Raymond Lifestyle Q2: consol PAT -10% YoY on margin compression, revenue up 13%

Raymond Lifestyle's consolidated revenue grew 13.2% YoY to ₹2,075 Cr in Q2 FY27 (quarter ended September 30, 2026), but consolidated PAT fell 10.2% YoY to ₹67.5 Cr (EPS ₹11.08 vs ₹12.34). Adjusted for the ₹4.68 Cr one-off stamp-duty exceptional loss booked in the year-ago quarter, the underlying YoY PAT decline is steeper at roughly 15%. No exceptional items were booked this quarter. Sequentially, the company swung from a ₹22.6 Cr net loss in Q1 FY27 to this quarter's profit — but Q2 (Jul-Sep, pre-Diwali/festive season) is structurally the strongest quarter for apparel players, so this QoQ swing reads as seasonal normalisation rather than fresh momentum and should not headline the quarter. Net profit margin compressed to 3.18% of total income from 4.03% a year ago. Profit before exceptional items and tax fell 15.5% YoY to ₹90.9 Cr even as revenue rose, pointing to pressure below the operating line: finance costs climbed 22.9% YoY to ₹73.7 Cr (₹59.97 Cr a year ago) as current borrowings rose to ₹1,446 Cr from ₹837 Cr at FY26-end, funding a build-up in inventories to ₹2,146 Cr from ₹1,888 Cr. Standalone tells a sharper version of the same story — standalone PAT fell 25.4% YoY to ₹48.6 Cr versus the group's 10.2% decline — indicating the international/garmenting subsidiaries partly cushioned the consolidated number. No analyst consensus estimate specific to this quarter turned up in a web search, so the print cannot be benchmarked against a street number. Management's prior concall guidance (August 2026) — apparel/fabric ASP hikes of 5-7%/7-9% effective from Q2, and a net-working-capital target of under 70 days (75 days as of last quarter) — cannot be verified from this filing alone, since no press release or commentary was available in the reviewed pages and the result does not disclose ASP realisation or NWC days; this remains open pending the Q3 print or press release. On segments, Textile — the largest profit contributor — saw segment profit decline 9.6% YoY to ₹134.1 Cr (₹148.4 Cr a year ago) while Emerging Businesses (Ethnix, Sleepwear, Home, innerwear) widened its segment loss to ₹42.4 Cr from ₹25.6 Cr YoY — the two biggest drags on the print — partly offset by Garmenting (₹18.2 Cr profit, up from ₹7.5 Cr) and Apparel (₹11.2 Cr profit, versus roughly breakeven a year ago). Separately, the promoter group created an encumbrance on shares in early October 2026, a governance item unrelated to this quarter's operating performance. Going into Q3 FY27, the key markers are whether the guided ASP hikes show up as margin recovery, whether net working capital trends back toward the sub-70-day target, and whether finance-cost growth slows as borrowings stabilise.