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Raymond Lifestyle, listed with much fanfare and big ambitions on 5 September. The company was demerged from its parent,Raymond, as part of a broader plan to unlock value for shareholders. The lifestyle brand was listed at ₹3,100 a share, giving it a market capitalisation of ₹18,256 crore. The goal was bold—to double Ebitda to more than ₹2,000 crore by FY28, backed by an annual sales growth of 12–15%.

However, what followed was far from ideal. In FY25, revenue fell 5% to ₹6,360 crore due to weak consumer demand, while margins contracted by 610 basis points to 10.2%. Net profit declined even more sharply, crashing 80% to ₹100 crore. As a result, the stock price slumped nearly 70% by April, hitting a low of ₹911.

Since then, however, the stock has shown signs of recovery, rallying over 40% to ₹1,284. So is the worst over, and are things finally turning around?

Let's let a closer look.

Raymond Lifestyle needs no introduction. It is India's largest men's wedding and formal wear company. It has a strong portfolio that includes Raymond, Park Avenue, ColorPlus, Parx and Ethnix by Raymond. The company operates across four business segments: branded textiles, branded apparel, garmenting, and high-value shirting.

In FY25, the branded textile segment remained the largest contributor to both revenue and profit. It generated ₹3,002 crore in revenue, contributing 47%, and ₹420 crore in Ebitda, or 64.5% of the total.

This was followed by branded apparel, with ₹1,593 crore in revenue (25% of the total), and ₹118 crore in Ebitda (18%). The garmenting business contributed another ₹1,068 crores in revenue (17%) and ₹50 crore in Ebitda (7.6%). High-value shirting accounted for 12.6% ( ₹800 crore) of the top line and ₹114 crore of Ebitda (17.5%).

The company's strategic approach is to strengthen the core (branded textiles), accelerate growth (branded apparel and garmenting), and create new categories (ethnic wear, innerwear, and sleepwear).

Branded textiles, which includes worsted suiting and shirting fabrics, recorded a 13% drop in revenue to ₹3,002 crore in FY25. This was primarily owning to weak discretionary demand, an industry-wide trend throughout the year.

A ransomware attack on 19 February disrupted operations for about 25 days, further hampering the segment's performance. This disruption is estimated to have resulted in a revenue loss of ₹150-175 crore in Q4 FY25.

As a result, Ebitda margins for the segment dropped sharply to 14% in FY25 from 20.9% the previous year, while Ebitda fell 42% to ₹420 crore from ₹721 crore in FY24. That said, early signs of a recovery are visible.

The company is seeing a 12-13% uptick in booking trends and has secured healthy orders for its autumn-winter 2025 collection. Management expects this momentum to translate to more than 10-15% revenue growth in FY26, along with margin recovery.

Discretionary spending is also likely to increase as a result of income tax cuts and lower inflation, thereby supporting the recovery.

The branded apparel segment reported flat revenue of ₹1,593 crore in FY25. Weak demand for weddings and fewer auspicious dates weighed on foot traffic, impacting performance. However, Ebitda margins declined to 7.4% from 11.9% due to continued investments in retail expansion and an unfavourable channel mix.

The company added 170 new stores during the year, taking its total to 1,688 stores as of March 2025. These include 1,098 The Raymond Shop (TRS) stores (up from 1,065 in FY24), 537 exclusive brand outlets (vs 409), and 53 Made to Measure (MTM) stores (up from 44).

Ethnix, the new ethnic wear brand by Raymond, has crossed ₹100 crore in revenue. At the end of FY25, its store count stood at 152, with 38 added during the year.