Raymond Lifestyle Ltd is positioning itself for international expansion through India's free trade agreement with the UK, according to Executive Chairman Gautam Hari Singhania. As reported in the company's latest annual report, the landmark UK-India Free Trade Agreement creates a premier platform where quality British tailoring traditions meet Indian manufacturing excellence. Singhania stated that this agreement allows the company to capture one of the world's most discerning fashion markets, positioning Raymond not just as participants but as leaders shaping the global fashion arena. The company's strategic entry into adjacent categories includes Ethnix for occasion wear, innerwear, and the newly launched Chairman's Collection, designed as a deliberate extension of the trusted brand to own the complete wardrobe of the modern Indian man.
Raymond Lifestyle reported exceptional financial results for fiscal year 2026, with total consolidated income of ₹7,034 crore, registering an impressive 11% year-on-year growth. The company's profit after tax stood at ₹200 crore during the year, demonstrating strong operational efficiency despite increased brand investments. The company's advertising and sales promotion expenditure increased by 6.6% to ₹322.91 crore in FY26, compared to ₹302.3 crore in the previous fiscal year, as reported by Storyboard18. This increased advertising investment underscores the company's strategy of strengthening brand equity while pursuing profitable growth as it expands across apparel and lifestyle categories. The company's retail footprint also expanded significantly, with the overall store count crossing 1,650 locations, reflecting its aggressive expansion strategy across India's growing premium apparel market.
Looking ahead, the company has outlined an ambitious three-year financial roadmap with specific targets for operational excellence. As reported by Storyboard18, Raymond Lifestyle aims to achieve EBITDA margins in the high teens, reduce net working capital to below 60 days, deliver a Return on Capital Employed (ROCE) exceeding 20%, and generate healthy cash flows. During the year, the company also took a non-recurring provision of ₹69 crore towards legacy inventory and receivables. CFO EC Prasad noted that the company remained focused on calibrated investments despite expanding its physical retail network and strengthening its brands. "Even as we invested in store expansions, renovations, and brand-building, our approach remained calibrated—balancing growth-focused investments with a strict focus on working capital efficiency and operational discipline," Prasad stated. The company's diversified revenue model includes its owned operations and the Franchise-Owned, Franchise-Operated (FOFO) network, where franchisees operate retail outlets using Raymond's brand and format while the company earns a specified percentage of revenue.
Singhania highlighted India's emergence as a preferred destination due to the 'China-plus-one' strategy, reflecting a global shift in geopolitical dynamics and widespread corporate push for supply chain resilience. According to his statement, India stands as the single-most credible alternative at scale, supported by its vast manufacturing base, engineering talent, and democratic governance. The company cited India's Production Linked Incentive (PLI) schemes, the National Manufacturing Mission, and landmark bilateral trade agreements like the UK-India Free Trade Agreement as forming the architecture of an emerging manufacturing superpower. Global OEMs are aggressively diversifying their supply chains to mitigate risks stemming from rising labor costs, stricter regulations and ongoing US-China trade friction, with India emerging as the premier choice for this manufacturing migration due to its skilled workforce and cost-competitiveness.
