Raymond Lifestyle Ltd Management's Take
Key Take Away's from Raymond Lifestyle Ltd Earnings Conference Call Q3FY26
β‘οΈ Quick Scoop
- π Revenue reached Rs.1,883 crore in Q3 with 5% YoY growth; 9M revenue at Rs.5,223 crore (+9%).
- πΉ EBITDA margin improved to 14.4% in Q3 from 12.3% last year, EBITDA Rs.271 crore (+23%).
- π Branded Textile segment recorded 11% revenue growth and 21.8% EBITDA margin.
- ποΈ Branded Apparel revenue rose 5%, margin declined to 7.3% due to higher marketing and new stores.
- π Garmenting exports revenue fell 17%, margin down to 4.2% impacted by global challenges.
- πΌ Net debt maintained at Rs.15 crore with Rs.155 crore operational cash reserves.
- π Expansion focus on Tier 2/3 markets and 'Ethnix by Raymond' segment as long-term growth area.
- β»οΈ Sustainability target includes 15% GHG emissions reduction and 25% renewable energy use by 2030.
β οΈ This data is AI-generated and must be verified by the reader from company's official releases.
π§ π‘Management Con-call DeepDive
π Financial Performance Highlights
- Revenue rose 5% YoY to Rs.1,883 crore in Q3 FY26; 9M revenue increased 9% to Rs.5,223 crore.
- EBITDA up 23% to Rs.271 crore in Q3, margin expanded to 14.4% from 12.3% last year.
π Segment-wise Analysis
- Branded Textile: Revenue grew 11% to Rs.951 crore; EBITDA margin reached 21.8% due to better product mix and utilization.
- Branded Apparel: 5% revenue growth to Rs.482 crore; EBITDA margin contracted to 7.3% because of higher advertising and new stores.
- Garmenting Exports: Revenue down 17% to Rs.258 crore; margin dipped to 4.2% amid global challenges.
π¦ Financial Stability
- Near-zero net debt maintained at Rs.15 crore; operating cash reserves approx. Rs.155 crore.
- Non-cash exceptional loss of Rs.57 crore related to new labor code affecting gratuity and leave valuations.
ποΈ Operational Insights
- Strong domestic growth driven by festive and wedding season volume increases.
- Retail stores expanded to 1,675, adding 21 new outlets while exiting 9 underperforming ones.
- New product launches include Techno series (stretch, wrinkle-resistant fabrics) and premium brands Spectra, Royal Soft.
- Working capital days increased to 94 due to changes in export operations and retail inventory buildup.
π Future Outlook
- Aiming to grow presence in Tier 2 and 3 cities; Ethnix by Raymond segment targeted for long-term growth over four years.
- Export strategy shifting from US to UK, Europe, and Asia-Pacific to navigate tariff uncertainties, leveraging Free Trade Agreements.
- Expect working capital normalization and reduction by fiscal year-end.
- Targets 15% reduction in greenhouse gas emissions and 25% renewable energy usage by 2030.
β οΈ Risks and Challenges
- US tariff uncertainties impacting garment orders and margins.
- Wool price increases of nearly 25% over four months challenge margin stability.
- Temporary margin pressures in apparel due to brand investment and new store gestation costs.
π Corporate and Leadership
- Mr. Sathyaki Ghosh appointed CEO effective January 2026.
- Strong governance with 100% independent board directors.
- Workforce gender diversity at 40% women with steady single-digit attrition rates.
β οΈ This data is AI-generated and must be verified by the reader from company's official releases.