Standalone Financial Performance (Quarter Ended September 30, 2026)

  • Revenue from operations: ₹5,590 lakhs (compared to ₹5,518 lakhs in Q1 FY27 and ₹5,122 lakhs in Q2 FY26)
  • Other income: ₹710 lakhs (compared to ₹640 lakhs in Q1 FY27 and ₹597 lakhs in Q2 FY26)
  • Total income: ₹6,300 lakhs (compared to ₹6,158 lakhs in Q1 FY27 and ₹5,719 lakhs in Q2 FY26)
  • Profit before exceptional items and tax: ₹343 lakhs (compared to ₹572 lakhs in Q1 FY27 and ₹671 lakhs in Q2 FY26)
  • Exceptional items: ₹91 lakhs (related to fraud misappropriation - see Note 7)
  • Profit before tax: ₹252 lakhs (compared to ₹539 lakhs in Q1 FY27 and ₹671 lakhs in Q2 FY26)
  • Tax expense: ₹66 lakhs
  • Profit for the period: ₹186 lakhs (compared to ₹385 lakhs in Q1 FY27 and ₹509 lakhs in Q2 FY26)
  • Earnings per share (Basic): ₹0.33 (compared to ₹0.67 in Q1 FY27 and ₹0.89 in Q2 FY26)
  • Earnings per share (Diluted): ₹0.33 (compared to ₹0.67 in Q1 FY27 and ₹0.89 in Q2 FY26)

Standalone Financial Performance (Half Year Ended September 30, 2026)

  • Revenue from operations: ₹11,108 lakhs (compared to ₹10,178 lakhs in H1 FY26)
  • Other income: ₹1,350 lakhs (compared to ₹1,238 lakhs in H1 FY26)
  • Total income: ₹12,458 lakhs (compared to ₹11,416 lakhs in H1 FY26)
  • Profit before exceptional items and tax: ₹915 lakhs (compared to ₹1,440 lakhs in H1 FY26)
  • Exceptional items: ₹124 lakhs
  • Profit before tax: ₹791 lakhs (compared to ₹1,440 lakhs in H1 FY26)
  • Tax expense: ₹220 lakhs
  • Profit for the period: ₹571 lakhs (compared to ₹1,088 lakhs in H1 FY26)
  • Earnings per share (Basic): ₹1.00 (compared to ₹1.91 in H1 FY26)
  • Earnings per share (Diluted): ₹1.00 (compared to ₹1.90 in H1 FY26)

Consolidated Financial Performance (Quarter Ended September 30, 2026)

  • Revenue from operations: ₹10,706 lakhs (compared to ₹9,935 lakhs in Q1 FY27 and ₹10,542 lakhs in Q2 FY26)
  • Other income: ₹527 lakhs (compared to ₹629 lakhs in Q1 FY27 and ₹510 lakhs in Q2 FY26)
  • Total income: ₹11,233 lakhs (compared to ₹10,564 lakhs in Q1 FY27 and ₹11,052 lakhs in Q2 FY26)
  • Profit before exceptional items and tax: ₹406 lakhs (compared to ₹248 lakhs in Q1 FY27 and ₹810 lakhs in Q2 FY26)
  • Exceptional items: ₹48 lakhs
  • Profit before tax: ₹358 lakhs (compared to ₹181 lakhs in Q1 FY27 and ₹810 lakhs in Q2 FY26)
  • Tax expense: ₹65 lakhs
  • Profit for the period: ₹293 lakhs (compared to ₹65 lakhs in Q1 FY27 and ₹604 lakhs in Q2 FY26)
  • Profit attributable to equity shareholders: ₹281 lakhs (compared to ₹48 lakhs in Q1 FY27 and ₹560 lakhs in Q2 FY26)
  • Earnings per share (Basic): ₹0.49 (compared to ₹0.08 in Q1 FY27 and ₹0.98 in Q2 FY26)
  • Earnings per share (Diluted): ₹0.49 (compared to ₹0.08 in Q1 FY27 and ₹0.98 in Q2 FY26)

Consolidated Financial Performance (Half Year Ended September 30, 2026)

  • Revenue from operations: ₹20,641 lakhs (compared to ₹21,409 lakhs in H1 FY26)
  • Other income: ₹1,156 lakhs (compared to ₹974 lakhs in H1 FY26)
  • Total income: ₹21,797 lakhs (compared to ₹22,383 lakhs in H1 FY26)
  • Profit before exceptional items and tax: ₹654 lakhs (compared to ₹1,849 lakhs in H1 FY26)
  • Exceptional items: ₹115 lakhs
  • Profit before tax: ₹539 lakhs (compared to ₹1,849 lakhs in H1 FY26)
  • Tax expense: ₹181 lakhs
  • Profit for the period: ₹358 lakhs (compared to ₹1,382 lakhs in H1 FY26)
  • Profit attributable to equity shareholders: ₹329 lakhs (compared to ₹1,349 lakhs in H1 FY26)
  • Earnings per share (Basic): ₹0.57 (compared to ₹2.36 in H1 FY26)
  • Earnings per share (Diluted): ₹0.57 (compared to ₹2.35 in H1 FY26)

Exceptional Items

Note 6 (Labour Code Impact): Effective November 21, 2025, the Government of India notified four new Labour Codes. The company recognized an incremental employee benefit liability of ₹144 lakhs for FY26, disclosed as an exceptional item. Subsequently, the company restructured employee compensation arrangements, resulting in a reversal of ₹68 lakhs for the quarter ended June 30, 2026 and six months ended September 30, 2026, recognized under exceptional items.

Note 7 (Fraud Misappropriation): On August 05, 2026, the company terminated its Company Secretary and Compliance Officer following an investigation into misconduct and misappropriation of funds. An amount of ₹192 lakhs was identified as misappropriated. The company initiated legal action, and the court passed an order on October 03, 2026 directing bankers to transfer ₹167 lakhs to subsidiary Stanley Retail Limited. As of the date, ₹43 lakhs has been received. The company charged off ₹192 lakhs as an exceptional item for the six months ended September 30, 2026 (₹101 lakhs in Q1 and ₹91 lakhs in Q2).

IPO Proceeds Utilization

The company received ₹18,394 lakhs (net of IPO expenses of ₹1,606 lakhs) from fresh issue of equity shares. Utilization as of September 30, 2026:

  • Store expansion in subsidiaries: ₹6,546 lakhs utilized of ₹14,016 lakhs allocated (₹7,470 lakhs unutilized)
  • Machinery and equipment: ₹666 lakhs fully utilized of ₹666 lakhs allocated
  • General corporate purposes: ₹3,383 lakhs utilized of ₹3,712 lakhs allocated (₹329 lakhs unutilized)
  • Total utilization: ₹10,595 lakhs utilized of ₹18,394 lakhs (₹7,799 lakhs unutilized)

Financial Position (Standalone as of September 30, 2026)

  • Total assets: ₹55,138 lakhs (compared to ₹54,527 lakhs as of March 31, 2026)
  • Equity share capital: ₹1,143 lakhs
  • Other equity: ₹41,405 lakhs
  • Cash and cash equivalents: ₹3,410 lakhs (compared to ₹538 lakhs as of March 31, 2026)
  • Inventories: ₹5,148 lakhs (compared to ₹4,588 lakhs as of March 31, 2026)
  • Trade receivables: ₹4,650 lakhs (compared to ₹3,054 lakhs as of March 31, 2026)

Cash Flow (Standalone Six Months Ended September 30, 2026)

  • Net cash from operating activities: (₹1,269) lakhs
  • Net cash from investing activities: ₹4,751 lakhs
  • Net cash from financing activities: (₹610) lakhs
  • Net increase in cash: ₹2,872 lakhs

Auditor Review

The standalone and consolidated financial results were reviewed by Deloitte Haskins & Sells LLP, who expressed an unmodified conclusion. For consolidated results, one subsidiary (with total assets of ₹5,196 lakhs and revenue of ₹1,673 lakhs for six months) was reviewed by another auditor.

Entities Included in Consolidation

  • Stanley Lifestyles Limited (Parent)
  • Stanley Retail Limited (Wholly owned subsidiary)
  • Stanley OEM Sofas Limited (Wholly owned subsidiary)
  • ABS Seating Private Limited (Subsidiary)
  • Shrasta Décor Private Limited (Step-down subsidiary)
  • Staras Seating Private Limited (Step-down subsidiary)
  • Sana Lifestyles Limited (Step-down subsidiary)
  • Scheek Home Interiors Limited (Step-down subsidiary, struck off effective July 20, 2026)

#Tags: #StanleyLifestyles #Q2Results #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Negative