Stanley Lifestyles (STANLEY) Q4 25/26 earnings summary

Executive summary

• Strategic focus on consolidating company-owned, company-operated (CoCo) stores in top metros, driving long-term growth through retail expansion, operational consolidation, and technology investments.

• Transition from franchisee to direct control in key markets led to over 40% year-over-year growth in Chennai, Hyderabad, and Pune.

• FY26 profitability impacted by gestation costs, expansion investments, leadership transition, and external headwinds.

• Audited standalone and consolidated financial results for FY26 were approved, with statutory auditors issuing unmodified opinions.

• Board approved a proposed merger of subsidiaries and step-down subsidiaries with the parent company, effective April 1, 2026, subject to regulatory approvals.

Financial highlights

• Consolidated revenue for FY26 was ₹4,193 million, down from ₹4,262 million in FY25; consolidated net profit for FY26 was ₹292 million, down from ₹606 million in FY25.

• Gross profit margin improved to 57.8% in FY26 from 56.3% in FY25.

• EBITDA for FY26 fell 7.8% year-over-year to ₹754 million; EBITDA margin at 18.0%.

• Cash and liquid funds increased to ₹2,159 million as of March 2026, but cash and cash equivalents at year-end stood at ₹243 million (consolidated), down from prior year.

• Same-store sales growth: 11.6% in Stanley Level Next, 3.5% in Sofas & More, -8.1% in Stanley Boutique; overall mature store growth averaged 4%.

Outlook and guidance

• Expecting double-digit growth, but maintaining a conservative and profitable approach due to global uncertainties.

• Project handovers expected to accelerate from end of FY27, supporting revenue growth.

• Digital transformation underway, with ERP, CRM, and AR/VR features expected to enhance operational efficiency.

• Expansion into international markets with a pilot store in Sri Lanka and potential B2B exports.

• Board's report and Business Responsibility and Sustainability Report for FY26 were approved, indicating continued focus on governance and sustainability.