Stanley Lifestyles (STANLEY) Q3 25/26 earnings summary

Executive summary

• Celebrated 30 years with a strategic pause, leadership transition, and a pivot to full home luxury solutions, increasing short-term costs but aimed at long-term sustainability.

• Gross profit grew 6.2% in 9M FY26, reflecting brand strength and operational resilience.

• Strategic investments in leadership and retail expansion increased near-term costs, impacting net profit.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed without qualification by auditors.

• Board granted 570,000 ESOPs to the Joint Managing Director.

Financial highlights

• Consolidated revenue from operations for 9M FY26 was INR 3,179 million, up 1.4% year-on-year; Q3 FY26 revenue declined 5.4% year-on-year to INR 1,038 million.

• Gross profit margin improved by 260 basis points to 58.4% in 9M FY26; EBITDA margin stable at 18.8%-19.0% for 9M FY26.

• PAT declined 26.1% to INR 136 million due to higher depreciation and finance costs; Q3 FY26 saw a marginal loss of INR 2 million at PAT level.

• Standalone and consolidated net losses reported in the latest quarter, with year-over-year declines in profitability.

• Standalone and consolidated EPS declined year-over-year.

Outlook and guidance

• Expecting significant demand acceleration from FY 2026 as premium housing deliveries increase, with a robust order book and full home solutions pipeline.

• Six new stores planned for mid FY27, maintaining a COCO-led expansion strategy.

• No specific revenue guidance for FY 2027 provided; budgeting in progress.

• Focus on cash-and-carry, localization, and backward integration to enhance margins and cash flow.

• Management continues to monitor the impact of new labor codes and will account for any further changes.