Raymond Lifestyle Q3 profit falls 33% to Rs 42.86 crore on export pressure

Raymond Lifestyle Limited reported a 33% year-on-year decline in net profit for the third quarter of FY26, weighed down by pressure on its international business amid higher US tariffs, even as strong domestic demand supported revenue growth.

According to the company’s stock exchange filing, consolidated net profit fell to Rs 42.86 crore in Q3 FY26, compared with Rs 64 crore in the corresponding quarter last year. On a sequential basis, profit declined 44%, from Rs 75 crore in Q2 FY26.

The company said its international operations were hit by headwinds in the garmenting and B2B export segments, with US tariff hikes impacting competitiveness and leading to deferred orders and margin pressure.

“Our international performance faced pressure from significant headwinds in the garmenting and B2B export sectors. US tariffs hindered our global competitiveness, resulting in deferred orders and squeezed margins from international partners,” Raymond Lifestyle said.

However, the company noted that robust domestic demand helped offset these challenges and supported its overall growth trajectory.

'Q3 revenue and segment performance'

Revenue from operations rose 5.3% year-on-year to Rs 1,848 crore in Q3 FY26, compared with Rs 1,754 crore a year earlier, driven by higher volumes in the branded textile and apparel businesses.

The textile segment remained the largest contributor, generating Rs 951 crore in revenue during the quarter, aided by strong volume growth, a higher number of wedding dates, and increased consumer awareness. Segment EBITDA rose 35% year-on-year to Rs 207 crore, with margins improving to 21.8%, up from 18.0% last year, supported by a better product mix.

The branded apparel segment reported revenue of Rs 482 crore, up 5% year-on-year from Rs 458 crore, with growth across brands and channels including large-format stores, exclusive brand outlets, multi-brand outlets, and online platforms. However, segment EBITDA declined to Rs 35 crore from Rs 44 crore, with margins narrowing to 7.3% due to higher marketing spends and lower sales leverage. The company said it strategically increased marketing investment during the quarter to strengthen long-term brand equity. Its store count rose to 1,675 in Q3.

The garmenting segment saw revenue decline to Rs 258 crore from Rs 309 crore a year earlier. EBITDA fell to Rs 11 crore from Rs 24 crore, with margins contracting to 4.2%, reflecting weak export demand.

Meanwhile, the high-value cotton shirting segment reported revenue of Rs 205 crore, up 2% year-on-year, with EBITDA rising to Rs 23 crore and margins improving to 11.1%, despite subdued demand.

'Outlook'

Raymond Lifestyle’s total income increased 5% year-on-year to Rs 1,883 crore. Consolidated EBITDA rose 23% to Rs 271 crore, with margins expanding to 14.4% from 12.3% a year ago.

Total expenses rose 3.2% year-on-year to Rs 1,764 crore, driven by material costs of Rs 373 crore and employee benefit expenses of Rs 238 crore.

Commenting on the results, Gautam Hari Singhania, Executive Chairman of Raymond Lifestyle, said the company remained resilient despite global challenges.

“Buoyed by significant domestic growth in core lifestyle categories, our performance this quarter remains resilient. We continue to mitigate global economic headwinds through strategic foresight, with a particular focus on leveraging the UK-India FTA and managing risks associated with US trade policy changes,” he said.

Separately, Raymond Lifestyle has appointed Prasad Ellatch Chathuar as the Chief Financial Officer with effect from January 25, in place of interim CFO Vishal Raigagla.

About Prasad Ellatch Chathuar

Chathuar has nearly three decades of work experience in Consumer Industry. Before joining Raymond, he was CFO in Bajaj Electricals Limited. Previously, he has worked with Voltas Limited in senior position for over 17 years and also in Emami Paper Mills Limited for five years.

He is a cost accountant, chartered accountant and has done an executive certification program in finance from Harvard University.