Raymond Lifestyl Q2 FY27 Results (NSE: RAYMONDLSL)
Signal: Margin pressure
The read
The trajectory improved sequentially but not yet structurally: revenue reached ₹207,510 lakh, +13.2% YoY, and PAT returned to ₹6,753 lakh from a ₹2,259 lakh loss in Q1, yet EBITDA margin fell 170bps YoY to 10.6% and gross margin compressed 300bps as input costs rose faster than sales. This interrupts the prior quarter's margin expansion and makes the next quarter's cost pass-through critical.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,075.1 Cr | +13.2% | +36.9% |
| EBIT | ₹115.15 Cr | -14.4% | |
| Net profit | ₹67.53 Cr | -10.2% | |
| EPS | ₹11.08 | -10.2% | |
| EBIT margin | 10.6% |
P&L walk
Revenue accelerated to ₹207,510 lakh, +13.2% YoY and +36.9% QoQ, but gross margin compressed 300bps to 51.1% as raw-material and inventory cost rose to 48.9% of revenue; EBITDA margin fell 170bps YoY to 10.6%, leaving PAT down 10.2% despite the quarterly return to profit.
Segments
Apparel and Garmenting drove the quarter with revenue growth of 20.2% and 25.9% YoY respectively; Garmenting's segment result rose to ₹1,824 lakh from ₹751 lakh, while Emerging business remained the main drag with a ₹4,236 lakh loss versus a ₹2,562 lakh loss YoY.
Key positives
- Revenue increased 13.2% YoY to ₹207,510 lakh, with Apparel revenue up 20.2% and Garmenting revenue up 25.9%.
- Garmenting segment result improved to ₹1,824 lakh from ₹751 lakh YoY, indicating a material turnaround in that unit.
- Employee and other operating expenses rose 9.5% YoY, slower than revenue growth of 13.2%, providing partial fixed-cost absorption despite gross-margin pressure.
- The group returned to quarterly profit of ₹6,753 lakh from a Q1 loss of ₹2,259 lakh, with no exceptional loss in the current quarter.
Key concerns
- Gross margin contracted 300bps YoY to 51.1% as raw-material, purchases and inventory cost increased to 48.9% of revenue from 45.9%; the filing does not identify a mitigation or pricing response.
- EBITDA margin fell 170bps YoY to 10.6% even as revenue grew 13.2%, showing that higher input costs absorbed operating growth.
- Finance costs rose 22.9% YoY to ₹7,369 lakh, faster than revenue growth, while borrowings stood at ₹188,191 lakh at 30 September 2026.
- Emerging business remained loss-making at ₹4,236 lakh, widening from a ₹2,562 lakh loss YoY.
Research and educational content only. Not investment advice.