Stanley Lifestyles (STANLEY) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue from operations reached Rs. 1,087 million, up 7.9% YoY, 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 breakeven.

• The company operates 68 stores (43 COCO, 25 FOFO) as of June 30, 2025, with COCO stores contributing 60% of Q1 revenue.

• Strategic acquisition of Shraddha Decor Private Limited strengthens Hyderabad market presence and streamlines operations.

• The company completed its IPO on June 28, 2024, raising Rs. 1,810.85 million (net of expenses) and listing on BSE and NSE.

Financial highlights

• Consolidated Q1 FY26 revenue 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 at 57.4%.

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

• PAT more than doubled to Rs. 78 million, with margin at 7.2%.

• Basic EPS: 1.38, up from 0.73 YoY.

• Franchisee/accessories revenue declined 40% YoY, mainly due to the exit of the D8 brand.

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.

• Expansion in Hyderabad with three new COCO stores planned in the next two quarters.

• Continued emphasis on strengthening the COCO format and curated collections for affluent homebuyers.

• Confident in sustaining high single-digit to double-digit same-store sales growth as more stores reach maturity.