Stanley Lifestyles (STANLEY) Q2 25/26 earnings summary

Executive summary

• Achieved consolidated revenue of INR 2,141 million in H1 FY26, up 5.1% YoY, driven by strong retail performance and store expansion, including 9 new stores and international entry in Sri Lanka.

• Retail contributed 70% of total revenue, with COCO stores as the main driver and new sub-brands like 'Stanley Boutique Homes' and lifestyle extensions such as perfumes and men's shoes launched.

• Completed IPO in June 2024, raising INR 1,839.37 million for expansion and general corporate purposes.

• Expanded internationally via licensing in Sri Lanka, with plans for further expansion in Indonesia and Saudi Arabia.

• Acquired a perfume business and full ownership of Shrasta Décor Private Limited to diversify the lifestyle portfolio.

Financial highlights

• Q2 FY26 revenue: INR 1,054 million; H1 FY26 revenue: INR 2,141 million, up 5.1% YoY.

• Gross profit margin improved by 330 bps YoY to 57.8% in H1 FY26; EBITDA margin at 22.1%, up 320 bps YoY.

• PAT for H1 FY26: INR 138 million, up 45.3% YoY; Q2 PAT: INR 60 million.

• Basic EPS for H1 FY26: INR 2.36.

• Lease agreements for new stores increased amortization and finance expenses in Q2.

Outlook and guidance

• Targeting INR 1,000 crore revenue within 3-4 years from IPO, driven by COCO store expansion and business model shift.

• Plans to open 15 stores in FY26, focusing on large-format stores in major metros and international expansion.

• Emphasis on digital transformation, localization, backward integration, and expanding the product portfolio.

• No major CapEx beyond the INR 140 crore outlined in the prospectus; prudent, location-driven expansion.

• IPO proceeds being utilized for new store openings, anchor stores, renovations, and capital expenditure, with INR 808.62 million unutilized as of September 30, 2025.