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Raymond Lifestyle Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤27th Jan 26

Summary : Raymond Lifestyle Limited reports healthy Q3 FY26 performance driven by strong domestic consumption, despite international headwinds and new labor code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: 37,313 lakhs (Q3 FY26 Consolidated)
  2. Purchases of stock-in-trade: 41,994 lakhs (Q3 FY26 Consolidated)
  3. Changes in inventories: 3,813 lakhs (Q3 FY26 Consolidated)
  4. Employee benefits expense: 23,873 lakhs (Q3 FY26 Consolidated)
  5. Finance costs: 6,034 lakhs (Q3 FY26 Consolidated)
  6. Depreciation and amortisation expense: 9,234 lakhs (Q3 FY26 Consolidated)
  7. Manufacturing and operating cost: 18,753 lakhs (Q3 FY26 Consolidated)
  8. Other expenses: 35,432 lakhs (Q3 FY26 Consolidated)
  9. Bad debts to accounts receivable ratio: 0.31% (Q3 FY26 Consolidated).
  10. Textile: 95,127 lakhs (Q3 FY26 Consolidated)
  11. Shirting: 20,452 lakhs (Q3 FY26 Consolidated)
  12. Apparel: 48,165 lakhs (Q3 FY26 Consolidated)
  13. Garmenting: 25,756 lakhs (Q3 FY26 Consolidated)
  14. Others (Sexual wellness): 3,271 lakhs (Q3 FY26 Consolidated)
  15. Net worth: 9,59,396 lakhs (31.12.2025 Consolidated)
  16. Total assets: 14,17,982 lakhs (31.12.2025 Consolidated)
  17. Total liabilities: 4,48,500 lakhs (31.12.2025 Consolidated)
  18. Debt-Equity ratio: 0.11 times (31.12.2025 Consolidated)
  19. Current ratio: 1.66 times (31.12.2025 Consolidated)
  20. Total debts to total assets ratio: 7.95% (31.12.2025 Consolidated)
  21. Both standalone and consolidated financial results are presented and reviewed.
  22. Consolidated results include Raymond Lifestyle Limited (Holding Company) and its subsidiaries.

Corporate Overview

  1. Primarily India, with a large domestic retail network across 600 cities and towns.
  2. International presence in garmenting and B2B export sectors.
  3. International performance faced pressure from significant headwinds in garmenting and B2B export sectors.
  4. U.S. tariffs hindered global competitiveness, leading to deferred orders and squeezed margins.
  5. Increased marketing spends and lower sales in new apparel stores impacted EBITDA margins.
  6. Continued uncertainty due to US Tariffs Announcements affected garmenting segment.
  7. Subdued demand in the high-value cotton shirting segment.
  8. International performance is pressured by global economic headwinds.
  9. Vulnerable to US tariffs and trade policy changes.
  10. Reliance on domestic consumption for overall growth.
  11. India's largest integrated manufacturer of worsted suiting and high value shirting fabrics.
  12. Offers comprehensive products across fabric, apparel, and garmenting.
  13. Diverse portfolio includes iconic brands like Park Avenue, ColorPlus, Parx.
  14. Operates one of the largest retail networks in India with over 1,650 exclusive stores.
  15. Provides B2B garmenting offerings to international labels for menswear.
  16. Positive and resilient, highlighting strong domestic growth.
  17. Acknowledges global economic headwinds and strategic mitigation efforts.
  18. Focus on consistent value creation for stakeholders.
  19. Over a billion consumers in India.
  20. International labels for menswear in B2B segment.
  21. Textile
  22. Shirting
  23. Apparel
  24. Garmenting
  25. Others (Sexual wellness)
  26. India's largest integrated manufacturer of worsted suiting and high value shirting fabrics.
  27. Actively optimizing broader retail network.
  28. Recently opened stores continue to mature and build momentum.

Risk Factors

  1. International performance faces significant headwinds.
  2. US tariffs impact garmenting and exports.
  3. Increased marketing spend affects apparel margins.
  4. New Labour Codes have statutory impact.

Key Drivers

  1. Robust domestic demand drives volume growth.
  2. Branded Textile segment shows strong growth.
  3. Optimized product mix and retail footprint.
  4. Strategic marketing spend boosts brand equity.

Auditor’s Report

  1. Limited Review Report, not an audit opinion.
  2. No material misstatement found in standalone or consolidated financial results.
  3. Not applicable for a limited review; scope is substantially less than an audit.
  4. Consolidated results include interim financial results of 4 subsidiaries reviewed by other auditors.
  5. Consolidated results include interim financial results of 2 subsidiaries not reviewed by auditors, deemed not material.

Board Commentary

  1. Auditors found no material misstatement or undisclosed information in the financial statements.
  2. Statutory impact of New Labour Codes (Code on Wages, Industrial Relations, Social Security, Occupational Safety, Health and Working Conditions) notified on 21 November 2025, resulting in incremental financial impact.
  3. Approved maximum grant of 1,104,470 stock options under RLL ESOP 2025 to eligible employees.

Corporate Governance

  1. Audit Committee and Board of Directors reviewed and recommended the financial statements.
  2. Audit Committee.
  3. Nomination and Remuneration Committee.

Management Discussion & Analysis

Future Strategy

  1. Strategic increase in marketing spend to bolster long-term brand equity.
  2. Actively optimizing the retail network for high performance.
  3. Mitigating global economic headwinds through strategic foresight.
  4. Focus on leveraging UK-India FTA and managing US trade policy risks.

Industry Overview

  1. Robust domestic demand drives growth in textile and apparel.
  2. International markets face pressure and uncertainty.

Macroeconomic Outlook

  1. Domestic consumption remains strong.
  2. Global economic headwinds persist.

Operational Focus Areas

  1. Optimizing product mix.
  2. Rationalizing retail footprint.
  3. Leveraging UK-India FTA.
  4. Managing US trade policy changes.

Performance Drivers

  1. Robust domestic demand and substantial volume growth in Branded Textile and Apparel.
  2. Operational efficiency, optimized product mix, and successful retail footprint rationalization.
  3. Higher wedding dates and increased consumer awareness in Branded Textile.
  4. Improved product mix in Shirting segment.

Risk Control Measures

  1. Strategic foresight to navigate global economic headwinds.
  2. Leveraging UK-India FTA for international trade.
  3. Proactive management of US trade policy changes.
  4. Ongoing retail network optimization.

Critical Risks

  1. Global economic headwinds.
  2. US trade policy changes and tariffs.
  3. Subdued demand in specific segments.
  4. Impact of new Labour Codes.
Raymond Lifestyle Ltd (RAYMONDLSL) Quarterly Report Analysis & Insights | Dhanarthi