Raymond Lifestyle Q2 Results: Profit falls 10% as higher raw material, freight costs squeeze margins

What happened

Raymond Lifestyle Ltd reported a 10.19% year-on-year fall in net profit to ₹68 crore for the second quarter, compared with ₹75 crore a year earlier. Revenue rose 13.2% year-on-year to ₹2,075 crore from ₹1,832 crore.

Confirmed

Global impact / market context

Profit fell even though revenue grew, because higher raw material and freight costs squeezed profit per sale. EBITDA margin, which is the share of revenue left before interest, tax, depreciation and amortisation, narrowed to 10.61% from 12.33%.

Analyst inference

Growth came from premium products, casual wear, higher Branded Apparel volumes and recovering international Garmenting demand in the US, UK and Europe. Cost pressure hit the Branded Textile segment, where margin narrowed to 19.3% from 20.6% despite festive demand.

Analyst inference

What to watch

1. Watch whether raw material and freight costs keep pressuring profit per sale, after the EBITDA margin contracted to 10.61% from 12.33% year-on-year in the second quarter. Confirmed
2. Watch whether premiumisation and casualisation continue lifting revenue, since the article credits them and higher Branded Apparel volumes for the 13.2% yearly revenue growth. Proposed
3. Watch the Branded Textile segment, where revenue rose 7% to ₹971 crore but margin narrowed, showing higher costs can offset festive channel demand and premiumisation gains. Analyst inference

Evidence

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