Raymonds Lifestyle Ltd. faced challenges in FY25 due to low consumer confidence. This hurt their profit margins. However, there’s been a turnaround in Q1 FY26, showing signs of recovery. By Q2 FY26, the domestic market performed well, seeing growth in the high single digits. Unfortunately, international operations didn’t fare as well, affected by ongoing global issues.
In Q3 FY26, the brand saw solid growth in its textile division and steady numbers from its apparel line. Still, the garment segment struggled, mainly due to tariffs imposed by the U.S. Despite this, the company maintained a healthy margin overall.
Looking ahead, analysts predict that FY26 will be a period of steady recovery. The second half of the fiscal year is expected to benefit from the wedding and festive seasons, which typically boost sales. For textiles, a compound annual growth rate (CAGR) of 9.6% from FY25 to FY28 is anticipated, with EBITDA margins expected to rise to about 19% by FY28 from 14% in FY25.
For branded apparel, projections are brighter, with a CAGR of 14% expected over the same period. This sector’s operating margins are likely to improve from 7.4% to 11% by FY28. The garment division might see slower growth at 2.6% CAGR due to the tariffs, but EBITDA margins are expected to double from 4.7% to 8% by FY28.
Interestingly, the high-value cotton shirt market is projected to grow at an 8.1% CAGR, with operating margins hitting around 11.2% by FY28. Overall, analysts from Systematix forecast a healthy growth trajectory for Raymonds, predicting a CAGR of 9.7% in revenues, 33.6% in EBITDA, and 62.5% in profit after tax from FY25 to FY28.
They recently adjusted their target price for the company to ₹1,428, down from ₹1,638, while keeping a Buy rating. This valuation is based on diverse segments and strategic factors like improving product mix and cost efficiencies.
In a world where economic conditions shift rapidly, Raymonds’ ability to navigate challenges and seize growth opportunities may reflect broader trends in consumer behavior and market dynamics. As consumer confidence rebounds, brands that adapt quickly stand to gain the most.
For more details, you can check the full report here: Systematix Raymond Lifestyle Q3 FY26 Results Review.
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