Stanley Lifestyles (STANLEY) Q4 25/26 earnings summary

Executive summary

• Strategic focus on consolidating company-owned, company-operated (CoCo) stores in top Indian metros, driving long-term growth and operational control.

• 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.

• Highest ever order book at ₹624 million entering FY27, up from ₹450 million in April 2025.

Outlook and guidance

• Expecting double-digit growth in FY27, with a conservative and profitable approach.

• 11 new stores opened in FY26; 5 more to open soon, with continued focus on company-owned outlets.

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

• Digital transformation and AR/VR-enabled website launch targeted by end of FY27; ERP and CRM systems to go live in FY27.

• New flagship 60,000 sq ft store in Hyderabad to open in FY27; first international franchise in Sri Lanka planned.