Raymond Lifestyle Q2 Profit Slides 10% as Input Costs Bite

Raymond Lifestyle Ltd posted a 10.2% year-on-year drop in net profit to Rs 68 crore (US$7.15 million) for the second quarter of FY27, down from Rs 75 crore (US$7.88 million) a year earlier. Revenue moved in the opposite direction: operations revenue rose 13.2% to Rs 2,075 crore (US$218.05 million) from Rs 1,832 crore (US$192.48 million).

The gap between those two numbers is the story. EBITDA grew only modestly, to Rs 270 crore (US$28.37 million) from Rs 259 crore (US$27.21 million), and the EBITDA margin contracted to 12.7% from 13.9% — 120 basis points surrendered in twelve months. Total income rose 14% to Rs 2,125 crore (US$223.26 million) against Rs 1,865 crore (US$196 million).

The company attributed growth to premiumisation and casualisation across businesses, higher volumes in Branded Apparel, and a recovery in international demand for the Garmenting segment across key US, UK and European markets. For the half-year ended September 30, 2026, total income climbed 10% to Rs 3,685 crore (US$387.16 million), EBITDA grew 6% to Rs 404 crore (US$42.45 million), and the first-half EBITDA margin stood at 11%.

What does the margin pressure mean for sourcing?

Raw material and freight costs are doing the damage, and they are doing it unevenly.

Branded Textile — Revenue of Rs 971 crore (US$102 million), up 7% from Rs 906 crore (US$95.19 million), driven by festive channel uptake and premiumisation. EBITDA rose to Rs 188 crore (US$19.75 million) from Rs 186 crore (US$19.54 million), but the margin narrowed to 19.3% from 20.6% on higher raw material and freight costs. Flat profit on 7% more revenue is not a growth story.

Branded Apparel — Highest-ever quarterly revenue of Rs 559 crore (US$58.73 million), up 20% from Rs 465 crore (US$48.85 million), led by casualwear brands ColorPlus and Parx. EBITDA rose to Rs 49 crore (US$5.15 million) from Rs 41 crore (US$4.31 million); the margin held at 8.8%, with adverse channel mix and higher raw material prices partly offset by closing non-performing stores.

Garmenting — The standout. Revenue jumped 26% to Rs 339 crore (US$35.62 million) from Rs 269 crore (US$28.26 million), supported by order book execution following US-India tariff rationalisation, the UK-India free trade agreement and the onboarding of new global clients. EBITDA nearly doubled to Rs 25 crore (US$2.63 million) from Rs 14 crore (US$1.47 million), with margin expanding 207 basis points to 7.4% from 5.3%.

High Value Cotton Shirting — Revenue up 5% to Rs 222 crore (US$23.32 million) from Rs 212 crore (US$22.27 million), but EBITDA fell to Rs 21 crore (US$2.21 million) from Rs 25 crore (US$2.63 million) and margin narrowed to 9.5% from 12%, chiefly on higher raw material prices, partly offset by higher average selling prices.

Emerging Business — Covering Ethnix by Raymond, Raymond Home, Park Avenue Innerwear, Chairman's Collections and Sexual Wellness, revenue rose 15% to Rs 100 crore (US$10.51 million) from Rs 87 crore (US$9.14 million).

The retail footprint says quietly

The store count tells its own tale: 1,634 stores as of September 30, 2026, against 1,663 a year earlier. Twenty-nine doors closed in twelve months. The company framed this as optimisation — reallocating resources to higher-efficiency formats while allowing newer stores to mature. Whatever the phrasing, the direction of travel is fewer, better sites rather than expansion.

The quarter's lesson for sourcing professionals is twofold. Export-facing garmenting is the beneficiary of trade policy, with tariff rationalisation and the UK FTA feeding a live order book. Domestic-facing textile and shirting businesses are absorbing input inflation they cannot fully pass through. Margin, not revenue, is where the pressure sits. The half-year EBITDA margin of 11% against 12.7% in the quarter suggests the second quarter was the better half of the period — watch whether raw material costs and freight ease enough in the coming quarters to let the topline gains reach the bottom line.