Raymond Lifestyle shares fell 2.64% to Rs 806.50 on Thursday, touching a session low of Rs 786, despite reporting a dramatically improved operational quarter — EBITDA surged 771% year-on-year and revenue grew 18.9%. The disconnect between strong operating numbers and a falling share price comes down to one word: exceptional items.
Why the share price is falling despite good operations
The company remains in a net loss — Rs 45 crore in Q4 FY26, narrower than Rs 52.1 crore a year ago but still a loss. The culprit is exceptional charges sitting below the EBITDA line that are converting what looks like a strong operating performance into a reported loss. Raymond Lifestyle has been carrying restructuring-related costs and separation charges since its demerger from the parent Raymond Group, and these below-the-line items continue to weigh on the headline PAT figure that most retail investors and screeners focus on.
The stock is also down 43% from its 52-week high of Rs 1,411.90 — meaning the shares had already been under pressure for months, and today’s results have not provided a sufficient catalyst to reverse that trend.
What the numbers actually show
Revenue grew 18.9% year-on-year to Rs 1,776.5 crore from Rs 1,494.2 crore — solid topline growth for a branded apparel and lifestyle business navigating a challenging consumer environment. EBITDA jumped to Rs 118.5 crore from just Rs 13.6 crore in Q4 FY25 — a 771% increase that reflects the operating leverage now visible in the business as volumes recover and the cost structure gets leaner post-demerger. EBITDA margin expanded to 6.7% from just 1% a year ago — a 570 basis point improvement that, in a normal quarter without exceptional charges, would have translated into a meaningful profit.
The bull and bear case in one quarter
This quarter is a microcosm of the Raymond Lifestyle investment debate. The bull case is the EBITDA trajectory — margins going from 1% to 6.7% in a year is exceptional progress for a branded fashion company, and if that trajectory continues to 10%+ over the next 2-3 years, the stock re-rates sharply. The bear case is that exceptional charges keep surfacing, the net loss continues, the PE at 91.88 is pricing in perfection, and the stock is 43% below its peak.
At Rs 806.50, the market is still waiting for the exceptional items to clear and the net profit line to turn durably positive before re-rating the stock.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making investment decisions.