07 July, Mumbai 2025
A demerged entity from Raymond Ltd, Raymond Lifestyle anticipates revenue growth of 10-15 per cent in FY26, driven by demand recovery, dealer restocking, and easing inflation, expecting a strong recovery in profitability as scale improves.
Ending FY25 as a net debt-free company with a net cash surplus of Rs 90 crore, Raymond Lifestyle continued with its retail expansion strategy, adding 170 new stores in FY25, bringing its total retail footprint to 1,688 stores.
However, the company posted a consolidated net loss of Rs 45 crore in Q4 FY25, a significant reversal from a net profit of Rs 236 crore in Q4 FY24, notes Gautam Singhania, Executive Chairman of Raymond Lifestyle.
For the full FY25, Raymond Lifestyle's reported a 5 per cent decline in total income to Rs 6,360 crore compared to Rs 6,690 crore in FY24. The brand’s revenue from operations declined by 11.3 per cent Y-o-Y to Rs 1,494 crore in Q4 FY25. For the entire FY25, revenue from operations declined to Rs 6,177 crore from ₹6,535 crore in FY24.
The brand’s EBITDA for FY25 declined by 40 per cent to Rs 651 crore from Rs 1,091 crore in FY24, with the EBITDA margin contracting to 10.2 per cent. In Q4 FY25, EBITDA contracted by 66 per cent Y-o-Y to Rs 99 crore.
The company net profit for the entire year declined to Rs 38 crore from Rs 480 crore in FY24.
Several factors contributed to this challenging performance. These included a subdued consumer demand and challenging macroeconomic conditions, including prolonged heatwaves, general elections, and fewer wedding dates, as primary reasons for the downturn. The company also faced a ransomware attack that significantly disrupted operations in Q4 FY25, leading to temporary system outages and supply chain delays. This impact was estimated to be around Rs 250 crore on revenue and Rs 70 crore on EBITDA. Rising operational costs also put pressure on the company’s profitability. Upfront investments in retail expansion and an unfavorable channel mix affected the profitability of the Branded Apparel segment.
