Raymond Lifestyle Limited Q2 income rises 14% to Rs 2,125 crore

Raymond Lifestyle Limited reported total income of Rs 2,125 crore in Q2 FY27, up 14% year on year, marking its highest quarterly income to date. EBITDA increased 4% to Rs 270 crore, although the EBITDA margin declined to 12.7% from 13.9% as input costs, marketing expenditure and freight affected profitability.

What did Raymond Lifestyle report for Q2 FY27?

Raymond Lifestyle reported record total income of Rs 2,125 crore for the quarter ended September 30, 2026, compared with Rs 1,865 crore in Q2 FY26. Revenue from operations rose 13.2% to Rs 2,075 crore from Rs 1,832 crore in the corresponding quarter of the previous year.

Consolidated EBITDA rose to Rs 270 crore from Rs 259 crore a year earlier. The slower increase in EBITDA than income resulted in a 120-basis-point decline in EBITDA margin to 12.7%. Net profit after exceptional items fell 10.2% to Rs 68 crore from Rs 75 crore, with higher input costs and an unfavourable sales mix weighing on margins.

Which businesses supported Raymond Lifestyle's quarterly growth?

Raymond Lifestyle's branded apparel business recorded its highest quarterly revenue of Rs 559 crore, a 20% year-on-year increase. The company reported double-digit like-to-like store growth and cited momentum in brands including ColorPlus.

The garmenting segment generated revenue of Rs 339 crore in Q2 FY27, up 26% year on year. These businesses helped lift consolidated income during the quarter, while festive demand, price pass-through and export orders were cited by management as contributors to the operating environment.

The company also continued network optimisation. It exited 53 stores and added 24 stores, resulting in a net reduction of 29 stores since September 2025. The figures indicate that expansion in selected brands and channels was accompanied by closures within the wider store network.

How did Raymond Lifestyle perform in the first half of FY27?

Raymond Lifestyle recorded total income of Rs 3,685 crore in H1 FY27, up 10% from Rs 3,340 crore in H1 FY26. EBITDA increased 6% to Rs 404 crore from Rs 381 crore, while the half-year EBITDA margin stood at 11.0%, compared with 11.4% a year earlier.

Profit before tax before exceptional items declined 37% to Rs 53 crore from Rs 83 crore. Net profit after exceptional items for the first half was Rs 45 crore, compared with Rs 55 crore in H1 FY26, a decline of 19%.

What changed in Raymond Lifestyle's balance sheet and working capital?

Raymond Lifestyle became net debt-free and reported a net cash surplus of Rs 69 crore as of September 2026. This compares with net debt of Rs 246 crore a year earlier, reflecting a substantial improvement in the company's reported balance-sheet position.

Its working-capital cycle reduced by 23 days to 82 days. Working-capital management is relevant for apparel and textile businesses because inventory, receivables and seasonal sales can materially affect cash conversion. The reported reduction, alongside the net cash position, gives context to management's focus on cash generation even as margins moderated.

Why do the Q2 results matter for investors?

The results show that Raymond Lifestyle maintained double-digit income growth despite pressure on operating profitability. Total income expanded faster than EBITDA in both the quarter and half year, which is reflected in lower margins. The difference points to the importance of raw-material costs, freight, marketing expenditure and product mix in assessing the quality of revenue growth.

Management reiterated its FY27 guidance for double-digit top-line growth, mid-double-digit EBITDA growth and net cash of more than Rs 300 crore. It cited expected scale benefits and cost-saving measures in the second half. These remain company targets rather than reported outcomes, and the next set of results will provide further evidence on whether margin and cash objectives are being met.

Conclusion

Raymond Lifestyle delivered its highest quarterly total income at Rs 2,125 crore in Q2 FY27, supported by growth in branded apparel and garmenting. However, EBITDA growth lagged income growth, net profit declined and the margin narrowed to 12.7%, showing that cost pressures and sales mix remained material factors in the quarter.

Investors will watch the second-half performance against management's FY27 targets for mid-double-digit EBITDA growth and net cash above Rs 300 crore. Trends in festive demand, export orders, cost pass-through, working-capital efficiency and the store-network optimisation programme will be relevant to that assessment.