Raymond Lifestyle returns to profit as Q2 margin rises 4.68 points
Revenue grew faster than costs QoQ, but other income made up 54.4% of pre-tax profit.
Filed 28 Oct 2026, 18:53 IST · after market close · Raymond Lifestyle Ltd (RAYMONDLSL)
Key takeaways
- Consolidated revenue grew 36.92% sequentially while expenses rose 30.11%, lifting operating margin by 4.68 percentage points.
- Net profit returned to Rs 67.53 cr from a Rs 22.59 cr loss, but other income contributed 54.4% of profit before tax.
- Operating margin at 10.61% was 2.41 percentage points below the 13.02% median for 84 Consumer Discretionary peers.
Price around the results
Revenue rebound drives a sequential profit turnaround
Raymond Lifestyle reported consolidated revenue growth of 36.92% sequentially in Q2FY27, while expenses increased 30.11%. That operating leverage lifted operating profit 145.09% and widened operating margin by 4.68 percentage points from Q1FY27. Net profit consequently moved from a Rs 22.59 cr loss to Rs 67.53 cr profit.
Lower tax rate helped, while other income stayed material
The tax rate fell by 15.33 percentage points sequentially to 25.73%, supporting the return to reported profit. Other income accounted for 54.4% of pre-tax profit, so earnings quality was not driven by operations alone. Interest expense also rose 16.08% sequentially, partly offsetting the operating improvement.
Management flags cost pressure despite the margin improvement
The presentation flags higher marketing investment, raw-material prices and freight costs as pressures on margins; management said the cited margin measure was 12.7%, down 120 bps. Management also said garmenting growth was supported by order-book execution, tariff rationalisation and new global-client additions. It said the company remains on track for its stated FY27 guidance and that domestic demand indicators remain strong ahead of the festive and wedding season.
Margin improved from Q1 but remained below the peer median
Operating margin rose from 5.93% in Q1FY27 to 10.61% in Q2FY27, reversing the immediate sequential decline visible in the prior quarter. Even after that improvement, the margin was 2.41 percentage points below the 13.02% median among 84 reported Consumer Discretionary peers. Management said it added 24 locations and exited 53 underperforming stores, resulting in 29 net closures, while capacity ramp-ups and retail-network optimisation support its stated strategy.
Results were filed after market close
The company filed these results after market close on 28 October 2026. There is therefore no post-results stock reaction to assess yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,075 cr | ₹1,516 cr | +36.92% |
| Other income | ₹49 cr | ₹45 cr | +10.50% |
| Expenses | ₹1,855 cr | ₹1,426 cr | +30.11% |
| Operating profit | ₹220 cr | ₹90 cr | +145.09% |
| Operating margin (%) | 10.61% | 5.93% | — |
| Interest | ₹74 cr | ₹63 cr | +16.08% |
| Depreciation | ₹105 cr | ₹109 cr | -4.09% |
| Profit before tax | ₹91 cr | ₹-38 cr | — |
| Tax | ₹23 cr | ₹-16 cr | — |
| Net profit | ₹68 cr | ₹-23 cr | — |
| EPS (₹) | ₹11.08 | ₹-3.71 | — |
Operating margin of 10.61% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Garmenting delivered strong growth through order-book execution after US-India tariff rationalization and new global-client onboarding.
Guidance & outlook
- The company remains on track to achieve its stated FY27 guidance.
- Domestic demand indicators remain strong heading into the peak festive and wedding season.
Expansion
- The company added 24 new locations while exiting 53 underperforming stores, resulting in 29 net closures.
- The company expects capacity ramp-ups to support its strategic direction.
Problems & risks
- Margins declined because of higher marketing investments, raw-material prices, and freight costs.
What to watch
- Whether consolidated operating margin holds above 10.61% after the Q2 improvement.
- Whether interest expense moderates from its 16.08% sequential increase.
- Whether other income remains a large contributor after accounting for 54.4% of Q2 profit before tax.