Stanley Lifestyles Ltd

Financial Performance

• Revenue from operations was INR 9,935 lakhs in Q1FY27, down from INR 10,861 lakhs in Q1 FY'26.
• EBITDA was INR 1,722 lakhs with a margin of 17.3%.
• PAT was INR 65 lakhs in Q1 FY27.
• Gross margin maintained despite lower revenue; aided by restructuring and localization.
• B2B segment disrupted by Middle East war; logistics challenges affected FREIGHT movement.
• Amalgamation of subsidiaries into Stanley Lifestyles Limited proposed to simplify structure.
• New CFO Sudhir Iyer appointed to support growth.
• Opened 3 stores in Bangalore (2 in Varthur, 1 Mysore Road); closed 4 stores (3 in Bangalore, 1 in Mumbai).
• Capex: Sofas & More ~ INR 2 crores per store; larger stores up to INR 20 crores.
• New format planned: Stanley Superlative Living for large-format stores and complete home solutions.
• Hyderabad store under development; expected to open in the next weeks.
• Manufacturing capacity currently about 68%–70%.
• Inventory higher in Q1 due to seasonality (August Europe close).
• Rent expense ~10% of revenue for Q1 FY27.
• Corporate cost roughly INR 90 lakhs per month (~2.25% of revenue).
• Order book (Stanley Superlative Living): INR 68 crores as on 30 June 2026; INR 62 crores as on March 2026.
• Matured stores expected SSSG of 15–20%; Q1 negative due to model changes.
• ROI target ~24–36 months; EBITDA-positive window 6–12 months.
• Export focus currently limited; domestic market constitutes the majority; BIS certification to impact imports from Aug 14.
• Internal controls: misappropriation by company secretary under investigation.

Growth and Market Expansion

• Entered Sri Lanka via JV with Singer Sri Lanka PLC; Stanley Boutique opened in Colombo.
• Jaipur opened Sofas & More by Stanley; Rajasthan entry.
• Stanley Superlative Living planned as a大型-format store integrating design-build services.

Brand Architecture and Formats

• Brand architecture to consolidate into one Sofas & More and one Stanley brand within 3–4 quarters.
• Sofas & More to become value premium; Stanley to offer complete home solutions.
• One Stanley store per major metro where market is matured; up to 2 stores in very large markets.

Costs, Capacity, and Operations

• Manufacturing capacity currently 68%–70%.
• Inventory elevated in Q1 ahead of September season; August Europe closure typical.
• Rent expense for Q1 FY27 ~10% of revenue; corporate cost ~INR 90 lakhs per month.
• Sofas & More mature stores: ~INR 4.5–5 crore per store annually.
• Stanley Boutique mature stores: ~INR 5–6 crore; Stanley Level Next: ~INR 12–14 crore.
• Relocated Bangalore store delivered ~2.5x higher business.

Q&A Highlights

• Exports currently small; domestic market dominates; Sri Lanka is an early opportunity.
• Pre-Ind AS reporting alignment; Ind AS figures will be published; offline IGAAP data available.
• Capex per Sofas & More store ~INR 2 crores; large-format stores up to INR 20 crores.
• Mature store SSSG guidance of 15–20%; Q1 impacted by transition in models.
• Order book as on 30 June 2026: INR 68 crores (Stanley Superlative Living).

Guidance and Outlook

• Brand consolidation to complete in about 3–4 quarters from now.
• Potential to double revenues in the next coming quarters with factory recalibration (2x revenue).

Risks and Watchpoints

• West Asia crisis continues to affect controls on construction material supply and demand mix.
• Export opportunities subject to tariff regimes and BIS certification rollout.

Materiality disclosure authority

• Board authorized Sudhir Iyer, CFO, to determine materiality of events and disclosures.
• Authority under SEBI LODR Regulation 30(5) granted.
• Date of intimation: 18 August 2026.
• Named KMP: Sudhir Iyer, Chief Financial Officer.

Leadership change

• CA. Sudhir Iyer appointed Group Chief Financial Officer of Stanley Lifestyles.
• Iyer to lead finance and IT, focusing on governance, performance and capital allocation.
• Previously Group CFO & Vice President at Revathi Equipment; roles at Goenka International and Arvind Lifestyle Brands.
• Appoint strengthens financial governance and supports growth strategy.

Business overview

• Luxury furniture brand with multi-format retail and complete home solutions.
• Integrated design and sourcing; in-house design centre with 150 designers and 1,000+ artisans.
• Pan-India retail network of 70 stores (COCO 47, FOFO 23).
• JV-led international expansion; Sri Lanka entry via Singer Sri Lanka JV.
• Jaipur Sofas & More store opened August 2026; Rajasthan expansion.

Operational highlights

• Q1 FY27 revenue Rs 9,935 lakh, down 8.6% YoY.
• Opened 3 Bengaluru stores; closed 4 locations.
• First international store opened in Colombo, Sri Lanka via JV.
• Upcoming Stanley Superlative Living ultra-luxury format in development.
• Order book Rs 6,240 lakh; cash Rs 19,510 lakh; inventory 146 days.

Financial performance

• EBITDA Rs 1,722 lakh; margin 17.3%.
• PAT Rs 65 lakh; PBT Rs 181 lakh.
• Cost structure stable; gross margin maintained amid softer demand.

Capital structure & liquidity

• Cash and liquid funds Rs 19,510 lakh; no major debt actions disclosed.

Strategic priorities & outlook

• Improve conversions as residential handovers progress.
• localisation and selective market expansion; complete home solutions.
• Develop Stanley Superlative Living ultra-luxury format.
• International expansion via Sri Lanka JV; Jaipur expansion ongoing.

Risks & mitigation

• Residential handovers delayed 12-18 months; conversions slower.
• International freight disruptions affecting B2B shipments.
• Mitigation: localisation, selective store openings, and complete home solutions.

Governance & leadership

• Chairman Sunil Suresh; MD Venkataramana Gorti; CFO Sudhir Iyer.
• Board remained stable; ESG profile highlighted.

Financial highlights

• Revenue from operations was Rs 9,935 lakhs in Q1 FY27, down 8.6% YoY.
• EBITDA was Rs 1,722 lakhs with a 17.3% margin, down 23.4% YoY.
• PBT stood at Rs 181 lakhs; margin 1.8%, down 82.5% YoY.
• PAT was Rs 65 lakhs; margin 0.7%.

Operational and strategic developments

• Three new Bengaluru stores opened (two at Varthur, one at Mysore Road).
• Closed four stores (three Bengaluru, one Mumbai) as part of portfolio optimisation.
• July 2026: opened Stanley Boutique Homes in Colombo, Sri Lanka via JV with Singer (Sri Lanka) PLC.
• Jaipur Sofas & More store opened, expanding presence in Rajasthan.
• Plan to launch Stanley Superlative Living ultra-luxury format.

Outlook and focus

• Focus on improving customer conversions as residential handovers progress.
• Continue localisation and development of a complete home solutions portfolio.
• Selective expansion into attractive markets remains a priority.

Meeting Details

• Date and time: Aug 14, 2026, 03:30 PM IST.
• Type and mode: Group earnings call; virtual dial-in.
• Event/organiser: Stanley Lifestyles Q1FY27 Earnings Call organized by Arihant Capital Markets.
• Purpose: Discuss Q1FY27 results for quarter ended June 30, 2026.

Participants

• Key company participants: Chairman & Founder; Whole Time Director; Managing Director; Group CFO.
• Management-led session by company executives.

Notes

• Dial-in numbers available; express join via DiamondPass.

Postal ballot results

• Purpose: seek approval of resolutions as set out in the Postal Ballot Notice.
• Remote e-voting ran 08 Jul 2026 09:00 IST to 06 Aug 2026 17:00 IST.
• Resolution(s) not passed by requisite majority; Scrutinizer’s report enclosed; results on company website.

Meeting Details

• Board meeting scheduled for Saturday, 8 August 2026.

Key Agenda Items

• To consider and approve unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Annual Report for the year ended 31 March 2026 and AGM-related matters.

Other Notes

• Trading window closed till 10 August 2026.

Processing status

• Details of dematerialised/rematerialised securities during the period were furnished to all stock exchanges where listed.