Any current/future new fundraising through debt or equity?

No explicit mention of any current or future fundraising through debt or equity is indicated in the document. The company currently has a net debt of Rs. 55 crores, primarily due to increased working capital and some incurred CAPEX in the quarter. Amit Agarwal mentions that net debt was positive cash on March 31 and expects to be cash positive again by December as working capital normalizes post festive and wedding season. CAPEX for FY26 is budgeted between Rs. 175-200 crores, largely for maintenance and some expansion, with no mention of fundraising. The company is focused on optimizing worki

Any current/future capex/capital investment/strategic investment?

FY26 CAPEX planned between Rs. 175 to 200 crores. Approximately 55%-60% of this CAPEX is maintenance expenditure. Around Rs. 40-45 crores allocated to garmenting segment for expansion, particularly ongoing expansion in Andhra Pradesh. Remaining CAPEX focused on IT upgrades, including ERP system enhancements. No major large-scale new manufacturing CAPEX planned ahead. Strategic focus on optimizing existing manufacturing capacity and technology enhancements rather than new large investments.

Future growth expectations in sales/revenue/volumes?

Improvement in external factors compared to last year, though cautiously optimistic about customer buying behavior. Significant volume growth expected in branded textile and apparel segments due to product innovation and market-focused strategies. Strong forward bookings for Autumn-Winter 2026 season indicate robust demand. MBO volume grew by 50%, driven by regaining shelf space from imported products. Focus on expanding casual wear range to cater to regional preferences, aiding inventory optimization. Increased B2B and institutional demand in fabric and shirting segments expected to

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth expected supported by strong recovery in Branded Textile and Apparel segments driven by volume growth and improved product mix. EBITDA growth robust with 36% YoY increase in Q1 FY26, driven by scale leverage and operational efficiencies. Branded Textile segment shows doubled EBITDA with 14.3% margin, indicating strong profitability improvement. Apparel segment delivering 22% revenue growth and 5% EBITDA margin, supported by marketing and broadened product offerings. Working capital elevated due to inventory buildup for upcoming festive/wedding seasons, indicating preparation for

Current/ Expected Orderbook/ Pending Orders?

Raymond’s garmenting business is seeing a higher order book and is expected to return to growth. The delay in tariff increase to August 27th and ongoing negotiations between India and the US are positive signs. Two large customers have recently started considering Raymond's facilities for orders, reflecting growing interest. The order realization cycle is expected to be 8-10 months for new UK-based clients post-FTA, with volume ramp-up over 12-15 months. Positive forward bookings for the Autumn-Winter 2026 collection in fabrics and apparel indicate strong future demand. Dealer restocking is un

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Raymond Lifestyle LtdQ2 FY25Textiles & Apparels

Raymond Lifestyle Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹799P/E: 31.8Market Cap: ₹4.7K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Improvement in external factors compared to last year, though cautiously optimistic about customer buying behavior.
→Significant volume growth expected in branded textile and apparel segments due to product innovation and market-focused strategies.
→Strong forward bookings for Autumn-Winter 2026 season indicate robust demand.
→MBO volume grew by 50%, driven by regaining shelf space from imported products.
→Focus on expanding casual wear range to cater to regional preferences, aiding inventory optimization.
→Increased B2B and institutional demand in fabric and shirting segments expected to continue.
→Graduation from scale de-leverage to scale leverage anticipated, improving profitability alongside volume growth.
→Recent India-UK FTA expected to open new export opportunities in garmenting over 12-15 months.
→Ethnix segment targeted for slow, sustainable growth over 4-5 years, focusing on profitability rather than rapid scale.
→Overall, Fiscal 2026 is projected to be stronger and better than 2025 in revenue, volume, and profitability.

Margin guidance

Category 3

→Revenue growth expected supported by strong recovery in Branded Textile and Apparel segments driven by volume growth and improved product mix.
→EBITDA growth robust with 36% YoY increase in Q1 FY26, driven by scale leverage and operational efficiencies.
→Branded Textile segment shows doubled EBITDA with 14.3% margin, indicating strong profitability improvement.
→Apparel segment delivering 22% revenue growth and 5% EBITDA margin, supported by marketing and broadened product offerings.
→Working capital elevated due to inventory buildup for upcoming festive/wedding seasons, indicating preparation for peak sales.
→Garmenting segment impacted by US tariffs, loss expected to continue short term; realignment expected with India-UK FTA benefits long-term.
→Slow and steady profitable growth planned for Ethnix segment over 4-5 years; break-even not imminent.
→Overall outlook positive with focus on market share gains, product innovation, and dealer restocking.
→CAPEX around Rs. 175-200 crores planned, mainly maintenance and selective expansions supporting growth.

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Fundraise plans

→No explicit mention of any current or future fundraising through debt or equity is indicated in the document.
→The company currently has a net debt of Rs. 55 crores, primarily due to increased working capital and some incurred CAPEX in the quarter.
→Amit Agarwal mentions that net debt was positive cash on March 31 and expects to be cash positive again by December as working capital normalizes post festive and wedding season.
→CAPEX for FY26 is budgeted between Rs. 175-200 crores, largely for maintenance and some expansion, with no mention of fundraising.
→The company is focused on optimizing working capital and cash flows and confident in managing its financials internally without the need for fresh fundraising.

Order book

Yes

→Raymond’s garmenting business is seeing a higher order book and is expected to return to growth.
→The delay in tariff increase to August 27th and ongoing negotiations between India and the US are positive signs.
→Two large customers have recently started considering Raymond's facilities for orders, reflecting growing interest.
→The order realization cycle is expected to be 8-10 months for new UK-based clients post-FTA, with volume ramp-up over 12-15 months.
→Positive forward bookings for the Autumn-Winter 2026 collection in fabrics and apparel indicate strong future demand.
→Dealer restocking is underway, supporting a promising outlook and growth in order books.

Capex plans

Yes

→FY26 CAPEX planned between Rs. 175 to 200 crores.
→Approximately 55%-60% of this CAPEX is maintenance expenditure.
→Around Rs. 40-45 crores allocated to garmenting segment for expansion, particularly ongoing expansion in Andhra Pradesh.
→Remaining CAPEX focused on IT upgrades, including ERP system enhancements.
→No major large-scale new manufacturing CAPEX planned ahead.
→Strategic focus on optimizing existing manufacturing capacity and technology enhancements rather than new large investments.

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