Stanley Lifestyles Ltd (NSE: STANLEY) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Sunil Suresh — Managing Director and Promoter
J K Sharath — Chief Financial Officer
Analysts:
Unidentified Participant
Mohit Dodeja — Analyst
Arvind Arora — Analyst
Yug Jhaveri — Analyst
Hitaindra Pradhan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Stanley Lifestyle Limited Q1FY26 earnings conference call hosted by MK Global. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit dude from MK Global. Thank you. And over to you sir.
Mohit Dodeja — Analyst
Good evening everyone. I would like to welcome the management and thank them for this opportunity we have with us today. Mr. Sunil Suresh, Managing Director Mr. Sharat. As the new Group CFO, I shall now hand over the call to the management for the opening remarks. Over to you gentlemen.
Sunil Suresh — Managing Director and Promoter
Good evening everyone. Welcome to The Stanley Lifestyle Limited earning conference call for the first quarter ended 30 June 2025. The earnings presentation has been uploaded on the Stock Exchange and we trust you have had the opportunity to review it. During the first quarter of FY26, global trade developments, particularly the recent US tariff policies have weighed on broad market sentiment. While the Indian luxury furniture sector remains structurally strong, these macro headwinds have created a more cautious consumer environment leading to lower discretionary spending in certain segments. The luxury residential real estate market continues to be providing long term growth opportunities.
In H1 2025, luxury housing recorded significant expansion with sales in the rupees 3 to 10 crores price range rising by 128% and the rupees 20 to 50 crore homes doubling in year on year. However, delays in property handovers, a trend that has been persisted over recent quarters, continues to differ purchase decisions for premium home interiors. Despite these headwinds, we started FY26 on a positive note with a strong growth in both retail and B2B segments. Revenue from operations was Rupees 1,087 million, an increase of 7.9% for Q1FY25, the retail business contributed 640 million up by 25.2% year on year, led by the performance of Stanley Levelnext and Sofas and More which grew by 20% and 50.7% respectively.
All new stores opened in FY25 have achieved break even reflecting the effectiveness of our location selection and execution strategy. This quarter also saw the addition of two new stores, Sofas and more stores. One is in Surat and Mangalore as on 30th June 2025, Stanley Lifestyles operates 68 stores compromising 43 cocoa stores and 25, 4, 4 stores. The cocoa stores accounting for 60% of the revenue in Q1FY26. On profitability, gross profit increased by 16.6% year on year to rupees 624 million with margins expanding 4 to 8 basis points to 57.4%. Our focus on localization and improving efficiency in manufacturing have allowed us to optimize production costs while broadening the product mix.
EBITDA grew 11.9% to rupees 225 million with a margin of 2.7%. PAT increased more than 2x to rupees 78 million with a margin of 7.2%. We have made a strategic advance in line with our growth vision. With Stanley Retail Limited Acquiring complete ownership of Shastra Decor Private Limited, we have strengthened our presence in Hyderabad. This step allows us to streamline opportunities, unified brand representation and and improve decision making efficiency in this key market. Hyderabad is an important growth hub for luxury furniture and we will invest in growing the Hyderabad market to achieve our long term growth strategy.
Additionally, we are pleased to welcome Mr. J.K. sharath as our Group CFO. His deep understanding of the company along with his strong financial and strategic skills experience will be a great addition to our leadership team. He will play a key role in driving our transformation agenda and lead Stanley into its next chapter of growth and long term value creation. While broader market sentiment remains cautious, our product portfolio is not directly exposed to the categories impacted by the US Tariff. We do not expect any material impact on our business from these changes. Looking ahead, we remain on Track to open 15 new stores in FY26 with emphasis on high potential real estate catchments in major cities and emerging urban clusters.
The focus continues to be strengthening the Cocoa format and offering curated collections that align with the evolving preferences of affluent luxury homemakers. The recent raids being conducted by DRI on luxury furniture importers who are under invoicing and the Gazette for QCO on import furniture having been passed, we remain buoyant about our future growth. With differentiated brand portfolio, integrated manufacturing capabilities and a growth presence in India’s luxury furniture market, Stanley Lifestyle Limited is well positioned to capture the opportunities ahead of FY26. That concludes my remarks. We can now open the floor for questions and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Arvind Arora from A Square Capital. Please proceed.
Arvind Arora
No. Am I everyone? Yeah. Sir, congratulations on good set of number at retail side. So sir, can you please provide a breakup of retail and non retail.
Sunil Suresh
So the domestic retail revenues we have grown 25% compared to Q1 of 25.
Arvind Arora
Okay, so what is the absolute number?
Sunil Suresh
Absolute number is 100 and sorry. Domestic retail.
J K Sharath
So let me tell you the domestic retail number for us in the current quarter was around 64 crores. In that comparing last June quarter FY25 Q1 was 51 crores. So we see an overall close to 25% growth in the domestic retail business revenue in the B2B and the OEM business. Our current revenue is current quarter revenue is 28.3 crores. And Q1 of 2025 was 22 crores. So we have about 27% growth there. Apart from this we have our franchisee and accessories business there. The revenues have dropped from 27 crores in the last quarter to 16 crores in the current.
Arvind Arora
Okay, okay, understood. So yeah
Sunil Suresh
The growth has come more.
Sunil Suresh
From the cocoa stores.
Arvind Arora
Understood. So sir, our focus is on also on B2C business, correct?
Sunil Suresh
Yes, absolutely.
Arvind Arora
Okay. So sir, last time you alluded that our target would be to become 1000 crore company next to next three years. Correct. So where we are as of now like and considering the paid that we targeted like 12 to 15. But if I compare quarter on quarter paid margin and that’s also decline from 9% to approx. 7.2%. So what is the reason for this decline?
Sunil Suresh
Which one are you talking about?
Arvind Arora
Current quarter decline,
J K Sharath
Quarter on quarter we have gone quarter. If you see our pat percentage has grown has increased from 3.8% to 7.2% from the last.
Arvind Arora
I’m talking quarter four to quarter one, the last quarter that just completed before this quarter and the quarter four financial year 25.
Sunil Suresh
So basically when you look at our business traditionally we are seasonal in terms of this. Usually our first quarter and second quarter you have to normally compare it with the first quarter and second quarter of last year. Because you know almost, I can say more than Almost close to 60% happens between Q3 and Q4.
J K Sharath
Okay, okay. Okay. And sir, next question is last time you mentioned that we also would be having a discuss discussion with the builders if there is any requirement. So any update on that part? Any. Any discussion that we are having with anyone so that we can scale up our business.
Sunil Suresh
These are, these are ongoing processes. Our broad vision, what you mentioned remains very much the same and we are definitely heading towards that. So these are all ongoing processes? Yes. We have just enabled with a particular project in South Bombay. We have got an order for a few mock up kitchens there. These are ongoing processes.
Arvind Arora
Okay. Okay, sir. Thank you. Thank you sir. All the best.
Sunil Suresh
Thank you very much.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Yog Zaveri from Molecule Ventures. Case received.
Yug Jhaveri
Thank you for the opportunity, sir. So first our question is on the COCO retail side. So there is 25% growth. If you can share the number for the last three to four quarters. Like what was, what was the growth in Q4 and Q3 Q2YY basis in retail business.
Sunil Suresh
You are asking us to share the numbers of what are the quarters. You want us to Share the numbers.
Yug Jhaveri
Q4, Q3 and Q2 of Quarters of last year. What was the growth year on year. Each quarter if you can have.
J K Sharath
You want the growth percentage?
Sunil Suresh
Yeah.
Yug Jhaveri
Yes, the growth percentage in retail business for the last year’s quarters.
J K Sharath
So if you actually look at year on year it is always better for us because as I mentioned to you, Q1 and Q2 will look a bit suppressed because of you know, season being in Q3 and Q4. So if you look at this quarter, if I look at we have compared to last quarter we have grown at 25% Q1.
Yug Jhaveri
I got that sir. But if you can provide me, you know last year’s number so we can, we can you know, map the growth rate. So, so if you don’t have that. Right now, what I can ask is that this amount of growth 25 have you seen anywhere between the recent quarters last year or in FY24 or this double digit 25 growth, you know, after a quite long time. Hello.
J K Sharath
So if you look at our numbers from the last time Q1 to Q2 we grew by 8% and then we grew by 10% quarter on quarter with the previous quarter and then we have grown by 16% and now we have seen a 26% 25% growth. So this is a progressive growth growth which we are seeing and I don’t think earlier in the past, at least in the past two years we had any quarter where on quarter such a 25% growth.
Yug Jhaveri
So sir, this 25% growth is YUI right? This quarter compared to last year’s Q1. But the stated the numbers you see 8%, 10% and 15%. That is quarter and quarter for FY24.
J K Sharath
Yes, yes.
Sunil Suresh
It’s a quarter on quarter on quarter growth.
Yug Jhaveri
Okay. So year on year would be, you know on the similar range or it will be flat.
J K Sharath
No, year on year there will be. There will be a degrowth because our last March, March quarter we had done retail revenue of more than 72 crores. Now we have 65 crores.
Yug Jhaveri
Okay, got it. So year on year it would be degrowth for last year in cocoa business.
J K Sharath
That is primarily because you can’t compare these quarters because of the seasonality in our business. Generally our H2 is heavier on revenue side because of the festival season, sales etc. So that.
Yug Jhaveri
No, I understood that sir. What I’m trying to ask is that there was 25% growth in Q1FY26 compared to Q1FY25. Now I just wanted to know the growth rate, what was that in Q1FY25 compared to Q1FY24. Same goes for Q2FY20.
J K Sharath
So that number we don’t have right now with us. Maybe we can.
Sunil Suresh
It was not, definitely not anywhere close to 25% normally I think if you look at year on year last two years we have managed roughly single digit growth only quarter on quarter. We will share it with you, not a problem. But we don’t have it handed.
Yug Jhaveri
Sure, I will get that offline. Now the second question was on the same store sales growth. So what was SBR SSBR this quarter and you said in the PPG got improved. So on that slide.
J K Sharath
So generally we. This is one of the key metrics which we track for our sssd. So this SSH growth has been some varying somewhere from higher single digit to you know double digits depending on the stores and the locality and the region etc.
Yug Jhaveri
Okay. And any, any things which you have done to improve that compared to previous year?
J K Sharath
Lot of things. This is an ongoing process. I think like Sunil said we very frequently look at our store placing, the product placing and also we look at how the stores are performing and lot of advertisement and marketing focused activities happen to make sure the footfalls come in. A lot of multiple factors play in and also a lot of things are also dependent. Like if you have high rains and monsoons there may be challenges in on the footfalls. So there are multiple factors which happens. Our objective is always to make sure.
Yug Jhaveri
Will it be sustainable going ahead the double digit for High single digit growth will be sustainable.
Sunil Suresh
Yes, definitely. Because also you must understand that lot of our stores are now coming to maturity. Stores which we have opened in FY23 24 are now coming to maturity. So we feel that in the due course of next whatever six to 18 months, almost 70 to 80% of our stores will be more matured stores. And the trend is that, you know, in a four year window, when you look at it, usually the year one, the business, what the store gives is about 60%, second year is about 70, 75%, third year is about 80% and the fourth year is optimization at about 100%.
So now the maturity stores are getting higher because last year as we told we slowed down on our expansion plan. We did not rush into the market because we were not getting conducive real estate. But of course having waited now this year we have started rolling out our stores better.
Yug Jhaveri
Okay, now one thing I’m not able to understand is the breakup part. So 64 crore revenue was from the cocoa business which grew 25% this quarter. 28%. 28 crores was from B2B business which grown 25%. So the 16 crore which you see in B2B2C so we include that in pofo revenue or what? So where do we record that revenue?
J K Sharath
So 4 is part of the franchisee and accessories business. So we have the retail business, we have the franchisee and the accessory business and then we have the B2B OEM business. So these are the main three clusters which we look at.
Yug Jhaveri
Yes, I, I know, I, I know the three verticals. But so out of 109 crore, 64 crore was from Coco, 28 crore was from B2B. Yeah, and so that 28 crores, does it include B2B2C also or just B2B part?
J K Sharath
So the franchise is separate. So the second segment is the franchise and the accessories which is about 16 crores.
Yug Jhaveri
Okay, so B2B2C what was the revenue which, you know where you change the model from credit to cash in carry model. What was the revenue of that? What is the revenues for that?
J K Sharath
That business has stabilized. Now it’s doing for the quarter we have done about two and a half crores because of a change in the model from credit to cash there there was some disturbance in the overall revenue growth there. But now we see that that market is sort of stabilizing, stabilizing.
Sunil Suresh
And, and we have collected also we.
J K Sharath
Have collected all the old money. Plus now all the customers we have are on cash. So we don’t carry any credit risk.
Yug Jhaveri
Okay, so basically Coco Coco business grew 25% this year and B2B also this quarter. Sorry, my bad. And B2B also grew 25% and so forth. Focal was down 9% YoY. So I’m not able to map the difference. So because of this 44 9% decrease the overall revenue growth was only 8% and the other two main driving business grew 25%. So you know I am not able to.
J K Sharath
Okay, I’ll give you the math. Our franchisee and accessory business for the last quarter was 27 crores. That degree by 40% from 27 crores to 60 crores.
J K Sharath
This is YOY or quartering
J K Sharath
Quarter on quarter.
Yug Jhaveri
If you can provide YY it will be helpful.
Unidentified Speaker
So this is yui the number which. We are talking about. I’ll give you the complete breakup. So on the retail side we had 51.2 cr which is now 64.1 cr. This is on the retail revenue side franchisee and accessories we were having 27.3 cr last quarter. This quarter we have 16.3 cr that there is a 40% decline here. This is mainly on account of the D8 brand which moved out of the of the company. So last year we plugged in 10 crore on account of this. On a franchisee model of a brand Stanley FSC there is 11% growth grown that has happened in franchisee and accessory business.
The third is the B2B or OEM sector where we have clocked in 27% growth. So last year the number was 22.2 versus now 28.3 if you total the entire thing. Last quarter we have plugged in 100.7 cr and this quarter we have logged in 108.7 cr 8%.
Yug Jhaveri
Okay, so major growth was affected by 4, 4 business model and that was also due to DH tools closure. So when do you expect to rebound because of will recover in a short period of time Then the overall picture would look quite different compared to what we have right now.
Unidentified Speaker
If I talk about it is two segments that is broken into. So one is the product placement and other one is the secondary sale. On the secondary sale we are around 1, 2% up from the last quarter. However in the product placement because we have opened two SLN model of store last quarter versus now we have opened SNM level of store. So there is there is a gap that is on account of the product placement primary sales.
Sunil Suresh
On the secondary sales, secondary sales we have seen a growth of about 2%.
Yug Jhaveri
Secondary sales is B2B2C.
Sunil Suresh
It is a franchisee business. What we are talking about business.
J K Sharath
It’s a bit.
Yug Jhaveri
Okay, so if you can just brief me about what, what are these two models. I, you know, I’m not, I have not heard about these models. If you explain in very brief what does, what are these models and what is happening.
J K Sharath
So basically Coco model is a company owned, company operated model wherein we own the stores and we operate. Whereas we’ll appoint a franchisee and the franchisee will open the store and they will operate the store.
Sunil Suresh
Again, 100 sold out. We don’t give any credit there. We don’t offer any discounts. It’s all a cash and carry model as far as Popo is also concerned.
Yug Jhaveri
Okay.
J K Sharath
And the franchisee will have a store, Stanley store and they will sell it to the customer.
Yug Jhaveri
Okay, got that. But the decrease from 27 crores to 16 crores in 4. 4. So what? Exactly.
J K Sharath
That is largely because of the D8 because 9.6 crores was there last year which because of the change in this.
Sunil Suresh
Brand as we have acquired the Hyderabad business and our Hyderabad partner had a different store which revenue was captured last financial year under the name of D8. That was nothing to do with Stanley. They were importing and selling furniture in that particular brand. Now that is not reflecting in this quarter. That is, that is, that is.
Yug Jhaveri
On that side. So when do you expect to recover from that? This means.
Sunil Suresh
So we are basically now we are expanding further in Hyderabad stores. We have planned to open three stores in the next two quarters. So we are going to go a lot more stronger in, in Hyderabad going forward.
Yug Jhaveri
Okay, got that. And just last thing if I may ask in PCT on page number slide number three. So you have you know written Poco revenue was 1:12.5 crore this quarter compared to 13.7. So I just got little confused from that side. So what exactly is that?
Unidentified Speaker
This is actually revenue. If I talk about the Stanley brand revenue year on year quarter, last quarter versus this quarter.
Yug Jhaveri
Okay, so you have excluded DH. So out of 27 you have excluded the D8 revenue.
Unidentified Speaker
Yeah. Right. So that is on the Stanley brand thing, what we are trying to demonstrate the revenue of 13.7 versus 12.5.
Yug Jhaveri
Okay, got that. It only includes Stanley. So you have excluded D8 in that slide revenue.
Sunil Suresh
Right, right, right.
Yug Jhaveri
And going ahead with the store opening in Hyderabad we can you know remount or three to four stores are planned in Hyderabad. Right.
Sunil Suresh
These stores have already been signed up and the work has just commenced. As far as Hyderabad is concerned, short.
Yug Jhaveri
And just last on B2B part. So. So that one, two. In earlier call you were saying that there are two to three customers who are in talks with US customers for B2B contract manufacturing. So will we have any impact because of this status issue in ongoing?
Sunil Suresh
Luckily for us, despite it being an American customer, the discussion what we are doing is for their domestic requirement as well as for their Middle east requirement and not for American requirements. So. So we have not been impacted in any way as of now.
Yug Jhaveri
So you will supply non U.S. business for the non U.S. business.
Sunil Suresh
Correct, we will supply for the international business which is India and Middle East.
Yug Jhaveri
For that. Sir, thank you so much for explaining in detail. Thank you very much. All the very best.
Sunil Suresh
Thanks.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is on the line of Mohit Deja from MK Global. Please proceed. Mr. Mohit, your line has been unmuted.
Mohit Dodeja
Hi sir. Good evening. Congratulations on a great set of numbers. So two questions from my end. Manufacturing efficiencies have led to margin expansion almost north of 430bps. So what specific initiatives have driven this and is this margin sustainable or we can expect any further gains? And second question is, could you elaborate on the acquisition of Shasta Decor Private limited and like how it, how it will benefit Hyderabad market penetration?
Sunil Suresh
Okay, so yes, actually if you look at the, you know, where we are at this point, point in our journey with scale, I think we can definitely look at further improvement in terms of efficiency, localization. As far as leather has continued and played out well and there is a lot more to do. We believe that there will be a constant improvement with scale improving as we expand our business going forward. So that answers your first question. Second question. Hyderabad for us has been a very important market because consumption of luxury furniture, primarily because of the sizes of homes and villas is a very strong market for us.
And acquiring our partner who had various other businesses and was not able to focus mainly on our business is going to tremendously help us going forward. So we have just about started our expansion there now. We have currently three stores. We are adding three more stores in the next two quarters and we’ll continue to invest in Hyderabad because it is a, in our opinion it’s as big or a bigger market than our home market of Bangalore.
Mohit Dodeja
Okay, just a follow up on this. These three stores, are they Cocoa or Fuko?
Sunil Suresh
Hyderabad? Now everything is cocoa. So what we have done is systematically we have made sure that in the Major six cities which is Delhi, Bombay, Chennai, Bangalore, Pune and Hyderabad. Now we have acquired most of the partners and all our stores are going to be cocoa. These are all markets which we have been present for more than a decade and we are very aware of the market conditions and we want to grow in these markets primarily under the cocoa format.
Mohit Dodeja
Okay sir, thank you so much. That is from my end.
operator
Thank you. Participants who wish to ask a question may please press star and one at this time. The next question is from the line of Hitendra Pradhan from Maximil Capital. Please proceed.
Hitaindra Pradhan
Hi sir, hope I’m audible. Just a accounting question. The EBITDA margins that you disclose are post rent or before rent.
Unidentified Speaker
All right, so as we are using the index method so automatically it doesn’t. The rental doesn’t hit in to the P L the capitalized form of RO.
J K Sharath
Numbers.
Hitaindra Pradhan
Yeah, okay. Okay. These are like post index numbers, right?
J K Sharath
Yes.
Hitaindra Pradhan
Yeah. So what are your current rentals as percentage of revenue, rental expenses?
Sunil Suresh
Essentially what happens is it all depends on the maturities of stores. And yeah, currently we have a lot of stores that are fairly new. When you look at it on a global perspective, what is it currently the rental.
Unidentified Speaker
So on the, on our complete retail business that we have on the top line it is somewhere in the tune of 12 to 13% on that revenue on my retail revenue on the overall single on a complete company level it will be somewhere into the tune of. 6 to 8 percentage
Hitaindra Pradhan
Got 6 to 8% on the console. So just to confirm you, you mentioned about your revenue ramp up from the first year to fourth year. Can you just again, you know mention that again? Like I missed the numbers basically. So the revenue run of your cocoa.
Sunil Suresh
Stores, can you repeat that question?
Hitaindra Pradhan
Yeah, your revenue ramp up for Coco stores. So how does the revenue ramp up happens from first year to fourth year?
Sunil Suresh
Yeah. Okay. So normally what we have seen as a trend is when we open a store in a new market the first year the revenue is roughly about 60, 55, 60% of the true potential of that store. Second year goes to about 65, 70%, third year about 80, 85%. And finally on the fourth year is where we say it’s around 95 to 100%. So that’s how the store usually has shown us the signs of ramp up in the past.
Hitaindra Pradhan
Got it sir, that’s helpful. Thank you.
Sunil Suresh
Thank you.
operator
Thank you. Participants who wish to ask a question may please press star in one at this time to ask a question please press start in one now as there are no further questions from the participants. I now hand the conference over to the management for the closing comments. Over to you, sir.
Sunil Suresh
Thank you all for taking the time to join us today and for your continued interest in Stanley Lifestyle Limited as we continue to navigate opportunities ahead, we remain committed to delivering consistent growth and value in the coming quarters. As always, if you have any further questions, please feel free to reach out to our Investor Relation Advisor, Churchgate Partner and we’ll be happy to address all your queries. Thank you. Once again.
operator
Thank you on behalf of Stanley Lifestyle Limited. That concludes this conference. Thank you for joining us and you may now disconnect your line.