Shares of Raymond Lifestyle Ltd, the demerged retail and lifestyle arm of Raymond Ltd, have experienced a significant downturn, dropping almost 30% over the past six months. This volatility has prompted investors to scrutinize their positions, even as the stock saw a modest rise on Tuesday. Market analysts are offering a range of perspectives, with some maintaining a constructive long-term outlook for the company.
Q4 FY26 Performance Highlights
Systematix Institutional Equities reported that Raymond Lifestyle's March 2026 quarter (Q4 FY26) revenues surpassed expectations, reaching ₹1,776 crore, an 18.9% year-on-year increase. However, the operating performance for the quarter fell below estimates. The gross margin saw a decline of 353 basis points year-on-year, settling at 51.7%, while the EBITDA margin expanded by 576 basis points to 6.7%.
The company posted an adjusted net profit of ₹15 crore in Q4 FY26, a notable improvement from a net loss of ₹43 crore in Q4 FY25. Furthermore, net cash increased to ₹179 crore in FY26 from ₹90 crore in FY25, indicating an improved financial position.
Expert Outlook: Buy, Hold, or Accumulate?
Despite the recent share price correction, Systematix Institutional Equities maintained its 'Buy' rating for Raymond Lifestyle shares. The brokerage, however, revised its target price downwards to ₹1,137 from an earlier ₹1,428. This adjustment is based on a SOTP (Sum of the Parts) valuation method, projecting a revenue, EBITDA, and PAT CAGR of 10%, 28.4%, and 47.4% respectively over FY26-FY28E. They anticipate operating margins to reach 12% in FY27E and 13% in FY28E.
Kranthi Bathini, Equity Strategist at WealthMills Securities, believes Raymond Lifestyle appears fairly valued following Raymond's value unlocking initiatives. He remains optimistic about the stock's long-term prospects, attributing his view to the broader consumption theme and the potential for increased discretionary spending. Bathini advises existing investors to continue holding the stock and suggests fresh accumulation on market dips for those with a long-term investment horizon.
Ravi Singh, Chief Research Officer at Mastertrust, observed signs of stabilization for Raymond Lifestyle after a prolonged correction. He noted the stock trading near the ₹780 zone, showing consolidation after continuous selling pressure. Singh stated,
"The stock needs to sustain above the Rs 820–840 range to signal a stronger trend reversal. Until then, it may continue consolidating near current levels."He added that a stable market environment and improvement in discretionary consumption could aid the stock's gradual recovery from its recent lows.
Overall, while Raymond Lifestyle shares have faced headwinds, analysts suggest a potential for gradual recovery, advising a long-term approach for investors considering accumulation on dips or holding existing positions.