Raymond Lifestyle Q4 Income Down 9%, Stays Net Debt-Free

Raymond Lifestyle Limited reported a 9% year-on-year decline in total income for Q4 FY25 at Rs 1,580 crore, down from Rs 1,728 crore in Q4 FY24. EBITDA for the quarter stood at Rs 99 crore compared to Rs 289 crore a year earlier, reflecting a 66% drop. The EBITDA margin fell to 6.3% from 16.7%, while profit before tax (before exceptional items) declined to a loss of Rs 45 crore, against a profit of Rs 172 crore in the same period last year.

The company cited weaker consumer sentiment, high inflation, and a ransomware attack that disrupted operations and delayed sales as key reasons for the underperformance. Despite these challenges, Raymond Lifestyle remained net debt-free and opened 35 new stores during the quarter, including nine ‘Ethnix by Raymond’ outlets, expanding its retail footprint to 1,688 stores.

For the full year FY25, total income stood at Rs 6,360 crore, down 5% from Rs 6,690 crore in FY24. EBITDA came in at Rs 651 crore versus Rs 1,091 crore the previous year, with the margin at 10.2% compared to 16.3% in FY24. Profit before tax (before exceptional items) dropped 81% to Rs 122 crore. The annual performance was impacted by subdued consumer demand, prolonged heat waves, general elections, fewer wedding dates, and inflationary pressures.

Segment-wise, branded textiles revenue fell 21% year-on-year to Rs 727 crore in Q4, with EBITDA margins declining to 7.0% from 21.8%. Branded apparel revenue stood at Rs 391 crore versus Rs 409 crore, with margins dropping to 0.4% due to upfront investments and an adverse channel mix. Garmenting revenue remained flat at Rs 248 crore, but the segment posted a negative EBITDA margin of -2.9%, impacted by sales mix, customer acquisition costs, and training expenses. High-value cotton shirting saw revenue of Rs 185 crore, down from Rs 213 crore, but recorded an improved EBITDA margin of 33.1% due to a one-time Rs 53 crore subsidy.

Commenting on the performance, Gautam Singhania, Executive Chairman of Raymond Lifestyle Limited said, “Our performance this year was under pressure, primarily due to weak consumer demand and challenging macro-economic conditions. Despite these headwinds, we remain committed to our retail expansion strategy, resulting in the opening of 170 new stores reaching a total of 1,688 stores including 152 stores in ‘Ethnix by Raymond’ during the year.

We continue to focus on our strategy to build a long-term sustainable and profitable business. Furthermore, the signing of the India-UK Free Trade Agreement arrives at a crucial juncture for India. Such agreements are vital for integrating India more deeply into resilient global value chains, strengthening our position as a trusted manufacturing and export partner on the world stage.”

The company reported a cash surplus of Rs 90 crore as of March 31, 2025, and expressed confidence in early signs of recovery witnessed in April, with improved expectations