Furniture-Furnishing company Stanley Lifestyles announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue from Operations declined by 5.4% to Rs 1,128 million. EBITDA fell by 16.2% to Rs 227 million. EBITDA Margin decreased from 22.7% to 20.1%. Profit Before Tax (PBT) dropped 23.9% to Rs 108 million. PBT margin declined from 11.9% to 9.6% PAT (Ind AS) increased by 4.9% to Rs 108 million. PAT (IGAAP) declined 11.3% to Rs 117 million. FY25 Financial Highlights: Revenue from Operations fell slightly by 1.5% to Rs 4,262 million. EBITDA decreased 3.7% to Rs 818 million. EBITDA Margin slightly reduced from 19.6% to 19.2%. PBT dropped by 6.9% to Rs 364 million. PBT Margin declined from 9.0% to 8.5%. PAT (Ind AS) remained almost flat at Rs 292 million, up 0.2%. PAT (IGAAP) remained unchanged at Rs 345 million. Commenting on the performance Sunil Suresh, Managing Director said: “The financial year gone by was an important milestone for the Company, marked by the successful completion of our Initial Public Offering in June 2024. The listing has strengthened our financial base, enabling us to drive our strategic priorities across the premium and luxury home interiors market. For FY25, Stanley Lifestyles reported Revenue from Operations of Rs 4,262 million. The COCO retail business, which continues to be the key driver, grew by 12.7% QoQ and 13.5% YoY for FY25-Q4, the full year the growth stand at 8.5%, supported by consistent demand for premium and luxury furniture in key urban centres. Among our brand portfolio, Stanley Level Next led the performance with 15.5% YoY growth, while Stanley Boutique degrow by 9.2% YoY and Sofas & More grew by 11.8% YoY. We have witnessed some rebound in the footfall traction in Q3 and Q4. Our distribution business vertical saw short-term disruption due to a realignment in credit policies from credit to cash & carry model impacting volumes. This vertical is now stabilizing, and we expect growth momentum to return by Q3 FY26 as channel partners adjust to the revised terms. Meanwhile, the B2B segment remained flat throughout the year. Although there is an encouraging volume of enquiries, the conversion cycle is elongated, and we anticipate similar trends in FY26. This business will continue to be nurtured with a focus on project-driven execution timelines. On the profitability front, the localisation efforts and manufacturing efficiencies through in-house manufacturing has been progressing well, leading to an improvement of 237-bps in gross margins. The gross margin expanded to 56.3% in FY25 compared to 53.9% in FY24. As of FY25, we have 68 stores across India, comprising 44 COCO stores and 24 FOFO stores. COCO stores contributed 61% of total revenue, reinforcing our control over brand presentation, customer engagement and service quality. That said, our retail expansion during the year was measured. Despite the availability of IPO funds, the rollout plan was moderated due to a mismatch between expected rental terms and shortage of Grade A retail locations. Several high-traffic zones saw rental expectations that did not align with our business model, leading to delayed store launches. On the demand front, while structural indicators remain favorable, footfall remained less than expectations, primarily owing to lowerthan-expected residential handovers. We view this as a temporary lag rather than a demand deficit. The premium and luxury residential real estate sector is experiencing strong sales traction, and we continue to monitor housing handover schedules closely. Looking ahead, we are on track to opening 5 stores (3 COCO & 2 FOFO) in Q1 FY26, with a full-year target of 15 new stores with 3 stores planned relocation. Our focus remains on expanding in high-opportunity real estate clusters, improving inventory efficiencies at the store level and enhancing customer engagement through curated offerings. Additionally, the entry of imported furniture which is a major competition is poised for disruption, with the government's emphasis on BIS certification coming into effect from March’26. With a strong presence of retail stores in major metros supported by well-established fully integrated manufacturing capacity, Stanley Lifestyles is well-placed to capitalise on emerging opportunities in India’s premium and luxury furniture landscape.” Result PDF
Conference Call with Stanley Lifestyles Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Furniture-Furnishing company Stanley Lifestyles announced Q3FY25 results Q3FY25 Revenue from Operations Rs 1,097 million Q3FY25 EBITDA Rs 204 million with margins of 18.6% Q3FY25 PAT Rs 89 million with margins of 8.1% Sunil Suresh, Managing Director said: “Stanley Lifestyles continued its growth trajectory in Q3FY25, driven by strong performance across its COCO retail and B2B business. The Company reported Revenue from Operations of Rs 1,097 million, reflecting a 2.2% YoY growth and a 6.5% sequential increase. This growth was led by a 10.1% YoY increase in the COCO retail business and a 21.1% YoY increase in the B2B business. Despite challenges in Q2FY25 with reduced store footfalls, due to unusually heavy rainfall in key retail markets, and a shift in one of the business verticals from credit to a cash-and-carry model, the retail business grew by 6.6% YoY in 9MFY25. On the profitability front, the localisation efforts have been progressing well, leading to an improvement in gross margins. The gross margin expanded to 58.1% in Q3FY25 compared to 54.7% in Q3FY24. EBITDA for the quarter was Rs 204 million, with a margin of 18.6%, while the PAT margin expanded to 8.1% in Q3FY25, compared to 6.0% in Q3FY24. Continuing the expansion strategy, the company added four new stores in Q3FY25, two under the Stanley Level Next brand and two under Stanley Sofas and More. With this, our total store count is 68 stores, comprising 41 Company-Owned and Company-Operated (COCO) stores and 27 Franchise-Owned and Franchise-Operated (FOFO) stores. COCO stores contributed 60% of the total revenue during Q3FY25. Looking at the broader market, India’s economic transformation continues to create promising opportunities for the premium and luxury furniture segment. The rapid growth in luxury housing is a key driver of demand. Sales of apartments priced between Rs 1–10 crore increased by 46% in 2024 and have grown nearly 500% since 2019. Similarly, apartments priced at Rs 2–5 crore have registered a 400% growth since 2019. This trend is particularly strong in key urban markets such as Mumbai, Delhi-NCR, Bengaluru, Pune and Hyderabad. As the handover of luxury homes is expected to surge between 2025 and 2027, Stanley Lifestyles is well-positioned to cater to this growing segment with its curated range of luxury furniture and home solutions. Looking ahead, Stanley Lifestyles remains committed to its growth strategy and continues to be on track with its store expansion plans. While some planned store launches for FY25 have been delayed due to rental inflation, making it challenging to secure properties at prime locations with favorable terms, these openings have been deferred to upcoming quarters. However, the company remains focused on executing its expansion pipeline while strengthening its brand positioning and product portfolio. With a strong foundation, a dedicated team and the continued trust of our stakeholders, Stanley Lifestyles is well-positioned to achieve its growth objectives and create lasting value in the premium and luxury furniture market.” Result PDF