01 — At a Glance
The Wedding Season Cash Cow That Forgot How to Grow
- 52-Week High / Low₹1,414 / ₹727
- Q3 FY26 Revenue₹1,883 Cr
- Q3 FY26 PAT₹43 Cr
- Q3 FY26 EPS₹7.04
- Annualised EPS (Q3×4)₹28.16
- Book Value₹1,583
- Price to Book0.48x
- Debt / Equity0.26x
- Operating Margin13%
- One-Year Return-27.2%
The TL;DR: Raymond Lifestyle just declared its Q3 FY26 results with the best quarterly revenue in company history at ₹1,883 crore. EBITDA margin expanded to 14.4% (+230 bps YoY). The stock has crashed 27% in one year while the company posted the strongest Q3 ever. CEO is 4 days into his office. US tariffs just declared war on their garmenting exports. Welcome to the beautiful chaos.
02 — Introduction
A 100-Year-Old Company Dressed to Fail (Or Is It?)
So you’re thinking about Raymond Lifestyle. The company that makes suits. Not the stuff you wear to fake weddings anymore, but actual proper formals, casual wear, shirting, and increasingly — ethnic wear for that one season when every Indian wants to look like a Bollywood hero. Incorporated in 2024 (after demerger from parent Raymond Ltd in June), but they’ve been in the textile game for over 100 years. That’s right. Your grandfather’s grandfather’s suit came from their family.
Now here’s where it gets spicy. The company just posted ₹1,883 crore in revenue in Q3 FY26 — the highest single quarter in their history. EBITDA margins expanded to 14.4%. Wedding season in India was strong. Urban India bought more premium fabrics. The concall was positively chipper.
And yet. The stock is down 27% in one year. Valuation P/E: 47.9x. Book value: ₹1,583. Stock price: ₹765. ROE: 0.67%. ROCE: 2.87%. These numbers are screaming “something’s not right here,” louder than your grandmother at a packed department store.
Three CEOs. Two CFOs. One ransomware attack that literally paused operations for 25 days. US tariffs threatening 25% on exports while competitors in other countries face 20-25%. A garmenting business that’s bleeding. Industrial unrest via IT raids from the Income Tax Department. And somehow, they’re still growing, still expanding stores, still believing India’s wedding season will save the day.
Let’s talk about what just happened, what’s actually wrong, and whether “highest revenue ever” is code for “we’re pretending things are fine.”
Feb 2026 Concall Note: “Strong volume growth in our core textile and apparel business.” CEO is 4 days into office. Probably shouldn’t have asked him for a five-year plan.
03 — Business Model: WTF Do They Even Make?
Suits, Shirts, Apparel, And Hopes. Lots of Hopes.
Raymond Lifestyle is basically a vertical textile-to-retail operation selling formals and non-formals to Indian consumers and the world. Four core segments, each with its own drama: Branded Textiles (46% of revenue in FY25) — your suiting and shirting fabrics. Branded Apparel (25%) — Park Avenue, ColorPlus, Parx, and the baby of the family, Ethnix. Garmenting (17%) — white-label manufacturing and export of suits, jackets, trousers for global brands. High Value Cotton Shirting (12%) — B2B premium cotton fabrics sold to shirt manufacturers.
In plain English: they weave, they stitch, they retail, they export. All in one company. Vertical integration sounds impressive in a pitch deck. In reality, it means when one segment breaks, the entire supply chain gets a headache.
Distribution is 1,110 Raymond Shops (TRS), ~500 exclusive brand outlets (EBOs), and 20,000 general retail touchpoints across India. That’s the moat. You walk into a multi-brand outlet, and there’s a Raymond fabric roll. You go to a formal wear section, there’s Park Avenue. You want ethnic wear for a wedding, suddenly Ethnix is the option. They own shelf space the way Amazon owns cloud computing.
Branded Textile46%Revenue Share
Branded Apparel25%Revenue Share
Garmenting17%Revenue Share
Cotton Shirting12%Revenue Share
Market Share Alert: 50-55% in worsted suiting. You know what that means? They can literally sneeze and people will still buy their fabric because there’s literally no one else with that kind of reach in Indian suiting. Monopoly lite.
💬 Do you buy Raymond suits? How much more premium are you paying vs a no-name suiting? This is market power in action.
04 — Q3 FY26 Financials
Record Revenue. Missing Profits. Same Old Story.
Result type: Quarterly Results | Q3 FY26 EPS: ₹7.04 | Annualised EPS (Q3×4): ₹28.16 | Full-year FY25 EPS: ₹6.27
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,883 | 1,754 | 1,832 | +7.4% | +2.8% |
| Operating Profit | 271 | 180 | 226 | +50.6% | +19.9% |
| OPM % | 14.4% | 10.3% | 12.3% | +410 bps | +210 bps |
| PAT | 43 | 64 | 75 | -32.8% | -42.7% |
| EPS (₹) | 7.04 | 10.47 | 12.34 | -32.8% | -42.9% |
The Plot Twist: Highest-ever quarterly revenue at ₹1,883 Cr. Operating profit up 50.6% YoY. Operating margin expanded 410 bps to 14.4%. But PAT crashed 32.8% and EPS down 32.8% YoY. Why? Finance costs (higher interest), taxes, and depreciation eating the profit cake. Also, one-time labor code expense of ₹57 crore (new gratuity rules for employees) hit the bottom line. Management swears this is “final” and won’t repeat. We believe them as much as we believe a Mumbai traffic jam will end by 5 PM.
05 — Valuation: Is This Company Worth ₹765 or ₹765 Million?
A P/E of 47.9x Screams Either Genius or Insanity
