Premiumisation Drives Positive Consumer Sentiment for Raymond Lifestyle : CEO

Branded Apparel records 20% year-on-year growth in Q2, while the company plans ₹200 crore in FY27 capex and targets 1,665–1,670 stores by year-end

Raymond Lifestyle Ltd is witnessing positive consumer sentiment during the ongoing festive period, supported by growing demand for premium apparel and casualwear. The company reported strong revenue growth in Q2 FY27, with its Branded Apparel segment recording its highest-ever quarterly revenue of ₹559 crore, a 20% year-on-year increase.

Premiumisation and Casualwear Support Growth

Satyaki Ghosh, Whole-Time Director and CEO of Raymond Lifestyle Ltd, told that consumer trends towards premiumisation and casualisation had supported the company's performance despite challenging geopolitical conditions during Q2.

“Despite challenging geopolitical conditions in Q2, consumer trends of premiumisation and casualisation have enabled us to clock strong growth. The Branded Apparel segment recorded its highest-ever revenue at ₹559 crore in Q2, reflecting a strong 20 per cent year-on-year growth. Casualwear brands, led by ColorPlus and Parx, outpaced broader apparel categories.”

Festival and Wedding Season Demand Remains Strong

The company is seeing positive demand in the apparel segment during the festive period, particularly in urban markets, despite inflationary pressures.

Ghosh noted that the festival calendar has shifted compared with the previous year, with Diwali delayed by 20–25 days. As a result, a significant portion of primary loading took place during Q2.

“We expect to clock about 20 per cent growth in the festival period. Post-Diwali, we also expect to see a strong wedding season through December-January. So, from a consumer point of view, in our categories, demand is strong,” he said.

He also highlighted strong traction in the fabric gifting segment.

Retail Network Optimisation and Expansion Plans

Raymond Lifestyle expects to close FY27 with between 1,665 and 1,670 stores as part of its retail network optimisation strategy.

The company is closing non-performing outlets and reallocating resources towards more efficient retail formats. It is also allowing newer stores time to mature and reach peak productivity.

“At the same time, we have been ramping up marketing spends,” Ghosh added.

The company is investing approximately ₹200 crore in capital expenditure during FY27.

Garmenting Business and Inorganic Growth Opportunities

Raymond Lifestyle is also evaluating inorganic growth opportunities in the garmenting segment, subject to suitable valuations.

Ghosh said the company was witnessing growth in export orders, particularly following recent free trade agreements, including the UK-India FTA.

“We have some consideration in this regard in the garmenting space, provided they are at the right valuations. We are witnessing growth in export orders, especially in light of the recent FTAs such as the UK-India FTA. In fact, we are investing in seven more lines in the garmenting business. But this is one space where inorganic growth opportunities can also work.”

The company's current strategy combines investment in garmenting capacity, retail network optimisation and a focus on premium and casualwear categories amid positive festive and wedding-season demand.