Branded textiles drive growth even as exceptional labour code costs weigh on bottom line
Raymond Lifestyle reported a decline in net profit to Rs 42.86 crore for the quarter ended 31 December 2025, compared with Rs 64.17 crore in the year-ago period, as exceptional expenses offset stronger operating performance. Earnings before interest, tax, depreciation and amortisation (Ebitda ) rose 23 per cent year-on-year to Rs 271 crore, while margin improved to 14.4 per cent from 12.3 per cent.
Total income increased 5 per cent to Rs 1,883 crore from Rs 1,796 crore a year earlier, supported by steady domestic consumption. However, the bottom line was impacted by exceptional items amounting to Rs 56.82 crore, largely related to the statutory implications of newly implemented labour codes.
Textiles Growth, Apparel Margins Under Pressure
The branded textiles segment emerged as the strongest performer, with revenue rising 11 per cent to Rs 951 crore. The company attributed the growth to a higher number of wedding dates and improving consumer demand. Segment Ebitda climbed 35 per cent to Rs 207 crore, with margins expanding to 21.8 per cent.
The branded apparel business posted a 5 per cent increase in revenue to Rs 482 crore. Margins in this segment narrowed to 7.3 per cent due to elevated marketing expenditure and weaker performance from stores opened over the past 12 months. The company’s retail footprint stood at 1,675 stores at the end of the quarter.
Global Business Faces Headwinds
International operations remained under strain. Revenue from the garmenting segment declined 17 per cent to Rs 258 crore amid uncertainty linked to tariff developments in the United States. Ebitda margin for the segment fell to 4.2 per cent from 7.8 per cent in the corresponding period last year.
Executive Chairman Gautam Hari Singhania said domestic market resilience helped offset the impact of global economic challenges. The company reported a net debt of Rs 15 crore during the quarter.
Raymond Lifestyle also appointed Prasad Ellatch Chathuar as Chief Financial Officer. Chathuar joins from Bajaj Electricals and brings 28 years of experience in the consumer industry. He succeeds Vishal Raigagla, who had served as interim CFO since October 2025.
