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Raymond Lifestyle Q3 Profit Drops 33% on Labour Code Costs, Revenue Climbs

Raymond Lifestyle reported a 33% year-on-year decline in net profit for Q3 FY26, falling to Rs 43 crore, primarily due to a one-time expense of Rs 42.68 crore linked to new labour regulations. Despite the profit drop, the company's revenue grew 5.4% to Rs 1,849 crore, driven by strong domestic demand in textiles and apparel. Operating performance improved significantly, with EBITDA jumping 32% to Rs 237 crore and margins expanding to 13%. The company also announced the appointment of Prasad Ellatch Chathuar as its new Chief Financial Officer.

Key Points: Raymond Lifestyle Q3 Profit Falls 33%, Revenue Up 5.4%

  • 33% profit drop to Rs 43 crore
  • One-time Rs 42.68 cr labour code expense
  • Revenue up 5.4% to Rs 1,849 crore
  • EBITDA surges 32% to Rs 237 crore
  • New CFO Prasad Ellatch Chathuar appointed
2 min read

Raymond Lifestyle's profit falls 33 pc in Q3 FY26

Raymond Lifestyle's Q3 net profit fell 33% to Rs 43 crore due to a one-time labour code expense, while revenue grew 5.4% to Rs 1,849 crore.

"The decline in profitability was largely because of a one-time cost of Rs 42.68 crore related to changes under the new labour regulations."

Mumbai, Jan 27

Raymond Lifestyle Limited on Tuesday reported a 33 per cent drop in its net profit for the December quarter, mainly due to a one-time expense linked to the implementation of new Labour Codes.

The company's profit fell to Rs 43 crore, compared to Rs 64 crore in the same period last financial year (Q3 FY25), according to its stock exchange filing.

The decline in profitability was largely because of a one-time cost of Rs 42.68 crore related to changes under the new labour regulations.

However, the company's overall business performance remained positive, with revenue showing steady growth.

Raymond Lifestyle's revenue rose by 5.4 per cent to Rs 1,849 crore during the quarter, up from Rs 1,754 crore a year ago.

The growth was driven by strong domestic demand, especially in its branded textile and apparel segments, which saw higher sales volumes.

The company also posted a strong improvement in operating performance. Its EBITDA increased by 32 per cent to Rs 237 crore from Rs 180 crore in the previous year.

As a result, operating margins expanded significantly to 13 per cent, compared to 10.2 per cent in the same quarter last financial year, as per its regulatory filing.

The improvement came even as the company increased its spending on marketing.

In a key management update, Raymond Lifestyle's board appointed Prasad Ellatch Chathuar as the company's new Chief Financial Officer, effective January 27.

Following the earnings announcement, shares of Raymond Lifestyle initially rose by nearly 2 per cent.

However, the gains were short-lived, and the stock later slipped into negative territory. In the afternoon trade on Tuesday, the shares were trading at Rs 908.5, down about 0.3 percent.

- IANS

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Reader Comments

R
Rohit P
Classic case of markets overreacting to a headline number. The operational metrics are fantastic! Margins expanding to 13% is no small feat in this competitive textile market. The profit drop is a technicality, not a business failure. Long-term investors should see through this.
A
Aman W
Respectfully, while the one-time cost explains the profit fall, companies need to plan better for regulatory changes. These labour codes were announced a while back. Proactive planning could have smoothed this hit. Still, kudos for the strong revenue and domestic demand story. 🇮🇳
S
Sarah B
As a customer, I'm just happy to see a trusted Indian brand performing well. My entire family shops at Raymond for formal wear. If the core business is growing and they're investing in their workforce (even if it costs short-term), that's a company I want to support. The quality is always top-notch.
V
Vikram M
The key takeaway is the "strong domestic demand." In an uncertain global economy, our homegrown companies relying on the Indian consumer is a very positive sign. Raymond is a heritage brand that has adapted well. The stock movement seems like noise, the fundamentals are strong.
K
Karthik V
New CFO appointment on the same day as results is interesting timing. Hope Mr. Chathuar brings fresh perspective. Overall, not worried. A one-off compliance cost is better than a decline in sales or market share. The wedding and festival season must have helped revenue. 🎉

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