Raymond Lifestyle vs Metropolis Healthcare Q4 FY26

Raymond Lifestyle delivered a strong FY26 with total income of ₹7,034 crore (+11% YoY) and EBITDA of ₹804 crore (+23% YoY), marking the highest ever. Q4 saw revenue of ₹1,810 crore (+15% YoY) and EBITDA of ₹152 crore (+53% YoY), with EBITDA margin expanding 210bps QoQ to 8.4%. Growth was driven by robust domestic consumption, premiumization, and scale benefits from factory utilization above 90%. The garmenting segment rebounded sharply (+38% YoY) on US trade deal recovery. Management declared FY27 as a year of consolidation, targeting double-digit topline and bottom-line growth, with net store additions of 30-40 EBOs and working capital days below 70. Key risks include volatile raw material prices (wool, flax) and potential slowdown in discretionary spending due to macroeconomic headwinds.

Guidance read

Double-digit topline and bottom-line growth in FY27: Management expects both revenue and profit to grow at double-digit rates in the consolidation year. Net store additions of 30-40 EBOs in FY27: Gross openings of ~100 stores, but net additions of 30-40 after closures of underperforming stores. Working capital days below 70 in FY27: Targeting net working capital days to reduce from 77 to below 70 through inventory and receivable management. Capex of ~₹180 crore in FY27: Similar to FY26, with maintenance capex and continued investment in SAP and garmenting factory.

Risk read

Key risks include Raw material price inflation (wool, flax) — Wool and flax prices are rising, which could pressure gross margins despite premiumization efforts.; Macroeconomic slowdown impacting discretionary spending — GDP growth estimates are moderating, and consumer sentiment may weaken, affecting branded apparel demand.; Geopolitical risks from US-Iran conflict — Escalation could disrupt trade routes and increase freight costs, impacting garmenting exports.; Execution risk in ethnic wear strategy pivot — Management is shifting focus from bridegroom to wedding guests; success depends on product and distribution changes..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Metropolis Healthcare delivered a strong FY26 with group revenue of ₹1,646 crore (+23.6% YoY) and EBITDA margin of 24.4%. Organic revenue grew 13.7% YoY, exceeding the 12-13% guidance, driven by patient volume growth of 7.5% and realization improvement. Organic EBITDA margin expanded 140 bps to 25.9%, aided by lab platform upgrades, vendor consolidation, and operating leverage. The core diagnostics acquisition achieved high single-digit EBITDA margin within four quarters, on track for 20%+ in three years. Management guided for 14-15% organic revenue growth and 27-28% group EBITDA margin over the next three years, supported by network productivity gains, specialty mix improvement, and digital channel expansion. Key risks include competitive intensity in tier-1 cities and potential integration challenges from future M&A.

Guidance read

Organic revenue growth of 14-15% over next 3 years: Driven by 8-9% patient volume growth and ~5% realization improvement, with potential price increases. Group EBITDA margin target of 27-28% over next 3 years: Supported by operating leverage, productivity gains, and core diagnostics reaching 20%+ margin. 125-150 bps margin improvement in FY27: Management expects EBITDA margin expansion of 125-150 bps in the coming fiscal year. Add 1500 collection centers and 100 mini hubs over 3 years: Expand asset-light network and upgrade centers to include basic radiology, targeting center-to-lab ratio of 35:1.

Risk read

Key risks include Competitive intensity in tier-1 cities — Growth in tier-1 cities like Mumbai is around 11-14%, potentially constrained by high competition from organized and unorganized players.; Integration risks from future M&A — While current acquisitions are on track, future deals may face quality and integration challenges, as management noted many assets do not meet their standards.; Dependence on price increases for growth — Management indicated no price hike planned currently, but realization growth partly relies on future price increases, which may not materialize if competitive pressures persist..

Promise ledger

Scorecard data is being built as historical quarters are processed.