Raymond Lifestyle (RAYMONDLSL) Q2 25/26 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of ₹1,865 Cr, up 8% year-over-year, driven by strong domestic demand and volume growth in Branded Textile and Apparel segments, despite global headwinds and increased marketing spend.

• EBITDA for Q2 FY26 rose 7% year-over-year to ₹259 Cr, with a margin of 13.9%.

• Domestic business saw double-digit growth, while export performance was impacted by US tariffs and global volatility.

• Retail network optimized with 19 new stores opened and 31 low-performing stores closed in Q2; total store count at 1,663 as of September 2025.

• Net profit post-exceptional items surged 77% YoY to ₹74 Cr in Q2 FY26.

Financial highlights

• H1 FY26 total income was ₹3,340 Cr, up 12% year-over-year; EBITDA was ₹381 Cr, up 15%.

• Net debt at ₹246 Cr as of September 30, 2025.

• Net working capital days increased to 105, mainly due to inventory buildup for festive and wedding season.

• Profit before tax (before exceptional items) for Q2 FY26 was ₹108 Cr, with a margin of 5.8%.

• Net profit for Q2 FY26 was ₹7,519 lakhs, compared to a loss of ₹1,982 lakhs in Q1 FY26.

Outlook and guidance

• Expect continued strong domestic demand, supported by GST and income tax cuts, and robust wedding season bookings.

• Branded apparel margins expected to recover to early double digits in 2-3 quarters as new stores mature and marketing investments normalize.

• Focus on profitability improvements through operating leverage and efficiency enhancements.

• Garmenting order book expected to improve in H2; efforts to lower customer concentration risks.

• UK-India FTA could double UK exports in 2-2.5 years once enacted.