Stanley Lifestyles Ltd

AGM Details

• The 19th e-AGM was held on 28-09-2026 via VC/OAVM at 2:30 PM.
• Voting was conducted via remote e-voting and at the AGM through KFin portal.
• Cut-off date for voting was 22 September 2026.

Key Resolutions and Outcomes

• Item 1 (Ordinary): Adopt standalone and consolidated financial statements; 99.99% in favor.
• Item 2 (Ordinary): Re-appoint Sunil Suresh by rotation; approved by 99.99%.
• Item 3 (Special): Sunil Suresh designated Executive Chairman; remuneration for residual term approved.
• Item 4 (Special): Remuneration of Mrs. Shubha Sunil as Whole-Time Director; approved.
• Item 5 (Special): Venkataramana Seshagirirao Gorti designated MD; remuneration approved.
• Item 6 (Special): ESOP-2022 stock options and vesting period approved.

Dividend

• Dividend was not proposed or approved.

Director/Management Changes

• Sunil Suresh re-appointed by rotation.
• Sunil Suresh's designation changed to Executive Chairman (WTD).
• Shubha Sunil appointed as Whole-Time Director; remuneration approved.
• Venkataramana Seshagirirao Gorti designated MD; remuneration approved.

ESOP Approvals

• ESOP-2022 stock options and vesting period approved.

Auditors & Related Parties

• No change in statutory auditors; no material related party transactions disclosed.

AGM details

• AGM held 28 September 2026 at 2:35 PM IST via VC/OAVM.
• Meeting ran until 3:07 PM IST with 38 members present.
• Remote e-voting conducted 25–27 September 2026; physical voting available at meeting.
• Proceedings conducted via KFin Technologies; scrutiny by appointed scrutineer.

Resolutions

• Ordinary: adoption of standalone financial statements for the year.
• Ordinary: adoption of consolidated financial statements for the year.
• Ordinary: re-appointment of director by rotation.
• Special: change in designation of top executive to Executive Chairman; remuneration for residual term.
• Special: remuneration for Whole-time Director for residual term.
• Special: change in designation of Joint MD to Managing Director; remuneration.
• Special: ratify number of stock options and vesting period under ESOP-2022.

Voting status

• Voting results to be announced after Scrutinizer's Report.
• E-voting open during meeting for remaining votes.

Auditors & governance

• Statutory Auditor attendance noted; no appointment changes announced.
• Secretarial Auditor present; explanations provided for observed qualifications.

Directors

• Director re-appointment by rotation; designation changes for top roles and MD.
• Remuneration for residual-term appointments as approved.

Stanley Lifestyles Limited trading window closed from 1 October 2026 until 48 hours after the declaration of the Un-audited Financial Results for the 2nd quarter ending 30 September 2026.

Investor meeting details

• Analyst/Institutional investor meeting scheduled for Sep 24, 2026.
• Store visit and management meet; in-person in Mumbai; hosted by Churchgate Partners.
• No unpublished price-sensitive information will be shared.
• Schedule subject to change; details to be posted on company website.

Overview

• Standalone BRSR for FY2025-26 covering furniture manufacturing, importing, and OEM business.
• Operations comprise 2 plants and 1 office across India; serves 11 states.
• Export share amounted to 0.68% of turnover; first Sri Lanka store opened July 4, 2026 (post-period).
• CSR turnover reported at 1,986 million; net worth around 4,180 million.

Key ESG Risks & Opportunities

• Energy conservation risk from rising costs; mitigated by energy-efficient systems and audits.
• Supply chain risks include disruptions and ESG non-compliance; mitigated by vendor ESG audits and diversification.
• Sustainable products offer growth; R&D in sustainable materials and eco-labelling.
• Health & safety risk; training, audits, PPE, and incident reporting.
• Empowering workforce opportunity; leadership development, upskilling, and inclusive initiatives.
• Regulatory/compliance risk; governance policies and internal audits reduce penalties.

Governance & Policy Highlights

• Board oversight via Risk Management Committee; senior management drives ESG integration.
• Policies include Code of Conduct, BR Policy, Vendor Code, and Anti-Bribery policy.
• Whistleblower policy in place; policy links accessible on company site.
• No material penalties disclosed for FY2025-26; no external assurance engaged.
• Policies cover all BR principles; periodic board reviews.

Social Responsibility & Workforce

• Total workforce: 133 permanent and 586 workers; gender distribution skewed male.
• Board composition: 2 of 6 directors are women (33%).
• Differently abled: NIL.
• PF coverage 97% of employees; gratuity 100%; ESI covers 40.56% of workers.
• LTIFR is NIL; extensive safety training and drills implemented.
• 100% coverage for essential trainings across Board, KMP, and employees.
• Workplaces accessible for differently-abled; PwD policy adopted.
• CSR projects include health, education, livelihood initiatives; several programs with hundreds of beneficiaries.

Environmental Performance

• Total energy consumption FY2025-26: 1,879,698 kWh; energy intensity 0.000448 kWh per rupee turnover.
• Groundwater withdrawal: 16,583 kiloliters; water intensity: 0.00518 KL per rupee turnover.
• ZLD implemented; all wastewater treated in-house and reused; solids safely disposed.
• Total waste generated: 1,088.81 MT; plastic waste 0.81 MT; other non-hazardous waste 1,088 MT.
• Air emissions: NOx 16.2 µg/Nm3; SOx 6.27 µg/Nm3; PM 70.77 µg/Nm3.
• Scope 1/2 GHG data not disclosed; no independent external assessment reported.

Stakeholder Engagement & Complaints

• Key stakeholder groups: investors, employees, vendors, regulators, NGOs, media, and customers.
• Engagement channels: meetings, emails, website; frequency as required or per statute.
• Shareholders filed 2 complaints in FY2025-26; 0 pending resolution; other groups had no complaints.
• Grievance mechanisms include direct reporting, whistleblower channels, and POSH processes.
• Board reviews stakeholder feedback during quarterly discussions.

Other Notable Metrics

• RPTs: purchases from related parties 1.16%; sales to related parties 71.45%; investments in related parties 96.54%.
• Related party expenditure and revenue concentration disclosed; 0.68% export turnover share.
• Product quality complaints: 2,303 filed in FY2025-26; 140 pending resolution.
• Product recalls: none reported; data privacy and cyber security measures stated but no policy framework.
• International expansion noted with Sri Lanka store; 2 plants and 1 office; 11 states served in India.

Financial performance

• Standalone revenue from operations: Rs 1,986m; FY25: Rs 2,175m; down 8.69%.
• Consolidated revenue from operations: Rs 4,193m; FY25: Rs 4,262m; down 1.62%.
• Standalone gross profit: Rs 2,424m; gross margin 57.8% vs 56.3% FY25.
• Standalone EBITDA: Rs 754m; margin 18.0%.
• Standalone PBT: Rs 126m; Standalone PAT: Rs 100m.
• Consolidated PAT attributable to owners: Rs 121m; FY25: Rs 291m.
• Order book stood at Rs 62.4 crore (₹624m) at year-end FY2026.
• Inventory days: 146; cash and liquid funds: Rs 195.10 crore.
• Net debt: Rs (1,343) million; liquidity position supports growth.

Retail footprint & product strategy

• FY26 expanded retail footprint by 11 stores; selective about catchments.
• Brand architecture shifting to complete-home solutions; Sofas & More remains retail concept.
• International expansion begun with Stanley Boutique in Colombo, Sri Lanka via Singer JV.
• Direct company-owned presence now across Chennai, Hyderabad, Pune, Mumbai, Delhi; ~80% of luxury demand.
• Orders book growth complemented by expanding full-home solutions and stronger brand positioning.
• ERP and CRM platforms targeted for FY27 implementation to accelerate execution.

Capital allocation & IPO

• IPO net proceeds: Rs 1,839.37 million; utilised Rs 1,059 million; unutilised Rs 780 million.
• IPO objects: opening new stores, anchor stores, renovations; capex for machinery and general corporate.
• SRL rights issue: Company invested Rs 500 million; SRL and downstream subsidiaries active.
• Employee Stock Option Plan (ESOP) pool increased to 37,93,580 options; five-year vesting.
• Proposed amalgamation of subsidiaries into Stanley Lifestyles Limited under pooling of interests.

Governance & leadership

• Board composition as at 31 March 2026: 6 directors; 3 Exec, 3 Independent.
• Key changes: Sunil Suresh redesignated to Executive Chairman (May 27, 2026); Sonakshi Sunil resigned (Dec 16, 2025).
• Venkataramana Seshagirirao Gorti appointed as MD (Dec 16, 2025); approved Mar 10, 2026.
• Annual General Meeting: 19th AGM on Sept 28, 2026; reappointment of Executive Chairman proposed.

ESG & CSR highlights

• CSR spend for FY2025-26: Rs 4.42 million; CSR policy disclosed on company website.
• MSME supplier engagement: 35% of direct input from MSMEs; 47% of purchases within India.
• Water and energy: groundwater withdrawal 16,583 KL; energy intensity 0.00518 KL/turnover.
• Waste management: total waste 1,088.81 MT; NIL LTIFR; safety and ESG programs ongoing.

Outlook & risks

• Momentum supported by improving residential handovers; recovery in high-ticket discretionary demand expected late FY27.
• Quality Control Order (QCO) and BIS-compliant operations strengthen competitive position.

AGM Details

• Date, time, mode: Sept 28, 2026, 2:30 PM IST, VC/OAVM.
• Cut-off date for voting eligibility: Sept 22, 2026.
• Remote e-voting window: Sept 25–27, 2026, 9:00–17:00 IST.
• Notice available on company and exchange websites.
• VC-based AGM per MCA/SEBI guidelines.

Key Resolutions

• Ordinary: Adopt standalone and consolidated financial statements.
• Ordinary: Re-appoint Sunil Suresh by rotation.
• Special: Change Sunil Suresh to Executive Chairman; residual term.
• Special: Remuneration for Shubha Sunil as Whole-time Director; residual term.
• Special: Change Venkataramana Seshagirirao Gorti to Managing Director; remuneration.
• Special: Ratify ESOP pool increase to 37,93,580 options; vesting up to five years.
• Special: Ratify grant of 5,70,000 ESOPs to Gorti.

Director Changes

• Sunil Suresh: CMD to Executive Chairman; term 27 May, 2026 to 15 Aug 2028.
• Shubha Sunil: WTD; residual term Aug 16, 2026–Aug 15, 2028.
• Venkataramana Seshagirirao Gorti: Joint MD to MD; term May 27, 2026–Dec 15, 2030.
• Remuneration approvals subject to policy.

ESOP Approvals

• ESOP pool increased to 37,93,580 options; vesting up to five years.
• Grant of 5,70,000 ESOPs to Gorti ratified.
• Remuneration/ESOP terms to be governed per policy.

New store opening

• Opening date: Sep 4, 2026, for the Stanley Superlative Living store in Jubilee Hills, Hyderabad.
• Store size is approximately 72,000 sq ft across six floors, expanding luxury home living footprint.
• Strengthens market presence and retail footprint in luxury segment.

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.