Management Commentary

Mr. Sunil Suresh, Chairman, stated that management remains focused on strengthening long-term business foundations through strategic expansion, operational consolidation, technology investments, and better control over customer experience. FY2026 profitability was impacted by gestation store costs, expansion-related investments, leadership transition, supply chain disruptions, delayed project handovers, and softer B2B demand in Q4 FY26. The company entered FY2027 with its highest-ever order book of approximately ₹62 crore, supported by healthy traction in full-home solutions and improving competitive environment. Management remains confident about business stabilization and long-term growth prospects given expanding retail network, improved gross margins, disciplined capital allocation, and debt-free balance sheet.

Operational Highlights

Store Expansion and Formats

The company operates three store formats:

  • Stanley Level Next: Exclusive format for bespoke design and modern luxury with ticket size ₹0.50 million and above
  • Stanley: Ready-to-buy collections with ticket size ₹0.30–0.50 million
  • Stanley Lite: Accessible format with approachable price points

Total of 11 stores opened in FY26 with 5 additional stores expected to commence operations shortly. Company follows COCO-led growth focus.

Financial Performance FY26

Income Statement Highlights

  • Revenue: ₹4,193 crore (compared to ₹4,262 crore in FY25)
  • Gross Profit: ₹2,400 crore with Gross Profit Margin of 57.2%
  • EBITDA: ₹818 crore with EBITDA Margin of 19.5%
  • PAT: ₹72 crore with PAT Margin of 1.7% (down from ₹130 crore and 3.0% in FY25)
  • Basic EPS: ₹5.22

Q4 FY26 Performance

  • Revenue: Not explicitly stated but implied from context
  • EBITDA: ₹227 crore
  • PAT: ₹108 crore
  • Basic EPS: ₹1.84

Balance Sheet (as of March 31, 2026)

  • Share Capital: ₹114 crore (unchanged from March 31, 2025)
  • Other Equity: ₹4,547 crore (₹4,529 crore in FY25)
  • Shareholders' Funds: ₹4,721 crore (₹4,755 crore in FY25)
  • Cash & Bank Balances: ₹1,625 crore (₹1,401 crore in FY25)
  • Investment in Mutual Funds: ₹205 crore (₹0 in FY25)
  • Total Assets: ₹8,906 crore (₹7,449 crore in FY25)
  • Debt: Minimal with Long Term Borrowings of ₹8 crore and Short Term Borrowings of ₹3 crore

Revenue Breakdown

By Product Category:

  • Sofa/Seating: 58.0%
  • Bed & Mattress: 14.3%
  • Case Goods: 6.0%
  • Kitchen & Cabinetry: 11.2%
  • Leather: 2.9%
  • Automotive Interiors: 7.7%

By Store Format:

  • COCO: 61.3%
  • FOFO: 8.9%
  • Others: 29.8%

Way Forward and Outlook

Store Expansion Strategy

Continued COCO-led growth focus with 5 new stores expected to commence operations shortly.

Demand Environment

Project handovers expected to accelerate from end of FY27, supporting stronger revenue momentum. Current enquiries indicate recovery in high-ticket discretionary demand. Company being BIS compliant expects new enquiries with QCO implementation.

Corporate Restructuring

Subsidiaries and step-subsidiaries will be merged with Stanley Lifestyles Limited to create a single listed entity.

Technology Transformation

ERP and CRM software are on-track to go live in FY27, enabling expedited rollouts, enhancements in conversions, and inventory efficiency.