The Rs 11,000-crore Raymond Group is banking on a new leadership team to drive its lifestyle business, which contributes about 60% of the group’s topline, at a time when stress in the retail sector is intensifying. Raymond Lifestyle was demerged from Raymond and listed on the bourses in September 2024.
Satyaki Ghosh and Prasad E Chathuar have been appointed chief executive officer and chief financial officer, respectively, with effect from this month. They take over following the exits of the previous incumbents, Sunil Kataria (CEO) and Sameer Shah (CFO), in April and May last year.
Ghosh is the fourth CEO of the lifestyle business in five years. Shah moved on after serving his notice period until the end of July, while Chathuar’s appointment will be formally placed before the board at its ensuing meeting.
Retail Network Consolidation
Both Ghosh and Chathuar, who bring close to three decades of experience each in the consumer goods space, are expected to hit the ground running after a phase of consolidation at Raymond Lifestyle in the current fiscal.
The company operates close to 1,700 stores. In the first half of FY26, it opened 41 new stores, but exited 66 underperforming outlets over the same period as it prioritised profitability over rapid network expansion.
In earlier interactions with FE, Raymond Group Chairman & Managing Director Gautam Singhania emphasised the need to remain focused on the domestic market, as monetary and fiscal policy measures, along with GST rate cuts, are expected to spur discretionary spending. The company will announce its third-quarter results on January 27.
Bloomberg consensus estimates peg year-on-year growth in Q3FY26 revenue, profit and Ebitda at 7.2%, 18.4% and 28.9%, respectively. Ebitda margins are likely to improve by 107 basis points to 11.31% compared with last year, according to analysts polled.
Key Business Challenges
While domestic demand remains strong for its ethnic wear collections (under Ethnix, for men) due to an extended wedding season from November to March, rising competition in the broader menswear segment—where flagship brands Raymond, Park Avenue, ColorPlus and Parx operate—tariff uncertainties in international markets, and the need to diversify beyond its core menswear portfolio remain key challenges, experts said.
The new leadership is expected to drive future growth by expanding further into branded apparel, scaling up newer categories such as sleepwear, innerwear and ethnic wear, and improving operational efficiencies, according to analysts at Motilal Oswal.
Bloomberg estimates forecast the company will close FY26 with a 10% year-on-year growth in topline (FY25 turnover was Rs 6,177 crore) and deliver profit growth of more than double last year’s level at 108% (FY25 profit was Rs 382 crore).
However, operational challenges are likely to persist, as Ebitda margins may decline by 140 basis points to 10.1% compared with last year.