Raymond Lifestyle reported a widened consolidated loss of ₹22.59 crore for Q1 FY27, compared to ₹19.82 crore in the same period last year, despite achieving 6% revenue growth to ₹1,515.51 crore. According to the latest regulatory filing, the company's total expenses rose 6% to ₹1,598.60 crore while total income increased 5.78% to ₹1,560.27 crore during the June quarter. The company attributed this performance to premiumisation in the domestic business and significant volume recovery in the Garmenting business, which was buoyed by the US-India Tariff rationalisation and implementation of UK FTA, resulting in a robust order book.
As the fourth CEO in five years, Satyaki Ghosh faces the challenge of restoring Raymond Lifestyle to its former dominance after years of leadership instability and changing consumer preferences. According to reports from Mint, Ghosh has earmarked FY27 as a year of consolidation, focusing on closing loss-making stores, streamlining operations, and doubling down on premiumisation and casualisation before embarking on the company's next growth phase. The strategy emphasizes quality of growth over quantity, with Ghosh stating that the company would directionally try to double in five years while maintaining focus on sustainable expansion.
The company's Garmenting business achieved exceptional 50%+ growth during Q1 FY27, demonstrating the strategic advantages of global trade tailwinds including the US-India Tariff rationalisation and upcoming FTAs with the UK and EU. As reported by Mint, this strong performance was driven by significant volume recovery in the Garmenting segment, which emerged as the standout performer with 50% year-on-year growth in the June quarter. The company's business segments showed varied performance, with garmenting emerging as the standout performer with 50% year-on-year growth, while branded apparel and emerging businesses grew 4% and 9% respectively.
The company is implementing a strategic retail network reset, focusing on quality over quantity expansion. As reported by Mint, Raymond ended the June quarter with 1,627 stores across brands, with plans to close underperforming stores before entering its next growth phase. In Ethnix alone, the company closed 17 stores during the quarter and plans to shut down another 20-25 by the end of the financial year. Exclusive brand outlets remain Raymond's most profitable format and will continue to anchor its long-term retail strategy, while e-commerce is growing at high double-digit pace and now contributes about 12-13% of revenue.
Despite the strategic initiatives, Raymond Lifestyle shares have significantly underperformed, falling about 30% year-to-date compared with a 6.7% decline in the Nifty 50. According to Mint reports, the company is leveraging its integrated value chain from fabric manufacturing to branded retail for greater control over quality and margins. Beyond apparel, Ghosh expects the innerwear business to turn EBITDA-positive by the end of the financial year, while the home business has already broken even and is expected to grow about 25% this year. The export business, particularly garmenting which grew about 50% in the June quarter, is being leveraged to diversify growth through improving demand from Europe and the UK.
