Raymond Lifestyle (RAYMONDLSL) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 revenue grew 2% year-over-year to INR 1,796 crores, despite weak consumer demand and macroeconomic headwinds.

• EBITDA for Q3 FY2025 was INR 221 crores with a margin of 12.3%, down 30% year-over-year due to scale deleverage, upfront investments, and adverse segment mix.

• Net profit before exceptional items declined 60% year-over-year to INR 65 crores.

• Net debt-free status achieved with INR 61 crores net cash as of December 2024.

• Retail expansion continued with 61 new stores in Q3, expanding the network to 1,653 stores.

Financial highlights

• Branded textiles revenue declined 6% year-over-year to INR 856 crores; EBITDA margin at 18%.

• Branded apparel revenue rose 5% to INR 458 crores; EBITDA margin dropped to 9.6% due to higher advertising and store expansion costs.

• Garmenting segment revenue increased to INR 309 crores (up from INR 261 crores); EBITDA margin fell to 7.8% from 11.3% due to product mix and higher trade costs.

• High-value cotton shirting revenue declined 6% to INR 201 crores; EBITDA margin at 10.3%.

• Net working capital reduced to 89 days (INR 1,553 crores) from 97 days (INR 1,692 crores) sequentially, driven by lower receivables and inventory control.

Outlook and guidance

• Management expects gradual demand recovery, with positive trends in bookings for textiles and apparel for FY2026.

• Targeting a sustainable EBITDA margin of ~15% once retail expansion stabilizes, with full recovery expected in FY2026.

• Long-term EBITDA aspiration of INR 2,200 crores remains, though timing may shift by 12–18 months due to market conditions.

• Focus remains on long-term sustainable and profitable growth through retail expansion and new category launches.

• Anticipates further reduction in net working capital in Q4 FY25, supported by wedding season demand.