Raymond Lifestyle Projects Revenue Growth But Margins Likely To Stay Flat Till FY28

Raymond Lifestyle, a leading player in India’s menswear market, outlined its plans for revenue growth during a press conference on September 4.

However, despite expecting substantial top-line growth, the company’s margins are set to remain largely unchanged in the coming years.

Currently holding a 5% share of the Rs. 75,000 crore men’s wear market, Raymond is eyeing an increase to 6-7% by expanding its product portfolio and aggressively growing its retail footprint.

The company has set a target of 12-15% annual revenue growth, which means its revenue is set to increase from Rs. 7,000 crore in FY24 to Rs. 12,240 crore by FY28.

Despite this optimistic revenue outlook, Raymond’s management, led by MD Sunia Kataria, said that earnings before interest, taxes, depreciation, and amortisation will grow from Rs. 1,100 crore to Rs. 2,000 crore over the next 4 years. This means that the EBITDA margin is expected to stay within the current range of around 16%.

A key driver for Raymond’s revenue push is its wedding wear portfolio, in which the company anticipates growth of 1.5 times by FY27 and 2.3 times by FY28. Raymond is also tapping into new segments, launching ceremonial fabrics to capture a larger share of the wedding and festive wear market, a category brimming with opportunity.

In terms of retail, Raymond plans to triple its exclusive brand outlets (EBOs), aiming to open 650 to 800 new stores by FY27, along with rolling out a new retail identity. Alongside these efforts, the company is introducing 'Sleepz,' a sleepwear brand targeting the unorganised sector, and it will also launch Park Avenue innerwear, further diversifying its offerings in the lifestyle category.

While these moves are expected to propel the company’s top line, the range-bound margins indicate potential challenges in managing operational costs or price pressures in the highly competitive men's wear space.