Stanley Lifestyles (STANLEY) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue from operations rose 7.9% YoY to Rs. 1,087 million, driven by strong retail and B2B growth despite global trade headwinds and cautious consumer sentiment.

• Retail revenue grew 25.2% YoY to Rs. 640 million, led by Stanley Level Next and Sofas & More, which grew 20% and 50.7%, respectively.

• All new stores opened in FY25 achieved break-even; two new stores were added in Surat and Mangalore, bringing the total to 68 stores.

• Acquisition of Shraddha Decor Private Limited strengthens Hyderabad presence and unifies brand representation.

• The company completed its IPO on June 28, 2024, raising Rs. 1,810.85 million (net of expenses) for retail expansion and capital expenditure.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was Rs. 1,128 million, up from Rs. 1,007 million in Q1 FY25.

• Gross profit increased 16.6% YoY to Rs. 624 million, with margin expanding to 57.4%.

• EBITDA rose 11.9% YoY to Rs. 225 million, with margin at 20.7%.

• PAT more than doubled YoY to Rs. 78 million, with a margin of 7.2%.

• Basic EPS for Q1 FY26 was Rs. 1.38, up from Rs. 0.73 YoY.

Outlook and guidance

• On track to open 15 new stores in FY26, focusing on high-potential real estate in major cities and emerging urban clusters.

• Continued investment in Hyderabad, with three new stores planned in the next two quarters.

• No material impact expected from recent U.S. tariff changes due to limited exposure.