Stanley Lifestyles (STANLEY) Q2 25/26 earnings summary

Executive summary

• The company, celebrating nearly 30 years, has evolved into a fully integrated luxury furniture brand, expanding from automotive leather to home solutions and new lifestyle verticals like perfumes and shoes.

• Operates 73 stores across India, with 9 new additions in H1 FY26; retail contributed 70% of total revenue, and international expansion began with a store in Colombo, Sri Lanka.

• Launched 'Stanley Boutique Homes' and 'Superlative' store formats, and completed an IPO in June 2024, raising Rs 1,839.37 million for expansion.

• Strategic focus on COCO (company-owned, company-operated) stores in major metros, driving significant growth.

• Board approved acquisition of a perfume business to expand the lifestyle product portfolio.

Financial highlights

• H1 FY26 revenue: INR 2,141 million, up 5.1% YoY; Q2 FY26 revenue: INR 1,054 million; H1 PAT: INR 138 million, up 45.3% YoY.

• Gross profit margin improved by 330 bps YoY in H1 FY26 to 57.8%; EBITDA margin expanded to 22.1% in H1 FY26.

• Q2 FY26 EBITDA margin was 23.5%; PAT margin reached 6.4% in H1 FY26.

• Lease agreements for new stores led to increased amortization and finance expenses.

• Basic EPS for H1 FY26 was Rs 2.36.

Outlook and guidance

• Targeting INR 1,000 crore revenue within 3-4 years from IPO, driven by COCO store expansion and new formats.

• Plans to open 15 stores in FY26, focusing on affluent metros and emerging urban clusters.

• Strategic initiatives include digital transformation, localization, backward integration, and expanding the product portfolio.

• No major CapEx beyond the planned INR 140 crore; focus remains on prudent, location-driven expansion.

• IPO proceeds are being utilized for new store openings, anchor stores, renovations, and capital expenditure, with Rs 808.62 million unutilized as of September 30, 2025.