Raymond Lifestyle Q2FY26: Domestic Strength Cushions Export Setback Amid Tariff Impact
Raymond Lifestyle delivered a steady Q2FY26 performance, balancing global headwinds with resilient domestic growth. The company reported strong profitability driven by local demand, even as steep US tariffs dented export margins and caused temporary order deferrals. Despite these challenges, the brand’s core apparel and retail segments demonstrated operational resilience, underscoring its ability to navigate volatile global trade conditions.
Q2FY26 Financial Highlights
| Metric | Q2FY26 | Q2FY25 | YoY Change |
|---|---|---|---|
| Net Profit | ₹752 Mn | ₹422 Mn | +78% |
| Revenue | ₹18.3 Bn | ₹17.0 Bn | +8% |
| EBITDA | ₹2.26 Bn | ₹2.1 Bn | +8% |
| EBITDA Margin | 12.33% | 12.57% | -24 bps |
While overall growth remained positive, the marginal dip in margins reflected the temporary effect of tariff-led cost pressure and deferrals from key overseas clients. Nonetheless, the company’s domestic divisions — particularly retail and lifestyle apparel — maintained momentum through festive-driven demand recovery.
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Segmental Performance and Market Commentary
The quarter was characterized by a dual performance pattern — strong domestic recovery offset by weakness in exports. Garmenting and B2B international business saw muted growth due to steep US import tariffs on apparel goods, which directly impacted Raymond’s overseas competitiveness. This led to delayed orders and tighter margins.
However, in India, increased urban consumption, brand loyalty, and improved retail penetration helped mitigate the impact. The domestic apparel segment witnessed healthy sales growth, supported by premiumization in fabric lines and improved consumer footfall in key metros. Raymond’s sustained focus on value-driven retailing and supply-chain efficiency cushioned the global headwinds.
- Garmenting exports declined due to tariff escalation, causing pressure on international orders.
- Domestic business posted steady volume growth backed by festive demand and premium brand launches.
- Operating leverage in lifestyle and tailoring divisions improved cost efficiencies in India operations.
Peer Comparison Snapshot
| Company | Revenue Growth (YoY) | EBITDA Margin (%) | PAT Growth (YoY) |
|---|---|---|---|
| Raymond Lifestyle | +8% | 12.3 | +78% |
| Aditya Birla Fashion | +10% | 10.8 | +61% |
| Trent Ltd | +16% | 13.5 | +85% |
Among lifestyle peers, Raymond’s performance remains robust given its balanced business model. Though margin pressure persisted due to export dependencies, its domestic retail operations maintained profitability near double digits, supporting long-term stability.
Outlook and Strategic Commentary
The company expects gradual normalization of export orders once trade restrictions stabilize. Management is actively engaging with overseas clients to mitigate the impact of US tariffs through product diversification and alternate sourcing strategies.
Meanwhile, continued domestic strength in the retail and tailoring business provides a buffer against global uncertainties. Strategic investments in digital retail, omni-channel distribution, and youth-focused branding are expected to support steady revenue growth through FY26.
Raymond Lifestyle remains committed to protecting margins by optimizing cost structures, renegotiating supply contracts, and driving operational excellence across divisions. Management guidance suggests cautious optimism for the second half, with a focus on market share consolidation in core apparel categories.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, believes Raymond Lifestyle’s Q2FY26 results reflect a strong domestic foundation amid global volatility. While US tariff pressures temporarily weigh on exports, the company’s healthy balance sheet, premium brand strength, and consistent EBITDA performance keep it well-positioned for recovery. Discover more detailed sectoral updates and actionable research insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- How did US tariffs affect Raymond’s Q2FY26 performance?
- Which segment contributed most to Raymond Lifestyle’s growth?
- Is Raymond Lifestyle maintaining steady margins despite export challenges?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
