparison or explain the timing of export-order conversion between the two quarters.

At the consolidated level, total income increased 14% to Rs 2,125 crore in Q2 FY27 from Rs 1,865 crore a year earlier. EBITDA rose 4% to Rs 270 crore, but the EBITDA margin declined by 120 basis points to 12.7% from 13.9%; one basis point equals one-hundredth of a percentage point. Management cited higher marketing investment, raw-material costs and ocean-freight costs.

Did Raymond Lifestyle’s H1 FY27 margins improve?

Raymond Lifestyle’s consolidated EBITDA increased 6% to Rs 404 crore in H1 FY27 from Rs 381 crore in H1 FY26, but its EBITDA margin fell 40 basis points to 11.0% from 11.4%. Total income rose 10% to Rs 3,685 crore from Rs 3,340 crore, meaning operating profit increased in rupee terms while income grew faster than EBITDA.

Profit before tax (PBT) declined 37% to Rs 53 crore in H1 FY27 from Rs 83 crore in H1 FY26. Management linked the EBITDA-margin movement to marketing, raw-material and freight pressures, but the presentation does not provide a reconciliation between EBITDA and PBT. It therefore does not identify the effect of depreciation, finance costs or other items on the PBT decline.

Management said premiumisation and casualisation were supporting higher average selling prices in Branded Textile and Branded Apparel, without quantifying the increase. Segment margins also differed materially: Branded Textile generated Rs 1,654 crore of H1 revenue at a 17.1% margin, whereas Emerging Business generated Rs 179 crore at a negative 23.3% margin.

What store-network actions did Raymond Lifestyle disclose?

Raymond Lifestyle opened 24 new high-traffic locations and reported strategic net closures of 29 stores since September 2025. The company described these actions as network rationalisation and rebalancing, but did not disclose the store base before the actions, the current store count or the stores affected by brand.

Branded Apparel revenue increased 14% to Rs 908 crore in H1 FY27 from Rs 800 crore in H1 FY26, with a 7.4% margin. In Q2 FY27, its revenue rose 20% to Rs 559 crore from Rs 465 crore and its margin was 8.8%. The update describes Branded Apparel as a turnaround, but does not isolate the revenue or margin effect of the 24 openings and 29 net closures.

Branded Textile remained the largest disclosed segment, although its H1 FY27 revenue rose only 3% to Rs 1,654 crore. High Value Shirting was nearly flat at Rs 417 crore, compared with Rs 416 crore a year earlier. The comparison shows that garmenting and Branded Apparel supplied much of the reported first-half segment growth.

How did Raymond Lifestyle’s balance sheet change?

Raymond Lifestyle reported net cash of Rs 69 crore in September 2026, compared with net debt of Rs 246 crore in September 2025. The company described this as a turnaround of more than Rs 300 crore, supported by disciplined working-capital management and operational free cash flow.

The Rs 69 crore net-cash position was disclosed in both the Q2 FY27 and H1 FY27 updates. It coincided with H1 EBITDA of Rs 404 crore and Q2 EBITDA of Rs 270 crore, but the presentation does not provide a cash-flow statement, gross-borrowing figure or cash balance that would reconcile EBITDA to the reported net-cash movement.

Conclusion

Raymond Lifestyle’s first-half update shows garmenting becoming a larger growth contributor, with revenue up Rs 169 crore year on year and positive EBITDA of Rs 47 crore. However, consolidated EBITDA margin declined to 11.0% and PBT fell to Rs 53 crore, indicating that higher income and the garmenting turnaround did not prevent pressure on overall profitability.

The next updates will clarify whether export-order conversion sustains garmenting’s 7.4% margin and whether the network rationalisation affects Branded Apparel’s sales and margin trajectory. Marketing, raw-material and freight costs remain unresolved factors because management identified them as drivers of the 40-basis-point H1 EBITDA-margin decline.