Stanley Lifestyles Limited (NSE: STANLEY) is an Indian luxury and super-premium furniture company. The firm reported a consolidated net loss of ₹2 million for the third quarter of fiscal year 2026 as revenue decreased 5.4% due to near-term demand softness. On February 13, 2026, shares fell 5.75% to ₹169.57, resulting in a market capitalization of ₹968.68 crore.
Quarterly Results
Revenue from operations was ₹1,038 million for the quarter ended December 31, 2025, compared to ₹1,097 million in the previous year. Gross profit fell 3.1% to ₹618 million, while gross profit margin increased 130 basis points to 59.5%. EBITDA for the quarter was ₹124 million, reflecting a 39.5% decline from ₹205 million.
The EBITDA margin decreased to 11.9% from 18.7%. The quarterly net loss of ₹2 million compared to a ₹89 million profit after tax in the year-ago period. Management cited higher depreciation, finance costs, and expenses from new stores that have yet to reach optimal utilization as primary reasons for the decline.
Annual Performance Context
Revenue for the first nine months of the fiscal year reached ₹3,179 million, a 1.4% increase from ₹3,134 million in the prior year. Gross profit for this period grew 6.2% to ₹1,857 million, with gross margins improving to 58.4%. The company noted that modest growth reflects a consumer shift toward value-oriented products.
Net profit for the nine-month period was ₹136 million, a 26.1% decrease from ₹184 million. The net profit margin narrowed from 5.9% to 4.3%. Profitability was influenced by ongoing investments in growth infrastructure and the strengthening of the leadership team.
Business and Operations Update
The Sofa and Seating segment contributed 61% of total revenue for the nine-month period. Case goods accounted for 14%, while kitchen and cabinetry provided 6%. Company-owned stores generated 61% of sales, whereas franchise-owned stores accounted for 9%.
The company maintains a retail order book of ₹1,887 million as of December 2025. Manufacturing occurs at two Bengaluru facilities spanning 300,000 square feet, which recently received Bureau of Indian Standards certification. Working capital days improved to 161 from 171, and inventory days, excluding display stock, decreased to 394 from 434.
Forward Outlook
The company plans to open six new stores in the middle of fiscal year 2027. Management expects project handovers to accelerate starting from the end of the 2027 fiscal year. Strategic focus areas include a transition toward cash-and-carry models, increased localization, and backward integration to improve margins.
Technological transitions involving SAP HANA and Salesforce are scheduled for fiscal year 2027 to enhance inventory efficiency. Management anticipates industry impact from the Furniture Quality Control Order, which is expected to be implemented by the end of the current financial year.
Performance Summary
Stanley Lifestyles reported a net loss for the third quarter as demand softness affected revenue performance. While nine-month results show slight revenue growth and margin improvement, higher costs from expansion and infrastructure investments have reduced net income. The firm improved its working capital cycle and obtained manufacturing certifications while continuing its retail network growth.