Stanley Lifestyles (STANLEY) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue from operations reached INR 1,097 million, up 6.5% sequentially and 2.2% year-over-year, led by a 10.1% YoY increase in COCO retail and 21.1% YoY growth in B2B business.

• Four new stores were added in Q3 FY25, bringing the total to 68 (41 COCO, 27 FOFO), with COCO stores contributing 60% of Q3 revenue.

• Equity shares listed on BSE and NSE on June 28, 2024, following an IPO of 14.55 million shares at Rs 369 each.

• The company is well-positioned to benefit from rapid growth in luxury housing, especially in key urban markets.

• Standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, reviewed and approved by the Board and auditors with unmodified opinions.

Financial highlights

• Gross margin improved to 58.1% in Q3 FY25 from 54.7% in Q3 FY24; EBITDA for Q3 FY25 was INR 204 million with an 18.6% margin; PAT margin rose to 8.1% from 6% YoY.

• 9M FY25 revenue was INR 3,134 million, flat year-over-year; 9M PAT was INR 184 million, stable YoY.

• Consolidated net profit for the quarter was Rs 86 million, up from Rs 69 million YoY; basic EPS for Q3 FY25 was 1.52, up from 1.34.

• Cash and bank balance as of December 31 stood at INR 208 crores, with INR 150 crores from IPO proceeds earmarked for store expansion.

• Pre-Ind AS EBITDA margin for Q3 was 9.4%; FY23 and FY24 were 13% and 12%, respectively.

Outlook and guidance

• B2C segment expected to deliver 20% growth in the coming year, supported by new store openings.

• Store expansion plans remain on track, though some launches deferred due to rental inflation and property availability.

• B2B2C business anticipated to recover by Q2 FY26 as credit facilities are gradually reintroduced.

• EBITDA margin target of 20%-22% by mid-next year as new stores mature.

• Long-term vision to reach 1,000 crore revenue with 15% PAT in the next 900-1,000 days.