Raymond lifestyle posts ₹45 crore loss in Q4 amid weak demand, cyber attack

Raymond Lifestyle on Monday reported a consolidated net loss of ₹44.95 crore during the March quarter on account of weaker consumer demand and lower sales due to system outages.

It had reported a net profit of ₹235.58 crore in the year-ago period, according to a regulatory filing from Raymond Lifestyle, a Raymond Group firm.

However, its revenue from operations was down 11.3% to ₹1,494.15 crore in the March quarter. It was at ₹1,684.55 crore in the year-ago period.

"EBITDA stood at ₹99 crore in Q4 FY25 with an EBITDA margin of 6.3% amid high inflation, leading to weaker consumer demand. This situation was further exacerbated with a ransomware attack that disrupted operations during the quarter," Raymond Lifestyle said in its earnings statement.

The IT team, with the support of cybersecurity experts, contained the attack.

"However, it led to temporary system outages and supply chain delays, impacting sales and operations. These factors led to lower sales, scale deleverage and impacted profitability during the quarter," the company said.

Total expenses of the Singhania family-promoted firm were up 4.45% to ₹1,625.08 crore during the quarter under review.

During the quarter, Raymond Lifestyle's revenue from the textile segment, which consists of the branded fabric business of the company, was down 21% to ₹727.35 crore.

The decline was "on account of weaker consumer demand and ransomware attack, leading to scale deleverage resulting in lower EBITDA margins", the company said in its earnings statement.

Similarly, its revenue from the branded apparel segment was down 4.26% to ₹391.2 crore.

"The segment reported an EBITDA margin of 0.4% in Q4 FY25 vs 13.5% in Q4 FY24, on account of upfront investments in retail store expansion and adverse channel mix," it said.

Garmenting segment reported almost flat revenues at ₹248 crore during the quarter. This was "impacted by a cautious approach taken by customers ahead of US tariffs announcements."

Raymond Lifestyle's total income, which includes other income, was at ₹1,579.77 crore, down 8.5%.

For the financial year ended March 31, 2025, Raymond Lifestyle's profit was at ₹38.19 crore.

In FY25, Raymond Lifestyle's total consolidated income was down 5% to ₹6,689.80 crore.

Commenting on the annual result, Executive Chairman Gautam Singhania said, "Our performance this year was under pressure, primarily due to weak consumer demand and challenging macro-economic conditions."

"Despite these headwinds, we remain committed to our retail expansion strategy, resulting in the opening of 170 new stores reaching a total of 1,688 stores, including 152 stores in 'Ethnix by Raymond' during the year," it said.

This is the third quarter result of Raymond Lifestyle, which demerged from the parent company Raymond Ltd and listed on the stock exchanges on September 5 last year.

It has a portfolio of brands such as Park Avenue, ColorPlus, Parx, Raymond Made to Measure, Raymond Ready to Wear, Sleepz by Raymond, and Ethnix by Raymond amongst others.

Shares of Raymond Lifestyle Ltd on Monday settled at ₹1,001 on the BSE, up 4.49% from its previous close.