Raymond Lifestyle Q1 FY27: Garmenting Business Soars 50% as Global Orders Surge, Company Bets on Premiumization and Retail Transformation
Raymond Lifestyle Limited delivered a resilient start to FY27 despite challenging global and domestic conditions. The company reported healthy revenue growth, improved profitability, and significant progress in strengthening its balance sheet, while its garmenting business emerged as the biggest growth driver.
During the Q1 FY27 earnings conference call, management highlighted that the company’s strategy of premiumization, casualization, international expansion, and retail optimization is beginning to deliver results even amid rising raw material costs and macroeconomic uncertainty.
Q1 FY27 Financial Highlights
Raymond Lifestyle reported:
| Particulars | Q1 FY27 | Q1 FY26 | Growth |
|---|---|---|---|
| Total Income | ₹1,560 crore | ₹1,475 crore | +6% |
| EBITDA | ₹135 crore | ₹122 crore | +11% |
| Net Profit & Loss | (22.59) crore | (19.82) crore | |
| Net Cash Position | ₹154 crore surplus | ₹55 crore net debt | Improvement of ₹209 crore |
| Working Capital Days | 75 days | 90 days | Improved by 15 days |
The company also maintained its debt-free balance sheet, giving it financial flexibility to invest in future growth while navigating volatile market conditions.
Garmenting Business Becomes the Star Performer
The biggest highlight of the quarter was Raymond’s garmenting division.
Revenue jumped 50% year-on-year to ₹296 crore, while EBITDA turned around dramatically from a loss last year to ₹22 crore, with EBITDA margin improving to 7.3%.
Management attributed the strong performance to:
- Recovery in export demand
- US-India tariff rationalization
- New customers from the UK and Europe
- Better plant utilization
- Strong execution of the existing order book
The company also revealed that its garmenting factories are fully booked until December 2026, and bookings for January onwards have already started, providing strong visibility for the coming quarters.
New International Customers Strengthen Export Pipeline
Raymond is expanding beyond its traditional dependence on the US market.
Management disclosed that it has secured new export orders from leading international retailers, including:
- Next (UK)
- T.M. Lewin (UK)
- El Corte Inglés (Spain)
- OVS (Italy)
- Carl Gross (Germany)
The company expects the India-UK Free Trade Agreement to begin contributing meaningfully from Q2 and Q3, while the India-EU FTA could create larger opportunities once implemented.
Raymond is gradually reducing its reliance on the US by increasing business from Europe, the UK, Japan, and Korea.
Retail Business Undergoing Major Transformation
Rather than chasing aggressive store expansion, Raymond is focused on improving profitability.
Over the past year, the company:
- Closed 133 underperforming stores
- Opened 85 better-performing locations
- Operates 1,627 stores across 600 cities
Management described FY27 as a “year of consolidation”, indicating that additional store rationalization will continue over the next few quarters before the company resumes aggressive expansion.
Meanwhile, modern retail channels such as e-commerce and large format stores are delivering strong double-digit growth.
Ethnix Brand Moves Toward Premium Weddings
Raymond is repositioning its Ethnix business with a focus on premium wedding wear.
Instead of keeping expensive sherwanis in inventory, the company plans to introduce a Made-to-Measure (MTM) model for premium products priced above ₹75,000.
Management believes wedding customers increasingly want customized garments rather than ready-made designs.
Basic ethnic wear products such as kurtas and bundis will be distributed through Raymond Stores, direct-to-consumer channels, and leading online marketplaces to improve capital efficiency.
Premiumization and Casualization Remain Core Growth Drivers
Raymond believes two long-term consumer trends will continue supporting growth:
Premiumization
The company plans to increase sales of higher-value products including:
- Pure wool fabrics
- Poly-wool blends
- Premium linen collections
- Luxury tailoring
Management noted that premium categories continue to outperform despite macroeconomic challenges.
Casualization
Raymond is expanding its casual portfolio through brands such as:
- ColorPlus
- Parx
- Park Avenue
- Raymond Ready-to-Wear
Casual products including polos, chinos, knitwear, denim, and smart casuals are seeing strong double-digit growth, particularly through online channels and large format retail stores.
Rising Raw Material Costs Remain a Challenge
The company acknowledged significant inflation across key inputs:
- Wool prices nearly doubled year-on-year
- Cotton prices increased around 20%
- Flax prices rose around 20%
- Chemicals became roughly 30% more expensive
To protect margins, Raymond is:
- Diversifying suppliers
- Increasing local sourcing under “Make in India”
- Consolidating freight partners
- Running a company-wide cost transformation program
- Planning calibrated price increases from Q2 onward
Management expects price hikes of approximately:
- 5–7% in apparel
- 7–9% in fabrics
while carefully balancing volume growth and profitability.
Long-Term Vision: Double the Business
Raymond is working with global consulting firm Kearney to prepare a multi-year strategic roadmap.
Management indicated that over the next three to five years it aims to:
- More than double revenue
- Grow EBITDA faster than revenue
- Continue premiumization
- Expand internationally
- Improve working capital efficiency
- Increase renewable energy usage to reduce costs
- Build a more agile and consumer-focused organization
The company also reaffirmed its commitment to achieving its ESG goals well before 2030.
Management Outlook
Despite global uncertainty, management expressed confidence about FY27.
Key positives include:
- Fully booked garmenting factories through December
- Strong export order pipeline
- Improving retail productivity
- Healthy balance sheet with net cash
- Continued momentum in premium and casual categories
While macroeconomic risks such as commodity inflation and geopolitical uncertainty remain, Raymond believes its diversified strategy and operational improvements position the company well for sustainable long-term growth.